4.consumer behavior (1)

8/20/2019 4.Consumer Behavior (1)

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Consumer Behavior

The process and the activities that peopleengage in when searching for, selecting,

purchasing, using, evaluating, and disposing of products and services so as to satisfy theirneeds and wants.


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The Consumer DecisionProcess

Problem Recognition

Problem Recognition

Information Search

Information Search

Alternative Evaluation


Purchase Decision

Purchase Decision

Postpurchase Evaluation



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Consumer Decision Process andRelevant Internal Psychological

Processes that Occur at Each StageProblem Recognition

Problem Recognition

Information Search

Information Search



Purchase Decision

Purchase Decision



Motivation

Motivation

Perception

Perception

Learning

Learning

Attitude Formation

Attitude Formation

Integration

Integration

Decision Process Stages Psychological Processes


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Sources of ProblemRecognitionProblem recognition – caused by a difference between

consumer’s ideal state and actual state

Causes of sources of problem recognition:

Out of stock

Dissatisfaction ew needs or wants

!elated product purchase

"arket#induced recognition

ew products available


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Maslo!s "ierarchy of #eeds

Physiological needshunger! thirst"

Safety needs

security! protection"

Social needssense of belonging! love"

Esteem needsself#esteem! recognition! status"

Self#actuali$ation needsself#development! reali$ation"


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Probing the Minds ofConsumers

Psychoanalytic Theory & Motivation Research

Motivation Research reveals consumer motivation$ocus %roups

& group of consumers with similar backgrounds or interests discuss a

product' idea or issue.

(n#Depth (nterviews & respondent allowed to talk freely in an unstructured interview # to

obtain insights into his or her motives' ideas or opinions.

)ro*ective Techni+ues "ethods allowing consumers to pro*ect values' motives' attitudes or

needs on some e,ternal ob*ect.

&ssociation Tests Consumers respond with the first thing that comes to mind when

presented with some verbal or pictorial stimulus.


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$ariations in

Consumer Decision Ma%ingConsumers do not always engage in all five steps of the purchasedecision process nor proceed in the se+uence presented

%hree ma&or variations of consumer decision ma'ing process: E(tended Problem Solving # consumers need detailed information that helps them in

making their purchase decision Limited Problem Solving # brand information' etc. must be available to consumers to

help them make their decision.

Routine Response )ehavior – brands considered for purchase are in the evoked set'

or because of brand loyalty.

-rands not in the evoked set must encourage trial and brand switching.


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&evels ofConsumer Decision Ma%ing

Extensive Problem

Solving

Limited Problem

Solving

Routine Response

Behavior


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Information Search

tarts with #Internal Search #

(nformation stored in memory

)ersonal e,perience # handling' e,amining' testing' using

e,t step if internal search is not ade+uateE(ternal Search – actively seeks informationfrom various sources

)ersonal information sources – most credible info source $riends' relatives' co#workers

)ublic information sources – also credible info source

)rint articles' news reports

"arketer#controlled sources – least credible info source &ds' salespeople' in#store displays


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Perce'tion

tages in the perception process: ensation/the immediate and direct response of the senses to

a stimulus 0such as an ad1 electing information/determining whether incoming

information will be attended to' and how much attention it will

be given.

(nterpretation/the process by which incoming information is

interpreted and assigned meaning.

Selective perception* filtering or screening may occur at

various stages of the perceptual process such as e,posure'

attention' comprehension and retention

The process by which an individual receives,

selects, organizes and interprets information


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Selective Retention

The Selective Perce'tionProcess

Selective +omprehension

Selective Attention

Selective E(posure


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Consumer &earningProcesses

Cognitive 2earning Consumers learn through information processing and

problem solving

-ehavioral 2earning 2earning via association 0classical conditioning1

2earning via reinforcement 0instrumental conditioning1

"odeling )rocesses -ased on observation of outcomes and conse+uences

e,perienced by others


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,oal

achievement

,oal

achievement

InsightInsight

Purposive

behavior

Purposive

behavior

Consumer &earning

ProcessesCognitive Learning

Process

,oal,oal


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Increase or decrease inprobability of repeat

behavior purchase"

Increase or decrease inprobability of repeat

behavior purchase"

Consumer &earningProcessesInstrumental ConditioningProcess

Positive or negative

conse/uences occur re.ard or punishment"

Positive or negative

conse/uences occur re.ard or punishment"

)ehavior consumer uses

product or service"

)ehavior consumer uses

product or service"


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(lternative Evaluation

(mportant factors and processes during the

Alternative Evaluation Stage0 Criteria and conse+uences

&ttitude formation 3 change

(ntegration process and decision making

rules


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Evaluation of (lternativesAll available brands

)rand A )rand ) )rand + )rand D )rand E

)rand F )rand , )rand 1 )rand I )rand 2

)rand 3 )rand L )rand M )rand 4 )rand 5

Evo'ed Set of )rands

)rand ) )rand E

)rand I

)rand M

)rand F


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Evaluative Criteria andConse)uences

Evaluative Criteria - used to compare various

alternatives dimensions or attributes of a product or

service

Ob*ective criteria – specs' price' warranty' color' si4e

ub*ective criteria # style' appearance' image

Consequences – outcomes that result from using a

product or service Functional consequences – concrete and tangible

Pyscho-social consequences – abstract: emotional,symbolic


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Consumer (ttitudesLearned predispositions to respond toward an object—an

individual’s overall feelings toward or evaluation of anobject.

Consumers may hold attitudes toward: (ndividuals -rands Companies Organi4ations )roduct categories

!etailers &dvertisements "edia


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Multiattribute (ttitudeModel

&ttitudes are a function of : & 5 6 -i 7 8i

& 5 &ttitude

-i 5 -eliefs about brand’s performance on attribute i

8i 5 (mportance attached to the attribute i

5 umber of salient attributes considered by the

consumer


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*ays to In+uence or Change (ttitudes

&dd a new attribute to the attitude formation process

Change perceptions of the importance or value of an

attribute

(ncrease or change the strength or belief rating of abrand on an important attribute

Change perceptions of belief ratings for a competing

brand


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Purchase Decision Ma%ing

5utcome of the alternative evaluation stage Purchase decisions could be based on #

$ormal and (nformal decision making rules

(n#store purchase and decision making # occurs almost

simultaneously 0for low involvement' non#durables1 Top#of#mind awareness of a brand' influence of packing' shelf

displays' point#of#purchase materials' and various sales

promotion' etc. are important

-rand loyalty

Purchase intention # a predisposition to buy a certain

brand.


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Integration Processes andDecision Rules

Integration processes Formal integration rules # based on e,amination and

comparison of alternatives on specific attributes Compensatory integration strategies

on#compensatory integration strategies 0Con*unctive'

Dis*unctive ' 2e,icographic rules1

Informal integration rules3heuristics # easy to use and apply0rule of thumb1

-uy the least e,pensive brand 3 most e,pensive -uy the brand on sale &ffect referral rule – buy on basis of overall affective impression

0feelings1 about the brand Others

Evaluation of alternatives # Integration processes

product knowledge' meaning' and beliefs are combined toarrive at a purchase decision


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1ypothetical -se of Popular Decision Rules

Purchase an -ltralight Laptop

DECISION RULEDECISION RULE EN!"L S!"!EEN!EN!"L S!"!EEN!

Compensatory rule “I selected the computer that came out best when I

balanced the good ratings against the bad ratings.”

Conjunctive rule “I selected the computer that had no bad features.”

Disjunctive rule “I picked the computer that excelled in at least one

attribute.”

exicographic rule “I looked at the feature that was most important to me and

chose the computer that ranked highest on that attribute.”

!ffect referral rule “I bought the brand with the highest overall rating.”


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Integration Processes and

Decision Ma%ing Rules )romotional planners need to understand # (ntegration processes and the types of decision

making rules consumers use in a different

situations

&dvertising messages must be consistent with

these decision rules' or suggest how consumers

might go about making a decision.

ome purchase decisions occur at the time of

purchase as a result of a constructive process

0a combination of decision making processes1


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Post Purchase Evaluation +ognitive dissonance # post-purchase psychological

tension 3 doubt or feeling consumers may e,perience aftermaking a difficult purchase choice Consumers often look to advertising for supportive information

regarding the choice they have made

+ustomer satisfaction 6 post-use the consumer

compares the level of product performance with

e,pectations Satisfaction results when the consumer’s e,pectations are either

met or e,ceeded

Dissatisfaction results when performance is below e,pectations.


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Environmental In+uences on

Consumer Behavior+ulture

Subculture

Social class

Referencegroups

Situations


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Environmental In+uences onConsumer Behavior 5ther Situational Determinants # e,ternal

factor that must be considered Three types #

usage situation purchase situation

communications situation


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A Simple Model of +onsumer Decision Ma'ing

"irm#s $arketing %fforts

&. 'roduct

(. 'romotion

). 'rice

*. Channels of distribution

+ocio,cultural %nvironment

&. "amily

(. Informal sources -/$0). /ther noncommercial sources

*. +ocial class

1. +ubculture and culture

#$ Need % Problem Re&ognition

-utilitarian 2 self,expressive03 !ctual state

3 Desired state

'$ Pre(pur&hase In)o Sear&h

3 Internal

3 external*$ Evaluation o) "lternatives (

Integration Pro&ess

'sychological "ield

&. $otivation

(. 'erception

). earning

*. 'ersonality

1. !ttitudes

%xperience

'urchase

&. 4rial

(. 5epeat purchase). ong term purchase

'ostpurchase %valuation/utput

'rocess

Input

External In)luen&es

Consumer De&ision a+ing

Post(de&ision Behavior


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IMC Communications TaskGrid

De&ision

Role

Communi&ation

!as+

!arget

"udien&e

,here and

,hen

IC Options

Desired result or

effect fromcommunication

'rimary

group to reachat each stage

6est way to

reach at eachstage

6est I$C tool

to accomplishcommunication

task

5ole in

Decision$arking

'rocess

Initiator

Influencer

Decider

'urchaser

7ser

4.consumer behavior (1)

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