Advertising Principles and Practices The Consumer Audience How does consumer How does consumer behavior work behavior work Consumer behavior how consumers select purchase use or dispose of products and the needs and wants that motivate behaviors Consumers people who buy or use products or adopt ideas to satisfy needs and wants Customers consumers who buy particular brands or patronize specific stores Prospects potential customer who are likely to buy the product or brand Principle Buyers may not be the users and users may not be the buyers Buyers and users often have entirely different needs and wants Prentice Hall 2009 5 2 Influences on Influences on Consumer Consumer Decisions Decisions Prentice Hall 2009 5 5 Cultural Influences Cultural Influences Norms and Values Norms a culture s boundaries for proper behavior Values the source of norms which represent underlying belief systems Subcultures Smaller groups of cultures defined by geography age values language traditions or ethnic background Corporate Culture How various companies operate formal vs informal Core Values Sense of belonging Excitement Fun and enjoyment Warm relationships Self fulfillment Respect from others A sense of accomplishment Security Self Respect Prentice Hall 2009 5 4 Social Influences Social Influences Social Class society The position you and your family occupy within your Determined by income wealth education 1 occupation family prestige value of home and neighborhood Reference Groups Models for behavior such as teachers religious or political figures religious groups ethnic organizations your peers KNOW 3 FUNCTIONS They Means of personal comparison Provide information Offer guidance Prentice Hall 2009 5 5 Social Influences Social Influences Family Two or more people who are related by blood marriage or adoption and live in the same household Change in family is number of people Household all those who occupy a dwelling related or not Lifestyle your family situation values and income that determines how you spend your time and money Prentice Hall 2009 5 6 Social Influences Social Influences Demographics Statistical social and economic factors that characterize a population such as age gender education income occupation race and family size Identifies audiences and helps advertisers develop messages and select media U S Census Bureau collects demographic data every 10 years Prentice Hall 2009 5 7 Social Influences Demographics Social Influences Demographics Age Gender Family Status Race and Ethnicity Education Occupation Income Geography Sexual Orientation Principle Your income is a key demographic factor because you are meaningful to a marketer only if you have the resources needed to buy the product advertised Prentice Hall 2009 5 8 Psychological Influences Psychological Influences Perception and State of Mind Your past experiences with a brand what others say and mental states affect behavior Needs and Wants Innate water food shelter and sex Acquired secondary needs esteem prestige affection power learning and beauty Want Based on a desire or wish for something Satisfaction dissatisfaction Give consumer more than they expect Cognitive dissonance Want people to reassure you return policy Principle An item we need is something we think is essential or necessary for our lives an item we want is something we desire Prentice Hall 2009 5 9 Psychological Influences Psychological Influences Maslow s Hierarchy of Needs Maslow s Hierarchy of Needs Prentice Hall 2009 5 13 Psychological Influences Psychological Influences Motivation behavior Attitudes Personality Motive an internal force that stimulates a certain Based on deeply held values and resistant to change Brand personalities can be created to make brands distinct from competitors Principle Strategies that are designed to affect attitudes focus on establishing changing reinforcing or replacing them Prentice Hall 2009 5 11 Psychological Influences Psychological Influences Psychographics Activities work hobbies social events vacation entertainment shopping Opinions self social future political business culture economics education Interests family home job food media achievements recreation Principle Often differences in consumer behavior lie in psychographics consumers interests and lifestyles rather than in demographics Prentice Hall 2009 5 12 Psychological Influences Psychological Influences Lifestyles Looks at patterns of consumption personal relationships and leisure activities Yankelovich Monitor s VALS Values and Mindbase Lifestyles Products are linked to lifestyles in the way they reflect the interests of people and the settings in which the products are used Prentice Hall 2009 5 13 The VALs System The VALs System The VALs System categorizes consumers according to psychological traits that correlate to purchase behavior 2 variables are Resources money and innovation Thinkers and Believers motivated by ideals abstract criteria such as tradition quality and integrity Achievers and Strivers motivated by achievement seeking approval from a values social group Experiencers and Makers motivated by self expression and the need to stand out from the crowd or make an impact on the physical world Prentice Hall 2009 5 17 Behavioral Influences Behavioral Influences Usage Behavior Usage Rate quantity of purchase light medium heavy Brand relationship past present or future use of product nonusers ex users regulars first timers switchers Innovation and adoption how willing people are to try Perceived Risk what you have to gain or lose by trying something new something new Experiences The experience of buying vs acquiring the product itself Our decisions are based on our experience with the brand Principle In many product categories 20 percent of the users buy 80 percent of the products Prentice Hall 2009 5 15 Trends in Consumer Trends in Consumer Buying Behavior Buying Behavior Trends and fads Related to lifestyle and psychographic factors as well as desire for choice in a consumer culture Young people are very involved in trends Trendspotters researchers that identify trends affecting consumer behavior Cool Hunters specialize in trends that appeal to youth Brand proselytizer consumer paid to positively influence people about a brand Take charge mentality of today s consumers Prentice Hall 2009 5 16 The Consumer Decision Process The Consumer Decision Process KNOW STEPS Traditional View Need recognition brand ad Information search print copy Evaluation of