The Consumer Audience

Chapter 5
 How Does Consumer Behavior
Work?
• Consumer behavior
– Describes how individuals or groups select,
purchase, use, or dispose of products – as well as
describing the needs that motivate these behaviors
• Consumer audience
– People who buy or use products to satisfy their
needs and wants
• Customers
– People who buy a particular brand or patronize a
specific store
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 Cultural and Social Influences
Culture
• Tangible items and intangible Social Class
concepts that together define a • The position a person
group of people or a way of and his/her family hold
life within society
• Norms & values: Norms are
simply rules. Values are our
underlying belief system.
• Core values
• Secondary values
• Subcultures
• Corporate culture
5-3
 Cultural and Social Influences
Reference Groups Family
• A group of people who • Two or more people
are used as a guide for who are related by
behavior in specific blood, marriage, or
situations adoption and live in the
same household

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 Cultural and Social Influences
Demographics Characteristics
• The statistical, personal, • Age
social, and economic • Sexual orientation
characteristics that • Race and ethnicity
describe a population
• Occupation
• Income
• Personality
• Religion
• Nationality
5-5
 Psychological Influences
Perception/State of Mind Motivations
• Affects how people • Internal forces that
perceive information as stimulate people to
well as determines the behave in a particular
particular pattern of manner
consumer behavior • Produced by the tension
caused by an unfulfilled
need

5-6
 Psychological Influences
Attitudes and Values Personality
• Attitudes impact • Distinctive
motivations characteristics that make
• Influence how people or brands
consumers evaluate individual
products, institutions, • Brand personalities
retail stores, and make them distinctive
advertising from their competitors

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 Psychological Influences
Psychographic Influences Psychographics
• Lifestyle and • Lifestyles
psychological – Looks at the ways
characteristics that have people allocate time,
a bearing on how people energy, and money
make decisions • The VALS system
– Lifestyle profiles that
collectively reflect a
• http:// whole culture
www.strategicbusinessi
nsights.com/vals/presur • Trends
vey.shtml
5-8
VALS Framework

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 Behavioral Influences
• Usage behavior
– How much of a product category or brand
customers buy
• Innovation and adoption
– How willing people are to be innovative and try
something new

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 The Consumer Decision Process
• Need recognition • The consumer
recognizes the need for
• Information search a product
• Evaluation of • Advertising should
activate or stimulate this
alternatives
need
• Purchase decision
• Postpurchase
evaluation
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 The Consumer Decision Process
• Need recognition • Can be casual or formal
• Advertising helps the
• Information search search process by
• Evaluation of providing information
and making it easy to
alternatives
find, as well as
• Purchase decision remember
• Postpurchase
evaluation
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 The Consumer Decision Process
• Need recognition • Consumers compare
various products and
• Information search reduce the list of
• Evaluation of options
• Advertising helps sort
alternatives
out products on the
• Purchase decision basis of tangible and
intangible features
• Postpurchase
evaluation
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 The Consumer Decision Process
• Need recognition • Often a two-part
decision
• Information search – Select the brand
• Evaluation of – Select the outlet from
which to purchase
alternatives • In-store promotions
• Purchase decision affect these choices
• Postpurchase
evaluation
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 The Consumer Decision Process
• Need recognition • The customer
reconsiders and justifies
• Information search the purchase
• Evaluation of • Determines whether the
customer will keep the
alternatives
product, return it, or
• Purchase decision refuse to buy the
product again
• Postpurchase
evaluation
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 Segmenting and Targeting
• Segmenting
– Dividing the market into groups of people who
have similar characteristics in certain key product-
related areas
• Targeting
– Identifying the group that might be the most
profitable audience

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 Segmenting and Targeting
• Market aggregation strategy
– When planners purposefully use one marketing
strategy that will appeal to as many audiences as
possible
• Market segmentation
– Assumes that the best way to sell is to recognize
differences within the broad market and adjust
strategies and messages accordingly

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 Segmenting and Targeting
• Types of segmentation • Sociodemographic
– Demographic segments
segmentation • Niche markets
– Geographic – Defined by some
segmentation distinctive trait
– Psychographic
segmentation
– Behavioral segmentation
– Benefits segmentation

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 Segmenting and Targeting
• Targeting the right audience
– The target is described using the variables that
separate this prospective consumer group from
others who are not in the market
• Profiling the target audience
– Describing the target audience as if they are people
you know
– Used in developing media and message decisions

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