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MKT3050 – Consumer Behavior SeminarWeek 6 – April 21, 2013
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Objectives
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• We’ll examine reference groups and how they are different than micro-cultures.– How are reference groups influence us? How do they deliver value to us?
• We’ll also review families and households.– How are families changing? Households?– What effects have these changes had on consumers?
• And then we’ll begin discussion the consumer decision process.– How do consumers identify needs?– How do they search for information?
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Consumer Value Framework (CVF)
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What are Reference Groups?How are they different from Micro cultures?
A group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior.
A group of individuals who has significant relevance for a consumer and who impacts the consumer’s evaluations, aspirations, and behavior.
Reference Groups
So how is this different from micro culture??
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How do Reference Groups influence us?
• Group influence refers to the ways in which group members influence the attitudes, opinions, and behaviors of others within the group.
• Group members:– Share common goals
and interests– Communicate with, and
influence, one another– Share a set of
expectations, rules, and roles
– View themselves as members of a common social unit
©CHARLEY GALLAY/GETTY IMAGES http://www.youtube.com/watch?v=yTo7I3rCLIo
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Types of Groups
• Primary – frequent interaction (family)• Secondary – less frequent (social
groups)Primary & Secondary
brand community
Primary & Secondary
brand community
Formal & Informal
Formal & Informal
Aspirational & Dissociative
Aspirational & Dissociative
• Formal – set of stated rules, codes of conduct (church)
• Informal – no membership requirements, no rules (golf club)
• Aspirational – you desire to become a member for your ideal self.
• Dissociative – you don’t want to belong. The ‘what not to be’ group influence
• What are your reference groups?
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Dynamics of Reference Groups
ConformityA result of group influence in which an individual yields to the attitudes and behavior of others.
ConformityA result of group influence in which an individual yields to the attitudes and behavior of others.
Peer PressureThe extent to which group members feel
pressure to behave in accordance with
group expectations.
Peer PressureThe extent to which group members feel
pressure to behave in accordance with
group expectations.
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Any peer pressure atNorthwood?
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Dynamics of Reference GroupsTypes of Social Power
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How can Reference Groups influence the behavior of others?
• Informational influence – consumers use the behaviors and attitudes of reference groups as information into making their own decisions.– Can occur through observation
• Utilitarian influence – consumers conform to group expectations to receive a reward or avoid punishment.– Reward = acceptance
• Value-expressive influence – consumers internalize a group’s values or join groups to express their own values and beliefs.
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How can Reference Groups influence the product selection of others?
Influence varies depending on…• Public vs private consumption
– When seen by others, reference groups may be more important
• Luxury vs necessity item– Necessities aren’t as influenced by reference
groups
• Brand vs type of product is more important– If brand is in play, reference groups will influence
public items
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How do Reference Groups Influence Consumer Purchases?
• Reference group influences stronger for purchases that are:– Luxuries rather than necessities– Socially conspicuous/visible to others
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Individual Difference in Susceptibility to Group Influence
Susceptibility to interpersonal
influences
Susceptibility to interpersonal
influences
Attention to social
comparison information
Attention to social
comparison information
Separateness - connectedness
Separateness - connectedness EmbarrassmentEmbarrassment
Which level of Maslow’s hierarchy affects how muchgroups affect you as an individual? What role does culture play?
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What are Families and Households?
• Family defined as:– 2+ people related by blood, marriage, adoption who reside
together
• Types of families:– Nuclear – immediate family– Extended – includes grandparents, in-laws– Orientation – born into– Procreation – married into
• Household Defined as:– All persons, related and unrelated who live in same
housing unit
• Household importance is growing…– Rapid growth in nontraditional families and non-families
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Why is Understanding the Family and Household Structure Important?
• Many products purchased by a family unit• Individual buying decisions influenced by family members
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Young Single
Young Married no Children
Young Married w/ Children
Middle Age Married w/
Children
Middle Age Married Empty
Nesters
Older Married
Older Unmarried
Young Divorced
no Children
Middle Aged Married no Children
Middle Aged Divorced no
Children
Young Divorced or Single with
Children
Middle Age Divorced or Single with
Children
Middle Age Divorced or
Single Empty Nesters
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Determining Family Purchases
• Roles of family members affect purchase.– Instrumental roles – involve the economics of the
purchase– Expressive roles – involve the family’s emotional
needs, including upholding norms• Family members can play one or more roles in the
decision process:– Gatekeeper– Influencer– User– Decision Maker– Purchaser
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Marketers need to identifyand reach consumersin each of these roles.
Family roles differ by microCulture.
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What has happened to Households as a result of changing family structures?
• The average household size has fallen in most industrialized countries
• Nonfamily households are projected to grow more rapidly than families over the next few decades, but the highest incomes are found among family households.
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Because many consumers are less connected to family influences, they look for surrogates to
help with decision making
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Social MediaSocial Media
Social NetworksSocial Networks
Social Networking Websites
Social Networking Websites
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Google Offers (i.e., their deal service)
Yelp
Myspace
LivingSocial
Blogs about a topic I'm interested in
Amazon Local (i.e., their deal service)
AllRecipes
Google+
Groupon
Craigslist
eBay
YouTube
10%
11%
11%
15%
18%
19%
20%
20%
23%
28%
28%
34%
44%
65%
75%
Among Those Who Use Social Media, Facebook is Most Popular
Flickr Digg Cozi
Windows Live Profile Foursquare TypePad
StumbleUpon Reddit Commission Junction
Classmates Online MeetUp Badoo
Wordpress LinkShare BlogHer
Blogger Squidoo Renren
Tumblr Orkut
Vimeo
Proportion of People Using Various Social Media Sites, Past Month
Sites used by less than 10% of respondents
N14. Which, if any, of these specific sites, services, or tools have you used during the past 30 days? (1641)
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Guidelines for Reaching Consumers with Social Media
•Social media is a tool you can use to get outside your box and create a more personal and personable relationship with your consumers•If you choose to use social media remember to:
•Listen loudly: Employ people to monitor a range of social media platforms and listen to consumers’ conversations about you. •Respond quickly: Try not to let conversations and comments about your brand go unanswered. Respond to your consumers.•Celebrate successes: Gather consumers’ positive feedback and broadcast their words on social media. Let consumers talk for you.•Reinvent yourself: Gather consumers’ feedback and use it to make a better product or improve your services.
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other Family Surrogates / Group Influences Word-of-Mouth and Opinion Leaders
• Word-of-Mouth– Information about products, services, experiences that is
transmitted from consumer to consumer• Other consumers more believable than advertising and
marketing!
• Opinion Leaders– Consumers who have great influence on the behavior of others
• Knowledgeable about products• High level of involvement with products• Socially active and confident
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Surrogate Consumers / Market Mavens
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Lisa Belkin | MotherlodeLisa's Rankings· #1 Best Written · #2 Most Controversial · #3 Most Useful · #13 2009 Top 50
If you want to know where modern moms are getting their voice, look no further than Lisa Belkin and her wildly successful New York Times blog. Controversial, funny, and always inspiring worthwhile conversation, Motherlode takes the top spot as the must-read mom blog of 2010. Lisa Belkin is the go-to source for the hottest parenting news, whether it’s a national saga unfolding before our eyes or a quietly interesting story that we’d never have found ourselves.
http://www.youtube.com/watch?v=tUE84Y22eUg
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Other influences on consumers
• Buzz Marketing– Through word-of-mouth– Viral (on-line)
• http://www.youtube.com/watch?v=iefi-7qXpzk&feature=related
• Stealth Marketing– Product placements
• http://www.youtube.com/watch?v=wACBAu9coUU– Having employees pose as consumers– Ethics??
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
So how do Consumers make decisions?Consumption Process and Decision-Making
• CHOICE occurs throughout the process.– These choices are
always linked to finding value!
• Doesn’t necessarily lead to a product –– May be a service– Participation– Attendance
• Decision making is also linked to motivation and emotion
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What types of perspectives do consumers have when making decisions?
Consumers don’tfollow the sameprocess with eachdecision.
Which perspectivesare more aligned with Utilitarian purchases?Hedonic?
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What types of approaches do consumers use when making decisions?
• The decision making approach depends on the level of involvement and the level of risk associated with the decision.
• Which decision approach is longest? • When a consumer is brand-loyal, which approach is most likely?
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Need Recognition doesn’t always lead to a decision
26A ‘want’ is the way in which consumers address a need !
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
What are ‘Need States’?
• Marketers try to uncover the motivations and emotions that underlie a need. The term ‘need states’ was developed in mid-2000.
• A need state is defined by a group of consumers who are alike in terms of the product benefits and attributes they seek in a particular use occasion. For the same product, a consumer can experience different need states over the course of the day or across the occasions they will use that particular product. – For instance, a yogurt user may want a product for weight control
that fits into her fitness routine for breakfast, and maybe lunch; at these occasions, she would desire a yogurt that is low in calories and fat.
– Later in the day, that same person may want an indulgence and seek a yogurt that is sweet, has a bold flavor and is worth the extra calories.
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How do Marketers attempt to measure needs?
• Focus groups with techniques like ..– laddering (an interviewing method that invites consumers to reveal
specifics), – projection (where consumers are asked to role play), – contextual interviews (observing behavior and product/category
interactions, either in person or via video diaries), offer insight into consumers’ different usage occasions with the brand and the needs that define them. • These techniques elicit consumer language that describes their
need states. Combining consumer language with our own observations allows us to understand the language we should use and the situations we should consider.– Has implications for new product development, brand
personality, and messaging.• http://www.youtube.com/watch?v=ZXbCrInQLW4• http://www.youtube.com/watch?v=vHxcso19-QM 28
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How do Marketers attempt to measure needs
• Quantitative tools like …– online journals and usage diaries (where consumers relay their
habits and practices)– attitude and image surveys (consumers react to functional and
emotional attributes)– market structure (relating product usage to demographics, needs
and occasions) help quantify consumer need states and provide a strategic focus for the marketing plan
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©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Condiments and Sauces
Away from Home
Accompaniment
Sauce Type
Brand
Pack Type (Squeeze)
Size
Flavor
Food Prep
Sauce Type
Brand
Size
Flavor
In Home
Food Prep
Sauce Type
Flavor
Brand
Size
Accompaniment
Sauce Type
Flavor
Brand
Pack Type
Size
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Consumer Decision Tree
Conclusions Box: Brand becomes more important for away-from-home consumption. Squeeze options are important for accompaniment sauces (e.g., catsup, BBQ). Flavor considerations include low sodium, gluten free options.
Source: SpecialtyFood.com, 2013
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
After Consumers identify a Need and decide to seek value, the Search begins!
Prepurchase – to help
with decision
Prepurchase – to help
with decision
External – family, friends,
groups
External – family, friends,
groups
Ongoing – staying up-
to-date
Ongoing – staying up-
to-date
Internal – retrieve
stored info
Internal – retrieve
stored info
Information Overload
Information Overload
©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
How much to search?
• Product experience• Involvement• Perceived risk• Value of search effort
• Time availability• Attitudes towards
shopping• Personal factors• Situational influencers