Consumer Behavior

• ‘the study of why, when, where, and how people buy and consume products and services”

Consumer Behavior

• Market segments must be studied for behavior patterns, traits, needs, and wants the marketer can best respond to

• Examples: Go-Gurt; Soup at Hand, Nutri-Grain Cereal Bars; Quaker Oatmeal Express; Go Snacks; PoP’ables; Nouriche

• Examples: Hagar Imperial Separates; Levis Tailored Classics

Nature Or Nurture?

• Is your consumer behavior determined more by your inborn traits or your external environment?

• CB=f(Psychological Variables; Social Influences; Situational Variables)

Exhibit 2: Model of Consumer Behavior

Psychological Influences

• Type and Level of Motivation

• Learned Responses

• Attitudes (Derive from Beliefs)

• Personality Traits

Maslow’s Hierarchy of Needs

Personal Needs-Need for Esteem and Self-Actualization

Social Needs

Safety Needs

Physiological Needs

Personality

• Personality Tests—MBTI (Myers-Briggs)

• Psychographics—the study of lifestyles

• Measured by “AIO Inventories”

• A=Activities; I=Interests; O=Opinions

Social Influences

• Culture

• Subculture

• Social Class

• Reference Groups

• Family

Culture

• Culture—”the software of human beings”

• America’s cultural values—independence, conquering spirit, individuality, youthfulness

Subculture

• “a group within the larger culture whose members share some common beliefs, characteristics, or behavior patterns”

• May be based on age, ethnicity, geography, religious beliefs, sexual preference, etc.

• Examples—Southerners, Southern Baptists, African Americans, Teenagers, Gays and Lesbians

What determines a person’s social class?

• Income

• Education Level

• Occupation

• Neighborhood or Dwelling Area

• Family Name

Social Classes In AmericaRelative size Group Some (abbreviated) characteristics

Upper-class

Upper-middleclass

Lower-middleclass*

Upper-lower(“working”) class*

Lower-lowerclass

1.5%

12.5%

32%

38%

16%

People from old wealthy families and socially prominent new rich...

Small business people, teachers, office workers, technicians--the typical white collar workers...

The blue collar workers--factory workers, skilled laborers, and service people…most earn good incomes...

Unskilled laborers and people in very low status occupations

* America’s “mass market”

Characteristics and Attitudes of Middle versus Lower Classes

• Middle classes– Plan and save for the future– Analyze alternatives– Feel they have opportunities– Willing to take risks– Confident about decision making– Want long-run quality

or value

Characteristics and Attitudes of Middleversus Lower Classes (continued)

• Lower classes

– Live for the present

– "Feel" what is "best"

– Feel controlled by the world

– "Play it safe"

– Want help with decision making

– Want short-run satisfaction

Other Social Influences

Reference GroupsReference GroupsReference GroupsReference Groups

Opinion LeadersOpinion Leaders

Family Life Cycle