How has an understanding of consumer behavior helped coppertone

Understanding Consumer Behavior

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LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO:

Describe the stages in the consumer purchase decision process.

Distinguish among three variations of the consumer purchase decision process: extended, limited, and routine problem solving.

Identify the major psychological influences on consumer behavior.

Identify the major sociocultural influences on consumer behavior.

Coppertone case and Paradox of Choice Ted Talk

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ENLIGHTENED CARMAKERS KNOW WHAT CUSTOM(H)ERS VALUE

Women:

Make 60 Percent of New Car Buying Decisions

Influence 84 Percent of Decisions

Key Elements of Their Decisions:

The Sense of Styling

The Need for Speed

The Substance of Safety

The Shopping Experience

Women-Drivers.com

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The purchase decision process consists of five stages.

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CONSUMER PURCHASE DECISION PROCESS PROBLEM RECOGNITION

Purchase Decision Process

Problem Recognition Starts with the Difference Between:

Consumer’s Ideal Situation

Consumer’s Actual Situation

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CONSUMER PURCHASE DECISION PROCESS INFORMATION SEARCH

Information Search: Seeking Value

Internal Search

External Search

Personal Sources

Public Sources

Marketer-Dominated Sources

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Common Consumer Selection Criteria for the Evaluation of Smartphones

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CONSUMER PURCHASE DECISION PROCESS ALTERNATIVE EVALUATION

Alternative Evaluation Stage:

Suggests Criteria for Purchase

Yields Brands that Meet Criteria

Develops Value Perception

Evaluative Criteria

Consideration Set

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CONSUMER PURCHASE DECISION PROCESS PURCHASE DECISION

Purchase Decision: Buying Value

Make the Purchase Decision by:

Decide from Whom to Buy

Decide When to Buy

©Seb Oliver/Cultura/Getty Images

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CONSUMER PURCHASE DECISION PROCESS POSTPURCHASE BEHAVIOR

Postpurchase Behavior: Realizing Value

Customer Satisfaction Studies

Satisfied Customers Tell 3 People

Dissatisfied Customers Tell 9 People!

Cognitive Dissonance

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MARKETING MATTERS How Much Is a Satisfied Customer Worth?

Customer Satisfaction Underlies the Marketing Concept

How Much is it Worth?

Frito-Lay: Average Consumer Spends $52.50 per year

Exxon: $500 per year for Gas

Kleenex: $994 over 60 Years

Ford: Increasing Customer Retention from 60 percent to 80 percent Is Worth $100 Million in Profit per Percentage Point

Research Shows 5 Percent Increase in Retention can Increase Profits by 70-80 Percent

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CONSUMER PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT AND PROBLEM SOLVING

Consumer Involvement Affects Problem Solving

Involvement

Extended Problem Solving (High Involvement)

Limited Problem Solving (Medium Involvement)

Routine Problem Solving (Low Involvement)

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Comparison of problem-solving variations: extended, limited, and routine.

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CONSUMER PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT & MARKETING STRATEGY

Low Involvement

Common Products

Maintain Product Quality

Avoid Stockouts

Reduce Cognitive Dissonance with Ads

High Involvement

Consumers Seek Product Information

Use Comparative Ads

Use Personal Selling

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CONSUMER PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES

Situational Influences Affect Purchase Decisions

Situational Influences

Purchase Task

Social Surroundings

Physical Surroundings

Temporal Effects

Antecedent States

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Apple Consumer Journey Map and Consumer Touchpoints for Electronic Devices Sold in Apple Stores

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Influences on the consumer purchase decision process from both internal and external sources.

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PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER MOTIVATION AND PERSONALITY

Motivation

Hierarchy of Needs

Physiological Needs

Safety Needs

Social Needs

Personal Needs

Self-actualization Needs

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Maslow’s Hierarchy of needs

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PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERSONALITY

Personality

Self-Concept

Key Traits – Enduring Characteristics of a Person:

Assertiveness

Extroversion

Compliance

Dominance, etc.

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PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER PERCEPTION (1 of 2)

Perception

Selective Perception

Selective Exposure

Selective Comprehension

Selective Retention

Subliminal Perception

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MAKING RESPONSIBLE DECISIONS The Ethics of Subliminal Messages

FTC – “Subliminal Messages Are Deceptive.”

But Are Not Illegal

Two-thirds of U.S. Consumers Think Subliminal Messages Are in Commercials

50 Percent Think This Causes Them to Buy

Are Subliminal Messages Unethical?

©2004 by August Bullock. All Rights Reserved. Used with permission. The SecretSalesPitch.com

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PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER PERCEPTION (2 of 2)

Strategies to Reduce Perceived Risk

Obtain Seals of Approval

Secure Endorsements

Provide Free Trials/Samples

Give Extensive Instructions

Provide Warranties/Guarantees

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PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER VALUES, BELIEFS, AND ATTITUDES (1 of 2)

Attitude Formation – Learned Response to Objects in Consistent Way (Favorable or Unfavorable)

Attitude

Values Affect Attitudes

Beliefs

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PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER VALUES, BELIEFS, AND ATTITUDES (2 of 2)

Marketers Use Three Approaches to Change Attitudes:

Change Beliefs About a Brand’s Attributes

Change Perceived Importance of Attributes

Add New Product Attributes

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PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER LIFESTYLE

Lifestyle

How People Spend Their Time and Resources

Lifestyle Analysis Useful for Targeting Consumers

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SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR REFERENCE GROUPS

Reference Groups

Associative Group

Brand Community

Aspiration Group

Dissociative Group

©Joseph Eid/AFP/Getty Images

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SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR FAMILY INFLUENCE (2 of 2)

Family Decision-Making

Two Styles:

Spouse-Dominant

Joint

Family Member Roles:

Information Gatherer

Influencer

Decision Maker

Purchaser

User

©Jochen Sand/Getty Images

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SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS INFLUENCE

Social Class

People Share Similar Values, Interests, and Behavior

Occupation, Income Source, Education Determine Social Class

Upper

Middle

Lower

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SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR CULTURE AND SUBCULTURE INFLUENCES (1 of 3)

Culture

Subcultures

Hispanic Buying Patterns

Quality and Brand Conscious

Prefer American-made Products

Influenced by Family and Peers

Advertising Is Credible Product Information Source

Nissan Ad

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VIDEO CASE 5 COPPERTONE: CREATING THE LEADING SUN CARE BRAND BY UNDERSTANDING CONSUMERS

Coppertone Video Case

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VIDEO CASE 5 Coppertone (1 of 5)

How has an understanding of consumer behavior helped Coppertone grow in the United States and around the globe?

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VIDEO CASE 5 Coppertone (2 of 5)

Describe the five-stage purchase decision process for a Coppertone customer.

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VIDEO CASE 5 Coppertone (3 of 5)

What are the possible situational, psychological, and sociocultural influences on the Coppertone consumer purchase decision process?

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Paradox of Choice

Barry Schwartz Ted Talk

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WHAT YOU LEARNED FROM CHAPTER 5

Describe the stages in the consumer purchase decision process.

Distinguish among three variations of the consumer purchase decision process: extended, limited, and routine problem solving.

Identify the major psychological influences on consumer behavior.

Identify the major sociocultural influences on consumer behavior.

Copper tone case and Paradox of Choice Ted Talk

©McGraw-Hill Education.