1. Copyright © 2010 by Nelson Education Ltd. Chapter 4 Consumer Behaviour with Duane Weaver

2. Copyright © 2010 by Nelson Education Ltd. 4-2 Outline 1.Perception 2.Cultural Influences 3.Social Influence & Reference Groups 4.Family Roles 5.Motivation – (remember Maslow?) 6.Self Concept 7.Attitudes 8.Learning 9.Buying Process/Consumer Decision Making

3. Copyright © 2010 by Nelson Education Ltd. Write down the first thought that pops into your head when you see this image …the FIRST THOUGHT

4. Copyright © 2010 by Nelson Education Ltd. 4-4 Perceptions The meaning that a person attributes to incoming stimuli gathered through the five senses – sight, hearing, touch, taste, and smell

5. Copyright © 2010 by Nelson Education Ltd. Culture Values, beliefs, preferences, and tastes handed down from one generation to the next Culture is a broad environmental determinant of behaviour Core Values in Canadian Culture While some cultural values change over time, basic core values take much longer to evolve Examples: Importance of family; Peace and order Cultural Influences 4-5

6. Copyright © 2010 by Nelson Education Ltd. 4-6 Social Influences Group membership influences an individual’s purchase decisions and behaviour in both overt and subtle ways Groups establish norms of behaviour Differences in status and roles within groups also influence behaviour Norms The values, attitudes, and behaviours that a group deems appropriate for its members Status The relative position of any individual member in a group Roles Define behaviour that members of a group expect of individuals who hold specific positions within the group

7. Copyright © 2010 by Nelson Education Ltd. 4-7 Reference groups Groups whose value structures and standards influence a person’s behaviour Social Power of Reference Groups: “ the capacity to alter the actions of others” (Solomon, et. al, 2008, p. 315) is exemplified in the following 6 forms: 1.Referent Power – admired 2.Information Power – access to info. 3.Legitimate Power – social agreement (e.g. judge) 4.Expert Power – possess knowledge/skills 5.Reward Power – means to provide positive reinforcement 6.Coercive Power – effective in short term Social Influences

8. Copyright © 2010 by Nelson Education Ltd. 4-8 Social classes Groups whose rankings are determined by occupation, income, education, family background, and residence location Research identified six classes: 1.Upper-upper 2.Lower-upper 3.Upper-middle 4.Lower-middle 5.Working class 6.Lower class Social Influences

9. Copyright © 2010 by Nelson Education Ltd. 4-9 Family Influences Autonomic role― when the partners independently make equal numbers of decisions Husband-dominant role― when the husband makes most of the decisions Wife-dominant role― when the wife makes most of the decisions Syncratic role― when both partners jointly make most decisions

10. Copyright © 2010 by Nelson Education Ltd. 4-10 Personal Determinants of Consumer Behaviour

11. Copyright © 2010 by Nelson Education Ltd. 4-11 Needs and Motives Need An imbalance between a consumer’s actual and desired states Motive Inner state that directs a person toward the goal of satisfying a felt need

12. Copyright © 2010 by Nelson Education Ltd. 4-12 Self-Concept Theory Self-concept A person’s multifaceted picture of himself or herself, composed of the: Real self Self-image Looking-glass self Ideal self

13. Copyright © 2010 by Nelson Education Ltd. 4-13 Attitudes A person’s enduring favourable or unfavourable evaluations, emotional feelings, or action tendencies toward some object or idea Attitude Components Cognitive—individual’s knowledge about an object or concept Affective—deals with feelings or emotional reactions Behavioral—tendencies to act in a certain manner

14. Copyright © 2010 by Nelson Education Ltd. 4-14 Learning An immediate or expected change in behaviour as a result of experience The learning process includes: Drive—any strong stimulus that impels action Cue—any object in the environment that determines the nature of the consumer’s response to a drive Response—an individual’s reaction to a set of cues and drives Reinforcement—the reduction in drive that results from a proper response; creates bond between the drive and the purchase of the product

15. Copyright © 2010 by Nelson Education Ltd. 4-15 The Consumer Decision Process Consumers complete a step-by-step process when making purchase decisions High-involvement purchase decisions are those with high levels of potential social or economic consequences Low-involvement decisions are routine purchases that pose little risk to the consumer Cognitive dissonance Post-purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes after an action or decision is taken Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition

16. Copyright © 2010 by Nelson Education Ltd. Thank You for your Time! 4-16