Consumer Behavior- Interpersonal

determinants :
Cultural, Social & Family Influences

Notes Compiled by Dr. Swati Nalawade

• Consumer behavior Process through which
buyers make decisions.
• Marketers borrow extensively from
psychology and sociology to better understand
consumer behavior.
• Consumer behavior is usually understood as a
function of interpersonal influences and personal
factors.
 CHAPTER 5 Consumer Behavior

Types
Types of
of Consumer
Consumer Choices
Choices

 Six
 SixGeneric
GenericConsumer
ConsumerBehavior
BehaviorChoices:
Choices:
1.1. Product
Product
2.2. Brand
Brand
3.3. Shopping
Shoppingarea
area
4.4. Store
Storetype
type
5.5. Store
Store
6.6. Nonstore
Nonstoresource
source(catalogs,
(catalogs,PC,
PC,&&TV
TVshopping)
shopping)
 CHAPTER 5 Consumer Behavior

Experiential
Experiential Choices
Choices

Consumers Affect Referral:

frequently make  Consumers elicit from
choices based on memory their overall
evaluations of products
their emotions and
and choose the alternative
feelings. for which they have the
most positive feelings.
 CHAPTER 5 Consumer Behavior

Experiential
Experiential Choices
Choices

Impulse
Purchases:
 Choices made on the
spur of the moment,
often without prior Time-inconsistent
problem recognition.
Choices:
 Choices consumers make
which act against their own
better judgment and
engage in behavior they
would normally reject.
 CHAPTER 5 Consumer Behavior

Influence
Influence of
of the
the Social
Social Environment
Environment
 INTERPERSONAL DETERMINANTS OF
CONSUMER BEHAVIOR
CULTURAL INFLUENCES
• Culture Values, beliefs, preferences, and tastes
handed down from one generation to the next.
• Culture is a broad environmental determinant of
behavior.

Core Values in U.S. Culture/ Indian

Culture?
• Work ethic and desire the accumulate wealth.
• Importance of family and home life.
• Individualism, education, freedom, youth, health,
and others.
• Consumers are adopting new values as
communication technology changes.
International Perspective on Cultural
Influences
• Successful strategies in one country may not
extend to others.
Subcultures
• Groups within a culture that have their own modes
of behavior.
• In U.S. subcultures can differ by ethnicity,
nationality, age, rural versus urban location,
religion, and geographic distribution.
• Population mix in U.S. is changing as the
Hispanic, African American, and Asian populations
grow.
 CHAPTER 5 Consumer Behavior

Cultural
Cultural Influences
Influences

Culture:
 Culture:
 The
Culture
 Cultureis
islearned
learnedand
and

Thevalues,
values,ideas,
ideas,
attitudes,
attitudes,and
andsymbols
symbols transmitted
transmittedfrom
fromone
one
that
thatpeople
peopleadopt
adopttoto generation
generationto
tothe
thenext.
next.
communicate,
communicate,
interpret,
interpret,and
andinteract
interact
as
asmembers
membersof ofsociety.
society.
 CHAPTER 5 Consumer Behavior

Cultural
Cultural Influences
Influences

Socialization:
 Socialization: Consumer
 Consumer
 The
Theprocess
processof
of Socialization:
Socialization:
absorbing
absorbingaaculture
culture  When

Whensocialization
socializationisis
applied
appliedto
tomarketing
marketingand
and
consumer
consumerbehavior.
behavior.
 CHAPTER 5 Consumer Behavior

Values
Values

Values:
 Shared beliefs or cultural norms about what is
important or right.

Cultural values directly influence how

Consumers view and use individual
products, brands, and services.
 CHAPTER 5 Consumer Behavior

Values
Values

 The
 TheList
Listof
ofValues
Values(LOV):
(LOV):
••Self-respect
Self-respect
••Warm
Warmrelationships
relationships
••Self-fulfillment
Self-fulfillment
••Sense
Senseofofbelonging
belonging
••Respect
Respectfrom
fromothers
others
••Excitement
Excitement
••Security
Security
••Sense
Senseofofaccomplishment
accomplishment
••Fun
Funandandenjoyment
enjoymentininlife
life
 CHAPTER 5 Consumer Behavior

Values
Values

 Values and Lifestyles (VALS):

 Identifies eight market segments that
share similar end values.
 CHAPTER 5 Consumer Behavior

Subcultures
Subcultures

Ethnic Patterns:
 The norms and values of specific groups or
subcultures within a society.
 CHAPTER 5 Consumer Behavior

Subcultures
Subcultures

Demographic

Demographiccharacteristics
characteristicsused
usedto
to
identify
identifysubcultures:
subcultures:
 Nationality - Hispanics, Italians
Nationality - Hispanics, Italians

 Race - African-American, American Indian,

Race - African-American, American Indian,
Asian
Asian

 Region - New England, the South

Region - New England, the South

 Age - Elderly, teenager

Age - Elderly, teenager

 Religion - Catholic, Jewish, fundamentalist

Religion - Catholic, Jewish, fundamentalist
SOCIAL INFLUENCES
• Everyone belongs to multiple social groups:
family, neighborhood, clubs, and sports teams.
• Group membership influences buying decisions.
• Groups establish norms of behavior—values,
attitudes, and behaviors that a group deems
appropriate for its members.
• Differences in status and roles within groups
also influence behavior.
• Some Americans make purchases to enhance their
status within social groups, and others work to
reduce their consumption dramatically.
The Asch Phenomenon
• Theory of psychologist S. E. Asch that
individuals conform to majority rule, even if that
majority rule goes against their beliefs.
Reference Groups
• Reference groups People or institutions whose
opinions are valued and to whom a person looks for
guidance in his or her own behavior, values, and
conduct, such as family, friends, or celebrities.
• Influence of reference group depends on two
conditions:
• Purchased product must be seen and
identifiable.
• Purchased product must be conspicuous,
something not everybody
owns.
Social Classes
• Six classes: upper-upper, lower-upper, upper-
middle, lower-middle, working class, lower class.
• Income not always a primary factor.
Opinion Leaders
• Reference groups Trend- setters who
purchase new products before others in a
group and then influence others in their
purchases.
• Individuals tend to act as opinion leaders
for specific goods or services.
• Information sometimes flows from mass
media to opinion leaders to consumers;
sometimes flows directly to consumers.
 CHAPTER 5 Consumer Behavior

Interpersonal
Interpersonal Influences
Influences

Reference
 Reference Groups:
Groups:
Those

Those others
others look
look to
to for
for help
help and
and
guidance
guidance including
including friends,
friends, co-
co-
workers,
workers,and
and others.
others.
 CHAPTER 5 Consumer Behavior

Social
Social Class
Class Influences
Influences

Social
 Social Classes:
Classes:
 Relatively
Relativelyhomogeneous
homogeneousdivisions
divisions
within
withinaasociety
societythat
thatcontain
containpeople
people
with
withsimilar
similarvalues,
values,needs,
needs,
lifestyles,
lifestyles,and
andbehavior.
behavior.
 CHAPTER 5 Consumer Behavior

WHAT IS A GROUP?

PEOPLE WHO HAVE SENSE OF RELATEDNESS AS A

RESULT OF INTERACTION WITH EACH OTHER.
AN AGGREGATION IS SIMPLY A GHETTO OF PEOPLE
AT A GIVEN TIME;
WHILE,
A CATEGORY IS ANY NUMBER OF PEOPLE WHO
HAVE SOME PARTICULAR ATTRIBUTES IN COMMON.
A GROUPN CAN BE

• COHESIVE- MEMBERS HAVING SIMILAR NORMS

• FREQUENTLY INTERACTING-EASY TO
INFLUENCE MEMBERS
• DISTINCTIVE & EXCLUSIVE- MEMBERSHIP IN
 CHAPTER 5 Consumer Behavior

GROUPS HAVE

FUNCTIONS: WHETHER THEY ARE STUDENTS,

WORKERS, AND PROFESSIONALS

DEGREE OF PERSONAL INVOLVEMENT:

PRIMARY GROUP OR SECONDARY GROUP

DEGREE OF ORGANISATION:
THE DIFFERENTIATION IS ON THE BASIS OF

HIGHLY STRUCTURED FORMS.

 WHAT ARE REFERENCE GROUPS ?

A FACE TO FACE GROUP THAT SERVES AS A REFERENCE POINT FOR

THE INDIVIDUAL IN FORMING HIS OR HER BELIEFS, ATTITUDES AND
BEHAVIOUR

FOR ANY INDIVIDUAL TO GET INFLUENCED BY THE GROUP,

• PRODUCT SHOULD CONNOTE STATUS
• GROUP SHOULD BE VALUED IN TERMS OF VIEWS, REWARDS AND
SANCTIONS
• MEMBERS SHOULD BE CLOSE AND FREQUENTLY INTERACTING
 TYPES OF REFERENCE GROUPS

REFERENCE GROUPS PROVIDE POINT OF COMPARISON TO

EVALUATE ATTITUDES AND BEHAVIOUR.

MEMBERSHIP GROUPS= MEMBER OF A FAMILY

ASPIRATION GROUP= ASPIRE TO BE PART OF SPORTS GROUP,
THEATRE GROUP

DISCLAIMANT GROUP= AN INDIVIDUAL JOINS OR BELONGS TO

A
GROUP AND THEN REJECTS IT.
DISSOCIATIVE GROUP= AVOIDS MEMBERSHIP IN A PARTICULAR
GROUP
 TYPES OF REFERENCE GROUPS

POSITIVE POSITIVE MEMBERSHIP

ASPIRATION GROUP
GROUP
ATTITUDE

NEGATIV DISCLAIMANT GROUP ASPIRATION GROUP

EATTITU
DE

TYPES OF MEMBERSHIP GROUPS

INFORMAL FORMAL
PRIMARY SCHOOL GROUPS
FAMILY/ PEER GROUPS BUSINESSGROUPS

SHOPPING GROUPS ALUMNI GROUPS

SECONDARY SPORTSGROUPS

TYPES OF ASPIRATION GROUPS

CONTACT
ANTICIPATORY
NO CONTACT SYMBOLIC
 AND GROUPS HAVE PROPERTIES TOO…...

NORMS: GENERALLY UNDEFINED RULES AND STANDARDS OF

CONDUCT THE GROUP ESTABLISHES.
VALUES: LARGELY DEFINED BY CULTURES AND SUBCULTURES BUT
VARY SUBSTANTIALLY BY FAMILY AND PEER GROUP.
ROLES: FUNCTIONS THAT THE INDIVIDUAL ASSUMESOR THE GROUP
ASSIGNS TO THE INDIVIDUAL TO ATTAIN GROUP OBJECTIVES.
STATUS: THE POSITION THAT THE INDIVIDUAL OCCUPIES WITHIN THE
GROUP. HIGH STATUS IMPLIES GREATER POWERAND
INFLUENCE.
SOCIALISATION: PROCESS BY WHICH INDIVIDUAL LEARNS GROUPS
NORMS
AND ROLE EXPECTATIONS.
CONSUMER SOCIALISATION: THE PROCESS BY WHICH CONSUMERS
ACQUIRE KNOWLEDGE AND SKILLS TO OPERATE IN A
MARKET PLACE.
 THE GREAT “MINDGAME”

THE REFERENCE GROUP INFLUENCES CONSUMER IN DIFFERENT

WAYS:
• IT ACTS AS INFORMATION PROVIDER

• IT CONFORMS THE NORMS AND EXPECTATIONS OF ITS GROUP

MEMBERS.

• IT MAKES THE INDIVIDUAL HAPPY TO LEARN THAT PURCHASINF OF A

PARTICULAR BRAND WILL FULFIL HIM WITH THE CHARACTERISTICS
THAT HE OR SHE WOULD LIKE TO HAVE
 MEMBERSHIP AND REFERENCE GROUPS FOR A
COLLEGE STUDENT
Membership Groups

SPORTS Reference Groups

GROUP

OTHER EMPLOYEES SOCIAL

AT PART TIME JOB FRIENDS
SUCCESSFUL YOUNG
FAMIL BUSINESS PEOPLE
CLASSMATES
Y
ROOMIES
SPECTATORS
AT VARIOUS PROFESSIONAL
EVENTS ATHLETES OR
ENTERTAINERS
 FAMILIES AND HOUSEHOLDS :-

FAMILY : PERSONS RELATED BY BLOOD,

MARRIAGE, ADOPTION AND COUPLES HAVING
CHILDREN .

HOUSEHOLDS: EITHER RELATED FAMILY

MEMBERS OR UNRELATED MEMBERS STAYING
TOGETHER.SPEND LOT OF TIME WITH FAMILY.
CHILDREN
THEIR INFLUENCE ON FAMILY AND FAMILY’S
INFLUENCE ON CHILDREN IS A BOON FOR
ADVERTISERS.

YOUNGSTERS ARE BEING MORE OUTSIDE OF THE

 SIGNIFICANCE OF FAMILY IN CONSUMER BEHAVIOUR

• FAMILY EXERTS INFLUENCE IN THE INITIAL AGE OF AN

INDIVIDUAL
• A FAMILY CAN BE PRIMARY GROUP ( FAMILY VALUES, NORMS)
OR A REFERENCE GROUP (STANDARDS).
• BONDS BETWEEN FAMILY ARE MUCH STRONGER THAN FOUND IN
OTHER GROUPS
• FAMILY IS THE ECONOMIC UNIT OF EARNING AND SPENDING
MONEY
• FAMILY DECIDES ABOUT THE INDIVIDUAL AND COLLECTIVE
CONSUMPTION PRODUCTS
• DECISIO N ABOUT WHAT PRODUCTS, BRANDS TO PURCHASE;
WHERE TO PURCHASE AND HOW THEY SHOULD BE USED
• FAMILY DEVELOPS CONSUMERS ATTITUDE TOWARDS SPENDING
AND SAVING
 FAMILY LIFE CYCLE
AND YOU PROBABLY THOUGHT ONLY PRODUCTS
HAVE…..
BASED ON AGE, INCOME, PARTNERS, STAGE OF CAREER, KIDS/DEPENDANTS
• BACHELOR STAGE- LOW EARNINGS/ LESS FINANCIAL BURDEN
• NEWLY MARRIED COUPLES- DOUBLE INCOME LIKELY, HIGHEST PURCHASE
RATE, CARS, CLOTHING
• FULL NEST I- REDUCTION IN FAMILY INCOME, INCREASED DEMANDS,
SUSCEPTIBLE TO ADVERTISEMENTS
• FULL NEST II- RETURN OF DOUBLE INCOME, NP ORIENTATION IS MORE, LESS
INFLUENCED BY ADS
• FULL NEST III- REPLACEMENT OF OLD PRODUCTS, MORE TRAVELLING EXPENDITURE
• EMPTY NEST I- SECURE FAMILY, HOME OWNING & IMPROVEMENT,
TRAVEL, RECREATION, GIFTS
• EMPTY NEST II- INCOME REDUCED, SPEND MORE TIME AT HOME, MEDICAL CARE
• SOLITARY SURVIVORS- HOME LIKELY TO BE SOLD,
RECREATION AND HEALTH ORIENTED ITEMS
RELATIONSHIP BETWEEN FAMILY LIFE CYCLE AND CONSUMER BEHAVIOUR

PEOPLE LEAVING
THE ‘YOUNG SINGLE STAGE”
AND ENTERING
THE “YOUNG FAMILY” STAGE
ARE
FAR MORE LIKELY TO BUY
AND
OWN ALL TYPES OF APPLIANCES!
RELATIONSHIP BETWEEN FAMILY LIFE CYCLE & CONSUMER BEHAVIOUR
FLC GIVES INSIGHT ABOUT INDIVIDUAL ATTITUDES & LEISURE
ACTIVITIES.

IT TELLS YOU ABOUT A HOUSEHOLD’S ACQUISITION PATTERN OF

DURABLE GOODS

FLC HAS INTERGENERATIONAL INFLUENCES ON ADULT CHILDREN-

(INTERGENERATIONAL TRANSFER) / PROVIDES SKILLS TO BECOME
SUCCESSFUL CONSUMERS IN A COMPLICATED MARKET PLACE.
IMPORTANT ASPECTS OF BUDGETING, ATTITUDES AND PRICE VALUE
JUDGEMENTS ARE LEARNT.
LIFE CYCLE STAGES INDICATE THAT IT IS A MORE USEFUL SEGMENTATION
TOOL.

FLC MODEL IS MORE RELATED TO THE FOOD, BEVERAGES, HOME

APPLIANCES ETC
WELL, SO HOW DOES A FAMILY DECIDE ABOUT BUYING THE
PRODUCTS?

THE NATURE OF DECISION MAKING IN A FAMILY CAN BE

UNDERSTOOD THROUGH FOLLOWING PERSPECTIVES :-

• ROLE
STRUCTURE

• POWER
STRUCTURE

• STAGE IN THE FAMILY PURCHASE-

DECISION PROCESS
• FAMILY SPECIFIC
CHARACTERISTICS
 ROLE STRUCTURE

• EVERY MEMBER PLAYS A CERTAIN ROLE IN THE FAMILY.

• INSTRUMENTAL & EXPRESSIVE: HUSBAND AND WIFE.
• PURCHASE PROCESS ROLES: INITIATOR
INFLUENCER
INFORMATION GATHERER
DECISION MAKER
PURCHASER- GATEKEEPER
ENDUSER

FOR MAKING A RIGHT MARKETING STRATEGY, EACH FAMILY MEMBERS

ROLE NEED BE CLEARLY UNDERSTOOD

ANY ASSUMPTION SHOULD BE CROSS CHECKED BY CONSUMER

RESEARCH
 POWER STRUCTURE

PATRIARCHAL/ MATRIARCHAL FAMILIES

EQUALITARIAN FAMILY
CHILD CENTERED FAMILY

OWING TO POWER STRUCTURE, THERE MIGHT BE

DISAGREEMENTS ON JOINT PURCHASE DECISIONS
SPECIALLY WHERE LARGE EXPENDITURES ARE
INVOLVED.
 POWER STRUCTURE

WIFE dominant

PURCHASE INFLUENCE PATTERN

Lamps Women’s
VACATION jewellery
Indoor paint ,
Home improvement
AUTONOMIC
JOINT STEREO Wall paper
Durables
Financial Planning Men’s leisure &
CAMERA
business
clothing

HUSBAND dominant
 HOW ARE DISAGREEMENTS ON
CHAPTER 5 Consumer Behavior

JOINT DECISION MAKING DEALT BETWEEN SPOUSES?

• USE OF PUNISHMENTS, THREATS, AND NEGATIVE EMOTIONS.

• STRATEGIES INCLUDE REFUSING TO DO CHORES, BEHAVING ANGRILY

-STATING THAT THE SPOUSE HAD NO RIGHT TO DISAGREE.

• USE OF POSITIVE EMOTION AND SUBTLE MANIPULATION-

PUTTING THE SPOUSE IN A RECEPTIVE MOOD,
PROMISING TO DO SOMETHING NICE IN EXCHANGE FOR COMPLIANCE.

• USE OF WITHDRAWAL AND EGOCENTRISM- DENYING AFFECTION,

“CLAMMING UP” AND LOOKING HURT.

• USE OF PERSUASION AND REASON-

USE OF LOGIC OR PERSISTENCE TO CONVINCE THE OTHER
SPOUSE/
TO CHANGE THEIR VIEWPOINT.
 FAMILY SPECIFIC CHARACTERISTICS

• INFLUENCE OF CULTURE,

• SOCIAL CLASS,

• REFERENCE GROUPS AND

• SOCIAL INTERACTION

SO, THIS IS HOW A FAMILY DECIDES

ABOUT BUYING
 CHAPTER 5 Consumer Behavior
FAMILY INFLUENCES ON THE CONSUMER SOCIALISATION OF ITS
CHILDREN

– DIRECT OR INDIRECT IMPACT THROUGH IMPARTING

VALUES, BELIEFS, ATTITUDES OR THROUGH MODES OF
BEHAVIOUR THAT ARE IMITATED BY FAMILY MEMBERS.
– TV COMMERCIALS ARE GREAT INFLUENCE ON
CHILDREN- IT CONVEYS CONSUMPTION RELATED
VALUES.
 ROLE OF YOUNG CHILDREN IN 5 Consumer
CHAPTER Behavior

THE FAMILY CONSUMPTION PROCESS:

 CHILDREN INFLUENCE PURCHASES OF PRODUCT THAT ARE OF

INTEREST AS WELL NOT OF INTEREST TO THEM.

 CHILDREN INFLUENCE PURCHASE OF HI-TECH PRODUCTS/BRANDS

BASED ON THE ADVERTISEMENTS SEEN.

 USE OF ICICI NET BANKING SERVICES FOR KIDS –CATCH THEM

YOUNG SYNDROME!!!

 THE LATCH KEY CHILDREN RECEIVE SPECIAL ATTENTION FROM

CERTAIN COMPANIES THROUGH MAGAZINES, ARE BETTER LEARNERS
AND ASSIST THEIR PARENTS IN HOUSEWORK.

 THESE KIDS CAN USE HI-TECH GADGETS AND THEREFORE

MAKE A SPECIAL MARKET NICHE FOR MANY PRODUCTS .
 CHAPTER 5 Consumer Behavior
ADVANTAGES & DISADVANTAGES OF USING “FAMILY”
AS THE UNIT OF ANALYSIS BY MARKETERS:

ADVANTAGES
• SIMILAR DEMOGRAPHIC VARIABLE LIKE SOCIAL, CULTURE
• THE PRODUCT IS OFTEN SAME FOR ALL MEMBERS OF THE
FAMILY
• FAMILY MEMBERS OFTEN INFLUENCE EACH OTHER AND
MAKE
PURCHASES TOGETHER

DISADVANTAGES

 IT IS THE INDIVIDUALS WHO BUY AND NOT THE FAMILY

 MARKET RESEARCHERS WOULD BE REQUIRED TO STUDY
CONSUMPTION ROLES PLAYED BY DIFFERENT INDIVIDUALS
 CHAPTER 5 Consumer Behavior

Family
Family Influences
Influences and
and the
the Family
Family Life
Life Cycle
Cycle

Family
 Familyinfluences
influencesplay
playtwo
two
important
importantroles
rolesin:
in:

 The

Thesocialization
socializationof
ofpeople.
people.

 Affecting

Affectingindividual
individualpurchase
purchase
decisions.
decisions.
 CHAPTER 5 Consumer Behavior
Family
Family Influences
Influences and
and the
the Family
Family Life
Life Cycle
Cycle

Family
 Family Life
Life Cycle:
Cycle:
 The

Thesequence
sequenceof
ofsteps
stepsaafamily
familygoes
goesthrough:
through:
  From young, to
From young, to

 Single
Singleadults,
adults,to
to

 Married
Marriedcouples
coupleswhose
whosechildren
childrenhave
haveleft
lefthome,
home,to
to

 The
Theretired
retiredsurvivor
survivor
FAMILY INFLUENCES
• Like other influences, families have norms of
expected behavior, status relationships, and roles.
• Family structure changing.
1900 Toda
y
Percent of households headed by
married couple 80 53

Percent of households that include

extended family 50 10

Percnet of married women who work

outside the home 6 60
FAMILY LIFE CYCLE STAGES
FAMILY INFLUENCES
• Four roles of spouses:
• Autonomic role—partners independently make an
equal number of
decisions.
• Husband-dominant role—husband usually makes
certain buying
decisions, such as purchasing life insurance.
• Wife-dominant role—wife makes buying
decisions, such as buying
children’s clothing.
• Syncratic role—buying decision made jointly.
• Increasing occurrence of two-income households
increases likelihood of spouses making joint buying
decisions.
Children and Teenagers in Family Purchases
• Have $192 billion in purchasing power either
directly or by influencing family purchasing
 CHAPTER 5 Consumer Behavior

Interpersonal
Interpersonal Influence
Influence Processes
Processes

 Three Types of Interpersonal Processes:

1. Informational influence is based on the
consumer’s desire to make informed choices and
reduce uncertainty.

2. Utilitarian influence is reflected in compliance

with the expectations, real or imagined, of others –
referred to as norms.

3. Value-expressive influence stems from a desire

to enhance self-concept through identification with
others.
 CHAPTER 5 Consumer Behavior

Individual
Individual Differences
Differences

 Sources of Individual
Differences
Influencing Consumer
Behavior:
1. Word-of-mouth
communications
2. Personality
3. Lifestyles and
psychographics
4. Motivation
 CHAPTER 5 Consumer Behavior

Word-of-Mouth
Word-of-Mouth Communications
Communications

Opinion Leaders:
Influence consumer behavior through
word-of-mouth communications.

Market Mavens:
Consumers who know about many kinds of products,
places to shop, and other facts of the market, and they
like to share this information with other consumers.
 CHAPTER 5 Consumer Behavior

Personality
Personality

Personality:
 Personality:
 Reflects
Reflectsaaperson’s
person’s
consistent
consistentresponse
responseto
to
his
hisor
orher
herenvironment. Personality
environment.  Personalitytraits
traits
related
relatedto
toconsumer
consumer
behavior:
behavior:
 Extroversion

Extroversion
 self-esteem

self-esteem
 dogmatism

dogmatism(closed-
(closed-
mindedness)
mindedness)
 aggressiveness

aggressiveness
 CHAPTER 5 Consumer Behavior

Personality
Personality

Self-Concept:
 Self-Concept:
 The
Theoverall
overallperception
perceptionand
andfeeling
feelingthat
thatone
onehas
has
about
aboutherself
herselfor
orhimself.
himself.
 CHAPTER 5 Consumer Behavior

Lifestyles
Lifestyles and
and Psychographics
Psychographics

Lifestyle:
 Describes a person’s
pattern of living as Psychographics:
expressed in activities,  Divide a market into
interests, and opinions lifestyle segments on the
(AIO statements). basis of consumer
interests, values, opinions,
personality
characteristics, attitudes,
and demographics.
 CHAPTER 5 Consumer Behavior

Motivation
Motivation

Motivation:

Motivation:
 Refers to a state or condition within a
Refers to a state or condition within a
person
personthat
thatprompts
promptsgoal-directed
goal-directed
behavior.
behavior.

Maslow’s

Maslow’sHierarchy:
Hierarchy:

 Self-actualization Needs - Art, books, recreation

Self-actualization Needs - Art, books, recreation
 Esteem Needs - Clothing, home furnishings
Esteem Needs - Clothing, home furnishings
 Love and Belonging Needs - Mementos, gifts, photos
Love and Belonging Needs - Mementos, gifts, photos
 Safety Needs - Burglar alarms, seat belts
Safety Needs - Burglar alarms, seat belts
 Physiological Needs - Food, heat, shelter
Physiological Needs - Food, heat, shelter
 CHAPTER 5 Consumer Behavior

Situational
Situational Factors
Factors

Consumers purchase goods

for use in certain situations.

The anticipated use

influences choice.

Situational factors can

inhibit as well as motivate.
 CHAPTER 5 Consumer Behavior

Situational
Situational Factors
Factors

Consumers
 Consumersbuy
buyproducts
productswith
withanticipated
anticipateduses
usesin
in
mind.
mind.
 CHAPTER 5 Consumer Behavior

Consumer
Consumer Behavior
Behavior Outcomes
Outcomes

Consumer Learning happens when changes

occur in knowledge or behavior patterns.

Marketers influence consumers by imparting knowledge

through advertising, product labels, and personal selling.

Marketers hope consumers will attend to, comprehend,

and then remember these messages
 CHAPTER 5 Consumer Behavior
Consumer
ConsumerSatisfaction,
Satisfaction,Dissatisfaction,
Dissatisfaction,
and
andComplaint
ComplaintBehavior
Behavior

 Satisfaction and
dissatisfaction
describe the positive,
neutral, or negative
feelings that may
occur after purchase.  Firms adopting a customer
value perspective must
 Consumer complaints employ marketing
are overt expressions communications that
of dissatisfaction. convey realistic
expectations.
 CHAPTER 5 Consumer Behavior

AA Model
Model of
of Consumer
Consumer Satisfaction
Satisfaction
 CHAPTER 5 Consumer Behavior
Findings
Findingsof ofCustomer
Customer
Satisfaction
SatisfactionResearch
Research

1.1. Satisfaction
Satisfactionjudgements
judgementsevolve
evolveand
andare
arechangeable
changeableas
as
products
productsareareused.
used.

2.
2. Satisfaction
Satisfactionjudgments
judgmentshave
haveaasocial
socialcomponent
component
determined
determinedby bythe
thesatisfaction
satisfactionof
ofothers
othersin
inthe
the
household.
household.

3.
3. Emotions
Emotionsare
areimportant
importantand
andyield
yieldinsights
insightsbeyond
beyond
simple
simplecomparison
comparisonstandards,
standards,such
suchasasexpectations
expectations
and
andperformance.
performance.

4.
4. Product
Productsatisfaction
satisfactionisisalso
alsorelated
relatedto
toquality
qualityof
oflife
life
and
andlife
lifesatisfaction.
satisfaction.
 CHAPTER 5 Consumer Behavior

Customer
Customer Complaints
Complaints

Voice Responses
(seeking satisfaction directly from the seller)

Private Responses
(bad-mouthing to friends)

Third-party Responses
(taking legal action, filing complaints
with consumer affairs agencies)
 CHAPTER 5 Consumer Behavior

Cognitive
Cognitive Dissonance
Dissonance

Cognitive
CognitiveDissonance:
Dissonance:
 A

Aform
formof
of
postpurchase
postpurchasedoubt
doubt Cognitive
 CognitiveDissonance
Dissonance
about
aboutthe
the occurs
occurswhen:
when:
appropriateness
appropriatenessof
ofaa  Decisions

Decisionsare
aremajor
major
decision.
decision.  The

Thepurchase
purchaseisisimportant
important
 Perceived

Perceivedrisk
riskisishigh
high
 The

Thepurchase
purchaseisisvisible
visible
 The

Thedecision
decisioninvolves
involvesaa
long-term
long-termcommitment
commitment
 PERSONAL DETERMINANTS OF
CONSUMER BEHAVIOR
NEEDS AND MOTIVES
• Need Imbalance between a consumer’s actual and
desired states.
• Motive Inner state that directs a person toward
the goal of satisfying a need.
Maslow’s Hierarchy of Needs
• Developed by psychologist Abraham H. Maslow
• Identifies five levels of human needs.
• Person must at least partially satisfy lower-
level needs before higher-level needs affect
behavior.
PERCEPTIONS
• Perception Meaning that a person attributes to
incoming stimuli gathered through the five senses.
• Results from two types of factors:
• Stimulus factors—characteristics of the
physical object such as size,
color, weight, and shape.
• Individual factors—unique characteristics of
the individual, including
not only sensory processes but also experiences
with similar inputs and
basic motivations and expectations.
Perceptual Screens
• Consumers are bombarded by commercial messages.
• Perceptual screens help people filter out some
messages.
• Advertisers work to break through these screens
such as through using large ads, word-of-mouth
Subliminal Perception
• Subconscious receipt of incoming information.
• Use is aimed at subverting perceptual screens.
• Unlikely to work in customers not already
inclined to buy.
ATTITUDES
• Attitudes Person’s enduring favorable or
unfavorable evaluations, emotions, or action
tendencies toward some object or idea.
Attitude Components
• Cognitive—individual’s knowledge about an object
or concept.
• Affective—deals with feelings or emotional
reactions.
• Behavioral—tendencies to act in a certain manner.
Changing Customer Attitudes
• Marketers have two choices for appealing to
consumer
attitudes:
• Attempt to produce consumer attitudes that
will motivate purchase of a particular product.
• Evaluate existing consumer attitudes and
then make the product features appeal to them.
• Attitudes may not be unfavorable, just not
motivating
the consumer toward a purchase.
Modifying the Components of Attitude
• Provide information about product benefits and
correcting misconceptions.
• Engaging buyers in new behavior.
• New technologies can encourage changes in
LEARNING
• Learning Knowledge or skill that is acquired as a
result of experience, which changes consumer
behavior.
• Learning process:
• Drive—any strong stimulus that impels action.
• Cue—any object in the environment that
determines the nature of the
consumer’s response to a drive.
• Response—an individual’s reaction to a set of
cues and drives.
• Reinforcement—the reduction in drive that
results from a proper
response; creates bond between the drive and the
purchase of the
product.
Applying Learning Theory to Marketing
Decisions
• Marketers use shaping, the process of applying a
series of rewards and reinforcements to permit more
complex behavior to evolve.
• Product and promotional strategy work together in
the shaping process.
SELF-CONCEPT THEORY
• Self-concept Person’s multifaceted picture of
himself or herself.
• Four components—real self, self-image, looking-
glass self, and ideal self— influence purchasing
decisions.
 CHAPTER 5 Consumer Behavior

What is a Self-concept?

Self-concept: the totality of the

individual’s thoughts and feelings having
reference to him-or herself as an object

Self-concept can be divided into four basic

parts…
 CHAPTER 5 Consumer Behavior

Dimensions of a Consumer’s Self-Concept

 CHAPTER 5 Consumer Behavior

Exercise

How does a tattoo

affect one’s self-
concept and become
part of one’s extended
self?
Will one or multiple
visible tattoos become
the norm for younger
consumers over the
next 10 years?
 Can you CHAPTER
describe the
5 Consumer Behavior

personality of these two girls

Exercise
 CHAPTER 5 Consumer Behavior

Extended Self

Self + Possessions

 Think of products that explain your self.

 Identify one single product in your possession
which you feel contribute to yours self concept and
has become part of your extended self.
Interaction of Self-Concept
CHAPTER 5 Consumer Behavior

and Brand Image

 CHAPTER 5 Consumer Behavior

Measurement of Self Concept

Rate your own actual self concept (A)

Rate your desired self concept (D)
Rate the product concept of your favorite
beverage(product) (B)
Rate the person concept of your favorite celebrity of
the same gender (C)
Assess the consistency of these four concepts
 CHAPTER 5 Consumer Behavior

Life Style

How a Person Lives or how one enacts his or her self

concept
Determined by:
 Past experiences
 Innate experiences
 Current situation
 CHAPTER 5 Consumer Behavior

Lifestyle and the Consumption Process


Measurement of Lifestyle
Lifestyle Studies
 Attitudes
 Values
 Activities and Interests
 Demographics
 Media Patterns
 Usage Rates
CHAPTER 5 Consumer Behavior
• Can be used as a general
measure, but most
commonly used to measure
a specific product or activity.
• General lifestyles can be
used to discover new
product opportunities.
• Specific lifestyle analysis
may help reposition existing
brands.
 CHAPTER 5 Consumer Behavior

Cosmetic Life Style Segments of UK women

 CHAPTER 5 Consumer Behavior

The Vals System

SRI Consulting Business Intelligence
42 statements of agreement
Classifies individuals using two dimensions
 Self Orientation
Principle oriented
Status oriented
Action oriented
 Resources
Individuals are placed in one of 8 general
psychographic segments
 CHAPTER 5 Consumer Behavior

VALS
Lifestyle
System
 CHAPTER 5 Consumer Behavior

Demographics of the VALS Segments

Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler Total

 CHAPTER 5 Consumer Behavior

VALS Segment Ownership and Activities

Total Actualizer Fulfilled Believer Achiever Striver Experiencer Maker

Struggler
 CHAPTER 5 Consumer Behavior

Yankelovich’s MONITOR MindBase

Considers the individual’s position on a set of core
values with his or her life cycle stage
Values identified include:
 Materialism
 Technology orientation
 Family values
 Conservatism
 Cynicism versus optimism
 Social Interaction
 Activity level

Grouped into 8 high-level segments

 CHAPTER 5 Consumer Behavior

Consumption Differences across MindBase Segments

 CHAPTER 5 Consumer Behavior

Geo-Demographic Analysis (PRIZM)

Based on the premise that lifestyle, and thus

consumption, is largely driven by
demographic factors
Analyzes geographic regions
Every neighborhood in the U.S. can be
profiled
Total of 62 lifestyle clusters
 CHAPTER 5 Consumer Behavior

International Lifestyles: GLOBAL SCAN

 GLOBAL SCANCHAPTER 5 Consumer Behavior
Segment Sizes across Countries
 CHAPTER 5 Consumer Behavior

SITUATIONAL INFLUENCES
 CHAPTER 5 Consumer Behavior

Situational influences

 What do you understand by ‘situational influences’ on consumer

behaviour ?
 Unique aspects of the online buying situations and their influence on
buying behaviour
 CHAPTER 5 Consumer Behavior

Situational influence

Situational influences are temporary environmental

conditions that exist at a specific time and place and
which influence consumer behaviour

Marketers must understand:

 The types of situations and how they influence behaviour
 How different situations affect consumers
 How strong the situational influence is
 CHAPTER 5 Consumer Behavior

Types of situations

Different types of situations that affect your

purchasing decisions include:

 The message communication situation

 The purchase situation

 The consumption situation or usage situation

 CHAPTER 5 Consumer Behavior

The message communication situation

 The setting in which the consumer receives the

message and other communication variables, such as
the message source and content
 Match product to media used, for example:
 Building supply products during Room for Improvement
 Ads or campaigns or events.

 Other communication situations, for example:

 Sponsorship - place brands on sports fields
 Product placement in movies
 CHAPTER 5 Consumer Behavior

The purchase situation

 CHAPTER 5 Consumer Behavior

The consumption situation or usage situation

The setting in which the product is consumed or

used

We purchase different brands for different situation

uses – e.g. soap purchased for yourself may be
different from the soap purchased for a guest
 CHAPTER 5 Consumer Behavior

The influence of situation on behaviour

The following are examples of where situation might affect behaviour:

 Physical surroundings  Decision time
 Music  How much time you have can
 Colour influence your behaviour
 Merchandising  Seasonal decisions
 Store layout  Importance of the decision
 Ambience  Influences how much thought
 Atmosphere and time you put into a decision
 Weather  Emotional influences
 Social surroundings  Moods affect shopping

 We act differently amongst behaviours

 Many shops try to influence
different people – e.g. family vs
friends moods in their choice of colours,
 The people you shop with can music, layout, rewards, lighting,
influence your behaviour etc.
 CHAPTER 5 Consumer Behavior

Online buying situations

Issues associated with online buying include:

 Less time to evaluate alternatives - but marketers have the
opportunity to provide valuable information on their products
to consumers
 No physical constraints online, for example:
 Shelf space
 No queueing
 24/7 - the doors are never closed
 CHAPTER 5 Consumer Behavior

Understanding
Understanding E-Customers
E-Customers


 The
The1010Most
MostImportant
ImportantWebsite
Website
Attributes:
Attributes:
1.1. Product
Productrepresentation
representation
2.2. Product
Productprices
prices
3.3. Product
Productselection
selection
4.4. On
Ontime
timedelivery
delivery
5.5. Ease
Easeof ofordering
ordering
6.6. Product
Productinformation
information
7.7. Level
Levelandandquality
qualityof
ofconsumer
consumersupport
support
8.8. Product
Productshopping
shoppingandandhandling
handling
9.9. Posted
Postedprivacy
privacypolicy
policy
10.
10. Site
Sitenavigation
navigationandandappearance
appearance
 CHAPTER 5 Consumer Behavior
The impact of situational influences on marketing
strategy

Situational influences influence consumption

patterns:
 Need to research situational influences
 Can manipulate situations in the environment and shopping environments
 Position products according to usage situations