Consumer Behavior

1
Consumer Behavior

• David Forlani
• University of Colorado at Denver and Health
  Sciences Center

2
Overview

• Decision Making
• A Very Basic Model
• Decision Influences
• Cultural
• Social
• Individual

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Why Are Marketers Concerned with Understanding
the Buying Behaviors of Consumers and
Organizations?

• This information provides the foundation for all
  marketing decisions relative to a particular
  market.
• It is the basis for forming ongoing relationships.

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Last Purchase Decision

• What was the last thing you bought?
• What was the last thing you bought that cost over
  500?

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Levels of Problem Solving

• Routine Evaluative criteria and brand preference
  are known, effort is devoted to finding the item
  to purchase.
• Limited Evaluative criteria are known, but brand
  preference is not formed.
• Extensive Evaluative criteria are not known and
  brand preference is not formed.

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The Role of Involvement

• Involvement reflects the importance of making the
  best/right choice or decision.
• It spans all levels of problem solving.

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How Do We Decide?
Problem identification
Information search
Evaluation of alternatives
Feedback
Purchase
Postpurchase evaluation
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Behavioral Influences
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Cultural Factors

• Culture Captured by Values, Beliefs Customs,
  regulates societal behavior.
• Subculture Add/delete VBCs, but accept the
  majority of societys VBCs.
• Social Class An ascribed indicator of status.
• Assessed as Wealth, Power and Prestige.
• Marketing Analogs Income, Occupation, Education.

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Social Class
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Social Factors

• Reference Groups Serve as a point of comparison
  relative to Values, Attitudes and Behaviors that
  help establish our identity.

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Social Factors

• Family The most influential group in most
  peoples lives relative to consumption behavior.
• Roles Statuses The hats we wear. This creates
  expectations that we may comply with.

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Personal FactorsReflections of Who We Are

• Age Lifecycle Stage Indicates consumption
  needs.
• Occupation Indicates ambitions /accomplishments
  and provides insights into consumption wants.
• Economic Circumstances and Lifestyle Indicates
  ability to consume and levels of consumption.

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Psychological Factors

• Personality The Self, that which makes us who we
  are distinguishes us from others.
• Early work by Freud (Id, Ego and Superego) stood
  in modified form until traits of Allport in the
  1960s.
• Trait approaches dominate (Catells 16,
  Eysnecks 2, Normans 5.

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Psychological Factors

• Motivation That which impels us to act. Tension
  ? Drive ? Response, model.
• Unfilled needs create tension, when the tension
  is sufficiently high it triggers a response that
  is directed at satisfying the need. The need
  remains in stasis until the tension again builds,
  e.g., you get hungry and eat every 5 or 6 hours.

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Motivation Maslows Need Hierarchy
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Psychological Factors

• Perception Our point of contact with the
  environment.
• Relates to the process of attention. Which sense
  do we attend to?
• Organizes sensory stimuli. What is figure and
  what is ground?
• Involves interpretation of sensory stimuli. What
  was that sound?

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Psychological Factors

• Learning How we gather and store information
  about our environment.
• Basis for how we act. Additional learning
  increases effectiveness.

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How We Learn

• Classical Conditioning Pavlov Stimulus?Response
  method based on conditioned and unconditioned
  elements.
• Behavioral Conditioning Skinner
  Stimulus?Response?Reinforcement view based on
  types of reinforcement and their schedules.
• Information Processing Models Environmental info
  is received through the senses and processed.
  Learning occurs during conscious interaction with
  the environment and is stored in long-term
  memory. Computer analogy.

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How We Learn
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How We Learn

• Categorization Theory Associative method based
  on cognitions and affect. File cabinet analogy
  where affect is on the tag.
• Information is stored in topical Knowledge
  Structuresfinance, accounting, marketing.
• Category level learning includes both cognitions,
  Marketing is a set of processes designed to
  facilitate ongoing exchanges and affect,
  thats cool.

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Psychological Factors

• Attitudes Learned predispositions to respond in
  a consistently favorable or unfavorable way
  toward a given object
• Simplify decision making
• Good indicators of behavior

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Attitudes Single Component

• The simplest conceptualization is that Attitude
  Affect, where affect reflects an individuals
  feelings about an object.

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Attitudes Tri- Component

• The Tri-component attitude model
• Belief Component Attitudes are based on Beliefs
  that reflect Knowledge
• Affect Component Attitudes are built on Feelings
  which reflect Judgments
• Connative Component Attitudes predict intended
  actions

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Attitudes Multi-attribute

• The Attitude Toward Object Model (Fishbein
  Azjen)

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Attitude Illustration

• Involves 2 Data Collections qualitative to
  identify salient attributes quantitative to
  obtain rankings and ratings.
• Uses the Fishbein Attitude ? Object model.
• Assesses consumers attitudes toward 2 brands of
  mouthwash.

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Mouthwash Attitudes
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Mouthwash Attitudes
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Mouthwash Attitudes
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Attitude Illustration

• What motivates each consumer group to use
  mouthwash?
• How can Marketing Managers use this info?
• How can attitudes be built/changed?
• Offer a new motivation for using
• Associate with a respected group or event
• Relate to conflicting attitudes
• Alter components of the multi-attribute model
• Change beliefs about a competitors brand

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Attitude Illustration

• Why dont people always act in accord with their
  attitudes?
• Personal considerations, Impression management.
• Unexpected circumstances.
• Social considerations.

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Theory of Reasoned Action

• Developed to account for social influences.

  .
where W's are relative weights summing to
1.  i's are anticipated behavioral outcomes.  b's
are beliefs that I can obtain that outcome.  e's
are the importance of that outcome to me.   j's
are the people who will judge my behavior.  s's
are the judgment standards they will apply.  m's
are my motivation to comply with their wishes