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Consumer & Browser Behavior
Human Information Behavior
17:610:510:03
October 14, 2009
Brigid Abraham
Julianne Kurtz
Mary Grace Whealan
Who is today’s consumer?
http://likeiknowit.wordpress.com/2008/05/19/micro-interactions/
Who is Concerned with Who is Concerned with Consumer Behavior?Consumer Behavior?
• Retailers• Marketers• Psychologists• Consumers
• Process: Information transmitted from producers to consumers; information transfer, then knowledge and evaluation of user leads to product choice
http://www.industrialsearchenginemarketing.com/blog/2007/12/31/consumer-behavior-overview-101-aligning-online-with-offline-marketing-campaigns/
What Influences Consumer Behavior?
• http://www.ac.wwu.edu/~market/courses/380/consbehv.html
What consumer behaviors is Mr. Bean exhibiting?
• Behavior Behavior impacted by impacted by shopping shopping environmentenvironment– In this case,
negatively
Youth ConsumersYouth Consumers• Groups of youth• Technology as influencing
youth consumer behavior• Changes in youth spending
– Significant growth inmoney expendedby minors
Experian Simmons survey
•What youth and teens are buying•How much they are spending
Gen. Y (born 1977-1994, numbering 76 million) have tremendous spending power – about $600 billion per year, not including influence on parents.
What consumer behaviors is Mr. Bean exhibiting?
• Impacting Peers, Impacting Peers, Colleagues, Colleagues, Family…even Family…even strangersstrangers– In this case, a
fellow shopper
Adolescent Adolescent Consumer BehaviorConsumer Behavior
• Piaget’s theory of intellectual development (1960) assumes that all socialization occurs by age of 15
• Consumer tendencies for life built around late adolescent/early adulthood
• Churchill and Moschis’ 1979 study evaluated the interactions of:
1. Age2. Socioeconomic status (* found not to be
a factor)3. Birth Order4. Sex5. Amount of TV/media6. Family Communication about
Consumption7. Peer Communication about
Consumption8. Materialism9. Social Motivations for Consumption10. Economic Motivations for
ConsumptionChurchill and Moschis, 1979
Purchasing Motivations of Generation Y Consumers
(Noble, Haytko, and Phillips. 2009)
• Changing attitudes and influences as cognition develops
• Brand loyalty – lifelong; starts here
Socialization TheorySocialization Theory – Processes by which young
people acquire skills, knowledge, and attitudes relevant to their
functioning as consumers in the marketplace.
Youth and Teen InfluencesYouth and Teen Influences• Influenced by parents
…but also influence parents• Youth/teen opinions differ from
parents’• Teens as targets of advertisers
• Strategically placed store items
Adults• Responsibilities:
– Taking care of children– Taking care of parents– Demanding careers– Social lives– Balancing a family
budget
Adults Prefer Online Shopping
• No “grocery store” arguments
• Increased comfort level• Convenience• Less stressful
environmentWhen asked how much time an ADULT aged 35-54 would spend on a plane ticket to see a loved one or to go on a vacation, the adult gave the same terse response: “Southwest Airlines, Travelocity. Less than an hour.”
Challenges of Adults• Struggle to fight
own impulses and appease children's impulses
• Less available time than other age groups
• Raising children in a technological world
Mature Consumers
• By 2020, there will be 1,000,000,000 people over the age of 60 living worldwide
• The 85+ age bracket is the fastest growing segment of the worldwide population
• Seniors have 70% of the USA’s purchasing power
• Highest percentage of discretionary income of any 10-year age bracket
• Seniors 65+ had $200 billion in purchasing power yearly (est. in 2000)
Important Factors to Mature Consumers
• Nostalgia
• Brand/Store Loyalty
• Convenience
• Simplicity
• Risk reduction
• FunctionalityReisenwitz, T., Iyer, R., Kuhlmeier, D, & Eastman, J.. (2007). The elderly’s
internet usage: an updated look. Journal of Consumer Marketing, 24(7), 406-418.
Brand Loyalty and Trust
• Perceived service quality
• Overall purchasing experience
• Associate positive conventional shopping experience with positive online service
Consumer Choice
Consumer
Browse Pre-purchase Search Impulse Buying
All have been impacted by the Internet
What consumer behaviors is Mr. Bean exhibiting?
• Impulse Buying Impulse Buying BehaviorBehavior– Browsing with the
intent to buy, but nothing specific in mind
Video care of YouTube.com
Impulse Buying
Immediacy of purchase
Accompanied by emotions
Proximity to stimulus
How has technology shaped our consumer behaviors?
• Constant need for timely information (i.e. flights)
• Auction sites such as ebay make selling collectible items easier
• More inclined to research the value and prices of a purchase
• Must consider risks when making purchases
E-Commerce
• According to the U.S. Census Department of Commerce, in the first
quarter of 2009, $32.4 billion was spent in e-commerce
• E-commerce has grown from less than a percent of total quarterly retail sales 10 years ago to 3.6% of total quarterly retail sales
U.S. Dept. Of Commerce. (2009). [Graph representing quarterly progression of e-commerce percentage sales]. Quarterly Retail E-commerce Sales. Retrieved from http://www.census.gov/retail/mrts/www/data/pdf/09Q2.pdf
$$ What We Buy $$
• What are people buying?
• Why are they buying online?
• Why aren’t they?
Decision Aids • Recommendation
Agent– Amazon.com– Netflix.com
• Comparison Matrix– Bestbuy.com
Recommendation AgentsRecommendation Agents
• 3 parameters
• attribute importance weight
•minimum acceptable attribute levels
• quota cut-off to limit number of products to be included
Netflix.com
Bestbuy.com
Comparison MatrixComparison Matrix
• in-depth comparisons of selected alternatives
• matrix clearly outlines information about a select number
of products.
Methodology
Framework of Online Consumer Behavior
What consumer behaviors is Mr. Bean exhibiting?
• Impulse Buying Impulse Buying BehaviorBehavior– Browsing with the
intent to buy, but nothing specific in mind
– Physical product trial
Is there ANYTHING You Can’t Buy Online?
• Peapod/ Fresh Direct: People like the ritual of picking out food
• Cars: usually involves a payment plan and test drive
• Use sites as informational: not to buy directly
Risk Reducing Methods:Word of Mouth RecommendationProduct WarrantiesEndorsementsAdvertisementsSamplesReturn PoliciesFree SamplesMoney-Back GuaranteesTrial SizesPrice Reductions
LEVELS of RISK
• High
– Car
• Medium
– Laptop Computer
• Low
– Clothing or supermarket items
RISK
Time for Consumer Time for Consumer Search and DecisionSearch and Decision
• Factors considered– Brand Information– Experience with Vendor– Convenience
• When time is short, factors change level of importance
“Time is money.”Time for search determines
search type, depth, and sources consulted
“If I had more time, I would probably use more sources—a more extensive internet search, calling up people who might know about [SUBJECT X], etc.” – Survey Participant
Hauser, Urban, and Weinberg, 1993
What consumer behaviors is Mr. Bean exhibiting?
Browsing Browsing
/ Window/ Window
ShoppingShopping
Video care of YouTube.com
Why Browse?
• What is browsing?
• How is it different from shopping?– Impulse buying blurs this line
• How do we browse?
Research conducted by Bloch, Sherrell, and Ridgway (1986, 1989)
Why Browse?
• Browsing versus searching– Determinants– Motives– Outcomes
• Recreation• Banking
knowledge for later shopping use
Research conducted by Bloch, Sherrell, and Ridgway (1986, 1989)
What makes some stores so successful?
• Consistency of usability design• Responsive to customer needs • Timeliness of information
What does all of this mean for What does all of this mean for libraries and librarians?libraries and librarians?
Survey FindingsSurvey Findings
- 100% of respondents chose the internet in their top 3- 92% had friends/family in the top 3- 49% had car dealerships in top 3- 33% had library in top 3;
46%, however, would consult a library 4th, and 8% would not consult a library at all- just 23% indicated they would consider speaking to librarian about finding car information