Consumer behavior and Audience

How Does Consumer Behavior Work?

Consumer behavior

Describes how individuals or groups select, purchase, use, or dispose of products – as well as describing the needs that motivate these behaviors

Consumer audience

People who buy or use products to satisfy their needs and wants

Customers

People who buy a particular brand or patronize a specific store

Cultural and Social Influences

Culture

… define a group of people or a way of life

Social Class

The position a person and his/her family hold within society

Cultural and Social Influences

Reference Groups

A group of people who are used as a guide for behavior in specific situations

Family

Two or more people who are related by blood, marriage, or adoption and live in the same household

Cultural and Social Influences

Demographics

The statistical, personal, social, and economic characteristics that describe a population

Characteristics

Age

Sexual orientation

Race and ethnicity

Occupation

Income

Geography

Psychological Influences

Perception/State of Mind

Affects how people perceive information as well as determines the particular pattern of consumer behavior

Motivations

Internal forces that stimulate people to behave in a particular manner

Produced by the tension caused by an unfulfilled need

Psychological Influences

Attitudes and Values

Attitudes impact motivations

Influence how consumers evaluate products, institutions, retail stores, and advertising

Personality

Distinctive characteristics that make people or brands individual

Brand personalities make them distinctive from their competitors

Psychological Influences

Psychographic Influences

Lifestyle and psychological characteristics that have a bearing on how people make decisions

Psychographics

Lifestyles

Looks at the ways people allocate time, energy, and money

The VALS system

Lifestyle profiles that collectively reflect a whole culture

Trends (Eco ; social marketing)

The Consumer Decision Process

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase evaluation

The consumer recognizes the need for a product

Advertising should activate or stimulate this need

The Consumer Decision Process

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase evaluation

Can be casual or formal

Advertising helps the search process by providing information and making it easy to find, as well as remember

The Consumer Decision Process

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase evaluation

Consumers compare various products and reduce the list of options

Advertising helps sort out products on the basis of tangible and intangible features

The Consumer Decision Process

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Postpurchase evaluation

Often a two-part decision

Select the brand

Select the outlet from which to purchase

In-store promotions affect these choices

The Consumer Decision Process

Need recognition

Information search

Evaluation of alternatives

Purchase decision

Post-purchase evaluation

The customer reconsiders and justifies the purchase

Determines whether the customer will keep the product, return it, or refuse to buy the product again

Segmenting and Targeting

Segmenting

Dividing the market into groups of people who have similar characteristics in certain key product-related areas

Targeting

Identifying the group that might be the most profitable audience

Segmenting and Targeting

Market aggregation strategy

When planners purposefully use one marketing strategy that will appeal to as many audiences as possible

Market segmentation

Assumes that the best way to sell is to recognize differences within the broad market and adjust strategies and messages accordingly

Segmenting and Targeting

Types of segmentation

Demographic segmentation

Geographic segmentation

Psychographic segmentation

Behavioral segmentation

Benefits segmentation

Socio-demographic segments

Niche markets

Defined by some distinctive trait

Trend Micro 趨勢科技

Segmenting and Targeting

Targeting the right audience

The target is described using the variables that separate this prospective consumer group from others who are not in the market

Profiling the target audience

Describing the target audience as if they are people you know

Used in developing media and message decisions

E.g. Watch Fragrance