1 ENT4310 Business Economics and Marketing Consumer Behavior Arild Aspelund IØT, NTNU

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ENT4310Business Economics and Marketing

Consumer Behavior

Arild Aspelund

IØT, NTNU

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Outline

• A model for consumer behavior

• Factors influencing consumer behavior

• Theories of motivation

• The buying decision process– A five-step model

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A Model for Consumer Behavior

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Key Factors Influencing Consumer Behavior

Cultural FactorsCultural Factors

Social FactorsSocial Factors

Personal FactorsPersonal Factors

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Culture

The fundamental determinant of a person’s wants and behaviors

acquired through socializationprocesses with family

and other key institutions

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Subculture influence

Nationalities Nationalities

ReligionsReligions

Racial groupsRacial groups

Geographic regionsGeographic regions

Special interestsSpecial interests

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Social Factors

• Reference groups– A reference group is all individuals or institutions that have direct or

indirect influence on a person’s attitudes or behavior

• Family– The most influential reference group

– Influence varies over a person’s life time

• Social roles and statuses– Individuals belong to several groups

– To each group one is associated with a certain social role and status

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Reference Groups

Membership groupsMembership groups

Primary groupsPrimary groups

Secondary groupsSecondary groups

Aspirational groupsAspirational groups

Dissociative groupsDissociative groups

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Personal Factors

Age

Values

Life cyclestage

Occupation

Personality

Self-concept

Wealth

Lifestyle

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Key Psychological Processes

Motivation

MemoryLearning

Perception

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Motivation

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by

lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating

and hygienefactors

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Motivation - Maslow’s Hierarchy of Needs

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Motivation - Herzberg’s Two-Factor Theory

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Perceptions

• Selective attention– A cognitive screening process to save your brain from information

overload

• Selective distortion– Tendency to interpret information to fit with your preconceptions

• Selective retention– Tendency to remember the good about the things you like, and forget the

good about those you don’t

• Subliminal perception– Messages to your subconscious

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Buying Decision Processes- A Five-Stage Model

Problem

recognition

Information

search

Evaluation of

alternatives

Purchase

decision

Postpurchase

behavior

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Successive Sets

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Buying Decision Processes- Conversion Rates

Awareness Familiarity AmbassadorConsideration Purchase Loyalty

95 80 40 20 12 5

84 50 50 60 41

15 11

73

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Summary and Continuation

• Summary– In this lecture we have presented some factors that influence consumer

behavior• Culture• Social • Personal

– We have also presented some fundamental theories of motivation• Freud• Maslow• Herzberg

– Finally, we have presented a five-step model to the purchase decision process

• Continuation– Segmentation and targeting