Consumer Behavior 2008

7/31/2019 Consumer Behavior 2008

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Looking at it from the customer perspective


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Pick a love team. And let us interview each other..

YIHEEEEEEEE


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Questions

Basic information name, age, high

school graduated, parents? occupation,

living with, who gives the allowance,

how much (ballpark)

Then let us focus on a specific product

(bottled iced tea)


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Meet George Canlas

George is a 45 year old professional who has made it to top

management. A graduate of TIP and has remained loyal to the

company which eventually became his ticket to success. He drives

a 20 year old car that is still in tip top shape. He remains single and

is not actively seeking companionship. He plays chess and he

claims he is very good at it. Every morning, he listens to 96.3 Wrock because he can still relate

to the music. He finds the current youth to be too adventurous. His

deep insecurity is his age. He thinks that he might be replaced by

technology and that eventually no one would take care of him

He still watches telenolvelas but goes to bed before 9pm.

He goes out with old friends and prefers to go to RJ Disco where he

can boogie all night.

Usually, he cannot relate anymore with the younger generation and

still owns a Motorola cellphone because sikat ang brand na iyan

dati


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How do we turn them on!


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Consumer Hot Button

What is IT that will make consumersbuy

Softdrinks branding + distribution

Shoesendorser and winner image


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Why people buy things they

dont need Quality of life

Pleasure

Beautify home

Education

Relaxation

Entertainment Planned purchase

Emotional satisfaction

Replace existing item

Stress relief

Hobby Gift for self

Impulse

Status


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Among the consumer

behavior books available Why we buy

Call of the Mall Marketing to Kids

Born to Buy

The 60s market


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Dimensions of Consumer

Behavior

How we buy?

Where we buy?

When?

How we spend?

What products do we buy?

Who buys them? For what occasion?


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Essence of studying consumer

behavior

Determine how consumers buy

Determine WHY they buy

Know the drivers behind the purchase

Know the process behind the decision

making


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The Foundations of Thought in Consumer Behavior

Where did all the data come from?


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Marketing Concept

Knowing what the consumer wants

Providing this better than competition

At a profit


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Let us take a closer look at the

consumer

There are two sides of the consumer

Rational thinking side

What are the REASONS why I should buy thisproduct

Features better performance etc

Emotional feeling side Why I like to buy this product outside of reason


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How this works When buying a brand of computer what

are the things do you peruse? Features

Speed

Memory

Communication Ports

CD drive speed

Hard disk

YOU TRY TO FIND REASONS FORBUYING AND CHOICE IS PERFECTLYRELATED TO REASONS


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What if you are buying the

following.

Shampoo

Ketchup

Diskette

Bath soap

Juice

THE APPROACH IS DIFFERENTBECAUSE IT IS ALL EMOTIONAL


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Rubber shoe war


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Power Shifts from all angles

Market leader during aerobics craze

Known for quality and comfort

Known for durability and style
http://rds.yahoo.com/_ylt=A9G_Rtmv_qlGPBUBSTSJzbkF;_ylu=X3oDMTBpc2ozM2gzBHBvcwM0BHNlYwNzcgR2dGlkAw--/SIG=1f14dt8vf/EXP=1185632303/**http%3A//images.search.yahoo.com/search/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dreebok%252BLogo%2526ei%253DUTF-8%2526x%253Dwrt%2526js%253D1%2526ni%253D21%26w=130%26h=100%26imgurl=roundballshoes.com%252Fimages%252Freebok_logo.jpg%26rurl=http%253A%252F%252Fwww.maximum365.com%252Fs%252FReebok%26size=15.7kB%26name=reebok_logo.jpg%26p=reebok%2BLogo%26type=jpeg%26no=4%26tt=8,556%26oid=03eb6220aecf8184%26ei=UTF-8http://rds.yahoo.com/_ylt=A9G_RtpV_qlGVS0B0CiJzbkF;_ylu=X3oDMTBpdnJhMHUzBHBvcwMxBHNlYwNzcgR2dGlkAw--/SIG=1g59meemt/EXP=1185632213/**http%3A//images.search.yahoo.com/search/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dadidas%252BLogo%2526ei%253DUTF-8%2526x%253Dwrt%2526js%253D1%2526ni%253D21%26w=200%26h=165%26imgurl=www.sport-moda.ru%252Fnews%252Fimages%252F126adidas-logo.jpg%26rurl=http%253A%252F%252Fwww.sport-moda.ru%252Fnews%252Fview_new.php%253Fid%253D126%26size=12kB%26name=126adidas-logo.jpg%26p=adidas%2BLogo%26type=jpeg%26no=1%26tt=16,063%26oid=cc3ec05659e693da%26ei=UTF-8http://rds.yahoo.com/_ylt=A9G_Rtn__alGqRIBX2SJzbkF;_ylu=X3oDMTBpcWpidGtpBHBvcwM4BHNlYwNzcgR2dGlkAw--/SIG=1g45ht8cm/EXP=1185632127/**http%3A//images.search.yahoo.com/search/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253DNike%252BLogo%2526ei%253DUTF-8%2526x%253Dwrt%2526js%253D1%2526ni%253D21%26w=116%26h=65%26imgurl=www.chevincycles.com%252Fsmsimg%252F69%252Fnike_logo69.jpg%26rurl=http%253A%252F%252Fwww.chevincycles.com%252Fbrand.php%253Fbid%253D69%2526tbv%253DNIKE%26size=2.2kB%26name=nike_logo69.jpg%26p=Nike%2BLogo%26type=jpeg%26no=8%26tt=17,641%26oid=31eaa882f67858ee%26ei=UTF-8


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Shoes last for more than 3 years!
http://rds.yahoo.com/_ylt=A9G_RtpV_qlGVS0B5CiJzbkF;_ylu=X3oDMTBqYWdlNjBlBHBvcwMxOARzZWMDc3IEdnRpZAM-/SIG=1jlmcnap9/EXP=1185632213/**http%3A//images.search.yahoo.com/search/images/view%3Fback=http%253A%252F%252Fimages.search.yahoo.com%252Fsearch%252Fimages%253Fp%253Dadidas%252BLogo%2526ei%253DUTF-8%2526x%253Dwrt%2526js%253D1%2526ni%253D21%26w=500%26h=317%26imgurl=static.flickr.com%252F165%252F383383999_cc0805c097_m.jpg%26rurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Fedstern%252F383383999%252F%26size=125.7kB%26name=383383999_cc0805c097.jpg%26p=adidas%2BLogo%26type=jpeg%26no=18%26tt=16,063%26oid=1975f8c227cd35f4%26fusr=edEx%26tit=adidas%2Bred%26hurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Fedstern%252F%26ei=UTF-8%26src=p


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Nike merchandised using Michael Jordan andthis started the whole sneaker revolution


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Scott Bedburry

Marketing Director

Nike


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Then there is a mix Cars

Gasoline

Digital Organizer

Batteries

THESE EXAMPLES USE BOTHEMOTIONAL AND RATIONAL ANGLE

BUT IT IS JUST A MATTER OF HOW WEUSE THEM


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Consumer buying behavior

model

STIMULUS

PRODUCTPRICE

PLACE

PROMOTION

EXTERNAL

FACTORS

NATUIRALECONOMIC

DEMOGRAPHIC

POLITICAL / LEGAL

COMPETITIVE

CULTURAL / SOCIAL

BUYER

BLACK BOX

MOTIVATIONPERSONALITY

PERCEPTION

LEARNING

SOCIAL GROUPS

BUYING ROLE

PURCHASEDECISION

THE FACTORS THAT A CONSUMER GOES THROUGH IN

DECISION MAKING


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Personal Factors

Age

Gender (perceived gender)

Age life cycle

Occupation

Civil status


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Age

Young adolscent

Carefree

Search for identity

Strong physically

Different worries

Personal matters

Family

40s

Health

How to stay young

Career path Maybe midlife crisis

Money matters

How to sustain the

family


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Age life cycle

Young nests

Empty nests

Old nests

Mixed nests

Young and Single

Old and still single


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Cultural Factors

Broad culture

Being PINOYS

Sub culture an inner culture within a

culture Youre a pinoy

But you are also from Iloilo / Cebu /

Pampanga


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Cebu problem

Still takes siyesta at 12 1 pm

Do not eat out Jollibee branches went

bankrupt 2x before becoming

successful.

Very rich

Prudent

Status symbol


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Tale of 2 cities in Bicol

Naga love for food

Legaspi love for clothes and looking

good


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Personality Outward character Disposition

Identity

Individuality

Distinctiveness

The picture of who you are and who you

think you are THE PICTURE OF THE IDEAL SELF (onevery valuable consumer driver)


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Serious outlook Bad Boy

Good Boy

I think Im

funny
http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Drobin%2Bpadilla%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=140&h=141&imgurl=images.inq7.net%2Fnews%2Fentertainment%2Fimages%2F2005%2Fnov%2F18%2Fent_3.jpg&rurl=http%3A%2F%2Fbeta.inq7.net%2Fentertainment%2Findex.php%3Findex%3D1%26amp%3Bstory_id%3D56871&size=24kB&name=ent_3.jpg&p=robin+padilla&type=jpeg&no=2&tt=48&oid=903dc043c0c7cfd8&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dsteve%2Bcarrel%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=140&h=140&imgurl=www.ropeofsilicon.com%2FImages%2Fpeople%2Fs%2Fstevecarell.jpg&rurl=http%3A%2F%2Fwww.ropeofsilicon.com%2Fprofile.php%3Fid%3D1581&size=5.2kB&name=stevecarell.jpg&p=steve+carrel&type=jpeg&no=3&tt=31&oid=0d88f5faccb80a4c&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Djim%2Bcarrey%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=410&h=308&imgurl=www.celebslam.com%2Fwp-content%2Fuploads%2F2007%2F02%2Fjim-carrey-7-fingers.jpg&rurl=http%3A%2F%2Fwww.celebrityyenta.com%2F%3Fp%3D1381&size=46kB&name=jim-carrey-7-fingers.jpg&p=jim+carrey&type=jpeg&no=8&tt=43,555&oid=74bbc2fbcf5da772&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Djohn%2Blloyd%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=342&h=500&imgurl=static.flickr.com%2F187%2F415629631_df237d5443_m.jpg&rurl=http%3A%2F%2Fwww.flickr.com%2Fphotos%2Fchuvaness%2F415629631%2F&size=142.9kB&name=415629631_df237d5443.jpg&p=john+lloyd&type=jpeg&no=1&tt=19,131&oid=3116762546141aae&fusr=chuvaness&tit=John+Lloyd+Cruz&hurl=http%3A%2F%2Fwww.flickr.com%2Fphotos%2Fchuvaness%2F&ei=UTF-8&src=phttp://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Drobin%2Bpadilla%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=140&h=141&imgurl=images.inq7.net%2Fnews%2Fentertainment%2Fimages%2F2005%2Fnov%2F18%2Fent_3.jpg&rurl=http%3A%2F%2Fbeta.inq7.net%2Fentertainment%2Findex.php%3Findex%3D1%26amp%3Bstory_id%3D56871&size=24kB&name=ent_3.jpg&p=robin+padilla&type=jpeg&no=2&tt=48&oid=903dc043c0c7cfd8&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dnicolas%2Bcage%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=400&h=500&imgurl=www.poster.net%2Fcage-nicolas%2Fcage-nicolas-photo-nicolas-cage-6205839.jpg&rurl=http%3A%2F%2Fwww.postershop.fr%2FCage-Nicolas%2FCage-Nicolas-Photo-Nicolas-Cage-6205839.html&size=42.6kB&name=cage-nicolas-photo-nicolas-cage-6205839.jpg&p=nicolas+cage&type=jpeg&no=8&tt=34,866&oid=b573fdd740be6134&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dbill%2Bclinton%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=164&h=268&imgurl=www.mabus.biz%2Fimages%2FBill-Clinton.jpg&rurl=http%3A%2F%2Fwww.mabus.biz%2Fwho%2Fclinton&size=10kB&name=Bill-Clinton.jpg&p=bill+clinton&type=jpeg&no=1&tt=87,659&oid=fdce8a8640b6fc48&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dsean%2Bconnery%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=199&h=264&imgurl=www.juplin.net%2Fleffaluukku%2Ftiimi%2Fsean_connery.jpg&rurl=http%3A%2F%2Fwww.juplin.net%2Fleffaluukku%2Ftiimi%2Fsean_connery.php&size=72.6kB&name=sean_connery.jpg&p=sean+connery&type=jpeg&no=6&tt=48,158&oid=0ef7a50f466c3150&ei=UTF-8


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Motivation

What PUSHES a consumer tochoose a brand?

Maslows Hierarchy of Needs Theory that states that a person would only

be motivated to gain the next level if he has

already accomplished the previous


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Maslows Theory

Physiological

Security and Safety

Social / Acceptance / Love

Ego / Self Esteem / Recognition

Self Actualization


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Example of brands
http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Djohnny%2Bwalker%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=640&h=480&imgurl=www.short2000.com%2Fsimple%2Fimages%2Fshort2000-scotch-jwb.jpg&rurl=http%3A%2F%2Fwww.short2000.com%2Fsimple%2Fscotch_review_johnny_walker_black.html&size=144.1kB&name=short2000-scotch-jwb.jpg&p=johnny+walker&type=jpeg&no=5&tt=10,019&oid=c52c29d13a8b7de0&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Drolex%2Bwatches%2Blogo%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=100&h=63&imgurl=www.luxurywatches101.com%2Fi%2Fw%2Flogo-rolex.jpg&rurl=http%3A%2F%2Fwww.luxurywatches101.com%2Fbuy-pre-owned-rolex.aspx&size=5.5kB&name=logo-rolex.jpg&p=rolex+watches+logo&type=jpeg&no=3&tt=128&oid=0dfcfc5921b1ecda&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dgolds%2Bgym%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=1050&h=1048&imgurl=www.ehealthcompete.com%2Fsystems%2Fv2_ehc%2Fimages%2FGoldsGym_Logo.jpg&rurl=http%3A%2F%2Fwww.ehealthcompete.com%2F%3Fpg%3Dclients&size=382.2kB&name=GoldsGym_Logo.jpg&p=golds+gym&type=jpeg&no=1&tt=9,659&oid=f5643f38dbc76198&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3DBMW%2Bz4%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=640&h=480&imgurl=www.cardesignnews.com%2Fautoshows%2F2002%2Fparis%2Fhighlights%2Fimages%2Fbmw-z4-0729.jpg&rurl=http%3A%2F%2Fwww.professorsearch.com%2Fbmw%2Fbmw%2520z4&size=49.4kB&name=bmw-z4-0729.jpg&p=BMW+z4&type=jpeg&no=2&tt=67,505&oid=99bd31b40ba28366&ei=UTF-8http://images.search.yahoo.com/search/%20http:/images.search.yahoo.com/search/images/view?back=http%3A%2F%2Fimages.search.yahoo.com%2Fsearch%2Fimages%3Fp%3Dclose%2Bup%2Btoothpaste%26ei%3DUTF-8%26fr%3Dyfp-t-471%26fp_ip%3DPH%26x%3Dwrt%26js%3D1%26ni%3D21&w=1306&h=979&imgurl=www.hll.com%2FHLL_Flash%2Fimages%2Fknowus%2FCloseUpPackNew04.jpeg&rurl=http%3A%2F%2Fwww.hll.com%2FHLL_Flash%2Fknowus%2Fpersonalpro_oralcare_closeup.html&size=148.3kB&name=CloseUpPackNew04.jpeg&p=close+up+toothpaste&type=jpeg&no=1&tt=79&oid=d5ffb3aba355b14e&ei=UTF-8


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Consumer buying behavior

model

STIMULUS

PRODUCTPRICE

PLACE

PROMOTION

EXTERNAL

FACTORS

NATUIRAL

ECONOMIC

DEMOGRAPHIC

POLITICAL / LEGAL

COMPETITIVE

CULTURAL / SOCIAL

BUYER

BLACK BOX

MOTIVATION

PERSONALITY

PERCEPTION

LEARNING

SOCIAL GROUPS

BUYING ROLE

PURCHASEDECISION

THE FACTORS THAT A CONSUMER GOES THROUGH IN

DECISION MAKING


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Learning Education and learning change things

An college graduate would not have the

same judgement as a grade school dropout

Leaning and focus of education and

experience

So will their choice of products and brands


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Social Groups

1st level people you interact almost

everyday

Family, work mates, classmates

2nd level organizations you belong to thatare expecting a certain level of behavior.

Clubs and organizations

3rd level social class or any socially

endowed role


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Reference Groups

Groups that you look up to as role model in

choosing a brand.

Groups can differ according to product /

brand. Example:

Books people in the know

Fashion younger generation for gimmick and

the yuppies when one wants to go into

corporate


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Aspirational GroupAre people or organizations you wish to

belong but the possibility is perceived tobe remote

Aspirational group is a component ofreference group

Wish to be a class A group or member of

the elite


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Buying Role

Initiator person / event that triggers the

purchase

Influencer a person / thing that

influences the brand of choice

Decider dictates which brand to buy

Buyer physical buyer

Consumer physical user


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B i R l CHOCOLATE


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Buying Role CHOCOLATE

DRINK

Initiator EMPTY CAN IN THE HOUSE

Influencer - KIDS

Decider KIDS AND MOM

Buyer - MOM

Consumer KIDS

THE KEY IS TO FIND THE CENTER OFFORCE IN DECISION MAKING


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Buying Role WATCH

Initiator -

Influencer -

Decider -

Buyer -

Consumer -

THE KEY IS TO FIND THE CENTER OFFORCE IN DECISION MAKING


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Types of Buying Behavior

Low involvement

Few questions asked

High involvement

A lot of pondering to do

THE HIGHER THE LEVEL OF

INVOLVEMENT THE MORE

INFORMATION SHOULD BE GIVEN TO

CONSUMERS

It ill l di t


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It will also vary according to

RISK

Higher risk

Moderate risk

Low risk

The higher the risk the higher the

involvement


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Purchase Habits

Frequency of Purchase

Place of purchase

Quantity and size of package purchased

With what product was it bought with?


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Media habits

What newspapers does he / she reads?

When does she read them?

What section does she read the most?

Followed by what?

TV what shows?

Radio stations what time?


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So let us describe our YIHEE

PARTNER Who is she?


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How Loyalty is Built

Recognition

Awareness

Interested Desire

Trial purchase

Repeat purchase

Loyalty


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2 types of awareness

Depth

How much does your brand gets

remembered by target segment

Breadth On what occasions does it get remembered


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Gain KEY CONSUMER


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Gain KEY CONSUMER

INSIGHT

What do they like?

What are their eccentricities?

Are there any differences among

consumer groups?

How do we turn them on?

How do we push their HOT BUTTON?


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A person therefore.

Documents

Consumer Behavior 2008