The mental and emotional processes and physical activities people engage in when they select, purchase, use, and dispose of products or services to satisfy

It has details related to consumer behavior.

1. MKTG 504 - CONSUMER
BEHAVIOR
WHO, WHEN, HOW,
WHERE.........
Dr. Dennis Pitta
University of Baltimore

2. CONSUMER BEHAVIOR
The subject of human
behavior that is concerned
with the decisions and acts
of individuals in purchasing
and using products.

3. BUYING BEHAVIOR
The decision processes
and actions of individuals
involved in buying and
using products.

4. The First Buyer Behavior
Model: Simple Response
StimulusStimulusOrganismOrganism ResponseResponse

5. ECONOMIC (HU) MAN MODEL
Income is spent on goods providing
UTILITY
MARGINAL UTILITY CONCEPT
PROBLEMS WITH THE MODEL:
MAN NOT ALWAYS RATIONAL

NO PERFECT INFORMATON

6. USES FOR THE ECONOMIC
HUMAN MODEL
USEFUL FOR EXPENSIVE GOODS
PROVIDES ANALYSIS OFECONOMIC
VARIABLES FOR WHCIH DATA
EXISTS.
(E.G., ELASTICITY - at what price will
utility decrease?)

7. Downward sloping demand curve

8. LEARNING THEORY MODEL -
PAVLOVIAN
DRIVE
CUE
RESPONSE
REINFORCEMENT

9. USES FOR LEARNING THEORY
MODEL
MANY: BRAND LOYALTY
BRAND NAMES

10. PROBLEMS WITH THE LEARNING
THEORY MODEL
NEGLECTS:
PERCEPTIONS
INTERPERSONAL INFLUENCES
SUBCONCIOUS

11. MOTIVATION MODEL: FREUDIAN
(SYMBOLIC PRODUCT)
Uses PROJECTIVE TECHNIQUES
MOTIVATIONAL RESEARCH
PROBLEMS WITH THE MODEL:
COSTLY
INTERPRETATION???

12. A projective test - the Thematic
Apperception Test

13. Typical directions….
Study the picture on the right until
your imagination begins to form a story
about it. There are no rules except
that your story should have a beginning
(what has happened in the story so
far), middle (what is happening now),
and an end (how things turn out).

14. Another example of
projective techniques...

15. Describe the person who composed this
shopping list (List A or List B)
10 pounds of potatoes
5 pound of sugar
3 pounds of ground round
1 lb of ground coffee <--> 16oz instant
1 loaf of white bread
2 pounds of carrots
1 box of laundry detergent
1 pound of tomatoes
2 qts milk

16. Influences on Consumer
Behavior
Personal Influences
Age and Family Life
Cycle Stage
Lifestyle
Occupation &
Economic Circumstances
Personality &
Self-Concept

17. Family Life Cycle stages
SingleYoung
Married
Full
Nest I
Full
Nest II
Empty
Nest
Sole
Survivor

18. Consumption in Family Life Cycle stages
SingleYoung
Married
Full
Nest I
Full
Nest II
Empty
Nest
Sole
Survivor
CARSmallSmall4 doorMini-
van
Sports
car
HOMEApart-
ment
Apart-
ment
Small
house
Larger
house
Smaller
house
Nursing
home
OtherVaca-
tions
ChinaToys +
cribs
BailVaca-
tions
Health
care

19. SOCIAL PSYCHOLOGICAL MODEL
MANY FACTORS AFFECT BEHAVIOR:
INDIVIDUAL
FAMILY
REFERENCE GROUPS
(Opinion Leadership)
SOCIAL CLASS
CULTURE

20. Personal Influence : PERSONALITY
Personality = The
collection of relatively
permanent tendencies to
behavior in consistent
ways in certain situations.

21. Personal Influence: ATTITUDES
Attitudes = Enduring feelings, evaluations,
and responses - tendencies directed toward
an object or idea.
May be positive or negative.
Attitudes does not equal buying intentions.
Resistant to changes.

22. Components of attitudes
BELIEFS about an object (b
i)
EVALUATION of those beliefs as good
or bad (e
i)
A
o=b
ie
i

23. My attitude toward spinach
A
spinach
= b
1
e
1
+b
2
e
2
+b
3
e
3
+b
4
e
4
1 - it is good for me
2 - it is low calorie
3 - it reduces cholesterol??
4 - it tastes bad
A
spinach= (1)(+1)+ (1)(+1)+ (0)(+10)+ (1)(-6)
= - 4

24. How do you change a
person’s attitude?
Change the beliefs - not the evaluation
Example: 9 out of 10 doctors eat
spinach to lower their cholesterol

25. Do you see the black dots?

26. Personal Influence : Perceptions?

27. Personal Influence: PERCEPTION
Perception = The process through which an
individual selects relevant stimuli from the
environment, organizes them and assigns
meaning to them.
SELECTIVE EXPOSURE
SELECTIVE DISTORTION
SELECTIVE RETENTION

28. Is this perceived?

29. Personal Influence: MOTIVATION
Motivation = The driving force that causes a
person to take action to satisfy specific
needs or wants.
Example: Maslow’s hierarchy.
Physiological
Safety
Love and belonging
Esteem
Self-esteem

30. How believable is Maslow?
There is no evidence that needs
beyond safety needs exist widely
throughout society.

31. Personal Influence: LEARNING
Learning = The process
through which a relatively
permanent change in
behavior results from the
consequences of past
behavior.

32. Source of Learning
Direct Experience = actual use
Indirect Experience =
information obtained from
others or observation of the
behavior of others.

33. Result of Learning
Brand Loyalty -> learned
through positive
reinforcement.
Extinction -> weakening of
well-established habit by
unsatisfactory experiences.

34. Social Factors
Reference
Groups
Roles &
Statuses
Family

35. Culture
Cultural Factors
Subculture
Social Class
Buyer

36. Diffusion of Innovation
CONCERNED WITH THE
ADOPTION OF NEW
PRODUCTS

37. How do products diffuse
through the
population over time?

38. 2
1
/2%
Innovators
13
1
/2%
Early
adopters
34%
Early
majority
34%
Late
majority
16%
Laggards
Time of adoption innovations
The Diffusion of Innovations through a
market

39. Which group pays the most
money for a product or service?

40. Which group expects to pay the
least money for a product or
service?

41. Buying is work - let’s look at the
effort needed to buy
something….

42. How much effort do you
spend to buy gum?
________________________________

43. How much effort do you
spend to buy a new
textbook?
________________________________

44. How much effort do you
spend to buy your first
house?
________________________________

45. CONSUMER BEHAVIOR
When the product is familiar but not
important - ROUTINE RESPONSE
BEHAVIOR
When the product is unfamiliar and not
important - LIMITED DECISION MAKING
When the product is IMPORTANT ($$) -
EXTENSIVE DECISION MAKING
When ya gotta have it - IMPULSE BUYING

46. When your car blows blue
smoke, makes a funny very
loud noise and dies….what
do you do?

47. Consumer Decision Process
PROBLEM RECOGNITION
INFORMATION SEARCH
ALTERNATIVE EVALUATION
PURCHASE DECISION
POSTPURCHASE EVALUATION

48. Consumer Buying
Process
ProblemProblem
recognitionrecognition
Information
search
Evaluation of
alternatives
Purchase
decision
Postpurchase
behavior

49. Four Types of Buying
Behavior
Complex
Buying
Behavior
Dissonance-
Reducing Buying
Behavior
Variety-
Seeking
Behavior
Habitual
Buying
Behavior
Significant
differences
between
brands
Few
differences
between
brands
High
Involvement
Low
Involvement

50. How does organization
buying behavior differ from
consumer buyer behavior?

51. Organizational Buying Behavior
CHARACTERISTICS
Derived Demand
Fewer Buyers
More Concentrated Geographically
Greater $ per Transaction

52. Organizational Buying Behavior
DIFFERENCES FROM CONSUMER
BEHAVIOR
More Rational (Value Analysis)
Large Volume Purchases
Many Individuals Involved
Evaluation Specific
Service and Leasing Important

53. Organizational Buying Behavior
“THE BUYING CENTER”
BASED ON ROLES
USER - ACTUALLY USES IT
BUYER - BUYS IT (PROCESSES THE PAPERWORK)
INFLUENCER - SHAPES THE EXPECTATIONS FOR
IT
GATEKEEPER - INFLUENCES THE FLOW OF
INFORMATION ABOUT THE DECISION
DECIDER - ACTUALLY MAKES THE DECISION

54. Which role is the most
important?

55. Organizational Buying Behavior
BUY TASKS
NEW TASK - NEW PRODUCT- NEW
VENDOR
STRAIGHT REBUY - OLD PRODUCT -
NEW VENDOR
MODIFIED REBUY - NEW PRODUCT -
OLD VENDOR/ OR OLD PRODUCT -
NEW VENDOR

56. Organizational Buying Behavior
NAIS( old SIC) CODE - STANDARD INDUSTRIAL
CLASSIFICATION
A WAY OF LUMPING LIKE COMPANIES TOGETHER
EXAMPLE
27 -> PRINTING, PUBLISHING, AND ALLIED
INDUSTRIES
272 -> PERIODICALS: PUBLISHING, PUBLISHING
AND PRINTING
2721 -> COMIC BOOKS, MAGAZINES, PERIODICALS,
STATISTICAL REPORTS, TRADE JOURNALS

57. UPCOMING TOPIC
PRODUCT