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Consumer Behaviour
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Cultural Diversity
INDIA - States & UT
Cultures and Sub-cultures
Food,cuisine,
Languages
practices,
traditions,Beliefs & myths,
consumption,
Religion(within), casts,
professions,
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Cultural Diversity
Hamlets diversity
Purchasing Power
Rural & urban,
developing and developed.
Niche Market for different products.
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Cultural Diversity
In India, more than 40% Indians, earn less than 1
dollar a day.
Culture Influences consumer preferences :
Kelloggs : when introduced cereal breakfast ( USP
Crispy), consumers were not in habit of using cold milk
in breakfast. culture
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Cultural Diversity
lifestyle and preferences,
Indian consumers reflect a range of behaviour
from price sensitive based value expectations to
showcasing brand symbolism.
Changing Lifestyles & Values TVS Streak &
Honda Pleasure Young aspiring independent
urban women different to male dominated
society.
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Cultural Diversity
Functional value associated with mass market
brand offering at lowest price FMCG Small
Serving 1-2 occasions Shampoos, tea, chocolate,
coffee, toothpaste, hair oil, detergents, soaps, cream
etc..
Brand Penetration India Max Films- maxcelebrities Film stars & sports
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Cultural Diversity
Diversity in Retail : - Kariana Shops.
Market need to develop sound business models after
considering psychological , cultural, socio-cultural,
socio-economic based consumer segmentation.
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Cultural Diversity
Unorganized Market Not branded offeringManufactured by small units,
low priced,Geographical units place of production
illegal duplicates are also part
Unorganized bigger than organisedEg. Watches, footwear, Detergent,
tea, CD, apparel, cooking utensil,
optical wear, bakery products etc.
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Customer and Consumer
Traditionally, customer was used to define the
people whom the organization dealt with
externally and
refers to the purchaser of the product or service.
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Customer and Consumer
However, 1990s witnessed a dramatic shift and
differentiation between customer and consumer, wherein
consumer refer to individual who purchases product and services
for personal consumption and are end user of a product or
service
addresses both internal and external system, purchases for
personal consumption
hence includes the process of obtaining, consuming and
disposing.
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Consumer Behaviour
Consumer behaviour is relatively new field of studydeveloped in the mid to late 60s by the marketingtheorists having borrowed concepts frompsychology, sociology, anthropology, economicsto form new marketing discipline.
Consumer behaviour was traditionally been a studyof why people buy as it becomes easier todevelopstrategies to influence consumers, oncemarketer knows the reasons people buy specific
products or brands.
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Consumer Behaviour
Eventually CB expended its domain to decisionmaking process involving the acts of consumer
directly involved in obtaining, using anddisposing of economic goods and services
Wherein CB means all Acts of Buying :Why,
where,
how,
what, and
how often.
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Consumer Behaviour
According to Loudon & Bita
CB may be defined as the decision process and
physical activity, individuals engage in, when
evaluating, acquiring, using or disposing of
goods and services.
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Consumer Behaviour
Schiffman and Kanuk CB can be defined as the
behaviour the consumer display insearching
for, purchasing, using, evaluating anddisposing of products, services and ideas,
which they expect will satisfy their needs.
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Consumer Behaviour
As per Blackwell activities people undertake
when obtaining, consuming, and disposing of
products and services Three primary activities included in the definition
are :
Obtaining,
Consuming and
Disposing
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Consumer Behaviour
Obtaining refers to the activities leading up toand including the purchase or receipt of a
product. These activities include searching forproduct features and choices, evaluatingalternative products or brands, and purchasing,how consumer buy, do they shop at special
stores/shoping malls/internet. Other issues include in obtaining are payment
mode, transportation, own consumption or
gift, information search, impact of brand on
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Consumer Behaviour
Consuming means how, where, when, and
under what circumstances consumer use
products.Eg. Usage for at home or office, usage as per
instructions or unique way, experience of using
product is entertaining or purely functional.Do they use entire product before disposing of
it or is some of it never consumed.
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Consumer Behaviour
Disposing refers to how consumers get rid ofproducts and packaging.
Consumer Analysts might examine CB from anecological standpoint: How do consumer dispose ofproduct packaging or product remains.
Are products biodegradable.Can they be recycled. Consumers might also choose to extend the life ofsome products by handing them down to youngerchildren, donating them to charity thrift shops or
selling them on eBay.
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Consumer Behaviour
Historically, the study of CB has focused on buyerbehaviour, or why people buy.
More recently researchers and practitioners havefocused on consumption analysis, which refers towhy and how people use products in addition to whyand how they buy.
Consumption analysis is a broader conceptualframework than buyer behaviour because it includesissues that arise after the purchase process occurs- issues that often affect how people buy and the
satisfaction they receive from their purchases.
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Consumer Behaviour
Consumer behavior is thus
a study of individuals,groups, or
organizations and
the processes they use to select, secure, use,
and dispose of products, services, experiences,
or ideas to satisfy needs and
the impacts that these processes have on the
consumer and society.
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Nature of Consumer Behaviour
External Influences
Internal Influences
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Implications of definition
Totality of Decisions (all decisions)
Whether?
What?
Why?
How?
When?
Where?
How much?
How often?
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Consumer Behaviour
Consumer behavior
may involveseveral people (decision making units)
is dynamic (changes over time)
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Applications of Consumer Behaviour
Marketing Strategy
Regulatory (Public) Policy Social Marketing
Personal / Professional Skills
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Orientations to study Consumer
Behaviour
Anthropology
Economics History and geography
Psychology
Sociology
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Consumer Behaviour is
Interdisciplinary
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Psychology
Study of human thinking and behavior
Some issuesPersonality
Personal development
Cognition (thinking), perceptionAttention and its limitations
Learninge.g., acquired tastes
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Anthropology
The study of people within and across
cultures Emphasis on cross-cultural differences
Questioning of assumptions within own
culture
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Economics
Basic economic issues Supply and demand
Rational decision making
Perfect information
Emphasis on predicting behavior
Complications in real life Behavioral economicse.g., mental accounting
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History and Geography
Origins of behavior, perspectives, and
traditions Impact of geography on individualsIsolation
Language development
Climate
Geographic determinism
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Sociology
Cultural and interpersonal influences on
consumptione.g.,Fads, fashions
Diffusion of innovation
Popular culture
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Marketing and Consumer Behaviour
Consumer Market
Consists of all the individuals andhouseholds who buy or acquire goods and
services for personal consumption.
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Two Consumer Entities
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Development of the
Marketing Concept
35
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Production Orientation
From the 1850s to the late 1920s
Companies focus on production capabilities
Consumer demand exceeded supply
36
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Sales Orientation
From the 1930s to the mid 1950s
Focus on selling
Supply exceeded customer demand
37
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Marketing Concept
1950s to current - Focus on the customer!
Determine the needs and wants of specific
target markets
Deliver satisfaction better than competition
Chapter One Slide
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Societal Marketing Concept
Considers
consumers long-run
best interest
Good corporate
citizenship
39
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The Marketing Concept
Consumer Research
Segmentation
Market Targeting
Positioning
The process and tools
used to study consumer
behavior
Embracing theMarketingConcept
40
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The Marketing Concept
Consumer Research
Segmentation
Market Targeting
Positioning
Process of dividing the
market into subsets of
consumers with common
needs or characteristics
Implementing theMarketingConcept
41
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The Marketing Concept
Consumer Research
Segmentation
Market Targeting
Positioning
The selection of one or
more of the segments
identified to pursue
Implementing theMarketingConcept
42
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The Marketing Concept
Consumer Research
Segmentation
Market Targeting
Positioning
Developing a distinct image for
the product in the mind of theconsumer
Successful positioning includes:
Communicating the benefits of
the product
Communicating a unique
selling proposition
Implementing theMarketingConcept
Chapter One Slide
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The Marketing Mix
44
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Customer Value, Satisfaction,
Trust, and Retention
Chapter One Slide
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Successful Relationships
Customer Value
Customer
Satisfaction
Customer Trust
CustomerRetention
Defined as the ratio between
the customers perceived
benefits and the resources
used to obtain those benefits
Perceived value is relative
and subjective
Developing a valueproposition is critical
Value,Satisfaction,Trust, and
Retention
46
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Successful Relationships
Customer
Value
Customer
Satisfaction
Customer Trust Customer
Retention
The individual's perception
of the performance of the
product or service in relation
to his or her expectations.
Customer groups based on
loyalty include loyalists,apostles, defectors, terrorists,
hostages, and mercenaries
Value,Satisfaction,Trust, and
Retention
47
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Successful Relationships
Customer Value
CustomerSatisfaction
Customer Trust
CustomerRetention
Establishing andmaintaining trust
is essential.
Trust is thefoundation for
maintaining along-standingrelationship with
customers.
Value,Satisfaction,Trust, and
Retention
48
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A Simple Model of Consumer Decision Making
Chapter One Slide 49Copyright 2010 Pearson Education, Inc. publishing as Prentice Hall
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Successful Relationships
Customer Value
CustomerSatisfaction
Customer Trust
CustomerRetention
The objective of providingvalue is to retain highlysatisfied customers.
Loyal customers are keyThey buy more products
They are less pricesensitive
Servicing them ischeaper
They spread positiveword of mouth
Value,Satisfaction,Trust, and
Retention
50
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Top 10 Ranked U.S. Companies in Terms of
Consumers Trust and Respect of Privacy
Table 1.2Top 10 Companies American Express
eBay
IBM
Amazon
Johnson & Johnson
Hewlett-Packard
U.S. Postal Service Procter and Gamble
Apple
Nationwide
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Customer Profitability-Focused
Marketing Tracks costs andrevenues ofindividual consumers
Categorizes them intotiers based onconsumptionbehavior
A customer pyramidgroups customersinto four tiers
52
THE TRADITIONAL MARKETINGCONCEPT
VALUE- AND RETENTION-FOCUSEDMARKETING
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53
CONCEPT MARKETING
Make only what you can sell instead of trying tosell what you make.
Use technology that enables customers tocustomize what you make.
Do not focus on the product; focus on the needthat it satisfies.
Focus on the products perceived value, as well asthe need that it satisfies.
Market products and services that matchcustomers needs better than competitorsofferings.
Utilize an understanding of customer needs todevelop offerings that customers perceive as morevaluable than competitors offerings.
Research consumer needs and characteristics. Research the levels of profit associated withvarious consumer needs and characteristics.
Understand the purchase behavior process and the
influences on consumer behavior.
Understand consumer behavior in relation to the
companys product.
Realize that each customer transaction is a discretesale.
Make each customer transaction part of anongoing relationship with the customer.
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The Consumer Research Process
Six steps
defining the objectives of the research
collecting and evaluating secondary datadesigning a primary research study
collecting primary data
analyzing the datapreparing a report on the findings
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Figure 2.1 The Consumer Research Process
Develop Objectives
Collect Secondary Data
Design Qualitative Research
Method
Screener questionnaire Discussion guide
Prepare Report
Analyze Data
(Subjective)
Conduct Research
(Using highly trained
interviewers)Exploratory
Study
Prepare report
Analyze Data
(Objective)
Collect Primary Data
(Usually by field staff)
Design Quantitative Research
Method
Sample design Data collection instrument
F t I fl i C
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Factors Influencing Consumer
Behavior Personal
Psychological Social
Cultural
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Stages in Family Life-Cycle
1. Single
2. Newly Married Couples
3. Full Nesta. Full Nest I
b. Full Nest II
4. Empty Nest
a. Empty Nest I
b. Empty Nest II
5. Solitary Survivor
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Personal Factors
Age
Life-Cycle Stage Occupation
Economic Circumstances
Life Style
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Psychological Factors
Wants
Based on a want or desire to havesomething. Not a necessity.
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Psychological Factors
Motivation:
Freud Id
Ego
Super Ego
Maslow
Hierarchy of Needs
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Psychological Factors
Motivation
PerceptionPerception
The process by which an individual selects,organizes, and interprets inputs/stimuli to create
a meaningful picture of the world.
Selective Exposure
Selective Distortion
Selective Retention
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Psychological Factors
Motivation
Perception LearningLearning
Changes in an individuals behavior
arising form experience
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Psychological Factors
Motivation
Perception
Learning
BeliefsBeliefs
Descriptive thoughts that a person holds aboutsomething
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Psychological Factors
Motivation
Perception
Learning Beliefs
AttitudesAttitudes
Enduring favorable or unfavorable cognitiveevaluations emotional feelings and actiontendencies
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Functional Factors
Needs
Need over wants. Delivers to a realneed to have something.
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Social Class
Relatively homogenous, enduring
divisions in a society, hierarchically
ordered with members sharing similar
values, interests, and behaviors.
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American Social Classes
Upper Upper 1%
Lower Upper 2%
Upper Middle 12%
Middle 32%
Working 38%
Upper Lower 9%
Lower Lower 7%
Family Influence on Buying
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Family Influence on Buying
Behavior
Husband-Dominant Wife-Dominant
Equal
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Adoption Process
1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Decision
6. Confirmation
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Culture & Subcultures
Cultures
The accumulation of values, knowledge, beliefs,
customs, objects, and concepts that a societyuses to cope with its environment
Subcultures
Groups of individuals who have similar valueand behavior patterns within the group but differ
from those in other groups.
Examples of Buying Motives:
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Examples of Buying Motives:
Psychological or Functional?
A girl wants to remember her grandmother
on her birthday.
Her primary motive is?
Psychological
Examples of Buying Motives:
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Examples of Buying Motives:
Psychological or Functional?
A homemaker needs a new automatic
washing machine and has had bad
experiences with semi-automatic machineHer primary motive is ?
Functional
Examples of Buying Motives:
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Examples of Buying Motives:
Psychological or Functional?
A teacher wants to buy a practical car to be
used for family transportation.
Her/His primary motive is ?
Functional
Examples of Buying Motives:
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Examples of Buying Motives:
Psychological or Functional?
A career woman always buys Westren
fashionable clothes.
Her primary motive is?
Psychological
Examples of Buying Motives:
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Examples of Buying Motives:
Psychological or Functional?
An overweight 40 year old man wants to
loose weight so that he can reduce his blood
pressure.His primary motive is?
Functional
Examples of Buying Motives:
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Examples of Buying Motives:
Psychological or Functional?
A homeowner needs to mow their lawn.
Their primary motive is?
Functional
Consumer Buying Behavior Competency
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Consumer Buying Behavior Competency
Functional Motive PsychologicalMotive
The price is 40 cents offthe regular price.
It never needs ironing.
Diamonds are forever.
Serving you since 1971.
Ninety-day warranty.
Consumer Buying Behavior Competency
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Consumer Buying Behavior Competency
Functional Motive Psychological
MotiveRunning shoe with built-in arch.
Its all the ragecoloredaction wear and style.
Wheatiesthe breakfastof champions!
Steel-belted radial tireswarranted for 40,000miles
A watcha gift she willtreasure always.
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Opinion
Leadership
The process by which
one person (the
opinion leader)
informally influences
the consumptionactions or attitudes of
others who may be
opinion seekers oropinion recipients.
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What is Opinion Leadership?
Opinion
Leader
Opinion
Receiver
Opinion
Seeker
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Examples of Opinion Leadership
During a coffee break, a co-worker talks
about the movie he saw last night and
recommends seeing it. A person shows a friend photographs of his
recent Australian Outback vacation and the
friend suggests that using a polarizing filtermight produce better pictures.
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Special Issues(Category Specific)
Opinion leaders are four times more likely to be
asked about political issues, three times more likely
to be asked about computers or investments, and
twice as likely to be asked about restaurants
Information seekers seek a strong-tie source
when they know little about a topic, and weak-tie
sources when they have some knowledge
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Reasons for the Effectiveness of
Opinion Leadership Credibility
Positive and Negative Product
Information Information and Advice
Opinion Leadership Is Category-
Specific Opinion Leadership Is a Two-wayStreet/communication
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Figure 15.1 Factors Leading to
Negative Word-of-Mouth Behavior
Individual Factors
Product Involvement
Situational Factors
Attitudinal Factors
Negative
WOM
Likelihoodof
Repurchase-
+
+
+
+
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Figure 15.2 Word-of-Mouth in Action
0% 20% 40% 60% 80%
Restaurants
Computer
Consumer Electronics
Travel
Automotive
Financial Services
% of
respondents
that used
a referralto make one
of these
purchases
over the
past year
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Motivations Behind Opinion
Leadership The Needs of Opinion Leaders
The Needs of Opinion Receivers
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The Needs of Opinion Leaders
Involvement
1. Self involvement
2. Social involvement3. Product involvement
4. Message involvement
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The Needs of Opinion Receivers
New-product or new usage information
Reduction of perceived risk
Reduction of search time Receiving the approval of the opinionleader
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Table 15.3 A Comparison of Motivations
(Excerpts)
OPINION LEADERS OPINION RECEIVERS
SELF-IMPROVEMENT
MOTIVATIONS
Reduce post-purchase uncertainty or
dissonance
Gain attention or status Assert superiority and expertise Feel like an adventurer
Reduce the risk of making a purchase
commitment Reduce search time
PRODUCT-INVOLVEMENT
MOTIVATIONS
Express satisfaction or dissatisfactionwith a product or service
Learn what products are new in the
marketplace
Learn how to use or consume a product
M t f O i i
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Measurement of Opinion
Leadership Self-Designating
Method
Sociometric Method Key Informant Method
Objective Method
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Table 15.5 Measuring Opinion Leadership
SELF-DESIGNATING
METHOD
Do you influence
other people in their
selection ofproducts?
Each respondent is asked a series
of questions to determine the
degree to which he or sheperceives himself or herself to be
an opinion leader.
OPINION LEADERSHIPOPINION LEADERSHIPMEASUREMENTMEASUREMENT
METHODMETHOD
SAMPLESAMPLE
QUESTIONS ASKEDQUESTIONS ASKEDDESCRIPTION OF METHODDESCRIPTION OF METHOD
SOCIOMETRIC
METHOD
Members of a social system are
asked to identify to whom theygive advice and to whom they go
for advice.
Whom do you
ask?Who asks youfor info about that
product category?
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Table 15.5 continued
OPINIONOPINIONLEADERSHIPLEADERSHIP
MEASUREMENTMEASUREMENT
METHODMETHOD
SAMPLESAMPLEQUESTIONSQUESTIONS
ASKEDASKED
DESCRIPTION OF METHODDESCRIPTION OF METHOD
KEY INFORMANT
METHODWho are the most
influential people in
the group?
Carefully selected key informants in
a social system are asked to
designate opinion leaders.
Artificially places individuals in a
position to act as opinion leaders and
measures results of their efforts.
Have you tried the
product?
OBJECTIVE
METHOD
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Table 15.6 Profile of Opinion Leaders
GENERALIZED
ATTRIBUTES ACROSS
PRODUCT CATEGORIES
CATEGORY-SPECIFIC
ATTRIBUTES
Innovativeness
Willingness to talkSelf-confidence
Gregariousness
Cognitive differentiation
Interest
KnowledgeSpecial-interest media exposure
Same age
Same social status
Social exposure outside group
Th I t l Fl f
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The Interpersonal Flow of
Communication Two-Step Flow
A communication model that portrays opinion
leaders as direct receivers of information frommass media sources who, in turn, interpret and
transmit this information.
Multistep Flow
A revision of the traditional two-step theory thatshows multiple communication flows
Fi 15 4 T St Fl f
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Figure 15.4 Two-Step Flow of
Communication Theory
Mass MediaMass Media OpinionLeaders
OpinionLeaders
Opinion
Receivers
(the masses)
Opinion
Receivers
(the masses)
Step 1 Step 2
Fi 15 5 M lti t Fl f
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Figure 15.5 Multistep Flow of
Communication Theory
Mass Media
Information
Receivers
Opinion
Receivers/
Seekers
Opinion
Leaders
Step 1a
Step 1b
Step 2
Step 3
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DiffusionDiffusion
ProcessProcess
The process by whichthe acceptance of an
innovation is spread by
communication tomembers of social
system over a period of
time.
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AdoptionAdoption
ProcessProcess
The stages throughwhich an individual
consumer passes in
arriving at a decision to
try (or not to try), to
continue using (or
discontinue using) a new
product.
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Elements of the Diffusion Process
The Innovation
The Channels of Communication
The Social System
Time
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Defining Innovations
Firm-oriented definitions
Product-oriented definitions
Market-oriented definitions Consumer-oriented definitions
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Product-Oriented Definitions
Continuous
Innovation
Dynamically
Continuous
Innovation
Discontinuous
Innovation
Figure 15.7 Telephone Innovations
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Telephone
Cell Phone
Fax Machine
Telephone answering machines
Call forwarding
Call waiting
Caller ID
Banking by telephone
Call-prompting systems
Hold button
Line-in-use indicator
Redial button
Auto dialing feature
Touch-tone service
800 Numbers
900 Numbers
Ability to send/receive email
Incorporate PDA functions
Calendar/Phonebook
Voice-activated dialing
Switch from analog to
digital
Include camera
Ringer styles
Play games
Fax modem
Mobile fax machines
Home office systems
(combined fax, copier,
computer printer)
Plain paper fax
Speed dial buttons
Delayed send
Copy function
Paper cutter
Discontinuous
Innovations
Dynamically Continuous
Innovations
Continuous
Innovations
Product Characteristics That
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Product Characteristics That
Influence Diffusion
Relative Advantage
Compatibility
Complexity
Trialability
Observability
Table 15 7 Characteristics That
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Table 15.7 Characteristics That
Influence Diffusion
CHARACTERISTICSCHARACTERISTICS EXAMPLESEXAMPLES
Relative
Advantage
Air travel over train travel, cordless
phones over corded telephones
Compatibility
Gillette MACH3 over disposable
razors, digital telephone answering
machines over machines using tape
ComplexityElectric shavers
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Table 15.7 continued
CHARACTERISTICSCHARACTERISTICS EXAMPLESEXAMPLES
Trialability
Trial size jars and bottles of new
products, free trials of software, free
samples, cents-off coupons
Observability
Clothing, such as a new Tommy
Hilfiger jacket, a car, wristwatches,
eyeglasses
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Time and Diffusion
Time
Adopter Categories
Rate of Adoption
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AdopterAdopter
CategoriesCategories
A sequence ofcategories that
describes how early (or
late) a consumer adoptsa new product in
relation to other
adopters.
Figure 15 9 Adopter Categories
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Figure 15.9 Adopter Categories
Innovators
2.5%
Early
Adopters
13.5%
Laggards
16%
Percentage of Adopters by Category Sequence
Early
Majority
34%
Late
Majority
34%
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Innovators: Description
2.5% of population Venturesome
Very eager to try new ideas Acceptable if risk is daring Communicates with other innovators
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Early Adopters: Description
13.5% of population Respected More integrated into the local social system The persons to check with before adopting a
new idea
Category contains greatest number of
opinion leaders Are role models
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Early Majority: Description
34% of population Deliberate
Adopt new ideas just prior to the averagetime
hold leadership positions Deliberate for some time before adopting
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Laggards: Description
16% of population Traditional The last people to adopt an innovation Most localite in outlook Oriented to the past Suspicious of the new
Table 15 11 Stages in Adoption Process
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Table 15.11 Stages in Adoption Process
NAME OFSTAGE
WHAT HAPPENS
DURING THIS
STAGE
EXAMPLE
Awareness
Consumer is first exposed
to the product innovation.
Janet sees an ad for a new MP3 player in
the magazine she is reading.
Interest
Consumer is interested inthe product and searches
for additional
information.
Janet reads about the MP3 player on themanufacturers Web site and then goes to
an electronics store near her apartment and
has a salesperson show her a unit.
Evaluation
Consumer decides
whether or not to believe
that this product or
service will satisfy the
need--a kind of mental
trial.
After talking to a knowledgeable friend,
Janet decides that this MP3 player will
allow her to easily download the MP3 files
that she has on her computer. She also feels
that the units size is small enough to easily
fit into her beltpack.
Table 15 11 Stages in Adoption Process
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Table 15.11 Stages in Adoption Process
Trial
Consumer uses the
product on a limited basis
Since an MP3 player cannot be tried like
a small tube of toothpaste, Janet buys the
MP3 player online from Amazon.com,
which offers a 30-day full refund policy.
Adoption
(Rejection)
If trial is favorable,
consumer decides to use
the product on a full,
rather than a limited
basis--if unfavorable, the
consumer decides to
reject it.
Janet finds that the MP3 player is easy to
use and that the sound quality is excellent.
She keeps the MP3 player.
NAME OF
STAGE
WHAT HAPPENS
DURING THIS
STAGE
EXAMPLE
Figure 15 11 An Enhanced Adoption
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Figure 15.11 An Enhanced Adoption
Process Model
Pre-existing
problem or
Need
Awareness Interest Evaluation Trial
Adoption
or
Rejection
Postadoption or
Postpurchase
Evaluation
Evaluation
Adoption or Rejection
Discontinuation
Discontinuation or
RejectionRejection
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Consumer and Motivation
Figure 4 1 Model of the Motivation
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Figure 4.1 Model of the Motivation
Process
LearningLearning
Needs
wants,
anddesires
Needs
wants,
anddesires
TensionTension
Goal or
need
fulfill-ment
Goal or
need
fulfill-ment
DriveDrive
BehaviorBehavior
Cognitive
processes
Cognitive
processes
Tension
reduction
Tension
reduction
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Types of Needs
Innate NeedsPhysiological (orbiogenic) needs that are
considered primary needs or motives
Acquired needsGenerally psychological (orpsychogenic) needs
that are considered secondary needs or motives
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Goals
Generic Goalsthe general categories of goals that consumers
see as a way to fulfill their needs
e.g., I want to get a graduate degree. Product-Specific Goals
the specifically branded products or services thatconsumers select as their goals
e.g., I want to get an MBA in Marketing fromKellogg School of Management.
S i f G
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The Selection of Goals
The goals selected by an individual dependon their:Personal experiences
Physical capacity
Prevailing cultural norms and values
Goals accessibility in the physical and social
environment
M i i d G l
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Motivations and Goals
Positive Motivation
A driving force
toward some
object or condition
Approach Goal
A positive goal toward
which behavior isdirected
Negative Motivation
A driving force
away from some
object or condition
Avoidance Goal
A negative goal from
which behavior isdirected away
Rational Versus Emotional
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Rational Versus Emotional
Motives
Rationality implies that consumers selectgoals based on totally objective criteria suchas size, weight, price, or miles per gallon
Emotional motives imply the selection ofgoals according to personal or subjectivecriteria
The Dynamic Nature of
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The Dynamic Nature of
Motivation
Needs are never fully satisfied
New needs emerge as old needs are
satisfied People who achieve their goals set new andhigher goals for themselves
Figure 4.6 New and Higher Goals
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Figure 4.6 New and Higher Goals
Motivate Behavior
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Figure 4.7
Changing
Consumer
Needs
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Frustration
Failure to achieve a
goal may result in
frustration. Some
adapt; others adopt
defense mechanisms
to protect their ego.
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DefenseDefense
MechanismMechanism
Methods by which
people mentally
redefine frustrating
situations to protect
their self-images and
their self-esteem.
Table 4 2 Defense Mechanisms
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Table 4.2 Defense Mechanisms
Aggression
Rationalization
Regression Withdrawal
Projection
Autism
Identification Repression
A l f M ti
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Arousal of Motives
Physiological arousal
Emotional arousal
Cognitive arousal Environmental arousal
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Figure 4.8
Cognitive
Need
Arousal
Philosophies Concerned With
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p
Arousal of Motives
Behaviorist School
Behavior is response to stimulus
Elements of conscious thoughts are to be ignored
Consumer does not act, but reacts
Cognitive School
Behavior is directed at goal achievement
Need to consider needs, attitudes, beliefs, etc. inunderstanding consumer behavior
Figure 4.9 Maslows Hierarchy of Needs
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Physiological Needs
(Food, water, air, shelter, sex)
Safety and Security Needs(Protection, order, stability)
Social Needs
(affection, friendship, belonging)
Ego Needs(Prestige, status, self esteem)
Self-Actualization
(Self-fulfillment)
Table 4.3 Murrays List of
P h i N d
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Psychogenic Needs
Needs Associated with Inanimate Objects:
Acquisition, Conservancy, Order, Retention, Construction
Needs Reflecting Ambition, Power,
Accomplishment, and Prestige:
Superiority, Achievement, Recognition, Exhibition, Infavoidance,
Inviolacy, Defedance, Counteraction
Needs Connected with Human Power:Dominance, Deferrence, Similance, Autonomy, Contrariance
Table 4.3 Murrays List of
P h i N d
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Psychogenic Needs
Sado-Masochistic Needs :
Aggression, Abasement
Needs Concerned with Affection between People:
Affiliation, Rejection, Nurturance, Succorance, Play
Needs Concerned with Social Intercourse:
Cognizance, Exposition
Figure 4.10 Appeal to Egoistic
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g pp g
Needs
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Figure 4.11
Appeal to Self-Actualization
A Trio of Needs
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A Trio of Needs
Powerindividuals desire to control environment
Affiliationneed for friendship, acceptance, and belonging
Achievementneed for personal accomplishment
closely related to egoistic and self-actualizationneeds
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Figure 4.12
Appeal toPower Needs
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Figure 4.13
Appeal to
Affiliation
Needs
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Figure 4.14
Appeal to
Achievement
Needs
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