Influences on consumer bahavior Flashcards
Consumer Behavior
“Consumer Behavior is the study of the processes involved
when individuals or groups select, purchase, use, or
dispose of products, services, ideas, or experiences to
satisfy needs and desires”
How is consumer behavior interlinked with psychology
Consumer behavior is very much interlinked with psychology
- Psychology tries to evaluate the behavior of individuals, their activities,
their feelings/experiences, thinking, ….
- Consumer behavior is looking at individuals as participants in markets,
i.e. their purchasing process, their feeling/attitudes of brands…
Why is psychology important?
- Consumer behavior is (from a economical perspective) often irrational
and illogical (e.g., emotion-driven, uncontrolled, un-reflected) - Only the psychological perspective allows us to be able to understand
consumers decisions
Consumer Decision Process
Need Recognition > Search (Information processing, Individual Characteristics) > Evaluation and Choice > Purchase > Consumption and Evaluation
. Overview
individual
characteristics
- Geographic
- Demographic
- Psychographic
- Behavioural
Segmentation
Example of customer segmentation
• Successful segmentation requirements
Geographic characteristics
Nations • States • Regions • Cities • Neighbourhoods
Demographic characteristics
- Age and life-cycle stage
- Life stage
- Gender
- Income
- Generation
- Social Class
Psychographic characteristics
Based on 1) personality traits and 2)
lifestyle
Behavioural characteristics
- Occasions
- Benefits
- User status
- Usage rate
- Loyalty status
- Attitude
Traditional personality traits “BIG FIVE”
Openness, Conscientiousness, Extroversion, Agreeableness and Neuroticism
Psychographic:
Modern Archetypes
Archetype (firstly developed by Carl Jung):
Defined as “a primitive mental image inherited from the earliest human ancestors, and supposed
to be present in the collective unconscious”
• Modern Archetype (e.g. Brandasset Valuator by Young and Rubicam)
Psychographic:
AIO Dimentions
Activities: work, hobbies, social events, vacation, entertainment, community, shopping, sports
Interests: family, home, job, community, recreation, fashion, food, media, achievements
Opinions: themselves, social issues, politics, business, economics, education, education, products, future, culture
Behavioral criteria
- Occasions: different occasions required different products
- Benefits: consumers seek different benefits
- User Status: non-users, ex-users, potential users, first time users, first time users
- Usage Rate: light, medium and heavy users
- Loyalty Status: hard-core loyals, split loyals, shifting loyals, switchers
- Attitude: enthusiastic, positive, indifferent, negative, hostile
Example of Cusomer Segmentation
- Top Guns: driven and ambitious, care about power and control, expect to be noticed
- Elitists: old money, a car - even an expensive one - is just a car, not an extension of one’s personality
- Proud Patrons: ownership is what counts, a car is a trophy (reward for working hard), being noticed doesn’t matter
- Bon Vivants: cosmopolitan jet setters and thrill seekers, car heightens excitement
- Fantasists: car represents a form of escape, don’t care about impressing others, may even feel guilty about owning a car
What makes successful segmentation?
Successful Segments are: •Effective • Measurable •Accessible •Actionable •Substantial
Types of
environmental
influences
- Cultures
- Subcultures
- Religion and Ethnicity
- Family, household, age cohorts
What is Modeling?
Imitation of purchase behavior and product use of others
Verbal Modeling
Consumer is given a description of how similar others or
aspirational groups behave in purchase/use situations
Overt Modeling
Consumer observes and imitates modeled behavior and
consequences
SOCIAL INFLUENCE TECHNIQUES
- Because heuristics
- Foot-in-doortechniques
- Door-in-the-facetechniques
- That-is-not-alltechnique
- Low-balltechnique
Because heuristics
• People are more likely to comply with a request if you give them a reason for comply, even a placebic reason • Langer, Blank, Chanowitz (1978) o Ask to make copies (5 copies small; 25 copies large request)
Foot-in-doortechniques
• Complying with a small request makes people more likely to continue to be helpful, so resistance to buying decreases • “Drive carefully sign” (Freedman, Fraser 1966)
Door-in-the-facetechniques
• Reciprocity principle – reasonability of one person makes other person to reciprocate • Cialdini et al. 1975 o Rejection-Moderaton = Extreme request first; when rejected, then smaller, moderate request o Small request: only small request
That-is-not-alltechnique
• Reciprocity principle – “good deal”
offering makes people accept it
(Burger 1986)
Low-balltechnique
• Commitment in first place makes it difficult to change a decision
Definition of reference group
An actual or imaginary individual or group that significantely influences an individual‘s evaluations, aspirations, or behavior
Types of reference groups
• Formal versus informal groups
• Membership reference group (people one actually
knows) versus aspirational reference group (people one
admires)
• Also: avoidance groups
Opinion Leaders
• Expert power: they are technically competent
• Knowledge power: they prescreen, evaluate and synthesize product
information in an unbiased way
•Interconnected: they are interconneced in their communities
• Homophily: They are similar in terms of education, social status and education level to those they influence
•Innovators: They are the first to buy new products
