Lesson 02 - Factors Affecting Consumer Behaviour PDF

4-1 Module Leader : Ms. Tharuka Jayathilake Senior Lecturer - FOB MBA (Entrepreneurship) (RMIT), B.Des. Sp. Hons in Fashion & Textile (UoM) Factors Affecting Consumer Behavior  4-3 Learning Ob...

4-1 Module Leader : Ms. Tharuka Jayathilake Senior Lecturer - FOB MBA (Entrepreneurship) (RMIT), B.Des. Sp. Hons in Fashion & Textile (UoM) Factors Affecting Consumer Behavior  4-3 Learning Objectives Examine psychological, social and cultural influences on CB Personal Psychological Factors Problem Factors recognition Information search Evaluation Purchase Decision Social Postpurchase Cultural Behaviour Factors Factors  4-5 Culture Set of beliefs, attitudes, values, norms and behavior patterns in a society. Cultural Factors Culture is learned rather than innate. Culture varies from place to place.  4-6 Culture is the sum total of learned beliefs, values & customs that serve to direct the consumer behavior. Culture is the fundamental determinant of a person’s wants based a set of values, perceptions, preferences, & behavior Cultural Each culture consists of smaller subcultures due Factors to nationalities, religions, racial groups & geographic regions Sub-cultures Smaller, distinct groups within a dominant culture. Differences based on ethnic variations, age, nationality, language.  4-8  Group of people with similar prestige, power, wealth and share a set of related beliefs, attitudes, and values.  Society’s divisions who share values, interests and behaviors  Within each social class tend to behave more alike & persons are perceived as occupying inferior or superior positions Social Class according to social class  Major impact on shopping patterns and products purchased (e.g. conspicuous consumption).  And indirect impact on consumer behavior (e.g. Neighborhoods we choose to live in).  4-9 Major Sri Lanka Social Classes Upper class – industrialists, businessmen, senior executives and government ministers. Upper middle – Educated professionals Lower upper – Jobs and living in less prosperous suburbs The poor – Low income and dependent on state benefits.  Congee Naughty green pork Angry bird edition Bean Bubble tea Cola chicken Black and white burger Glocalization  4 - 11 Reference groups – Groups where people feel they are belonging to. Consist of all the groups that have direct/ indirect influences on a person. Social The groups having direct influence on a person is called as a primary group (family, friends, neighbors, co- Factors workers etc.) some people belong to secondary groups (religious, professional or trade union groups) which are more formal groups 4 - 12  4 - 13 ◉ Aspirational groups (people want to join). - An individual of an aspirational group is an opinion leader who can influence choice ◉ An opinion leader is a well-known individual or organization that has the ability to influence public opinion on the subject matter for which the opinion leader is known. ◉ Opinion leaders can be politicians, business leaders, community leaders, journalists, educators, celebrities, and sports stars. ◉ Dissociative group (people reject their values/ behavior)  4 - 14 Family Most important consumer buying organization in the society Can distinguish between 2 families in the buyer’s life -family of orientation: parents and siblings -family of procreation: spouse & children who will more directly influence everyday buying behavior -Buying patterns also vary with gender, women are becoming an economic force in Asia & there is another shift in buying patterns due to direct/indirect influence by children & teens  4 - 15 Values, self-concepts and product choices are influenced by families. Family roles: Buyer – person who actually buys the product User - person who consumes/uses product Decision Maker – person who decides to buy product/brand Influencer - someone who persuades the DM (singer , actor) Gatekeeper - someone who controls the flow of information to the decision maker  4 - 16  Roles  A cluster of behavior patterns considered appropriate for a position in a social setting (eg. son, daughter, mother, father).  Status  Esteem/prestige given to a role by society  4 - 17 Needs provide motives Motivation Maslow’s hierarchy of needs Selective attention Perception Selective distortions Psychological Selective retention Factors Learning Drives, stimuli, cues, responses and reinforcement Belief Beliefs Attitudes  4 - 18 1. Motivation ▪ A drive that causes a person to satisfy a need. ▪ McClelland's Acquired Needs Motivation Theory says that humans have three types of emotional needs: achievement, power and affiliation. ▪ Individuals can have any mix of these needs. Their motivations and behaviors are shaped by the strength and blend of their specific needs. Maslow’s Hierarchy of Needs Maslow's hierarchy gives us a clear idea of the 5 basic areas of motivation. By knowing them, you will have a better chance of creating situations where the customers feel motivated. Kellogg’s All Bran - “Keeps you healthy on the inside”  4 - 22 2. Perception What do you see??  4 - 24 Perception Process of interpreting sensations and giving meaning to stimuli. Psychological Factors Who is being arrested?  4 - 27 3. Learning Changes in an individual’s behavior arising from experience Motivation Motivation is based on need and goals. Motivation acts as a spur to learning, with needs and goals serving as stimuli. Uncovering consumer motives is one of the prime task of marketers. Marketers educate motivated consumer segments why their product will best fulfill their needs. Marketers use motivation research to unearth consumer motives and use it in developing marketing program. Cues Cues are the stimuli that give direction to those motives. In the market, marketing mix (place, price, packaging, styling, advertising and displays) serve as cues to help consumers fulfill their needs in product specific ways. Marketers must be careful to provide cues that do not upset those expectations. For example, consumer expects high fashion stores to carry designer clothing at high prices thus; a high fashion designer should distribute his or her clothing only through exclusive stores and advertise only in quality fashion magazines.. Response How an individual reacts to a drive or cue constitutes his or her response. The carpet manufacturer who provides consistent cues to a consumer may not always succeed in stimulating a purchase, even if that individual is motivated to buy. Instead, the manufacturer may succeed only in forming a favorable image of the carpet in the consumer’s mind i.e. evoking a tendency to respond by buying. Reinforcement Reinforcement increases the likelihood that a specific response will occur in the future as the result of particular cues or stimuli. Many marketers instinctively find that reinforcement serves to teach their customers a desired behavior. For example, telephone companies that give cash discounts to customers who pay their bill promptly are acting to ensure prompt payment in the future.  4 - 32 Learning - A relatively permanent change in behaviour due to experience. A belief is a descriptive thought that a person holds about something. Attitude describes a person’s consistently favourable or unfavourable evaluations, feelings and tendencies towards and object or idea. E.g. Japanese make best products, buy the best  Attitudes  An individual’s enduring evaluation, feeling and behavioral tendencies toward an object, issue or person.  Attitudes are learned, hence can be changed (although difficult). Often the goal of promotional activities.  4 - 34 Age and life cycle stage Personal Occupation Factors Economic situation Personality and self concept  4 - 35  Buying behavior is a complex process  Encompasses different types of problem solving and decision-making processes which are influenced by many factors (use your own Summary experience to aid thought process).  Behavior of consumers would vary depending upon the impact created through these factors.  Market research helps marketers understand consumers and needs.