Consumer behavior and purchase decision

Historical and conceptual development in the study. 4 reasons why CoC

1. The essence of Marketing Management To be a more effective consumer Know human behavior Offers types of information: Orientation, Theories, Facts

consumer-behavior-3

5 Phases of historical evolution

1930 - 50 Empirical phase	· Empirical, a posteriori studies Economic theory
1950 - 60 Motivational research	· Psychologists (Freudians) describe the real reasons qualitative techniques
1960 - 65 Formative phase	· „Simple constructs“ (models: cognitive dissonance) · Research in Universities · Models: Perceived risk
1965 –70 Great utopian theories	· Integrate results è Global models · Nicosia, Engel, Howard and Shet
1970 - 80 Information processing	· Understand how the COR search, receive, store, interpret information

2 Definitions CoC

1. "Those decisions and activities of people, specifically involved in buying, using, evaluating and disposing of the products, services or ideas that they hope will satisfy their needs" (Walter & Bergiel 89) "They are the activities that people carry out when they select, buys and uses products and services in order to satisfy wants and needs, and mental and emotional processes as well as physical actions are involved in such activities. ” (Wilkie 90)

Study on 3 different levels

Study at different levels è Exchange with the company and other consumers

Macro level	Micro level	Individual level
· Forces on a large number of consumers: · Culture · Social class · Values · Government regulations	· Interpersonal factors, external to the person · Communication process · Interpersonal exchange. · Group · Family and socialization	· Processes that influence a person in different phases: · Learning · Motivation and affection · Personality · Lifestyle · Beliefs and Attitudes · Decision Process

7 Characteristics of the CoC

1. Behavior MOTIVATED PROCESS with multiple activities (function of time) Decision making is SITUATIONAL Evolution with the LIFE CYCLE There are DIFFERENT ROLES Influenced by EXTERNAL FACTORS It differs according to INDIVIDUAL PEOPLE

4 Steps in the Purchase Process

1. Necessity: State of Lack, Imbalance: mental or physical damage Reason: Activation of a solution strategy, explains the purchase Desire: Affective tension for a specific PTO / SEO Elective Decision:

6 Dimensions / Questions

1. What? > PTO classification	5. When> Habits
2. Why?> Purchase Reasons	6. Where> Around the PTO
3. Who> COR classification
4. How> Types of Purchase

Strategic implications for Marketing

Marketing Definition

It is a way of thinking, a management philosophy, about how the exchange relationship of an organization's products with the market should be understood "(Santesmases 91)

Concept: 3 Aspects

1) CoC 2) Company objectives 3) Integrated strategy

Direction: 4 steps

1) Analysis 2) Planning 3) Organization 4) Control

2 Types of Marketing: Goal, Medium, Function

Strategic MK	or	MK Operational
Company Mission, Product Portfolio	Objective:	Reach market share
Surveillance of the environment, Competitive analysis	Media	Marketing-Mix
Follow market evolution, Identify Segment	Function

Part II: Consumer Decision Making

Perspectives / Models in the study

Definition: Model

Model: = simplified representation of reality

3 Steps of Modeling

1. Identify the relevant variables Indicate their characteristics Specify their interrelationships

• Theories support: Variables inherent to the subject (internal) or External variables

Interactive theories: Information Processing Approach

Motivational (internal) models

humanist (Human Motivation)

5 levels of Maslow's Hierarchy

1. Physiological N.	· Hunger… (NOT satisfied) è new needs arise
2. SECURITY N.	· Stability, Dependency, Protection
3. NUMBER OF BELONGING	· Group: Power of Controllers
4. NUMBER OF ESTIMATES	· Self assessment: stable, high Desire for Strength, Competition, Freedom Desire for Prestige, Position, Fame, Recognition
5. AUTOREREALIZATION N.	· Complete personality development Perception, Greater Integration, Uniqueness, greater spontaneity and expressiveness, solid identity, creativity Acquire knowledge, understand, systematize, analyze, value system

5 Assumptions of the Hierarchy

Assumption (according to Maslow):

• Integrated and organized individual Underlying needs of everyday desires Actions obey multiple motivation Motivations and desires are interrelated Influence of culture on motivation

psychoanalytic (Freud)

Concept, 2 Drives, 2 Principles, 3 parts

Internal theory> Psychoanalytic, motivational approach

· Psychoanalysis, Advertising messages · Drives («Cause»)> Satisfaction · Systems: Unconscious, Conscious Preconscious: · Instances: 1. It (id): libido, human energy Drive. of Life: Energy of Creativity Drive. of Death: Energy of aggressiveness and destruction Two Principles govern life: a) Search for pleasure b) Reality that facilitates satisfaction, acceptable adoptions è Dynamics: Seeking Pleasure or Avoiding Frustration 2. I (ego): since childhood, is governed by the principle of reality Royal Guard of Personality Has a critical sense and makes decisions Personal development depends on a strong EGO 3. Superego (super ego): conscience, the ideals of the personality, the JUDGE Opposed to instinct Result of education

3 Conclusions for the Consumer (Places - Frustration):

• Identification with ideal models Consumption as a stress reducer Advertising as a frustrations compensator

Economic

Definition «Economic Man“

: = be rational, act according to the law of "minimum effort", "maximum benefit"> Reason for Behavior: Maximization of Utility

5 basic axioms and a key aspect

• Transparent market (products, prices, free information) COR has limited needs to maximize COR is rational, acts deliberately Decisions independent of environment Decreasing marginal profit law

Decision: Max. > (UM / P)

3 Reviews

• Unrealistic, no pisco aspects, you do not change preferences (learning) Only price, act of purchase and that COR is in a transparent market No individual differences, COR are not totally rational

Contingent / situationist model (Learning)

2 main ideas

COR is conditioned by external stimuli> responses

1. Classical conditioning:

Stimulus Response

Unconditional (neutral) stimulus Unconditional response

Est. + Est. In. > Conditional stimulus Conditional response (automatically)

1. Operant conditioning:

(E + US Reinforcement)> Answer = Habit

Stimuli are reinforced, a pattern of behavior is consolidated (repeats over time)

Cognitive models (Information processing)

Nicosia Model (1966)

Buy = Active decision

considers the processes before and after the purchase (Campos)

• Flow of Messages (Inputs) from the Company to the COR

Organizational characteristics of the Company The Qualities of the COR

Attitude (Yes or No): of the Consumer towards the product

• Information Search / Assessment

Means-ends relations: attitude to the announced PTO or available brands

Motivation (Yes or No)

…

Engel, Kellat and Blackwell model

Transparencies

Pre-purchase I: Recognition of the Problem

Consumer Motivation

• Consumer problem: motivational state High involvement behavior è Phase I: recognition of the problem

Definition Motivation: 3 steps

"An internal state of activation, alertness and emotional excitement that vigorously leads the consumer to search for and achieve a specific product or service that resolves this situation by returning the organism from the state of crisis prior to the state of activation." (Snake 88)

> Motivational state> Motivated behavior> Objective or goal

Level of involvement

Definition Implication:

"A subject is highly involved towards the purchase of certain products when he feels that the decision associated with that class of products is particularly important"

Degree of involvement

Variables (interact with each other)> Model

Background> Moderators> Ownership of Implication> Response

3 Background variables

• Personal (needs, values, experiences, personal interests) Stimulus / Object

Products related to personal variables

Differentiation (Brand, Replacement, Quantity Available)

Product information channel

Perceived risk of the product

Functional, physical, financial, social, psychological

• Situation (physical, social environment, time perspective)

2 moderating factors

• Limit the impact of variables Reduce the opportunity to process information

2 Properties of the level of involvement

Intensity	Address	Perseverance
High or low	Objective or goal	Impl time.
· High attention or superficial attention · Active or sparse search, casual · Information processing: Central route or peripheral route	Pdt category. Purchase situations Advertising	Baseline of interest to a pdt. Temporary, when it determines the importance of the pdt.

3 Response factors

High involvement	Low involvement
1. Cognition: intense reflection 2. Attitude Creation: Modified or confirmed 3. Conduct: Greater probability of buying it	1. Cognition: Unfounded Beliefs no attitude training 2. Conduct 3. Attitude: formed from the use of the product

2 Conclusions for Marketing Applications:

1. Reinforce basic trends:

High involvement messages

Low involvement messages

1. Low to high engagement customer conversion

Controversies (comparative), change of attributes

Complexity of the decision: 4 Types of Purchase

Emotional decision or rational decision

Personal variables Var. Environmental Var. Functional

Compulsive buying	Impulsive purchase	Purchase not planned	Planned purchase
· Illness to buy, urgent persistence · Abnormality	· Emotional buying Normality	· Deviation between plans and affected purchases	· Deliberation process · Congestive processes
		1. souvenir 2. suggestion 3. pseudo-planned

Information processing in situations of high involvement

3 Phases in the Process

3 phases of the process: decision making:

1. Worry (problem recognition and information search) Purchase (information evaluation and purchase decision) Post-purchase

Recognition of the problem

Main ideas and 3 wishes

• Result of a discrepancy between a desired state and an actual state

Intensity: = magnitude (discrepancy) + importance (problem)

• Active (conscious) or inactive (latent) problem 3 wishes: D. latent: even aware of the potential of the product

PDO known, but does not understand relationship between function and desire

Insecurity about the best form of the product

1. D. passive: they know advantage and are aware of desire or abstain from

Price, false beliefs, social norms

1. D. exclusive: due to ethics or with legal disability

2 Factors that affect the recognition of the problem

• Desired State => < REAL STATE

Factors influence the DESIRED STATE	Factors influencing the REAL STATE
Current situation Culture / social class Reference group Financial / expected status Preliminary decisions Individual development Reasons	Past decisions Normal exhaustion Pto performance Individual development Emotions, Situation PDO Availability

Marketing Strategy and problem recognition

Four Concerns

1. Know the consumer's problems è Analysis of

a) Activity	Problems in using the general product
b) Product	Problems in using the brand product
a) + b) = Problem	List of problems
Invest. Human Factors	Functional problems
Invest. Motivation and Emotion	Conflict focus - focus: two alternatives to choose Conflict approach - avoidance: + / - of a product è Association / Decrease of emotions with the PDO

1. What Mix knows these problems? Causing the consumer to recognize a problem Generic recognition of the problem: discrepancy between brands in a category

• Latent or minor wishes Early stage of the life cycle High market share Cooperative effort of several companies

1. Selective problem recognition (EM focuses on your brand)

• Influence the desired state Influence the perceptions of the current state

1. Deleting an acknowledgment of a problem (when you decrease your sales)

Pre-purchase II: Information Search

2 objectives of this topic:

1. Analyze the psychological processes involved in the collection of information: perception and within it, attention, learning and memory. Know the characteristics of the processes of search and acquisition of information by the consumer.

Psychological processes

The basic scheme of the psychological processes involved in the search for information:

page 96

INFORMATION SEARCH

Definition Search

= process in which the consumer investigates (erforschen) his environment (internal and / or external) to collect appropriate data to make a reasonable decision.

6 Purposes (Zweck)

know the existing alternatives in the market

obtain information on attributes or criteria of each alternative

information to compare between alternatives

information to try to justify previous product choices

resolve the conflict between buying or postponing the decision

satisfy the need for information

Traditional perspective of decision making:

Consumers will get the more data the more necessary they are

3 Search dimensions

Intensity: total amount of search

(How many brands will be examined? How many stores will be visited? How many attributes will be considered?)

Address: search specific content

(What brands will be examined? What stores will be visited? What attributes will be considered?)

Search sequence: the order in which search activities occur

(In what order will the brands be examined? In what order will the stores be visited?)

2 Search strategies

There are two strategies that the consumer can employ:

a brand search sequence

an attribute search sequence

4 Search types

Depending on the purpose of the search

pre-purchase search

continuous search

Depending on the source

internal search

external search

Pre-purchase search

Definition

It is the most common form of search. If a consumer has recognized a problem, they may need additional information.

2 Determinants

Involvement in the purchase

Market environment and situational factors

1 Reason

Make the best purchasing decisions

3 Results

Increase product and market knowledge

Better purchasing decisions

Increased satisfaction with purchasing decisions and results

Continuous search

Definition

It is characterized by activities independent of the needs or decisions of the moment.

2 Determinants:

Involvement with the product

Market environment and situational factors

2 reasons

Build a bank (Fundament?) For future use

Experience fun and pleasure

4 Results

Increased knowledge of the product and the market leads to:

future efficient purchases

personal influence

Increased unplanned purchase

Increased satisfaction with search and other results

Internal search

It is the first stage that occurs after the consumer has recognized the existence of a problem. It is a mental process that consists of remembering and reviewing the information stored (direct learning, incidental learning) in memory that is possibly related to the purchase situation.

The internal search is carried out based on attitudes, information or past experiences, stored in memory. The consumer searches for internal brand information in his memory. Evaluate this brand based on all the information it has in relation to its images of each of the other brands in that class.

The search process can provide three types of responses:

3 types of response

1. The information obtained is satisfactory and sufficient and then the decision process can continue. The information obtained shows (macht offenkundig) the impossibility of solving the problem posed and consequently the decision process must be stopped or postponed. The information provided by our knowledge and experience is not enough and it is advisable (empfehlenswert) to go to external sources of information.

4 Influences on the amount of internal search:

Four factors

1. The amount of information stored in memory The convenience of information when choosing a new brand The degree of conflict The importance of the product to the buyer

External search

Refers to the process of scarcity of environmental information.

4 reasons

comfort when making an "informed purchase"

more likely to make a decision that provides greater satisfaction

positive feeling of knowing products

economic benefits of search

General categories of information

(which can be externally searched):

information on the existence and availability of various products or services

information on properties and characteristics of the options

information that serves to establish evaluative criteria

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Determinants of external search process:

6 individual factors

1. level of involvement

• with product ® continuous search with purchase ® pre-purchase search

1. type information stored in memory

• quantity quality

1. need for consumer stimulation and variety sociodemographic characteristics

• cultural level educational level age income occupation

1. purchasing strategies: behavior patterns that reduce external search

• brand loyalty establishment loyalty belief system

1. perceived risk: external information can reduce risk

6 Market and product conditions

1. availability of information and ease of obtaining the number of options to consider, existence of alternatives many variations in the presentation the location of the stores frequent changes in the price high price

4 Situational factors

1. the urgency of a need for the time available to decide these consumer records (experience)

• first purchase unsatisfactory previous experience

1. social acceptability (social risk of the situation)

Influence of Marketing variables

Marketing Management Strategies Matrix

BRAND POSITION	not looking for info.	Look for information
BRAND ON EVOCATED SET	1. Strategy MAINTENANCE · Maintains Quality level · Remembrance Communication	2. Strategy INTENSIFICATION · Increase points of sale · Strengthen the brand 2-3 selection attributes	3. Strategy LEADERSHIP · Product Positioning · More open to more sources
BRAND OUT EVOCATED SET	4. Strategy INCORPORATION · I stimulate advertising, announcements · Long-term change	5. Strategy INTERCAPTATION · Introduction of new alternative data	6. Strategy PREFERRED ACCEPTANCE
	ROUTINE DECISION	LIMITED DECISION	EXTENSIVE DECISION

Information Evaluation and Purchase Decision

Evaluation in situations of high involvement

Information search « Evaluation of information

feed each other

Definition: Evaluation

set of activities that based on a series of criteria will judge (urteilen) the different alternative solutions to the problems facing the consumer

3 conditioning factors of the evaluation process:

The usual or routine of the decision

The level of consumer involvement

The reasons of purchase of emotional type

Influence of Marketing variables on consumer evaluation and decision

Evaluation criteria

Definition Evaluation Criteria

They are norms or specifications that the consumer uses to judge products and brands

5 Characteristics of criteria

differ according to individuals

the importance assigned to each criterion also differs

the quantity and type of criteria depends on the product

the amount and type of criteria depends on situational factors

assessment criteria change over time

3 Types of criteria:

technical aspects (physical attributes, performance characteristics)

economic aspects (price, purchase time, effort invested)

aspects of integration in the social system or improve self-perception

Consumer decision rules

Evaluation involves comparing attributes of competing products

Selection by brand processing:

the buyer values ​​one complete brand at a time, then another, and so on.

Selection by attribute processing:

An attribute is analyzed and then different marks are compared on it.

2 Types of Decision Rules

Decision rules are used to select the most suitable alternatives.

• Non-compensatory decision rules = when a good performance according to an evaluative criterion does NOT balance or compensates the poor performance of another criterion

Conjunctive Rule

Disjunctive Rule

Lexicographic Rule

• Compensatory Decision Rules = Favorable Brand Criteria Evaluating Negative Ratings

Conjunctive Rule

Definition

The conjunctive rule requires the consumer to set minimum levels of acceptability for each brand attribute and to select all brands that exceed (eine Grenze überschreiten) ALL of these minimum standards.

• only those brands that have a conjunction of all the minimum requirements the high level of a given attribute does not compensate a low level of others

Disjunctive Rule

Definition

The disjunctive rule selects all the marks that exceed a satisfactory level in any evaluation criterion of those selected as decisive.

• only marks that exceed specific levels in one or a few selected attributes are considered, regardless of the value of other attributes

Lexicographic Rule

Definition

The lexicographic rule is an extension of the disjunctive rule allowing other evaluative criteria to be incorporated into decisions.

3 steps

Follow the next steps:

• rate the evaluation criteria in terms of importance start with the most important criterion and select the best rated brand if two or more brands tie, continue through the attributes in order of importance, until one of the brands outperforms the other

this rule seeks the maximum result at each stage

Compensatory Decision Rules

By applying this rule, favorable brand evaluative criteria compensate for negative evaluations (strengths outweigh weaknesses).

• this rule evaluates the marks individually along all the variables or attributes the global evaluation will be the sum of the weighted classifications along each attribute

A = SUM ((1..n), I _i × E _xi)

A global brand rating

I weight assigned to evaluation criteria i (importance)

E evaluation of brand x with respect to evaluation criteria i

n number of criteria considered relevant

Assessment in low involvement situations

• only after the purchase acquires attitudes towards the product

Results

2 Activities

1. stop searching and found an acceptable productContinue searching until you have found a product that meets your needs

Attitude Formation (Prototype)

will create a hierarchy of products (brands evaluated)

new brand is categorized in this hierarchy

prototype as a standard of comparison

Innovation away from the prototype è new search for information about it

4 Purchase Decisions (MK Director)

1. You have to know the attributes in the important categories of the COR What are the marks that are part of the set What common decision rules does the COR use to emphasize the attributes What are the standards of comparison (Prototype)

Consumption: The purchase evaluation

Introduction

3 Objectives

Purchase evaluation as a phase in the purchasing process after decision-making, will be used to

• Increase the set of experiences stored in memory Provides consumer information on the quality of their selection Support for future judgments

3 Behaviors in the post-purchase phase:

• Installation and use of the product Memory storage Purchase of related products or services

satisfaction / dissatisfaction as a process of a psychological nature

cognitive dissonance

Consumer satisfaction

2 Aspects of S./I.:

• be a source of competitive advantage fundamental variable in subsequent behaviors (fidelity, repurchase, positive communications)

2 Steps in the investigation:

• What is satisfaction, what determinants influence it, and what are the relationships between them?

confirmation / disconfirmation of expectations

• Consequences of the state

psychological and business point of view (loyalty, complaints, communications…)

Nature and concept

• Latin origin: satis + facer

Definition

The S. implies compliance and can be understood as a response by the consumer.

What is satisfaction: Process or State

Two perspectives on the phenomenon: cognitive - emotional

1. Cognitive process and influencing variables

• comparison between reward and purchase costs or determined variable consequences

1. psychological state

• emotional feeling related to consumer experience

Def.: from Oliver:

• inherent surprise, limited duration, summary of the psychological state è feeling of disappointment, expected emotions, always in front of the product

The 3 events that trigger the process

• Post-purchase judgment or brand judgment determines the sum of consumer experiences, the benefits of consumer transaction, product or service attributes, particular brand, product category, or a particular company

Summary

An evaluative judgment made on a purchase / consumption experience, which is the result of cognitive processes and that integrates affective elements

Þ process integration and a punctual state

3 Background to consumer satisfaction

1. Formation of a comparison standard Comparison: standard or results offered by the product / service Emission of judgment

Paradigm of Disconfirmation of Expectations

Expectations Disconfirmation Model

D - Benefit - Expectations - = Disconfirmation è Satisfaction (= comparative judgment)

Comparison	Process	Consequence
performance> expectation	Positive disconfirmation	Increased satisfaction
performance <expectation	Negative disconfirmation	Dissatisfaction
performance = expectation	Confirmation	Satisfaction

• Disconfirmation is a mediating variable

1. different expectations classifications other comparison standards, experience

ad 1.: Expectations:

Def.: „Beliefs formed by the consumer about the benefits of a product / Service before the purchase or consumption of it”

Taxonomy:

1. predictive: most likely execution by the consumer desired: optimal execution ideally expected by the consumer

Critic: S./I. depends only on the beliefs that a consumer has, depends on expectations before buying a product

Missing: those who already know the product Þ ad 2

Before the purchase: form of expectations:

• Marketing efforts, interpersonal communications, other sources

After purchase: form of experiences:

• compare performance with expectation

ad 2.: Standards in experience

STANDARD-BASED EXPECTATIONS:

Standards as reflections of a compromise between the needs and desires of the COR:

• Standards based on the brand: the best, the preferred, the most recent Norms based on the product category: experience in a comparable category of brands, without preferences for a brandConsumer does not say "all or nothing"

Picture:

• The norm creates the zone of indifference When the distance between the judgment and the norm is great enough to fall outside the acceptance interval, the brand execution is perceived as different from the norm è this difference causes disconfirmation Perceived performance = zone of indifference è confirmation of the norm, satisfaction Perceived performance = too far away è disconfirmation (pos. and neg.)

The zone of indifference varies according to individuals and situations

Equity as a variable of satisfaction

Definition: Equity

determined by comparing costs - benefits and with other consumers

Þ additional factor in post-purchase

comp. disconfirmation: = relationship expectations - norms

Þ equity: = degree of harmonization of the costs of my consumer

• Fairness: does not treat me properly, all consumers the same Iniquity: does not treat me properly

negative: less profit than expected

positive: made a profit

Attribution theory

Definition

the way in which the CORs interpret the cause of satisfaction and dissatisfaction

• Interpretation through 3 dimensions:

3D

1. What / Who owes this dissatisfaction a) internal b) external c) situational Stability: consequences that the consumer has experienced (stable - unstable) Intentional control (absichtlich) - inevitable

Þ Attribution process often in a state of dissatisfaction.

2 Consequences:

1. a) Locus of Causation and Contrability includes angry feelings Þ complaints b) Stability of confidence that the negative result is repeated

Þ If it exists, clientelization can allow a margin to evaluate the importance of negative experiences

Þ qualitative change in satisfaction studies

Consequences of the Evaluation

Influence of 3 Variables:

• Demographics: older people have lower expectations, higher education and lower satisfaction, more satisfied men than women.

Post-Satisfaction Behavior

4 Aspects

• more favorable attitudes higher buy-back intentions greater probability of exhibiting brand loyalty greater probability of repeating judgments and behaviors in similar situations Satisfaction = Reinforcement

Post-Dissatisfaction Behavior

4 Aspects of harm to the company

Damage to the company:

• Fewer favorable attitudes, lower or non-existent intentions to repurchase a brand, establish complaint behaviors, negative interpersonal communications

3 Variables that influence the probability of COMPLAINT:

• increase in social class system Severity of dissatisfaction More positive perception of retailer's reaction

3 levels of COMPLAINT

• Formal to distributors, private manufacturers, consumer organizations

MK: Complaints reflect opportunities

Cognitive dissonance

Main idea

• Cognitive processes (dissatisfaction) è Most likely cognitive dissonance with durable goods D.'s state is not comfortable è the person tries his reduction D. D.'s experience directs individuals è they will avoid more dissonance

4 Conditions

• exceeded a minimum threshold of tolerance there are quite different desirable alternatives in their qualities buyer is involved in their decision there is no pressure for decision making

3 Ways of reduction

• Change evaluations of alternatives Find more information to support your decision Change your attitudes.

Reduction strategies operate on the S./I itself. and influence future decision making

Implications of Post-Purchase Evaluation for Marketing Strategy Design

1. Group clients based on such perceptions and market segmentation Realistically shape the MNG variables

Consumer point of view:

• compare 6.1 introduction

Company point of view

• the knowledge of the degree of S./I. Creation of adequate levels of expectations è generation of information Expectations: Analysis: how they use the products categorization process and storage of information The clientelización reduces judgments of dissatisfaction

Complaints

• Complaints as a source of information Complaints not a problem: client accepts it when the company provides a solution Complaint capitation systems abroad

Dissonance

• communication can lessen post-purchase dissonance:

I light on the advantages

minimizing the inconvenience

conclusion

Satisfaction management is a long-term strategy of the company trying to control all the aspects that affect it.

Part III: Social Dimensions of the Consumer

Consumption: Reflection of culture and social class

Definition of culture and subculture. characteristics

Importance

• culture and social class = external structural factors in the human purchasing channel

Definition (broad sense)

• : = „Set of values, ideas, attitudes and other significant symbols created by man to direct his own behavior, and the procedures of transmission of this flow (Vermögen, Menge, Besitz) from generation to generation.“

Þ the transmission is called socialization

Definition (sense CoC)

• : = „The sum of beliefs, values ​​and customs learned that serve to regulate the CoC of the members of a particular society“

Summary

Culture is

community created

transmitted and shared within it

learned through a socialization process

5 main features

five hypotheses

1. I) Learning responses, offers solutions II) Social phenomenon, interaction between group members, sharing III) Satisfaction until members feel dissatisfied (but anchored values: language) IV) Adoptive process, resistance to change, dynamic culture V) Prescriptive character: standards, ideals that you drive at all times

2 Types of culture

two types: material culture: physical objects

and not material: language, ideas, customs, values, beliefs

Cultural Values ​​and Subculture

Hierarchy of values

• : = ideal that requires adherence,

frame of reference, within which individuals evolve

criteria we must want or uphold

allow us to judge and compare ourselves with

Examples

competitiveness <> cooperation

youth <> old age

progress <> tradition

risk <> security

conformity <> nonconformity

materialism <> spiritualism

Definition: Subculture

Groups that have the attributes of a culture that characterizes it as particular within a culture

often used: ethnic aspects (race, nationality, religion)

age

Influence of culture in international markets

Objectives, 6 factors of the international MK

determine degree of similarity between the CORs of one or more companies> estratet. MG

Intercultural consumption, list of planning factors for international MG, differences:

• Language Consumption rules Market potentials Use of products Evaluation of products Economic and social conditions

3 Solutions to resolve cultural differences:

1. Global marketing: standardization of its MGA policy Adapt MG strategy to the characteristics of each culture Combined strategy between local and global managers

Nature of social class and influence on the CDC

Definition: Social class

group made up of several individuals who occupy more or less equal positions in a society (= subcultural group)

characteristics

• Status: position within the social system Multidimension: Hierarchy: vertical order Limit of behavior: Homogeneity: Dynamics:: ascend, descend

Methods of measurement of social classes

Types

1. M. subjective subjects of the hierarchy of social classes M. Reputational members of a group who classify each other. objective classification according to objective factors

Indices: 2 dimensions

a) one-dimensional index (less precious)

1. I) education: main resource; influences tastes, values; easy to measure and catagoriralo; educational level correlated with income II) occupation: correlation with income, education; III) income: purchasing power, problem: what income ?; secret data

b) multidimensional index

determine the importance of certain factors

I) Hollingshead Index of Social Position (IPS): occupation and education

IPS = (occupation score * 7) + (education score * 4)

Result: Table: Social stratum (High Þ Low) - Scoring interval - Population division

II) Warner index of status characteristics (ICE): 7 categories with different weights

occupation, source of income, type of house, area of ​​residence

ICE = (Occupation * 4) + (Source of income * 3) + (home * 3) + (residence * 2)

Summary by social class table

• Differences from the place of purchase There are differences both in the choice and in the use of products

Social class table

high-high	you don't buy to impress
tall short	demonstrate your status, reference group in advertising
High average	more quantity of products, high social involvement, emulate the upper stratum
middle-low	social acceptance is the guide to consumption, applause well done
Low High	objectives: physical and social security
low-low

Personal influence

Personal influence and opinion leader

Definition: Personal influence

"Effect or change in a person's attitudes or behaviors through communication with others."

Strength of this communication for 3 reasons

1. They are considered as truthful communicationSocial support and a stamp of approval for purchasesOften pressure from a social group that "forces" the recommendations

Personal influence as a multidirectional process

1. In a direction è initiated by the source

The opinion leader

Definition of opinion leader

"Person who in a certain situation can exert personal influence."

"People who filter, interpret, or provide information or another individual for whom they are relevant."

3 situations of Information Exchange

1. Individual seeks information from another Individual offers information voluntarily Exchange as a product of normal group interaction

2 Conditions for the influence of a leader

1. Level of involvement with the purchase / product Knowledge of the product

Probability Table of Finding an Opinion Leader

	Product knowledge
Implication	tall	low
high	Moderate	high
low	Low	Moderate

• Information can be verbal or non-verbal

Leader Characteristics

Leaders of “specialized” opinion

1. Same social class as the rest of the group, but has a higher status within the group. Has more contacts with the mass media related to their area of ​​interest.

specialized media supply information

1. Has more interest in the area of ​​influence than the rest More sociable and gregarious Greater spirit of innovation than the others Knowledge of group norms Public individuality

Leaders of "generalized" opinion

• leaders on various products, market savvy

1. Personification of certain values ​​and norms of the group Competence Strategic social presence and probability of social contacts

Leader Concept Summary

Leaders have power by

• personification of group norms and values ​​demonstrate accessible competence with active communication among themselves and with others

Influence varies depending on

• target market product

MK problems

Leaders difficult to identify although more involved in society

Identified è Send them free samples of the product

Stimulate and simulate leadership through advertising

Process of adoption and diffusion of an innovation

Definition: Innovation

"It is an idea, practice or product perceived as new by an individual or group"

definition: adoption

1. “The adoption of innovations supposes a certain change in the CoC”

Grades and adoption process

1. Continuous innovation: relatively minor changes Dynamically continuous innovation: changes in one of the areas of importance to the individual Discontinuous innovation: changes in areas of importance to the individual

• Not with the same average communication speed can speed up the process, process interruptions may occur:

Stages of the adoption process	Causes of unfinished processes > attributable to the organization	Causes of unfinished processes > attributable to the consumer
1. Knowledge	Insufficient or misused communication	Selective exposure Selective perception
2. Understanding	Difficult communication to understand	Selective retention
3. Interest	Non-persuasive communication	Deviation of attention
4. Evaluation	Use of insignificant models	Suspension of the trial
5. Test	Behavioral response not specified in communication poor distribution system	Equally good alternative, innovation not available
6. Adoption	Inability to develop new products and improve	Substitution for another innovation

Definition: Diffusion Process

"It is the way in which innovations are spread in the market"

"It is a group phenomenon."

"It is the adoption of new products and services over time by consumers within social systems, stimulated by Marketing activities."

10 Factors that affect the diffusion of innovations

1. Type of group: target market as a determinant of diffusion Type of decision: ß #individuals participating in diffusion è Ý speed of diffusion MK effort : Satisfaction: Ý satisfied in perceived needs è Ý speed of diffusion Compatibility with values and norms of the individual: è Ý speed of diffusion Relative advantage: compared to other consumers Complexity, difficulty of use: Ý complex è ß speed of diffusion Observability of the positive effects for the consumer: è Ý speed of diffusion Experimentality: low cost or risk test: è Ý speed of diffusion Perceived risk: higher risk è ß speed of diffusion

5 Categories of adopters (individuals)

1. Innovators (2.5%)

• Adventurers, cosmopolitan vision, not afraid of financial and social costs, more risky reference group: other innovators Young people, higher income, higher level of schooling Greater participation in groups, are often opinion leaders

1. Early adopters (13.5%)

• greater social integration than Innovators Streamline dissemination by being an opinion leader Innovators watch Younger than most early

1. Early majority (34%)

• more reflective of the categories of adopters less education than adopters They belong to formal organizations They use more informal sources

1. Late majority (34%)

• Skeptical of new ideas Above average age, below schooling and income Poor leadership Group-oriented communication patterns

1. Laggards (16%)

• Limited social interactionDogmatic and past-oriented (traditionalists) Distrust innovations Older age and lower education, lower income and social status

Implications for Marketing Strategy

• Segment the market Generate strategies to improve dissemination

Reference group: the Family

Group influences in the CoC

Concept / Definition of the group

• Aggregate concept> Category concept> Group concept : Set of individuals who share a set of norms, values and / or beliefs that maintain interrelationships that influence the behavior and attitudes of each of the individuals that comprise it

different types of possible groups

3 Group Benefits

1. Information Identification Reinforcement

influence the Purchase channel

Reference Group Definition

"Whose alleged perspectives or values ​​are used by an individual as the basis of their conduct at a given time."

3 Functions of the reference group

1. Socialization of its members: è learning process of norms, values ​​and behavior Imposition of norms è behavior related to roles Collaboration in the formation of self-concept

identify or distance ourselves

good or not satisfied

2 Group Classifications

1. Membership groups

	Degree of Formality
	Relationship intensity	Informal	Formal
Group of Belonging	Primary	Friends family (frequent and intense)	Work groups
	Secondary	Social Club Sports groups	Federations, Syndicates, NGOs

• Primary group: small groups, informal, greater influence on personality, high communication, very intimate connection: family, friends, colleagues, work Secondary group: impersonal and formalized, less personal relationships, less daily communication, less continuous: parties, unions, politicians Group Formal: defined structure and norms, are usually secondary groups with specific goals of an economic, political,… Informal group: clearly defined organizational structure, without written rules and with a type of interaction: often primary groups

1. Non-belonging groups Aspiration: not belonging but aspiring to belong or identifying Associations: not wanting to belong è Reacio

2 Types of influence

1. Informative

• credible source choice alternatives: what type of brand does the group use consumer experiences authority criteria: opinion leader

1. ID

• Types of products: visible products Characteristics of the individual Characteristics of the group è more closed, more norms Communication situations

Nature of Family Decision Making

Definition

"Primary group characterized by an intimate association and face-to-face interaction and mediated by affect variables between their affects."

• related by birth, marriage or group adoption, and subject to a certain group discipline "are held together sufficiently to respect those family norms."

Research difficulties

1. Decisions in a private group Family consumption decisions are often not independent of any other (budget) Many different types of decisions that can be made within the family Decision making differs depending on the type of product service studied All families are not the same

Determinants of family decisions

1. Degree of power (economic) or pattern of authority Autonomous family dominated by women dominated by men Syncretic family: joint, without children Roles played by their members Family life cycle Social status: greater joint decisions intermediate levels Geographical mobility: increases communication and joint decisions Product type: car,… Woman work

Structural changes in the family

1. Decline Birth Rate Decline Marriage

2 Family Types

• of orientation: in which one is born, transmits the values ​​and its influence is very strong and lasting, even unconsciously of procreation: confuges, more direct influence on purchases

Family life cycle

"In each family situation a type of product is consumed"

• The measure that is advanced in the CVF, decreases the degree of joint decision

1. Single stage Newly married couples: young children without children Full nest1: young couples with children under 6 years old Full nest2: young couples with older children 6 years old Full nest3: young couples with dependent childrenLone survivor: lone older individuals.

Decision according to purchase process

• Ý #autonomous decisions in the first part symmetric in the purchase and evaluation

Decisions are associated with the role of each sex

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