CONSUMER BEHAVIOUR IS.

Activities
Physical
Mental
Selecting
Purchasing
Using
Dispensing
Products
Services
Needs and Desires

PERSONAL vs. ORGANISATIONAL CONSUMERS

Personal User End Users

Organizational User for an Organization

MARKETING VS SOCIAL CONCEPT

MKT Needs of the individual

Social Needs of society

CONSUMER BEHAVIOUR HISTORY

Different wants and needs

Roots
Psychology
Sociology
Social Psychology
Economics
Lead to MKT segmentation

CONSUMER DECISION MAKING PROCESS

INPUT STAGE
MKT Effort
Social Influences
PROCESS STAGE
Purchase
Information
ID Alternatives
OUTPUT STAGE
Post purchase evaluation
Ethics

Teleology Economic Goods

Deontology Individual Good

MARKET SEGMENTATION

Process
Dividing
Distinct Subsets
Common Characteristics
Selecting
Target Distinct Mix

9 BASES FOR SEGMENTATION

Geographic
Demographic
Psychographics
Psychological
Usage Situation
Sociological
Hybrid
Benefit
Use

EFFECTIVE TARGET MARKETING

Identifiable
Sufficient (Size)
Stable (demographics and psychological )
Accessibility (reach it in an economical manner )

IMPLEMENT SEGMENTATION STRATEGIES

Differentiated - Many segments targeted differently

Concentrated - One segment targeted
Counter Segmentations -
CONSUMER MOTIVATION (definition)

Driving Force
Impels to action
Aware
Unfulfilled need
Tension
Action
Satisfy

TYPES OF NEEDS

Innate Needs
Acquired Needs

TYPES OF GOALS

Generic
Product Specific

GOALS CLASIFICATION

Positive
Avoidance

GOAL SELECTION

Personal
Physical
Accessibility
Self Image

TYPES OF MOTIVATION

POSITIVE - Coke cos youre thirsty

NEGATIVE - No Coke cos youre fat

MOTIVATION CLASSIFICATION

Rational - Big Shampoo at a lower Price

Emotional - Expensive Shampoo cos its natural
DYNAMIC NATURE OF MOTIVATION

Some are never satisfied

New needs replace old
Goal are achieved

IF NOT ABLE TO ACHIEVE THE GOAL

Substitute Goals
Defence Mechanisms
Aggresion
Rationalisation
Regression
Autism
Projection

TWO OTHER ASPECT OF DYNAMIC MOTIVES

Several needs one goal
Different Goals same need, same need difference goals

MASLOW
Physiological
Safety
Social
Ego
Self Actualisation

TRIO
Np
Naf
Nach

Measuring Motives
Validity
Reliability

5 PERSONALITY AND CONSUMER BEHAVIOUR

Personality
Inner
Physiological
Traits
Determine / reflect
Responds
Environment

3 PERSONALITY PROPERTIES
reflect individual differences
consistent and enduring
can change

FREUDIAN THEORY
Id (primitive)
Super Ego (social norms)
Ego (balance of the two)
NEO FREUDIAN
Interdependence
TRAIT Theory

PERSONALITY AND CONSUMER DIVERSITY

Innovativeness
Dogmatism
Social Character
Optimum Stimulation Level (OSL)
Variety Novelty Seeking

COGNITIVE PERSONALITY FACTORS

Need for cognition
Visualisers vs Verbalisers

CONUMER MATERIALISM > COMPULSION

Consumer Materialism
Fixated Consumption Dehaiviour
Compulsive Consumption Behaviour

CONSUMER ETHNOCENTRISM
Response to foreign products
BRAND PERSONALITY

SELF AND SELF IMAGE

Actual Self Image
Ideal Self Image
Social Self Image
Ideal Social Self Image
Expected Self Image

PRODUCT CAN BE SEEN TO AID IN THE SELF IMAGE

Actually
Symbolically
Conferring Status
Feelings of Immortality

6 CONSUMER PERCEPTION

CONCEPT OF PERCEPTION
Sensation
Sensory Receptors
Sensitivity
Absolute Threshold
Differential Threshold

JND
Reduce the impact of negative
Ensure that improvements are noticanle

DYNAMICS OF PERCEPTION
Effect of internal
Internal Predispositions
Selection
Organization
Interpretation
Perceptual Selection

PERCEPTUAL SELECTION
Nature of the stimulus
Previous Experience
Individuals Motives

4 CONCEPTS NB
Selective Exposure
Selective Attention
Perceptual Defense
Perceptual Blocking

PERCEPTUAL ORGANISATION
figure and background
Grouping
Closure

PERCEPTUAL INTERPRETATION
Physical Appearances
Stereotypes
Irrelevant Clues
First Impressions
Jumping to conclusions
Halo Effect

CONSUMER IMAGERY
Positioning
Perceptual Mapping
Perceived Price
Perceived Quality
Retail Store Image
Manufacturers Image

PERCEIVED RISK
Uncertainty
Consequences

RISK TYPES
Functional Risk
Physical Risk
Financial Risk
Social Risk
Psychological Risk
Time Risk
REDUCE RISK
Seeking Information
Brand Loyal
Selecting by Brand Image
Relying on store image
Buying the most expensive
Seeking Reassurance

7 CONSUMER LEARNING

DEFINED
Process
Acquire
Purchase and Consumption
Knowledge and Experience
Apply to Future

BEHAVIOURAL LEARNING
Classical Conditioning
Repetition
Stimulus Generalized
Stimulus Discrimination
Instrumental Conditioning
Observational Learning

COGNITIVE LEARNING
Mental processes
Motivation

MEMORY STORES

Sensory Store
Short Term Store
Long Term Store

MEMORY RETENTION

Activation
Schema
Chunking
Episodic Storage
Semantics
ELABORATION LIKLIHODE MODEL

Involvement Level
NB to persuasion
Measured
Involvement Profile
Interest in the Prod
Rewards of the product
Perceived reflect of the prod on personality
Risk

MEASURES OF CONSUMBER BEHAVIOUR

CONSUMER LEARNING IMPORTANT

Obtain and Increase market share

Install brand loyalty

MEASURES OF LEARNING

Recognition and Recall

Cognitive Measures
Attitudinal and Behaviour Loyalty

BRAND EQUITY
Value of a well known brand
Megabrands
Co-Branding

CONSUMER ATTITUDE FORMATION

FOUR ELEMENTS OF ATTITUDE

The object
Attitudes Learned
Attitudes have Consistency
Occur in a situation

TRICOMPONENT MODEL
Cognitive
Affective
Conative Component

MULTIATTRIBUTE MODEL
Attitude toward object model
Attitude toward behavior model
Theory of reasoned action model

THEORY OF TRYING TO CONSUME MODEL

ATTITUDE TOWARDS THE ADD MODEL

ATTITUTE FORMATION

HOW ATTITUDES ARE LEARNED

Classical Conditioning
Instrumental Conditioning
Cognitive Learning

SOURCES OF INFLUENCE ON ATTITUDE FORMATION

Personal Experience
Family and friends
Direct Marketing
Mass Marketing
Personal Factors

STRATEGIES FOR ATTITUDE CHANGE

Utilitarian (find another use)
Ego Defence (appeal to the ego)
Value Expression
Knowledge Function (give more information)

ALTERING THE COMPONENTS OF THE MULTIARRIBUTE MODEL BY;

Changing the relative evaluation of attributes
Changing brand beliefs
Adding and Attribute
Changing the overall branding

CHANGING BELIEFS ABOUT COMPETATIVE PRODUCTS

Comparative Advertising

ELABORATIVE LIKELIHOOD MODEL ATTITUDE CHANGE 2 WAYS

Persuasive Route
Central Route

BEHAVIOUR CAN PRECEDE OR FOLLOW ATTITUDE FORMATION

Cognitive Dissonance Theory
Attribution Theory

COMMUNICATION AND CONSUMER BEHAVIOUR #9

COMPONENTS OF COMMUNICATION
Sender
Message
Medium
Receiver
Feedback

PROCESS OF COMMUNICATION
Encodes
Decodes
Medium (Visual Verbal)
Feedback
Sender Evaluation
Noise
Endorsers
Selective Perception
Psychological Noise

COMMUNICATIONS STRATEGY
Objective
Audience

MEDIA STRATEGY
Consumer Profile
Media Type (radio, TV, paper)
Specific Medium (Fair Lady, You)

MESSAGE STRATEGIES
Verbal + Visual
Message Framing
Comparative Advertising
Order Effects
Repetition

ADVERT APPEALS
Factual
Emotional
Fear
Humour
Abrasive Advertising
Sex

REFERENCE GROUPS AND FAMILY INFLUENCES

WHAT IS A GROUP
Two or more people
Work together
Achieve individual Mutual Goals

WHAT IS REFERENCE GROUP

Any group that can be used as a comparison

TWO TYPES OF (DIRECT AND INDIRECT) GROUPS

Normative
Comparative

FACTORS THAT EFFECT INFLUENCE

Information and experience
Credibility , attractiveness and power of the group
Conspicuous of the product

CONSUMER RELATED REFERENCE GROUPS

Friendship
Shopping
Work
Virtual Group / Communities
Consumer Action
Family

REFERENCE GROUP APPEALS

Admiration
Aspiration
Empathy
Recognition
- Celebritites
- Experts
- Common Man
- Executive
- Respected Retailer
- Seals of approval

FAMILY DEFINITION
Two peoples related by blood, marriage or adoption living together

TYPES OF FAMILIES
Married Couple
Nuclear Family (M+W+1or2)
Extended Family ( Nuclear family + grandparents)
Single Parent (W or H + 1 or 2)

FAMILY SOCIALISATION TYPE

Socialization of children
Adult Consumer Socializations
Intergenerational Socialisation

OTHER FUNCTIONS OF THE FAMILY

Economic Well being
Emotional Support
Suitable family lifestyles

EIGHT ROLES IN THE FAMILY DECISION MAKING PROCESS

Influencers
Gatekeepers
Deciders
Buyers
Preparers
Users
Maintainers
Disposers

THE FLC
Bachelorhood
Honeymooners
Parenthood
Post Parenthood
Dissolution
SOCIAL CLASS #11

SOCIAL CLASS
Divison of members
Into distinct classes
Same characteristics

SOCIAL STATUS
Measurement of social class in terms (wealth, power, education, occupation)

MEASUREMENT OF SOCIAL CLASS

Subjective Measures
Reputational Measures
Objective Measures (income, education)

SINGLE VARIABLE AND COMPOSITE VARIBLE MEASUREMENTS

Occupation
Education
Income
Quality of neighborhood
Rand value
Possessions

SOCIAL CLASS MOBILITY

Move from one class to the next
Higher class act as reference groups
Target the higher class down

GEODEMOGRAPHIC CLUSTERING
Add geographic data to the existing information

AFFLUENT CONSUMER
More money = More buying power

LESS AFFLUENT
Brand loyal

TECHNOCLASS
Internet and Computer are widening the gap

SELECTED CONSUMBER BEHAVIOUR APPLICATIONS

Different classes have differing tastes.
They shop in different environments
They have differing pass times

INFLUENCE OF CULTURE ON CONSUER BEHAVIOUR

WHAT IS CULTURE
Total of learned beliefs, values and customs
Beliefs - Mental verbal statements
Values Few in number, guide the consumer, enduring, accepted
Customs Culturally acceptable behavior.
Direct consumer of a specific society
CULTURE IS LEARNED
Formal Learning
Informal learning
Technical Learning

MEASUREMENT OF CULTURE
Content Analysis
Consumer Fieldwork
Value Measurement Survey

CORE VALUE SELECTION

Value must be pervasive
Enduring
Consumer Related

SUBCULTURE AND CONSUMER BEHAVIOUR #13

SUBCULTURE DEFINED
A distinct cultural group exists within a larger, more complex society

SUBCULTURES CAN BE DEFINED ON DEMOGRAPHIC AND SOCIOCULTURAL

VALIABLES;
Nationality
Religion
Geographic Locality
Race
Age (generation X, baby boomers, older markets)
Gender (stay a home, plan to work, Just a job, career orientated)
Occupation
Social Class

CROSS CULTURAL CONSUMER BEHAVIOUR AN INTERNATIONAL PERSPECTIVE #14

WHY?
International Markets offer growth
Global consumers eager to consume foreign products

CROSS CULTURAL CONSUMER ANAYSIS

Cultures
Sub cultures
Similarities
Acculturation
Familiar with foreign society
Develop Strategies that will persuade foreign consumers

ALTERNATE MULTINATIONAL STRATEGIES: GLOBAL VS LOCAL

Standardised Marketing Strategies that focus on shared cultural needs
Differing Market for Different Cultures or Countries
Continuum Stage 1 Stage 5

Standard Local
Use Current Adapt Comms
Standard MKT Strat Use Current
 Product
Adapt Prod New everything
Local Use Current
Comms

SIX GLOBAL VALUE GROUPS

Strivers
Devouts
Altruists
Intimates
Fun seekers
Creatives

CONSUMER INFLUENCE AND THE DIFFUSION OF INNOVATION

OPINION LEADER
Process where one person
Influences the action of attitudes of another

DYNAMICS OF THE PROCESS

Opinion Leaders are considered credible
OL provide good and bad feedback
OL provide information and advice
OL is category specific
OL is a two way street

MOTIVATION TO ACT AS AN OPINION LEADER

Self improvement (and receiver)
Product motivations (and receiver)
Social Involvement (and receiver)
Message involvement
Purchase PALs
Male - product specific
Female - moral support

MEASUREMENT OF OPINION LEADERSHIP

Self designating method
Sociometric method
Key information method
Objective Method

PROFILE OF OPINION LEADERS

Innovativness
Willingness to talk
Self Confident
Gregariousness
Cognitive Differentiation
Interest
Knowledge
Special Interest media exposure
Same age
Same Social status
Social exposure outsire of group

FREQUENCY AND OVERLAP OF OPINION LEADERSHIP

Opinion leadership in one area and another

MARKET MAVENS
Wide range of information
Initiate and respond to information request
High and low involvement products
There level stems from general market knowledge rather than product experience

DIFFUSION OF INNOVATION (HOW A NEW PRODUCT IS SPREAD INTO THE MARKET)

DIFFUSION PROCESS (CONSUMER ACCEPTANCE)
Relative advantage
Compatibility
Complexity
Trainability
Observability