ConsBeh Pt 2of3 PsyInfl 2Aug06 n22

Understanding Consumer Behavior: 

Understanding Consumer Behavior To conceptualize social and psychological influences on consumer behavior Part 2 of 3 Social Influences Situational Influences PsychologicalInfluences Marketing Strategy

Simplified Model of Buyer Behavior: 

Simplified Model of Buyer Behavior

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Target Audience Responses Expanded Model of The 'Black Box' (Complex (Mental) Decision Processes)

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Perception . . The process of interpreting andamp; giving meaning to stimuli Selective Exposure Selective Interpretation Selective Retention Closure That fish was at least 8 pounds Reality is what you perceive Perception Influences Buying Behavior

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Buy Large BLOCKS of Advertising Bookend Ads yada, yada, yada Bookend Ads Putting Ads in . . . . Unconventional Places Creating Contrast Sensory Receptors Stimuli Perception

Influences on Perception : 

Influences on Perception Mental andamp; Physical abilities to experience sensation (ex. IQ-height) Stimulus Intensity and Context in which the stimulus was encountered. The person’s personality, moods, needs, and wants.

Maslow’s Hierarchy of Needs: 

Maslow’s Hierarchy of Needs Motivation Influences Buying Behavior (Majority)

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Hidden Motives (S. Freud) Behavior is not simple, there are Hidden motives to all situations (subconscious) Buyers are motivated by symbolic product concerns (andamp; economic-functional) Hidden motives require motivation research

1970 Retro Toys are Back: 

1970 Retro Toys are Back 1st created in 1970’s, The Strawberry Shortcake and Care Bear brands were dormant for years. Re-launched in 2002, it now reaches a larger demographic audience andamp; is projected to grow to $100 mil. over next 4-5 yrs. People enjoy recalling their childhood years Retailers feel merchandise is viewed as 'timeless and ageless' – a classic look Applied Marketing

Learning Influences Buying Behavior: 

Cognitive learning Theory produces 'changes in one’s knowledge or behavior caused by information or interpretation of experiences.' Repetition = Reinforcement (+ andamp; -) Satisfying behaviors are likely to be repeated. Learning Influences Buying Behavior

Classical Conditioning:(Pairing of Two Unrelated Stimuli): 

Classical Conditioning: (Pairing of Two Unrelated Stimuli) Unconditioned Stimulus Conditioned Stimulus Conditioned Response Repeat Pairings over time to condition association Decay (wear out) - Association weakens if not reinforced Song = Happy Pairing a stimulus that elicits the desired response A neutral stimulus

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Observational Learning – watching the behavior of others and noting the benefits received (Reference group Influence)

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Multiple Levels of Product Learning Product Class Brand Product Form Model/Feature Coffee Ground Instant Folgers Maxwell House 1-pound can 8-ounce jar Tea Regular Decaf Lipton Celestial $1 regular $2 Herbal Flavors

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Operant Conditioning – rewards andamp; punishment for behavior (positive/negative reinforcement)

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Attitude: a pre disposition to act toward X …your evaluation of and behavioral tendencies toward a product Product Beliefs X Evaluations Cognitions: Knowledge of product attributes Affect (liking/disliking) toward attributes (feelings andamp; emotions) Learning product attributes leads to product attitudes Attitude may be a weak predictor of behavior due to attitude centrality or mediators (good diagnostic tool) Beliefs Evaluation

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Attitude toward Pizza Hut Ao Feedback (time andamp; situation specific) Beliefs about Pizza Hut Behaviors toward Pizza Hut Has pan pizzas Has super supreme pizzas Has a salad bar Serves beer Is more expensive than Domino’s Has convenient location Has free parking Has pleasant employees Has nice atmosphere Go to Pizza Hut on Friday night Order a large pan pizza Complain to manager Ignore Pizza Hut ad on TV Use a Pizza Hut coupon for a free soft drink Recommend Pizza Hut to boss Read Pizza Hut menu Beliefs, Attitude, and Behaviors

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Comes in a pump Gets teeth clean Is more expensive than store brands Has a red, white, and blue package Freshens breath Has a tartar-control formula Has fluoride Prevents cavities Is made by Procter andamp; Gamble Approved by the American Dental Association Is what my parents use Has mint flavor Comes in a gel Crest Comes in tubes No mess Tastes good Salient beliefs and Attitude

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Means-End Chain: A Product is a Means to an End BRAND ATTRIBUTES CONSEQUENCES VALUES (Benefits) GilletteSensor Razor Spring suspension for twin blades Lubricating strip Close shave Smooth, soft shave Be well groomed Be comfortable A means – end chain is a consumer’s knowledge structure that connects consumer meanings about product attributes, consequences, and values.

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Product attributes can be evaluated differently leading to more than one means-end chain Means-End Chain High Price Spend too much Good quality Have less to spend on other things Last a long time Waste of money Good value To Be well groomed To Be comfortable

Personality & Self Concept: 

Personality andamp; Self Concept Personality A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations (extrovert – introvert) Self-concept (self-image) Perception or view of oneself Lifestyles An individual’s pattern of living expressed through activities, interests, and opinions

Personality types influence the small business buying : 

Personality types influence the small business buying Idealists (24%) Optimizers (21%) Hard Workers (20%) Jugglers (20%) Sustainers (15%) www.pitney-works.com Small Business Owners (2000)

Psychological Influences help explain the decision process leading to behavior : 

Psychological Influences help explain the decision process leading to behavior Problem Recognition Information Search Evaluation of Alternatives Purchase Decision Post Purchase Behavior Expectations