1. Personality and Consumer Behavior CHAPTER FIVE

2. A Simple Model of Consumer Decision Making Chapter One Slide2 Copyright 2010 Pearson Education, Inc.

3. Overview 1.Personality reflects consumers’ inner differences. 2.Freudian, Neo-Freudian, and Trait Theories are used to explain the influence of personality on consumers’ attitudes and behavior. 3. Marketers seek to create Brand Personality-Like traits to match the consumer’s personality traits. 4.Products and services that consumers use enhance their Self-Images. 5.Online, consumers can play Virtual Personalities. 3Chapter Five Slide

4. Personality Definition and Nature 4Chapter Five Slide

5. Personality and The Nature of Personality The Nature of Personality: – Personality reflects individual differences (marketers can look for certain similar personality traits in different consumers and work on them as a segment) – Personality is consistent and enduring (This helps marketers predict consumer behavior in terms of personality) – Personality can change (your personality now is somewhat different from when you were 7 years old) 5Chapter Five Slide Personality is the inner psychological characteristics that determine and reflect how a person responds to his or her environment.

6. Theories of Personality 6Chapter Five Slide

7. Theories of Personality Freudian theory – Unconscious instinctual and sexual needs or drives are primarily at the heart of human motivation and personality in nature. Neo-Freudian personality theory – Social relationships are fundamental to the formation and development of personality Trait theory – Quantitative approach to personality as a set of psychological traits 7Chapter Five Slide

8. Freudian Theory 8Chapter Five Slide According to Freud, human personality consists of these three systems, the id, super ego and the ego.

9. Freudian Theory Id – The warehouse of primitive or instinctual (physiological) needs or drives such as hunger, thirst, and sex which are driven by pleasure principle and immediate gratification (individual seeks immediate satisfaction). Superego – Individual’s internal expression of society’s moral and ethical codes of conduct. it drives the individual to fulfill their needs in a socially acceptable function. Ego – Individual’s conscious control that balances the demands of the id and superego (reality principle) 9Chapter Five Slide

10. Freudian Theory the Id is the devil and the SUPEREGO is the "angel." The EGO is basically the "brain" in between, trying to sort out what each is advocating and more objectively and logically arrive at a decision. Chapter Five Slide 10

11. How Does This Marketing Message Apply the Notion of the Id? 11Chapter Five Slide It Captures Some of the Mystery and The Excitement Associated With the “Forces” of Primitive Drives.

12. Neo-Freudian Personality Theory Social relationships are fundamental to formation and development of personality. Karen Horney’s three personality groups people can be classified as to how they interact with others as: – Compliant: move toward others. A compliant individual desires to be loved, wanted and appreciated. – Aggressive: move against others. aggressive individual desires to excel and win admirations. – Detached: move away from others. detached person desires independence, self reliance and freedom from obligation. 12Chapter Five Slide Study: highly compliant students prefer name-brand products like Bayer. Aggressive students prefer masculine appeal brands like Old Spice.. Whereas detached proved to be heavy tea drinkers as a sign of difference.

13. Trait Theory A trait is any distinguishing, relatively enduring way in which one individual differs from another. Tests can be done to measure single traits in consumers such as how receptive they are to new experiences (innovativeness), their attachment to possessions (materialism), and their likelihood to accept or reject foreign- made products (ethnocentrism). 13Chapter Five Slide

14. A study: Soup and Soup Lover’s Traits Chicken Noodle Soup Lovers – Watch a lot of TV – Are family oriented – Have a great sense of humor – Are outgoing and loyal – Like daytime talk shows – Most likely to go to church Tomato Soup Lovers – Passionate about reading – Love pets – Like meeting people for coffee Vegetable/Minestrone Soup Lovers – Enjoy the outdoors – Usually game for trying new things – Spend more money than any other group dining in fancy restaurants – Likely to be physically fit – Gardening is often a favorite hobby 14Chapter Five Slide Research result: Personality traits are linked to broad product categories and NOT specific brands Chili-beef Soup Lovers – Generally preferred by males – are the most social of all soup lovers – love telling jokes – watch sporting events

15. Personality traits and consumer behavior 15Chapter Five Slide Marketers are very interested in the link between personality traits and consumer behavior. Trait Theory

16. 1- Consumer innovativeness and related Personality traits 16Chapter Five Slide Trait Theory

17. Consumer innovativeness and related personality Traits Consumer innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation level Sensation seeking Variety- novelty seeking 17Chapter Five Slide

18. Consumer Innovativeness Consumer innovativeness is the tendency to try new products Companies consider consumer innovativeness very important when introducing new products or brand extensions. For hi-tech products, innovativeness can be at two types: – Global (General) innovativeness (overall consumer innovative level of willingness to buy new and different products or brands at any category). – Domain-specific innovativeness (when consumer deals with particular product category such as computers, cameras, fashion, or watches). A person’s innovativeness level depends on what is called: Optimum Stimulation Level (OSL) 18Chapter Five Slide

19. المتبنون الأوائل Early Adopters/ Pioneers Mass Market/ Followers End of Life الزمن Time عدد المشترين Number of customers المبدعون Innovators الأكثرية المبكرة Early Majority الأكثرية المتأخرة Late Majority المتلكأون Laggards introductiongrowthmaturitydecline % 34 % 16% 13.5 % 2.5 Consumer adoption categories based on adoption time

20. Optimum Stimulation Level A personality trait that measures to which extent the consumer tends to like or dislike new (novel) and unusual experiences and products High OSL consumers tend to accept risky and new products more readily than low OSL consumers. High OSL consumers are important to marketers of new products. Two concepts are closely related to OSL: -Sensation seeking -Variety seeking 20Chapter Five Slide

21. Sensation Seeking The need for varied, novel, and complex sensations and experience. And the willingness to take social and physical risks for the sensations. Much research has been tied to the study of teenage males who often engage in this behavior. 21Chapter Five Slide

22. Variety Seeking Measures a consumer’s degree of variety seeking Types of variety seekers include: – Exploratory Purchase Behavior ( consumers often switch brands to experience new products ). – Use Innovativeness ( consumers display variety by use innovative products ). – Vicarious Exploration ( which often does not involve actual purchase about the product, but as a result of watching, listening to, or reading about it of other people ). 22Chapter Five Slide

23. Dogmatism A personality trait that reflects the degree of rigidity a person displays toward the unfamiliar things and information that is contrary to his or her own established beliefs. 23Chapter Five Slide Dogmatism describes to which extent a person is rigid or open to new and unfamiliar ideas and products. A person who is highly dogmatic will rarely consider the unfamiliar and tend to be very close minded. Marketers have realized this type of customer appreciates advertising appeals with celebrities and other experts.

24. Social Character Ranges on a continuum for inner-directedness to other- directedness Inner-directedness – rely on own values when evaluating products – Innovators Other-directedness – look to others’ guidance – less likely to be innovators 24Chapter Five Slide Social character is of great interest to marketers because it differentiates the type of advertising that influences these customers. Inner-directed people prefer ads that stress product features. Other-directed individuals gravitate to ads that show approving social environment rather than product information – they want to look to others to understand how to act or be accepted, and the ads give an example of this.

25. Need for Uniqueness Consumers who avoid conforming to expectations or standards of others, either in appearance or possessions. You may be able to identify friends with greater need for uniqueness. You can see it in their clothes and hairstyles. 25Chapter Five Slide

26. 2- Consumer’s cognitive Personality factors 26Chapter Five Slide Trait Theory

27. Consumer’s cognitive Personality Factors Need for cognition (NFC) – A person’s craving for enjoyment of thinking – Individual with high NFC are more likely to respond to ads rich in product information 27Chapter Five Slide The level of a consumer’s need for cognition affects how they are likely to respond to certain types of advertisements. Those who are high in need for cognition tend to respond to ads that supply product information as opposed to those who are low in need for cognition who tend to be attracted to the background of the ad, attractive models, and cartoon characters.

28. Visualizers (consumers who prefer visual information). Verbalizers (consumers who prefer verbal or written information). This difference in cognitive personality factors would affect how they respond to a print ad. 28Chapter Five Slide Consumer’s cognitive Personality Factors

29. Why Is This Ad Particularly Appealing to Visualizers? 29Chapter Five Slide The Ad Stresses Strong Visual Dimensions

30. Why Is This Ad Particularly Appealing to Verbalizers? 30Chapter Five Slide It Features a Detailed Description (information)

31. 3- Materialistic, fixated, and compulsive consumers 31Chapter Five Slide Trait Theory

32. Materialistic people traits Acquire and show off possessions Self centered and selfish Seek lifestyle full of possessions Do not get greater personal satisfaction from possessions Materialistic People 32Chapter Five Slide

33. Fixated and Compulsive Consumers Fixated consumption behavior – Consumers fixated on certain products or categories of products (examples: Collectors and hobbyists) – Characteristics Passionate interest in a product category Willingness to secure the product category of interest Dedication of time and money to find the product Compulsive consumption behavior – “Addicted” or “out-of-control” consumers with their purchase (suffer form shopping addiction called Oniomania). 33Chapter Five Slide

34. 4- Consumer Ethnocentrism and Cosmopolitanism 34Chapter Five Slide Trait Theory

35. Consumer Ethnocentrism and Cosmopolitanism Ethnocentric consumers feel it is wrong to purchase foreign-made products because of the impact on the economy. They can be targeted by stressing nationalistic themes (buy their nation made products). Cosmopolitan consumers would consider the world to be their marketplace and would be attracted to products from other cultures and countries. 35Chapter Five Slide

36. Brand personality 36Chapter Five Slide

37. Brand Personification Personality-like traits associated with brands Examples – Perdue chickens (freshness) – Nike (athlete) – BMW is performance driven – Mr. Coffee is seen as dependable, friendly, efficient, intelligent and smart. Brand personality which is strong and favorable will strengthen a brand and lead to a more favorable attitude, brand preference, higher purchase intention, and brand loyalty 37Chapter Five Slide

38. Self and self image 38Chapter Five Slide

39. Self and Self-Image Consumers have a variety of enduring images of themselves. Individuals tend to buy products and services and patronize retailers whose images or personalities relate to their own self images (traditional, sophisticated, sexy, elegant). Note that everyone has multiple self images in different situations. 39Chapter Five Slide Example: think about yourself at a formal university function vs. a party with good friends. Next, think of the clothing you would purchase for these events. It would likely be very different as you are presenting a different “self” at each event.

40. Different Self-Images 40 How consumers see themselves Actual Self-Image How consumer would like to see themselves Ideal Self- Image Chapter Five Slide Many consumers will purchase products to meet the gap between their actual and ideal selves.

41. Virtual Personality (virtual self) Online, you can be anyone… – Gender swapping – Age differences – Different marital status – Mild-mannered to aggressive – Introvert to extrovert It is likely that the new virtual personality may result in selected forms of purchase behavior. This may in turn offer marketers targeting various “online selves” 41 Chapter Five Slide