C H A P T E R

CONSUMER BEHAVIOR 05

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

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L E A R N I N G O B J E C T I V E S

Consumer Behavior

LO1 Articulate the steps in the consumer buying process.

LO2 Describe the difference between functional and psychological needs.

LO3 Describe factors that affect information search.

LO4 Discuss post-purchase outcomes.

LO5 List the factors that affect the consumer decision process.

LO6 Describe how involvement influences the consumer decision process.

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Fashion

Plus+ Size

“Big and Tall”

Photo by Astrid Stawlarz/Getty Images

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The Consumer Decision Process

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Need Recognition

Functional needs

Psychological needs

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“It’s hard to find your litter box if you can’t smell it”

FRESH STEP® is a registered trademark of The Clorox Pet Products Company Used with permission ©2009 The Clorox Pet Products Company Reprinted with permission

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Search for Information

Internal Search for Information

External Search for Information

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Factors Affecting Consumers’ Search Process

Perceived Benefits

Perceived Costs

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The Locus of Control

Internal Locus of Control = more search activities

External Locus of Control = Fate, external factors

Royalty-Free/CORBIS

©Comstock/JupiterImages

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Actual or Perceived Risk

Performance risk

Financial risk Psychological

risk

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Designing For Women

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Evaluation of Alternatives: Attribute Sets

Universal

Retrieval

Evoked

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Evaluation of Alternatives: Evaluate Criteria

Evaluative Criteria

Determinant Attributes

What are some of the features of a vacation that would be in your evaluative criteria?

Digital Vision/Getty Images

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Evaluation of Alternatives: Consumer Decision Rules

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Evaluation of Alternatives: Decision Heuristics

Mental Shortcuts

Price

Brand

Product presentation

Amos Morgan/Getty Images

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Check Yourself

1. What is the difference between a need and a want?

2. Distinguish between functional and psychological needs.

3. What are the various types of perceived risk?

4. What are the differences between compensatory and noncompensatory decision rules?

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Purchase and Consumption

Increase Conversion rate

Reduce real or virtual

abandoned carts

Merchandise in stock

Reduce the actual wait time

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Post-purchase: Customer Satisfaction

Build realistic expectations Demonstrate correct product use

Provide money back guarantee Encourage feedback

Customer contact

Digital Vision/Getty Images

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Post-purchase: Dissonance

• Firm’s attempt to reduce dissonance by reinforcing the decision

• Thank you letters, congratulations letters, quality ratings

©Lars A Niki

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Post-purchase: Customer loyalty

• Marketers attempt to solidify a loyal relationship.

• Satisfied customers purchases and buy from the same company again. ©Lou Cypher/Corbis

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Check Yourself

1. Identify the five stages in the consumer decision process.

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Factors Influencing the Consumer Decision Process

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Psychological Factors: Motives

Courtesy Taco Bell

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Psychological Factors: Attitude

Behavioral Attitude

Cognitive Affective

©K Rousonelos

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Psychological Factors: Perception

How has society’s perception of

people with tattoos changed in recent

years?

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Psychological Factors: Learning and Lifestyle

Learning affects both attitudes and perceptions

Lifestyle involves decisions in spending time and money

Royalty-Free/CORBIS

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Social Factors: Family

Digital Vision/Getty Images

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Social Factors: Reference Groups

Groups

•Family

•Friends

•Coworkers

•Famous people

Provide:

• information

•rewards

•self-image

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Social Factors: Reference Groups

GEICO Commercial Photo by James Devaney/WireImage

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Social Factors: Culture

Royalty-FreeCORBIS C Squared Studios/Getty Images

C Squared Studios/Getty Images Geoff Manasse/Getty Images

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Could You Go Without Tech for a Week

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Situational Factors

Purchase Situation

Shopping Situation Courtesy Murphy O’Brien Public Relations/Santa Monica, CA

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Check Yourself

1. What are the types of needs suggested by Maslow’s Hierarchy of Needs?

2. Which social factors likely have the most influence on:

a. The purchase of a new outfit for going out dancing?

b. The choice of a college to attend?

3. List some of the tactics stores can use to influence consumers’ decision processes.

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Involvement and Consumer Buying Decisions

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Types of Buying Decisions

• Extended Problem Solving

• Limited Problem Solving

– Impulse Buying

– Habitual Decision Making

Courtesy Wendy’s International, Inc.

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Check Yourself

1. How do low versus high involvement consumers process information in an advertisement?

2. What is the difference between extended versus limited problem solving?