Baby Boomers

Baby boomers are the demographic of people who were born just after the Second World War; this would give the baby boomer generation an approximate date of between 1946 and 1964 .  World war two ended in a 1945, and as a rule of thumb baby boomers are the children who are born as the war ended, as families settled down again.

The name baby boomers described many different people , and in this article you must appreciate that it would be too simplistic to over generalise .  Nevertheless, here are some interesting facts about baby boomers. Richard Adler, is Research Affiliate at the Institute for the Future (IFTF) in Palo Alto, CA, where he recently co-led a project on Baby Boomers: The Next 20 Years. Here is his TED Talk.

Baby boomers grew up at peak levels of income, and had a general belief that things would improve over time.  In fact, they did. Baby boomers have worked for almost all of their adult lives , they had good pension schemes , they paid for housing when it was relatively cheap, and many had the opportunity to retire early . They’ve lived for a long time , and they will continue to live for much longer.

Arguably baby boomers thought of themselves as a special generation, at least one which was superior and different to those that proceeded it. 71-76,000,000 American children were born between 1946 and 1964 and this is a relatively high number. In Britain for example, baby boomers held about 80 per cent of the UK’s wealth, and are happy to spend money on holidays and experiences.

Here are some relevant and interesting facts about baby boomers :

  • Born between 1946 and 1964. Two sub-sets:
  • the save-the-world revolutionaries of the ’60s and ’70s;
  • and 2. the party-hardy career climbers (Yuppies) of the ’70s/’80s.
  • The “me” generation.
  • “Rock and roll” music generation.
  • Ushered in the free love and societal “non-violent” protests which triggered violence.
  • Self righteous & self-centred.
  • Buy it now and use credit.
  • Too busy for much neighbourly involvement yet strong desires to reset or change the common values for the good of all.
  • Even though their mothers were generally housewives, responsible for all child rearing, women of this generation began working outside the home in record numbers, thereby changing the entire nation as this was the first generation to have their own children raised in a two-income household where Mom was not omnipresent.
  • The first TV generation.
  • The first divorce generation, where divorce was beginning to be accepted as a tolerable reality.
  • Began accepting homosexuals.
  • Optimistic, driven, team-oriented.
  • Envision technology and innovation as requiring a learning process.
  • Tend to be more positive about authority, hierarchal structure and tradition.
  • One of the largest generations in history with 77 million people.
  • Their ageing will change America almost incomprehensibly; they are the first generation to use the word “retirement” to mean being able to enjoy life after the children have left home. Instead of sitting in a rocking chair, they go skydiving, exercise and take up hobbies, which increases their longevity.
  • The American Youth Culture that began with them is now ending with them and their activism is beginning to re-emerge.

Baby boomers references, eBooks and links

Six living Generations in America

http://www.nytimes.com/pages/booming/

http://www.bbc.co.uk/news/business-38558116

 

 

 

Why People Buy

Consumer Behaviour

Why People Buy

Marketers spend millions of dollars trying to understand why people buy products and services. Sometimes it seems that there is no reason for a purchase, but in reality there is always a reason. Many factors are involved in a customers’ buying decision, any one of which can become the deciding factor, such as:

  • Conspicuous consumption: Lavish spending for the purpose of displaying wealth or social status; preference for buying increases with price.
  • Snob effect: Desire to buy something nobody else has; preference for buying increases with rarity or scarcity.
  • Bandwagon effect: Desire to buy something everybody else is buying; preference for buying increases with perceived popularity.
  • Economic-To enhance their lifestyle or to fulfill two of Maslow’s needs: physiological (food, shelter) and Safety and Security.
  • Psychological-This is the study of how people interact with their environment, products are consumed to enhance their well being, for example air fresheners, furniture and convection ovens.
  • Sociological-The study of the thoughts, feelings, and behaviors of group interaction, especially in a social setting. People want to feel accepted and loved by their peers and they need to consume products that will appeal to their chosen groups. For example a consumer wants to join a kayaking team would have to purchase the proper gear, clothing and maybe even music genre in order to fit in with the group.
  • Practical-Consumers purchase products because they need them to survive, such as shoes and medicine.
  • Impractical-is the opposite of practical, purchasing products that are not necessary.
  • Rational-Purchases are made with logical, thought out reasoning.
  • Irrational-products are purchased for foolish or absurd reasons.
  • Factual-Purchasing products based on researched reports.
  • Emotional-purchasing products based on feelings
  • Buy to satisfy a need (for a reason).
  • Buy to satisfy a want (desire).

Consumers Also Buy:

Why People Buy
Why do people buy?

To Increase

  • Sales.
  • Profit.
  • Satisfaction.
  • Confidence.
  • Convenience.
  • Pleasure.
  • Production.

To Protect

  • Investment
  • Self
  • Employees
  • Property
  • Money
  • Family

To Make

  • Money
  • Satisfied customers
  • Good impressions

To Improve

  • Customer relations
  • Employee relations
  • Image
  • Status
  • Earnings
  • Performance

To Reduce

  • Risk
  • Investment
  • Expenses
  • Competition
  • Worry
  • Trouble

To Save

  • Time
  • Money
  • Energy
  • Space

Value and Relationship Quality

Consumer Behavior

Value and Relationship Quality

Consumers choose goods and services based on the assumption that they will be rewarded with value and satisfaction. Consumption is the process by which goods and services are used and assigned a level of value by the consumer.

That level could be positive, if the customer was satisfied, or it could be negative if they did not find any value in their purchase. Marketers have to provide the right combination of quality, price and customer service in order to give customers positive value and satisfaction. That will in turn create happy, loyal customers. The formula looks like this:

Quality + Price + Customer Service = Value and Satisfaction

If a product/service is provided that has low quality, and a high price, that does not create a happy, satisfied customer. At the same time, having a great product at the best possible price means nothing if the customer is treated badly, or not provided with the opportunity to return unwanted items.

Value Relationship Quality

So what is meant by ‘Quality?’

Quality is a product or service’s ability to meet the customers’ need or want. Quality is difficult to define, and varies with each consumer, however we can take a look at some of the components of quality for products and services:

Products

  • Performance-The product does what it is supposed to do.
  • Features-The product includes all the specifications that it says it has or that are required, this includes safety measures.
  • Reliability-The product performs consistently.
  • Durability-When the product is being used it has to last under the conditions of normal use.
  • Serviceability-The product is easy to maintain or repair either by the consumer or by providing a warranty which says the company will provide repairs.
  • Aesthetics-This is important to consumers, products have to look good, and this contributes to a brand equity and identity.
  • Perception-Even if the product has good quality, if the customer does not think so, then it won’t sell. The customer has to have positive feelings about the product, the company, the brand name and the employees.

Services

  • Responsiveness-Services are performed in a prompt manner.
  • Reliability-The service is performed right, the first time, and all subsequent times.
  • Assurance-Knowledgeable and friendly employees are essential as customers will equate employees behavior with the entire company. If a customer has a bad experience with an employee, they will be less likely to purchase from the entire company’s offerings. Customers expect technical competence and professionalism from salespeople.
  • Empathy-Providing individualized attention to customers will make them feel special and keep them coming back.
  • Tangibles-Some services provide physical evidence that they occurred, for example a restaurant cooks (service) and provides the food (product).

 

The Six Living Generations In America

Dr. Jill Novak, University of Phoenix, Texas A&M University.

In America, there are six living generations, which are six fairly distinct groups of people. As a generalization each generation has different likes, dislikes, and attributes. They have had collective experiences as they aged and therefore have similar ideals. A person’s birth date may not always be indicative of their generational characteristics, but as a common group they have similarities.

The six living generations

GI Generation

GI Generation.

  • Born 1901-1926.
  • Children of the WWI generation & fighters in WWII & young in the Great Depression…all leading to strong models of teamwork to overcome and progress.
  • Their Depression was The Great One; their war was The Big One; their prosperity was the legendary Happy Days.
  • They saved the world and then built a nation.
  • They are the assertive and energetic do’ers.
  • Excellent team players.
  • Community-minded.
  • Strongly interested in personal morality and near-absolute standards of right and wrong.
  • Strong sense of personal civic duty, which means they vote.
  • Marriage is for life, divorce and having children out of wedlock were not accepted.
  • Strong loyalty to jobs, groups, schools, etc.
  • There was no “retirement” you worked until your died or couldn’t work anymore.
  • The labor-union-spawning generation.
  • “Use it up, fix it up, make it do, or do without.”
  • Avoid debt…save and buy with cash.
  • Age of radio and air flight; they were the generation that remembers life without airplanes, radio, and TV.
  • Most of them grew up without modern conveniences like refrigerators, electricity and air conditioning.
  • Sometimes called The Greatest Generation.

Mature / Silents

Mature/Silents.

  • Born 1927- 1945.
  • Went through their formative years during an era of suffocating conformity, but also during the postwar happiness: Peace! Jobs! Suburbs! Television! Rock ‘n Roll! Cars! Playboy Magazine!
  • Korean and Vietnam War generation.
  • The First Hopeful Drumbeats of Civil Rights!
  • Pre-feminism women; women stayed home generally to raise children, if they worked it was only certain jobs like teacher, nurse or secretary.
  • Men pledged loyalty to the corporation, once you got a job, you generally kept it for life.
  • The richest, most free-spending retirees in history.
  • Marriage is for life, divorce and having children out of wedlock were not accepted.
  • In grade school, the gravest teacher complaints were about passing notes and chewing gum in class.
  • They are avid readers, especially newspapers.
  • “Retirement” means to sit in a rocking chair and live your final days in peace.
  • The Big-Band/Swing music generation.
  • Strong sense of trans-generational common values and near-absolute truths.
  • Disciplined, self-sacrificing, & cautious.

Baby Boomer

Baby Boomers

Baby boomers are the demographic of people who were born just after the Second World War; this would give the baby boomer generation an approximate date of between 1946 and 1964 .  World war two ended in a 1945, and as a rule of thumb baby boomers are the children who are born as the war ended, as families settled down again. More >>

  • Born between 1946 and 1964. Two sub-sets:
  • 1. the save-the-world revolutionaries of the ’60s and ’70s;
  • and 2. the party-hardy career climbers (Yuppies) of the ’70s/’80s.
  • The “me” generation.
  • “Rock and roll” music generation.
  • Ushered in the free love and societal “non-violent” protests which triggered violence.
  • Self righteous & self-centered.
  • Buy it now and use credit.
  • Too busy for much neighborly involvement yet strong desires to reset or change the common values for the good of all.
  • Even though their mothers were generally housewives, responsible for all child rearing, women of this generation began working outside the home in record numbers, thereby changing the entire nation as this was the first generation to have their own children raised in a two-income household where mom was not omnipresent.
  • The first TV generation.
  • The first divorce generation, where divorce was beginning to be accepted as a tolerable reality.
  • Began accepting homosexuals.
  • Optimistic, driven, team-oriented.
  • Envision technology and innovation as requiring a learning process.
  • Tend to be more positive about authority, hierarchal structure and tradition.
  • One of the largest generations in history with 77 million people.
  • Their aging will change America almost incomprehensibly; they are the first generation to use the word “retirement” to mean being able to enjoy life after the children have left home. Instead of sitting in a rocking chair, they go skydiving, exercise and take up hobbies, which increases their longevity.
  • The American Youth Culture that began with them is now ending with them and their activism is beginning to re-emerge.

Generation X

Generation X.

  • Born between 1965 and 1980*
  • The “latch-key kids” grew up street-smart but isolated, often with divorced or career-driven parents. Latch-Key came from the house key kids wore around their neck, because they would go home from school to an empty house.
  • Entrepreneurial.
  • Very individualistic.
  • Government and big business mean little to them.
  • Want to save the neighborhood, not the world
  • Feel misunderstood by other generations
  • Cynical of many major institutions, which failed their parents, or them, during their formative years and are therefore eager to make marriage work and “be there” for their children
  • Don’t “feel” like a generation, but they are
  • Raised in the transition phase of written based knowledge to digital knowledge archives; most remember being in school without computers and then after the introduction of computers in middle school or high school
  • Desire a chance to learn, explore and make a contribution
  • Tend to commit to self rather than an organization or specific career. This generation averages 7 career changes in their lifetime, it was not normal to work for a company for life, unlike previous generations.
  • Society and thus individuals are envisioned as disposable.
  • AIDS begins to spread and is first lethal infectious disease in the history of any culture on earth which was not subjected to any quarantine.
  • Beginning obsession of individual rights prevailing over the common good, especially if it is applicable to any type of minority group.
  • Raised by the career and money conscious Boomers amidst the societal disappointment over governmental authority and the Vietnam war.
  • School problems were about drugs.
  • Late to marry (after cohabitation) and quick to divorce…many single parents.
  • Into labels and brand names.
  • Want what they want and want it now but struggling to buy, and most are deeply in credit card debt.
  • It is has been researched that they may be conversationally shallow because relating consists of shared time watching video movies, instead of previous generations.
  • Short on loyalty & wary of commitment; all values are relative…must tolerate all peoples.
  • Self-absorbed and suspicious of all organization.
  • Survivors as individuals.
  • Cautious, skeptical, unimpressed with authority, self-reliant.

Generation Y

Generation Y/Millennium.

  • Born between 1981* and 2000*.
  • Aka “The 9/11 Generation” “Echo Boomers” America’s next great generation brings a sharp departure from Generation X.
  • They are nurtured by omnipresent parents, optimistic, and focused.
  • Respect authority.
  • Falling crime rates. Falling teen pregnancy rates. But with school safety problems; they have to live with the thought that they could be shot at school, they learned early that the world is not a safe place.
  • They schedule everything.
  • They feel enormous academic pressure.
  • They feel like a generation and have great expectations for themselves.
  • Prefer digital literacy as they grew up in a digital environment. Have never known a world without computers! They get all their information and most of their socialization from the Internet.
  • Prefer to work in teams.
  • With unlimited access to information tend to be assertive with strong views.
  • Envision the world as a 24/7 place; want fast and immediate processing.
  • They have been told over and over again that they are special, and they expect the world to treat them that way.
  • They do not live to work, they prefer a more relaxed work environment with a lot of hand holding and accolades.

Generation Z

Generation Z/Boomlets.

  • Born after 2001*
  • In 2006 there were a record number of births in the US and 49% of those born were Hispanic, this will change the American melting pot in terms of behavior and culture. The number of births in 2006 far outnumbered the start of the baby boom generation, and they will easily be a larger generation.
  • Since the early 1700’s the most common last name in the US was ‘Smith’ but not anymore, now it is Rodriguez.
  • There are two age groups right now:
  • (a) Tweens.
  • (a1) Age 8-12 years old.
  • (a2) There will be an estimated 29 million tweens by 2009.
  • (a3) $51 billion is spent by tweens every year with an additional $170 billion spent by their parents and family members directly for them.
  • (b)Toddler/Elementary school age.
  • 61 percent of children 8-17 have televisions in their rooms.
  • 35 percent have video games.
  • 14 percent have a DVD player.
  • 4 million will have their own cell phones. They have never known a world without computers and cell phones.
  • Have Eco-fatigue: they are actually tired of hearing about the environment and the many ways we have to save it.
  • With the advent of computers and web based learning, children leave behind toys at younger and younger age. It’s called KGOY-kids growing older younger, and many companies have suffered because of it, most recognizable is Mattel, the maker of Barbie dolls. In the 1990’s the average age of a child in their target market was 10 years old, and in 2000 it dropped to 3 years old. As children reach the age of four and five, old enough to play on the computer, they become less interested in toys and begin to desire electronics such as cell phones and video games.
  • They are Savvy consumers and they know what they want and how to get it and they are over saturated with brands.

References.

deMesa, A. (2008). Marketing and tweens. Retrieved on February 21, 2008.

Elegant, S. (5 November 2007). China’s me generation. Time Magazine.

Generational Generalities. (2005). America’s generations. Retrieved November 6, 2007.

Generational Imperative. (2006). Meet Americas 5 living generations. Retrieved on November 6, 2007.

Marketing Vox. (2008). Generation Z. Retrieved on February 14, 2008.

Parents. (December 2007). Check out this news. Parents Magazine, p.166.

This is only a guideline, remember that everyone is different and not everyone fits into this analysis, but for the most part you can generalize their behavior. As a marketer, it is important to know how to effectively communicate and market to these diverse generations. In understanding consumer behavior, you can create the right promotion, tailoring it specifically for each group’s needs and therefore effectively sell products and services.

The dates for GI, Mature, and Baby Boomer and the beginning of Gen X are set and do not change, the dates for the end of Gen X, Gen Y and Gen Z fluctuate depending on what source you are using.

Similar topics include:

Internal Influences – Personality

Internal Influences – Motivation

Internal Influences – Memory

Internal Influences – Lifestyle and Attitude

Internal Influences – Learning

Internal Influences – Emotion and Perception

Segmenting Publics in America

Segmenting Publics in America

Another way of segmenting publics is to do it based on values and lifestyles. Such segmentation regularly is used by marketers to focus product and service appeals on particular socioeconomic levels. According to the VALS Lifetime Scale, segmentation separates consumers into eight distinct categories based on income and social class.

Remember that income is not the same as wealth, income is money that is earned, wealth is accumulated assets that people already have (cars, house, art). Some people can have a high income and have no money because they spent it all, or they can have lots of wealth and no job.

a) Actualizers
b) Fulfilleds
c) Believers
d) Achievers
e) Strivers
f) Experiencers
g) Makers
h) Strugglers

See below for more detail and examples.

a) Actualizers are those with the most wealth and power.
i) Successful, sophisticated, active, high self esteem, abundant resources.
ii) Image is important not as a status symbol but as an expression of their independence and character.
iii) Leaders in business and government.
iv) Concerned with social issues.
v) Have a taste for the finest things in life.
vi) 72% married, 59% men, 95% college educated.
vii) Income is $5 million a year and up.

b) Fulfilleds have high resources and are principle-oriented professionals or retirees.
i) Mature, satisfied, comfortable people.
ii) Value order, knowledge and responsibility.
iii) Most are well educated and in or recently retired from professional jobs.
iv) Leisure activities center around the home and family.
v) Conservative, practical consumers that look for functionality, value and durability in the products they buy.
vi) Income is $2-$5 million a year.

c) Believers are Fulfilleds without the resources.
i) Conservative, conventional with concrete beliefs based on traditional established codes: family, church, community and the nation.
ii) Deeply rooted moral codes.
iii) As consumers they are predictable and conservative, favoring American products and established brands.
iv) 70% married, 46% men, 6% college educated.
v) Median age is 58.
vi) Income is $500,000 to $2 million.

Actualizers, Fulfilleds, and Believers are upper class. They are only .5% of the population in the USA but control 80% of the wealth.

d) Achievers have high resources and are status oriented.
i) Seek recognition and self definition through achievements at work and school.
ii) Value predictability and stability.
iii) Deeply committed to work and family.
iv) Social lives are centered around family church and career.
v) Image is important to them.
vi) They favor established prestige products and products that demonstrate success to their peers.
vii) 73% married, 39% men, 77% college educated.
viii) Income around $200,000.

e) Strivers lack the resources of Achievers but are equally status oriented.
i) Seek approval from the world around them.
ii) Striving to find a secure place in life.
iii) Easily bored and impulsive.
iv) Wish to obtain things that are out of their reach.
v) Income around $100,000.

Achievers and Strivers are the middle class. This group is shrinking due to high credit card debt, bad mortgages and an increasing level of unemployment in America. 90% of Americans make $100,000 or less a year in income.

f) Experiencers have high resources, are action oriented, and are disposed toward taking risks.
i) Young, vital, impulsive and rebellious.
ii) Politically uncommitted and ambivalent about what they believe.
iii) Avid consumers that spend much of their money on clothing, fast food, music and movies.
iv) 34% married, 53% men, 41% college educated.
v) Median age is 26.
vi) Income is around $50,000 a year.

g) Makers also are action oriented but have low resources.
i) Practical with constructive skills.
ii) Experience the world by working in it, building a house, raising children, fixing cars, canning vegetables.
iii) Politically conservative.
iv) Suspicious of new ideas.
v) Respectful of government ideas and organized labor.
vi) Unimpressed by material possessions other than those with a functional purpose.
vii) Sometimes called the “working class.”
viii) Income is around $30,000 a year.

h) Strugglers have the lowest resources.
i) Have constricted lives.
ii) Chronically poor.
iii) Uneducated and limited skills.
iv) Without strong social bonds.
v) Chief concerns are about their health and safety.
vi) Cautious consumers.
vii) Loyal to favorite brands.
viii) 47% married, 37% men, 3% college educated.
ix) Median age is 61.
x) Median income is $9,000 a year, which is equivalent to minimum wage.

Experiencers, Makers, and Strugglers are lower class. These three classes total around 30 million Americans. About half are married in an effort to combine resources.

How do you appeal to each of these groups?

Actualizers

Appeal to their sense of independence and emphasize how it will enhance character.

Fulfilleds

Appeal to family issues, durability and value.

Believers

Appeal as an established brand, family issues.

Achievers

Appeal to their need to feel prestigious, image is important to them, also family and work.

Strivers

Appeal to the sense of attaining products they will feel important having.

Experiencers

Action! Appeal to a sense of youth and fun.

Makers

Appeal to function

Strugglers

Appeal to loyalty and security

 

Segmentation, Demographics and Behavior

Segmentation, Demographics and Behavior

Segmentation is the process of breaking down the intended product market into manageable groups; it can be broken down by:

Behavior

  • Needs—economic, functional, psychological, social.
  • Benefits–quality, service, economy, convenience, speed.
  • Attitude toward product--Enthusiastic, positive, indifferent, negative, hostile.
  • User status--Nonuser, ex user, potential user, first time user, regular user.
  • Loyalty status--None, medium, strong, absolute.
  • Brand Familiarity-Unaware, aware, informed, interested, desirous, intending to buy.
  • Occasion–Regular occasion; special occasion, convenience, comparison shopping, unsought product.
  • Type of problem solving needed-routine, limited, extensive.
  • Information required-low, medium, high.

Geographic Location

  • Region of world, country— North America, South America, Africa, Asia, Europe.
  • Regions within that country— (For Example USA) Pacific Northwest, South, Midwest, New England.
  • Size of city— population under 5,000 people to 4 million or more.
  • Urban vs. rural— country, city, large city = more resources, more independence; country=more dependence on neighbors and pooling resources.
  • Climate— cold, hot, rainy, desert, beaches, mountains.

Demographics

  • Income— under $5,000 to $250,000+ a year.
  • Gender— male, female, neither, both.
  • Age— Infant, toddler, preschool, tween (age 8 to 12), teen, college age, 20, 30, 40, 50, 60, 70-90.
  • Family size— 1 person, 2, 3, 4, 5 or more.
  • Family life cycle— young, single, engaged, DINKS (double income no kids), SINKS (single income no kids), married with kids (babies, toddler, elementary school age, teen, older), recently divorced, empty nester (children have moved out), same-sex couples, single parents, extended parents (grandparents raising their grandchildren), retired (either wealthy or Medicare dependent/poor). There are also Boomerang Kids (adult children have moved back home), Cougar/Silver Fox (Cougar is a 40-60 year old weathly, single, career driven woman seeking a younger man; Silver Fox is a 40-60 year old wealthy, single, career driven man seeking a younger woman).
  • Job— unemployed, housewife, part-time, full-time, student, professional, craftsperson, farmer, retired.
  • Education— grade school or less, some high school, high school graduate, some college, college graduate, graduate degrees.
  • Religion— Christian, Jewish, agnostic, atheist, Muslim, Islam etc.
  • Race— White, Black, Asian, Hispanic, Native American, mixed race, etc.
  • Culture/nationality—American, French, English, African, Russian, Indian etc.
  • Generation— (For Example USA) GI Generation, Silent, Matures, Baby Boomer, Gen X, Gen Y, Boomlets.

Psychographics

Psychographics
VALS Lifetime Scale
  • Lifestyle— interests, hobbies, activities, interests, opinions, values, media preferences. Everyone has two lifestyles, the one they are in now, and the one they desire to be in, which is usually better than the current one. Almost all decisions are influenced by the buyer’s current and desired lifestyle.
  • Personality traits
    • Sincerity.
    • Excitement.
    • Competence.
    • Sophistication.
    • Ruggedness.
  • Social class— Lower, middle-low, middle, middle-upper, upper, upper-upper, working class, blue collar.
  • Relationship
  • Customer Type
  • Product Use
  • Buying Situation
  • Purchasing Method
  • Behavior
  • Geographic Location
  • Demographics
  • Psychographics

Relationship

  • Kind of relationship— weak, strong, “arm’s length” dealing, close partnership.

Customer Type

  • Type of customer— manufacturer, service, government, military, non profit, wholesaler, retailer, end user.
Segmentation Groups
The Segmentation Groups

Product Use

  • How customer’s use product— installation, components, accessories, raw material, eaten, professional service.

Buying Situation

  • Buying situation— rebuy, modified rebuy, new purchase.

Purchasing Method

  • Purchasing methods— Internet, long term contract, warranty, financing, cash on demand.

Internal Influences – Personality

Internal Influences – Personality

Some marketers believe we choose products that express our personalities. Personality is defined as the thoughts, emotions, intentions and behavior that people express as they move through their environment. Personality is unique to individuals, but may be applied to groups, is a combination of characteristics and traits and influences purchasing behaviors. Marketers will use interviews and focus groups to understand personality and how it relates to the purchase of certain products.

The Five Factor Model Approach to personality identifies five core traits and how they manifest into behavior.

TRAITMANIFESTATIONPRODUCT / SERVICE
ExtroversionPrefer to be with others, talkative, bold, outgoingAirline tickets, beer
Stability levelFrom even tempered to and moody and temperamentalTime share vacation home, fast sports car
AgreeablenessKind, sympathetic, politeProducts that give money to charity
Openness to ExperienceImaginative, creative, open to new ideasArt
ConscientiousnessCareful, precise, organizedWashing machine

Other personality traits that translate into consumer behavior purchases:

  • Frugality—consumers restrain themselves and think heavily about purchases
  • Impulsiveness—purchases are made without much thought beforehand
  • Anxiety—a person with lots of anxiety may have more post-purchase dissonance and feel upset about purchases after they get them home
  • Bargaining—some consumers prefer to bargain for purchases, it gives them a sense of control over their spending
  • Vanity—taking excessive pride in one’s appearance and accomplishments
  • Competence—being responsible and dependable
  • Excitement—craving daring and spirited purchases
  • Ruggedness—craving products that are tough and strong
  • Sincerity—honest and genuine
  • Sophistication—desiring products that are glamorous and prestigious

The Six Living Generations In America

Internal Influences – Personality

Internal Influences – Motivation

Internal Influences – Memory

Internal Influences – Lifestyle and Attitude

Internal Influences – Learning

Internal Influences – Emotion and Perception

Internal Influences – Motivation

Internal Influences – Motivation

Dr. Jill Novak, University of Phoenix, Texas A&M University

Motivation is an internal state that drives us to satisfy needs. Motivation is the energizing force that activates behavior. Once we recognize that we have a need, a state of tension exists that drives the consumer to the goal of reducing this tension and eliminating the need. Consequently, only unmet needs motivate.

According to Maslow’s hierarchy of human needs, for each need there are positives gained and negatives that are avoided by meeting that particular set of needs. Products that are purchased because of a need will satisfy a goal and avoid unwanted consequences. For example, people need to feel secure so they purchase smoke detectors, therefore gaining protection and avoiding loss and fear of fire.

NeedGained

Avoided

Self-ActualizationCreativity, accomplishmentUnfulfilled potential
EsteemPride, recognition, prestigeFailure, inadequacy
SocialAcceptance, popularityRejection, embarrassment
SecuritySafety, protectionLoss, danger, fear
PhysiologicalHealth, comfortSickness, discomfort

Positives and Negatives for Each Need (Based on Maslow)

According to McGuire, there are 12 psychological motives, 12 reasons why consumers are motivated to make purchases.

  • 1. Need for consistency
  • 2. Need for attribute causation
  • 3. Need to categorize
  • 4. Need for cues
  • 5. Need for independence
  • 6. Need for self-expression
  • 7. Need for ego-defense
  • 8. Need for reinforcement
  • 9. Need for affiliation
  • 10. Need for modeling
  • 11. Need for novelty
  • 12 Need for Assertion

1. Need for consistency

  • People have a basic desire to have all parts of themselves consistent and they purchase products that fulfill this need. People that listen to country music will purchase products like cowboy boots, heavy duty trucks and pets.

2. Need for attribute causation

  • People have the need to determine who or what causes things to happen to them. For example, some people choose to attribute it to themselves, fate or an outside force like God.

3. Need to categorize

  • Categories allow people to process a large amount of information. Vehicles are categorized into cars, SUV’s, light trucks, heavy duty trucks, van, sporty, mid-size, hybrid, electric and so on. This helps consumers quickly narrow down their choices when purchasing a vehicle.

4. Need for cues

  • Most people will view others’ behavior and infer what they feel and think. Clothing plays an important role in presenting image of a person. People quickly judge others by the clothing they are wearing and the vehicle they drive.

5. Need for independence

  • Americans strive for individuality and self-expression and many products are marketed as “limited edition” or being different and unique
  • The Japanese culture discourages individuality and focuses on affiliation, and behavior that enhances family and culture.

6. Need for self-expression

  • Americans are known for letting others know who and what they are by their extravagant purchases, especially clothing and cars. Who really needs a $1,200 pen? What is that saying about that person?

7. Need for ego-defense

  • The need to defend your identity. An insecure customer will purchase well-known brand names for fear of being labeled socially incorrect.

8. Need for reinforcement

  • People are motivated to act because they are rewarded for doing it. For example, showing off a new diamond ring to your friends creates acceptance and approval.

9. Need for affiliation

  • Affiliation is the need to develop mutually helpful and satisfying relationships with others, which is a critical part of all people’s lives.

10. Need for modeling

  • Conformity and the need to base behavior on that of others. This is the major motivation of children, tweens (8-12 year olds), and especially teenagers-and in their social world conformity mean acceptance.

11. Need for novelty

  • People have variety seeking-behavior and this may be a reason for brand switching and impulse buys, but that depends on the person. People experiencing rapid life changes will seek stability, while people in stable life situations will seek change. The travel industry uses this by changing up their ads and showing adventure vacations where people are actively having fun and some ads showing relaxing vacations where people are swinging in a hammock.

12. Need for Assertion

  • Customer’s need to engage in activities that will increase self-esteem and self-esteem in the eyes of others. Most consumers respond positively to ads that appeal to this need. In an advertisement for a ladies razor, it will say “show off your beautiful legs to your man,” this will appeal to women by showing that the product increases your self-esteem.

Similar topics include:

The Six Living Generations In America

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Internal Influences – Memory

Internal Influences – Lifestyle and Attitude

Internal Influences – Learning

Internal Influences – Emotion and Perception

Internal Influences – Memory

Internal Influences – Memory

Dr. Jill Novak, University of Phoenix, Texas A&M University

Marketing messages can be effective only if the consumer correctly understands the messages, and remembers them when needed. Memory refers to a consumer’s ability to understand the marketing messages and assign them value and meaning. Value and meaning always together.

The value and meaning assigned is largely determined by internal factors, (thoughts, feelings, emotion, attitude, perception, motivation, personality, lifestyle) which are different for each consumer.

For example, a consumer who drinks lots of milk, sees an advertisement that says “Got Milk?” and since they already have positive feelings for the product they will purchase more milk, whereas a consumer who does not enjoy drinking milk and sees the same ad, may dismiss the ad or may try drinking more milk for a short period of time and then decrease consumption again.

  • Color: Colors have an enormous impact on marketing messages, and color affects consumers in a subjective manner, so that most of the time consumers don’t even know they are being affected! For example, in the US, the color red makes people eat 25% more, therefore most restaurants use red as their main color. The meaning and value assigned to colors changes with the culture, so marketers need to be fully aware of how color is interpreted by different groups of people. For example, the Starbucks Coffee Company logo is green, but when they opened shops in Malaysia, they had to change the logo to brown because in that culture green is associated with sickness.
  • Font: The presentation of words and how they are shaped will also enhance the marketing message and contribute to the value and meaning. For example, these two different fonts for a cigarette company will convey entirely different meanings, and may attract two different customers.

Caribou Cigarettes

Caribou Cigarettes

The first logo is block style, bold and more intense and may be more masculine. The second is a script font, with more curls, softer lines and may be more feminine. So which is better? Well, that depends on the product and the target market you are trying to attract.

  • Simplicity of the message: A simple message is generally easier to understand. Using short phrases and easy to read terminology, such as “heart healthy” will quickly and easily convey the message that the product is good for your heart.
  • Consistency of the message: The message needs to fit in with the surrounding information—style, color, text, photographs, music—all have to work together. For example, showing a television ad for travel to the Caribbean will have soft, flowing fonts, bright colors, and reggae music. It can sometimes be an advantage to have inconsistent messages, some consumers may remember the ad more if some of the elements don’t make sense.
  • Source of the message: Consumers will be more likely to remember and purchase products endorsed by credible sources, animated characters or celebrities. They have to be likeable, have some expertise or at least pretend that they have expertise), be trustworthy, and attractive.

Three things influence consumer’s ability to understand messages:

Physical Characteristics of message

  • Imagery: When the brand name, words, and slogan work together to create an image in the mind of the consumer, it will invoke ideas, feelings and objects, and a direct recovery of past experiences. Disney is big on evoking nostalgia and past experiences, they want adult customers to remember being taken to the Disney parks as a child and then repeat the experiences with their own children. Much of their advertisement depicts families having wonderful experiences together, while the adults are remembering being there as children.

Characteristics of the message receiver (consumer)

  • Intelligence: unless you are specifically marketing a product to extremely intelligent individuals, it is best to word marketing messages on a level most people can understand, and don’t ever talk to your customers in a way that would make them feel inferior.
  • Involvement: A customer with higher levels of involvement with the product, service and marketing information will have more recall than a consumer with less involvement. Creating more interest in the product and making a website more interactive will help to increase sales. More involvement means more sales.
  • Familiarity: Generally, the more familiar a customer is with a product, the more likely they are to purchase it; however, having too much familiarity can lead to adaptation, when customers become tired of their “familiar” purchases and seek out novelty items. For example, in the US in the 1990s, ketchup sales began slipping and to revamp sales, ketchup manufacturers created green and purple ketchup, these novelty items boosted sales, but only for a few months, when consumers became tired of them.
  • Expectations: If the customer doesn’t know what to expect from the product or service, then they are not going to purchase it. This explains why familiar brand names like Campbell’s Soup, Coca-Cola and Disney do not change their logos—customers are familiar with them, have positive thoughts about them and know what to expect.
  • Physical limits: Marketers need to remember that some consumers have limitations such as hearing impairment or color blindness and this needs to be taken into consideration when creating marketing messages.

Characteristics of the environment

  • Intensity of information: If a consumer is overloaded with stimuli in an environment, they are much more likely to avoid the ad, or not comprehend it at all. Let’s face it, we live in a world cluttered with advertisements, it can be difficult to break through all of it and get to your target market customers. Marketers have to be more creative since customers can now skip commercials (thanks to recordable television); marketers use product placement in the actual movie or television show, the characters in the show use the brand name products and may even talk about how they like the brand name. This is all part of the advertising. Marketers are also making use of new social marketing movements such as Twitter and Facebook that can be programmed to reach customers that want to see your marketing messages.
  • Framing: Messages can be framed to seem positive or negative and this will affect how customers assign value. “If you don’t use sunscreen, you could get skin cancer” or “Use sunscreen to moisturize and protect your delicate skin”.
  • Timing: Many factors will influence how a message is interpreted and assigned value including: amount of time customer has to view a message, time of day, and type of medium used. A customer driving in the morning 70mph past a billboard for coffee may only have a few seconds to interpret the message, but since it is a time of day when that product is most consumed, they may be more likely to act on the message.

 

Similar topics include:

The Six Living Generations In America

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Internal Influences – Lifestyle and Attitude

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Internal Influences – Lifestyle and Attitude

Consumer Behavior

Internal Influences – Lifestyle and Attitude

Dr. Jill Novak, University of Phoenix, Texas A&M University

Let’s take a look at consumer behavior, internal influences – lifestyle and attitude.

A. Lifestyle

Lifestyle is a common word to explain complicated consumer behaviors. Lifestyle is a way to segment people into groups based on three things: opinions, attitudes and activities. Lifestyle means the ways groups of consumers spend time and money. Lifestyle can include things like bowling, cooking, car racing, kayaking, attending charity events, having pets, interest in politics, watching sporting events and so on

In a purchase that requires a high level of involvement, such as a car, consumers will consider various choices and develop beliefs about each choice; then they develop feelings about the products (affect); and finally they act on the behavior and decide to purchase, or not. Whereas with a behavioral influence, the customer will act first (purchase), then develop beliefs about their purchase and that leads to developing feelings about the product or service.

B. Attitude

An attitude is an internal evaluation, expressed outwardly about a person, object or issue. There are three components of attitude – affect, behavior and cognition. This sis sometimes called the ABC’s of attitude. These three components work together to form a hierarchy of effects:

PurhaseHierarchy of effects
High involvementBelief—affect—behavior
Low involvementBelief—behavior—affect
ExperientialAffect—behavior—belief
Behavioral InfluenceBehavior—belief—affect

ELM Model

One theory about attitude change is the Elaboration Likelihood Model (ELM). This model shows how attitudes are changed based on the level of involvement in the purchase. As soon as a message is received a consumer begins to process it, depending on the level of involvement and motivation it will then follow one of two routes—the central route or the peripheral route. See Petty and Cacioppo (1981) and Petty, Ostrom and Brock (1981).(

The central route: If the consumer is highly involved in the purchase, then they will put forth considerable effort toward understanding the marketing messages. They will look for cues in the message that pertain to the product, its attributes, and advantages.

The peripheral route: If the consumer is not highly involved in the purchase, or lacks the motivation to process information, they are more likely to pay attention to the attractiveness of the people in the advertisement, images and music, which are all non-product related information. These cues play a major role in persuading consumers to purchase. This usually leads to a product attitude change that doesn’t last.

Social Judgment Theory Another theory for explaining attitude changes, this theory states that consumers compare incoming information to a frame of reference previously formed; The incoming messages are then filtered down two paths—latitudes of acceptance and latitudes of rejection. If a message is accepted then the filtered information has to be close to the original attitude. This is when messages are considered favorable and consumers agree with the message. A message is rejected when it is seen as too far from, or opposed to the original attitude.

Everyone has two lifestyles-the one they are currently in and the one they want to be in, which is always better than the current one. Marketers exploit this desire to move into a better lifestyle by showcasing people who are better off than the intended target market in their ads. For example most ads targeting children show children that are almost too old for the product, this appeals to younger children who desire to be like them.

References

Petty, R. E., & Cacioppo, J. T. (1981). Attitudes and persuasion: Classic and contemporary approaches. Dubuque, IA: William C. Brown.

Petty, R. E., Ostrom, T. M., & Brock, T. C. (Eds.) (1981). Cognitive responses in persuasion. Hillsdale: Erlbaum.

Similar topics include:

The Six Living Generations In America

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Internal Influences – Motivation

Internal Influences – Memory

Internal Influences – Lifestyle and Attitude

Internal Influences – Learning

Internal Influences – Emotion and Perception

 

Internal Influences, learning

Consumer Behavior

Internal Influences – Learning

Dr. Jill Novak, University of Phoenix, Texas A&M University

Consumer behavior is largely learned behavior. Learning is a change of behavior following an interaction between a person and their environment. A person touches a hot stove and then gets hurt, because of that interaction they learn not to touch the hot stove again. Most attitudes, values, tastes, behaviors, preferences, symbolic meanings and feelings are acquired through learning.
People buy things and then make decisions for future purchases based on if they liked the product, quality, service, and price. Social organizations help people learn “appropriate” beliefs about issues like drinking and driving, proper nutrition, etc. Companies that help their customers learn about their products and create positive feelings with their product, service, brand name, and employees-have a competitive advantage.
The Learning Process:

  • Exposure – the customer becomes aware of product, service or advertisement through at least one of their five senses (sight, smell, taste, touch, hearing). When a customer walks into a store, goes onto a website, drives by a billboard, reads a magazine or tries a free food sample, the learning process begins.
  • Attention – the customer processes the stimulus.
  • Understanding – the customer interprets the information and acts on it either by purchasing the product or service, dismissing the information, seeking more information (asking family and friends, going on the Internet) or remembering it for future information.

Similar topics include:

The Six Living Generations In America

Internal Influences – Personality

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Internal Influences – Memory

Internal Influences – Lifestyle and Attitude

Internal Influences – Learning

Internal Influences – Emotion and Perception

 

Internal Influences – Emotion and Perception

Consumer Behaviour

Internal Influences – Emotion and Perception

Dr. Jill Novak, University of Phoenix, Texas A&M University

This content is about consumer behavior, internal influences – emotion and perception.

A. Emotion

Emotion is difficult to define, and even more difficult to predict. However, they are important to marketers because consumers tend to react to marketing messages and make purchases based on feelings and emotions. Emotion can be used to create product benefits. Such as with Tide detergent and Cheerios cereal; their commercials feature families having wonderful moments together, that couldn’t have happened without those products.

B. Perception

Perception is the process by which people select, organize, and interpret information. Perception has four major steps:

1. Exposure – When a stimulus (like a billboard) comes within range of your senses (vision)

2. Attention – Determined by the individual and the situation; Nerves pass the information onto the brain for processing

3. Interpretation – when marketing messages are assigned meaning

4. Memory

  • a. Short-term—for immediate decision making
  • b. Long-term—for retention

For an ad to be successful it must have the following four elements:

1. Exposure

Must physically reach the consumer

2. Attention

The consumer must attend to it

3. Interpretation

It must be properly interpreted

4. Memory

Must be stored in memory that will allow retrieval

Emotion in advertising enhances attention, attraction, and is processed more thoroughly by the consumer and may be remembered better.

These are the elements of the relationship between emotion and understanding:

  • Self control-the ability to control your emotions
  • Emotional empathy-the ability to understand other people’s emotions
  • Positive/negative outlook-a person’s outlook on life can be upbeat and optimistic or depressed and negative; most people fall somewhere in between
  • Productivity-ability to use emotions to solve problems.

Similar topics include:

The Six Living Generations In America

Internal Influences – Personality

Internal Influences – Motivation

Internal Influences – Memory

Internal Influences – Lifestyle and Attitude

Internal Influences – Learning

Internal Influences – Emotion and Perception