Marketing 305, Chapter 1, Foundations of Consumer Behavior

The pyramid of consumer behavior

*The top: Micro Consumer Behavior*: individual focus -experimental psychology -clinical psychology -developmental psychology -human ecology -microeconomics -social psychology -sociology -macroeconomics -semiotics/ literary criticism -demography -history -cultural anthropology *The bottom: Macro consumer behavior*: social focus the pyramid provides a glimpse of some of the disciplines that work in the field and the level at which each tackles research issues

quantitative data

-*surveys* -*data mining*: tracking real time shopping data using technology that can analyze video images (typically using hidden camera -*experiments*

Where do we find consumer researchers?

-just about anywhere we find consumers -you'll find them in laboratories, running experiments or in malls interviewing shoppers -they may conduct focus groups or run large scale polling operations

What topics to researchers work on?

-many types of topics from everyday household products and high tech installations to professional services, museum exhibits, birth control devices, and public policy issues

consumer culture theory (CCT)

-refers generally to research that regards consumption from social and cultural point of view rather than more narrowly as an economic exchange -part of *interpretivist* approach

interpretivism (postmodernism)

-the newer paradigm questions these assumptions. -Proponents of this perspective argue that our society emphasizes science and technology too much and they feel that this ordered, rational view of behavior denies or ignores the *complex social and cultural world* in which we really live -Stress the importance of symbolic, subjective experience, and the idea that meaning is in the mind of the person -we each construct our own meanings based on our unique and shared cultural experiences, so there are no right or wrong answers. -We live in a *Pastiche*: mixture of images and ideas -there is *more than one perspective*, we can have multiple realities, people have completely different viewpoints on what happened at the same event

Psychographics

-the way we feel about ourselves -the things we value -the things we do in our spare time

Problem with self-report methods

-there is the question: Will they tell us the truth? Washing hands example: -Past telephone surveys found that 94% of people stated they always wash their hands -however that was not was found in a study -example: in the JFK airport only 62% of males washed their hands and 78% of females

80/20 rule

20 percent of users account for 80 percent of sales 80% are light users, 20% are heavy users

Race and Ethnicity

African Americans, Hispanic Americans, and Asian Americans are the three fastest growing ethnic groups in the US As our society becomes more multicultural, new specialized products opportunities arise

Consumer's perspective, post purchase issues

Does the product provide pleasure or perform its intended function? How is the product eventually disposed of, and what are the environmental consequences of this act?

Marketer's perspective, pre purchase issues

How are consumer attitudes toward products formed and/or changed? What cues do consumers use to infer which products are superior to others?

Marketer's perspective: purchase issues

How do situational factors, such as time pressure or store displays, affect the consumer's purchase decision?

Consumer's perspective: pre purchase issues

How does a consumer decide that he/she needs a product? What are the best sources of information to learn more about alternative choices?

Consumer's perspective: purchase issues

Is acquiring a product a stressful or pleasant experience? What does the purchase say about the consumer?

Mass culture

Our society is evolving from a mass culture in which many consumers share the same preferences to a *diverse one* in which we each have almost an infinite number of choices —just think about how many shades of lipstick or necktie patterns compete for your attention.

geography

People who live in the North and South have *different preferences and beliefs* hi maddie sobieski

What tools do we have to collect primary data about consumer behavior?

Qualitative data and quantitative data

4 Types of relationships a person might have with a product

Self-concept attachment- Nostalgic attachment: Interdependence Love

positivist approach... how is knowledge generated?

Time free, context independent

Marketer's perspective: post purchase issues

What determines whether a consumer will be satisfied with a product and whether he/she will buy it again? Does this person tell others about his/her experiences with the product and influence their purchase decisions?

consumer

a person who identifies a need or desire, makes a purchase and then disposes of the product during the three stages of the consumption process

Family Structure

a person's family and marital status is important because it has an effect on a consumer's spending priorities -Young bachelors and newlyweds are most likely to exercise, go to bars, concerts, and movies -Families with young children are big purchasers of health foods and fruit juices

Paradigm

a set of beliefs that guide our understanding of the world some believe we are in a *paradigm shift*: which occurs when competing paradigm challenges the dominant set of assumptions

Most marketings now recognize that consumer behavior is...

an ongoing process

Age example: Red Bull

consumers of different age groups obviously have different needs and wants, although people who belong to the same age group may differ in many ways Marketers initially develop a product to attract one age group and then try to broaden its appeal later on Red bull was originally for young people but it moved to the older golfer scene when it sponsored the PGA tour

qualitative data

ethnography in-depth interviews focus groups projective techniques

positivist approach's view on causality

existence of real causes

Positivism

he dominant paradigm at this point in time this perspective has significantly influenced western art and science since the late 16th century. It emphasizes that human reason is supreme and that there is a single, objective truth that science can discover

Interpretivist approach's view on research relationships

interactive, cooperative with researcher being part of phenomenon under study

Gender

many products will either target men or women -Hygiene products, sports gear, clothes

demographics

marketers find it useful to categorize consumers in terms of age, gender, income, or occupation. These are descriptive characteristics of a population

Relationship Marketing

marketers who interact with customers on a regular basis and give them solid reasons to maintain a bond with the company over time

Interpretivist approach's view on causality

multiple, simultaneous shaping events

Positivist approach view of the nature of reality goal

objective, tangible, single prediction

Both qualitative and quantitative

observation video-mining online listening opinion panels cell phone tracking test markets

exchange

part of the consumer behavior process - a transaction in which two or more organizations or people give and receive something of value, is an integral part of marketing -burning man offers alternative exchange practices

social Class and income

people who belong to the same social class are approximately equal in term of income and social standing Determines which groups have the greatest buying power and market potential

positivist approach's view on research relationship

separation between researcher and subject

Interpretivist approach's view on nature of reality goal

socially constructed multiple understanding

Heavy Users

sometimes companies define market segments when they identify their most faithful customers

Big Data

the collection and analysis of extremely large datasets

Love

the product elicits emotional bonds of warmth, passion, or other strong emotion example: having badger clothes, going to badger games as an alumni

Self-concept attachment

the product helps to establish the user's identity buy a Prius to show that you are environmentally conscious

Interdependence:

the product is a part of the user's daily routine brands that are embedded into our daily routines, things that you need everyday example: creast toothpaste

Nostalgic attachment:

the product serves as a link with a past self foods from childhood like mac & cheese

Role Theory

the sociological perspective that takes the view that much of consumer behavior resembles actions in a play We as consumers seek the lines, props, and costumes necessary to put on a good performance Marketers need to provide us with the necessary props we need to play all of our roles (geek, hipster, jock)

consumer behavior

the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas, or experiences to satisfy needs and desires.

Lifestyles

the way we feel about ourselves, the things we value, the things we like to do in our spare time

Interpretivist approach's view on how knowledge is generated

time-bound, context dependent

Database Marketing

tracks specific consumers buying habits closely and crafts products and messages tailored precisely to people's wants and needs based on this information Walmart knows when there is a big storm coming to ship in lots of strawberry poptarts and beer