1. Consumer Markets and Consumer Buyer BehaviorRajeev ShresthaLecture 6 March 1, 2012

2. Characteristics AffectingConsumer Behavior Psychological Factors Motivation Perception Learning Beliefs and attitudes 3. Characteristics AffectingConsumer Behavior Psychological Factors Motivation A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research refers to qualitative researchdesigned to probe consumers hidden,subconscious motivations 4. Characteristics Affecting Consumer Behavior Psychological FactorsPerception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes Selective attention Selective distortion Selective retention 5. Characteristics AffectingConsumer BehaviorPsychological FactorsSelective attention is the tendency for people to screen out most of the information to which they are exposedSelective distortion is the tendency for people to interpret information in a way that will support what they already believeSelective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands 6. Characteristics AffectingConsumer Behavior Psychological Factors Learning is the change in an individuals behavior arising from experience and occurs through interplay of:Drives StimuliCues ResponsesReinforcement 7. Characteristics AffectingConsumer Behavior Psychological Factors Beliefs and Attitudes Belief is a descriptive thought that a person has about something based on: Knowledge Opinion Faith 8. Characteristics AffectingConsumer Behavior Psychological FactorsAttitudes describe a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea 9. Types of Buying DecisionBehaviorHigh InvolvementLow InvolvementSignificantDifferenceComplex Buying Variety-seekingbetween brandsBehavior Buying BehaviorFew differences Dissonance- Habitual Buyingbetween brandsreducing Buying Behavior Behavior 10. The Buyer Decision Process Need Recognition Occurs when the buyer recognizes a problem or need triggered by: Internal stimuli External stimuli 11. The Buyer Decision Process Information Search Sources of Information Personal sourcesfamily and friends Commercial sourcesadvertising, Internet Public sourcesmass media, consumerorganizations Experiential sourceshandling, examining, usingthe product 12. The Buyer Decision ProcessEvaluation of Alternatives How the consumer processes information toarrive at brand choices 13. The Buyer Decision Process Purchase Decision The act by the consumer to buy the most preferredbrand The purchase decision can be affected by: Attitudes of others Unexpected situational factors 14. The Buyer Decision Process Postpurchase Decision The satisfaction or dissatisfaction that theconsumer feels about the purchase Relationship between: Consumers expectations Products perceived performance The larger the gap between expectationand performance, the greater theconsumers dissatisfaction Cognitive dissonance is the discomfortcaused by a postpurchase conflict 15. The Buyer Decision Process Post-Purchase DecisionCustomer satisfaction is a key to building profitable relationships with consumersto keeping and growing consumers and reaping their customer lifetime value 16. The Buyer Decision Process for New ProductsAdoption process is the mental process anindividual goes through from first learning aboutan innovation to final regular use. Stages in the process include:Awareness Interest Evaluation TrialAdoption 17. The Buyer Decision Process forNew ProductsIndividual differences in Innovativeness 18. The Buyer Decision Process forNew ProductsInfluence of Product Characteristics on Rate of AdoptionRelative Compatibility Complexity advantageDivisibility Communicability