Week 5: Consumer Behavior, Cultural/Social/Personal Factors

Four Types of Buying Behavior

Complex Behavior Buying Behavior Consumers undertaking complex buying behavior will pass through a learning process, first developing beliefs about the product, then attitudes, and then making a thoughtful purchase choice. More common when the the product is expensive or a large investment Dissonance-Reducing Buying Behavior Consumers undertaking complex buying behavior are highly involved in the purchase decision process, but "perceive" few differences between brands. Variety Seeking Buying Behavior Consumers undertaking this buying behavior switch brands for the sake of variety, not because of Dissatisfaction. Market leader will try to discourage variety-seeking by coinating shield space, runnin frequent reminder advertising Habitual Buying Behavior Consumers undertaking this buying behavior do not pass through the usual "belief attitude behavior" sequence. Their brand beliefs are formed by passive learning, not active learning. Marketers can raise engagement by using price and sales promotions to promote buying or add new Product features

Buyer Characteristics

Cultural Social Personal

Cultural Factors Influencing Consumer Behavior

Culture Subculture Social Class

Influencer Marketing

Enlisting established influences to help promote

Subculture Demographics

Hispanic American consumers Deeply family oriented - shopping is a family affair More active on mobile and social networks than other segments African American consumers More price conscious than other segments Brands are important More pressure on business to support social causes Asian American consumers Fastest-growing, most affluent, most brand conscious Can be fiercely brand loyal

New Product Adoption Demographics

Innovators Early Adopters Early Mainstream Late Mainstream Lagging adopters

Psychological Factors Influencing Consumer Behavior

Learning Drive - a strong internal stimulus that calls for action Cues - minor stimuli that determines when, where, and how the person responds Memory beliefs - a though that soon holds about something We can have misbeliefs

Social Factors Influencing Consumer Behavior

Membership Group To which person belongs, exerts direct influence Reference Group Group that serves a point of comparison/reference Opinion Leader A person within a reference group, who, because of their special skills, knowledge, or other characteristics, exerts social influence on others Word of Mouth The impact of the personal words or recommendations of trusted friends, family, a associates, and other consumers buying behavior

Buyer Psychology

Motivation Perception Learning Memory

Buying Decision Process

Need Recognition Buyer recognizes a problem or need Stimulated by internal or external stimuli Internal stimuli A drive (pressing need), such as hunger, thirst, love External stimuli What you can see/hear/feel/touch Information Search Personal source Commercial source Public source Experiential source Evaluation of Alternatives Sometimes consumers use careful calculation and logic thinking Sometimes consumers buy on impulse Sometimes consumer buy on intuition Purchase Decision Attitudes of others Unexpected situational factors Postpurchase Behavior Customer perceived value = expectation - perceived performance Disappointed? Satisfied? Delighted?

Marketing Stimuli

Product Price Place Promotion

Influence of Product Characteristic on Adoption Rate

Relative Advantage Is the new product superior to existing products in all aspects? Compatibility Does it fit consumers' current skill sets/lifestyle? Complexity Is it easy to understand and use Divisibility Can people fully experience it on a limited basis? Communicability Is it easy to describe it to consumers?

Cognitive dissonance

discomfort caused by post-purchase conflict