Principles of Marketing

Chapter 4

Consumer Behavior
The study of when, where, and how people
buy things and then dispose of them.
CB is the main intersection point between
psychology and marketing.

Avenues of Research
Typical Marketing Research
Survey, focus group, etc.

Avenues of Research
Observing behavior directly
In person, from a distance, on camera, etc

Avenues of Research
Monitoring behavior remotely:
Through RFID, mobile phone signal, etc.

Avenues of Research
Monitoring directly:
fMRI, eye-tracking, etc

Consumer Decision-Making Process

Consumer Decision-Making Process

1) Need Recognition
Before any action can be taken, there has to be a
need/want, or at least a perceived need/want.
Can be due to a natural body function (thirst,
hunger), a primer (seeing an advertisement), or
any other stimulus that forms a need.

Consumer Decision-Making Process

Stimulus

Consumer Decision-Making Process

1) Need Recognition
It can also come from a need due to a new development.
I camp a fair amount, but I am about to start camping for
longer distances and durations.
I now have a need to update my current sleeping
arrangement.
My current one is too large, heavy, and warm for this
type of camping. I now recognize I need
a new sleeping bag or alternative.

Consumer Decision-Making Process

2) Search for Product Information
In this stage, the focus is on information
gathering and determining what is needed for the
product or service.
In my example, I havent purchased a sleeping
bag in years, so I have no knowledge of what is
available and what I need to focus on.

Consumer Decision-Making Process

2) Search for Product Information
Since I am looking for lightweight and
small size, I find that synthetic down is
both lightweight and easily packed
away.
I also know that there are alternatives
such as the use of a hammock and the
use of military poncho-liners that can
provide what I am looking for.

Consumer Decision-Making Process

3) Product Evaluation
He the decisions are made about what price is
acceptable, what are the features that are musthave and not important, and determine the right
mix of what is needed (there will always be a
tradeoff).

Consumer Decision-Making Process

3) Product Evaluation
The main decision for me is packability* and
price.
Most lightweight materials are expensive, so the
prices are possibly going to drive me away from
a sleeping bag. The non-sleeping bag
alternatives are almost a moot point with
concern with packing.
*totes a word

Consumer Decision-Making Process

4) Product Choice and Purchase
Here is where the decision is made and the actual purchase
takes place.
I decided to go with a hammock since it is cheaper, more
packable, and sufficient for the camping I am planning.
I have an REI membership and
they were having a sale, so the
purchase was made online due to
those factors and a lack of a close
REI store.

Consumer Decision-Making Process

5) Postpurchase Use and Evaluation of Product
The first camping trip I went on, the hammock
sufficiently met my needs. I would have
preferred it not be -50degrees the next time I
camp since it was freezing cold (overpass
freezing before the road).

Consumer Decision-Making Process

6) Disposal of the Product
So far, the product is fine, but I will most likely
upgrade in the future since where I am moving
has no trees, and hammocks lose most of the
benefits on the ground.

Consumer Decision-Making Process

6) Disposal of the Product
Some products are more suited to longerlifespans than others. For instance, I have an axe
and cast-iron Dutch-oven that will most likely
outlast the end of the world.

Consumer Decision-Making Process

6) Disposal of the Product
Some products are not likely to last all that long
or will be outdated relatively quickly (such as
electronics).
If this is something that is planned by the
manufacturer, it is known as planned
obsolescence.

Involvement
Involvement is how we describe how personally
important or interested a consumer is in a
product/service.
Low involvement products have a low risk of
failure or an inconsequential loss if it is incorrect.
If you purchase a pack of gum that isnt your usual
flavor and it isnt good, you probably wont be
completely ruined mentally and financially by the
decision.

Involvement
Low involvement products are generally
associated with routines or non-thinking
situations.
Have you ever made a purchase at the grocery
store and not noticed you made the purchase until
you were home.
I have this problem with this involving chocolate.

Involvement
In a similar vein, impulse purchases are
generally associated with low involvement
products. Impulse purchases are those that are
made with no real planning. Think POP
displays.

Involvement
High involvement is the opposite end of the
spectrum with the product being very risky and
carrying a high cost if an error is made.
Think a house, car, vacation, etc.
Caveat: remember this is personal, so what is high
involvement for me could be low involvement for you.

With high involvement there is the common

process of extended problem solving, or spending
a large amount of resources to gather information
before making a decision.

Involvement
Limited problem solving is only a small
amount of time in making a purchase. I have
limited problem solving when it comes to wine
since I have spent a lot of time around wine, so
I know a lot about the process and need only a
little time to make a purchase.

Involvement
There is no right or wrong way to make
purchases. Sometimes situations dictate that
high involvement decisions be made very fast
and sometimes low involvement choices take a
little time.

Physical Situation
Where is the milk in Kroger? Walmart?
Why?

Is Ikea easy to navigate?

Physical Situation
Anything physical attributes a firm has control
over is called atmospherics.
Who has been to an Apple store?
What did it smell like?

Where are clocks in a casino?

Physical Situation
Some things are uncontrollable.
Weather: Imagine looking for a car and it rains?
No among of atmospherics can deal with that
problem.
People: Is it a good idea to go to Walmart during
the week of moving into the dorms?
Not always bad, when people see a crowd, we generally
think something good is happening.

Social Situation
Which would you buy from:
A Girl Scout selling cookies in front of Walmart,
or a your neighbors daughter, a Girl Scout, selling
cookies?
I hate going out for drinks with my friends due to
the social aspects.

Time Situation
When time-crunched, we generally act
differently and purchase at different levels than
normal.

Purchase Reasoning
When looking for a gift for an acquaintance,
you probably dont want to spend an afternoon
looking for a gift.
Giftcards are a perfect answer to getting someone a
gift without a lot of hassle.

Mood
Some people are exhilarated by shopping,
some hate it. Some that love it may dread
shopping on holidays.
Mood affects how and why we purchase.
The fair and Jenny

Consumers Personality
Personality traits define who we are (to a
degree) and can affect how we shop.
The big five personality traits:

Openness- how open you are to new experiences

Conscientiousness- how diligent you are
Extraversion- how outgoing or shy you are
Agreeableness- how easy you are to get along with
Neuroticism- how prone you are to negative mental
states

Consumer Self-Concept
Consumers have an idea in their mind of what
they are, known as self-concept. This opinion
can be in line with reality or it can be counter
to what others see that person as.
When a person sees him/herself as one thing,
but are really another, it can be an instance of
someone seeing their ideal self and not their
actual self.

Consumer Age and Stage of Life

How many of you are in the market for a
tuxedo?
Life-stages can dictate what products you are
actually going to look at or avoid altogether.
This can also tie to the difference in cognitive
age and chronological age.
Moosey vs Betty
Wife and I vs K and D

Consumers Lifestyle
Just because you are in a demographic, your
life can be wildly different from someone like
you.
We can look at psychographics, or the
attitudes, values, lifestyles, and opinions of
consumers, to aid in determining what lifestyle
a person has.

Psychological Factors
Motivation- inward drive to get what we need.

Maslows Hierarchy of Needs

Physiological needs
Food, water, sleep

First level that must be satisfied to continue

along the hierarchy.
This is why when you get really hungry, nothing
else matters

Maslows Hierarchy of Needs

Safety needs
Feeling safe and sheltered from harm

Once we are fed, we start thinking about being

safe from any harm.

Maslows Hierarchy of Needs

Social Needs
Love, friendship, and acceptance

This stage is when we feel comfortable and

will pay attention to the outside world and
building relationships.

Maslows Hierarchy of Needs

Esteem Needs
Respect from others

Now that friendships can be had, now there is

an effort to make something of your
accomplishments and be noticed by others.

Maslows Hierarchy of Needs

Self-Actualization Needs
Internal satisfaction with ones self

Maslows Hierarchy of Needs

So where does a new Italian sports car fit?
What about a high end attach, purse, etc?

Consumer Perception
Perception is how an individual sees the world.
Since it is individualized, perception is
arguably* the only thing that matters.

*I am making that argument

Consumer Perception
How cool are these glasses?

Consumer Perception
How about now?

Consumer Perception
How about now?

Consumer Perception
Selective perception is the filtering of
information based on relevance.
Have you ever ignored an advertisement or retail
store until you needed what they provided?

Consumer Perception
Selective retention is when information is
remembered due to its matching of your
values.
How many health warnings are forgotten when an
opportunity to participate in an activity are
presented?

Psychological Factors
Shock advertising is used to garner attention
using attention-grabbing means.

Psychological Factors
Shock doesnt have to be negative
Carls Jr ad during superbowl was shocking due to
the nature of the commercial

Subliminal Advertising
Not really a factor due to it being illegal, but
some argue it still occurs.
Most notable use was in 1957 during a movie
Increased coke sales 57.8%
Popcorn 18.1%

Learning
How behavior changes once information is
gained.
You buy a Sony DVD player and it breaks, you
stop buying Sony. You learned that Sony isnt
good (anecdotal, please dont sue me).

Learning can also occur through trials, like

free samples or test drives and even just stuff
with information on it like mugs and tshirts.

Operant Conditioning
Behavior that is repeated when rewarded.

Consumers Attitudes
Attitudes are mental positions or feelings
consumers have about products, companies,
ideas, issues, or institutions.
Some of these are somewhat under your
control, some are just inherent.

Consumers Attitudes

Consumers Attitudes

Societal Factors
Consumer culture- shaped beliefs, customs,
behaviors, and attitudes that characterize a
society. (The Joneses is a great example)

Consumer Subculture
Subculture is a group of people within a
culture who are different from the dominant
culture but have something in common with
one another.
These can be interest-based, religion, ethnicity,
background, etc.

Consumer Social Class

Social classes are groups of people who have
the same social, economic, or educational
status in society.
Scion, Toyota, Lexus
VW, Audi, Porsche, Bugatti, Bentley

Reference Group and Opinion Leaders

Reference groups are groups you identify with
and wants to join.
If you like sports, most likely you reference
with people similar to these guys.

Reference Group and Opinion Leaders

Opinion Leaders are the people with expertise
in certain areas that have an influence over a
group.
This doesnt have to be a celebrity, it can be as
simple as a friend that is very knowledgeable or an
associate at a store.
Golf business

Consumer Family
Generally, you are a lot like the people in your
life, especially your caretakers. Most likely,
the little details in your life were crafted by
your parents, siblings, extended family, etc.
If you have kids, it works the other way as
well. Parents ask kids for advise and also for
input into decisions more than ever due to
technology.

Bottom Line
CB is one of the largest subsets of marketing
for a reason. We are all influenced by so many
things and our experiences are so idiosyncratic
that the exploration into what makes us tic will
be one that is fruitful and everlasting.

 This years Super Bowl was an exciting one to say the least. The game
was a battle until the end with major plays coming from both teams and
the halftime show was one of the best in recent memory. One thing that
was noticeably different was a change in a general tone for the
commercials during the game. (If you missed the commercials or just
want a refresher, you can see them all at
https://www.youtube.com/adblitz) Your assignment is to discuss the
commercials, their general tone/feeling/mood, and explain what
commercial was your favorite and why. This is to be submitted to the
Blackboard drop box before 2:30 on Tuesday February 10, 2015. Use a
Microsoft Word, 12-point, Times New Roman, one-inch margin
document for your submission. If you want, you can start the assignment
on this sheet right after the instructions and you dont have to change
anything on the document! (The instructions dont count toward your
word count). The length should be between 300 and 500 words. For
reference, this instruction is over 200 words. If you do not submit the
assignment or submit an assignment in a form other than that specified
above, you will receive a 0 for the assignment.