CONSUMER BEHAVIOR

CHAPTER

Consumer Behavior

Consumer behavior - the actions a person takes

in purchasing and using products and services,

including the mental and social processes

that come before and after these actions.

Post-purchase Behavior Assess value in consumption Post-purchase Behavior Assess value in consumption

PurchaseBuying valuePurchase

Buying value

Evaluation of AlternativesAssessing value

Evaluation of AlternativesAssessing value

Information SearchSeeking a value

Information SearchSeeking a value

Need RecognitionPerceiving a value

Need RecognitionPerceiving a value

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Purchase Decision Process

Internal StimuliInternal Stimuliandand

External StimuliExternal Stimuli

Present Status

Preferred State

Marketing helps consumers

recognize an imbalance between present status and

preferred state

Need Recognition

Information Search: Seeking Value

Internal Search- Recall information from memory

External Searchinformation from outside

environment

Non-marketing controlledMarketing controlled

FIGURE 5-2FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players

Consideration Consideration SetSet

Purchase!Purchase!

Analyze product attributesAnalyze product attributesAnalyze product attributesAnalyze product attributes

Rank attributes byRank attributes byimportanceimportance

Rank attributes byRank attributes byimportanceimportance

Use cutoff criteriaUse cutoff criteriaUse cutoff criteriaUse cutoff criteria

Alternative Evaluation

Post-purchase Behavior-Cognitive Dissonance

Inner tension that a consumer experiences after recognizing

an inconsistency between behavior and values or opinions.

Cognitive Cognitive DissonanceDissonance

??Did I make a good decision?Did I make a good decision?

Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?

Can minimize through:Can minimize through:Effective CommunicationEffective Communication

Follow-upFollow-upGuaranteesGuaranteesWarrantiesWarranties

Involvement and Problem-Solving Variations

More Involvement

LessInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking

Comparison of problem-solving variations

When to use Routine Response Behavior

Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision

When to use Limited Decision Making

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide

When to use Extensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance

PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

Motivation – what stimulates behavior to satisfy a need

Maslow’s Hierarchy of Needs

PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

• Perception

Selective ExposureSelective Exposure

SelectiveComprehension

SelectiveComprehension

Selective Retention Selective Retention

Consumer pays attention to certain stimuli and ignores others

Consumer pays attention to certain stimuli and ignores others

Consumer interprets info so that is is consistent with his beliefs

Consumer interprets info so that is is consistent with his beliefs

Average consumer only remembers30% of information heard

Average consumer only remembers30% of information heard

PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR

Perceived Risk

• Obtain Seals of Approval

• Secure Endorsements from Influential People

• Provide Free Trials of the Product

• Give Extensive Usage Instructions

• Provide Warranties and Guarantees

How do consumers make purchase decisions?

Psychographics – the analysis of people’s lifestyles

VALS™ Consumer Segments

Reference Groups

Reference Groups

Opinion LeadersOpinion Leaders

Family MembersFamily

Members

Social Influences on Buying Decisions

Social Influences on Buying Decisions

Sociocultural Influences on Consumer Behavior

Primary

Secondary

Aspirational

Reference Reference GroupsGroups

Direct – Face to face

–

SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR

Indirect-No Personal Contact

Dissociative

Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.

Why use celebrity spokespersons?

Opinion Leaders

SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR

Family Life Cycle

Family Decision Making

• Information Gatherer

• Influencer

• Decision Maker• Purchaser

• User

SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR

Members assume different roles for different products

Men’s clothes?Breakfast cereal?Computer?

Consumer Behavior

Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

Purchase Decision Process

The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.

The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.

Involvement

Involvement consists of the personal, social, and economic significance of the purchase to the consumer.

Involvement consists of the personal, social, and economic significance of the purchase to the consumer.

Motivation

Motivation is the energizing force that stimulates behavior to satisfy a need.Motivation is the energizing force that stimulates behavior to satisfy a need.

Perception

Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

Perceived Risk

Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.

Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.

Learning

Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.

Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.

Brand Loyalty

Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.

Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.

Attitude

An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

Beliefs

Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

Opinion leaders are individuals who exert direct or indirect social influence over others.

Opinion leaders are individuals who exert direct or indirect social influence over others.

Opinion Leaders

The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.

The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.

Family Life Cycle