consumer behaviorconsumer behavior professor chip besio cox school of business southern methodist...
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MASLOW’S HIERARCHY OF MASLOW’S HIERARCHY OF NEEDSNEEDS
Self-Actualization
Self-Esteem
Love-Belonging
Safety-Security
Physiological
Intense job challenge, full potential, full Intense job challenge, full potential, full expression, creative expansion.expression, creative expansion.
Achievement, respect, recognition, responsi-Achievement, respect, recognition, responsi-bility, prestige, independence, attention, bility, prestige, independence, attention,
importance, appreciation.importance, appreciation.
Belonging, acceptance, love, affection, familyBelonging, acceptance, love, affection, familyand group acceptance, friendships.and group acceptance, friendships.
Security, stability, dependency, protection, Security, stability, dependency, protection, need for structure, order, law, tenure, pension, need for structure, order, law, tenure, pension,
insurance.insurance.
Hunger, thirst, reproduction, shelter, clothing,Hunger, thirst, reproduction, shelter, clothing,air, rest.air, rest.
Motivation and Personality, Abraham Maslow, 1939
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Self-actualizationin service to
society
Safety
Physiological
Affiliation (belonging)
Chinese Culture Hierarchy of NeedsChinese Culture Hierarchy of Needs
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Model of Consumer BehaviorModel of Consumer Behavior
Marketing and OtherStimuli
Marketing and OtherStimuli
Product
Price
Place
Promotion
Environmental Factors
Buyer’s Decision Process
Buyer’s Decision Process
Factors Factors Affecting Affecting Consumer Consumer BehaviorBehavior
Buyer’s Buyer’s Decision Decision ProcessProcess
Buyer’s ResponseBuyer’s Response
Product Choice
Brand Choice
Store/Dealer Choice
Purchase Timing
Purchase Amount
Source: Adapted from Prentice Hall
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Consumer Purchase Process
Awareness
Trial
Loyalty
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The Buyer’s Decision ProcessThe Buyer’s Decision Process
Need RecognitionNeed Recognition
Information SearchInformation Search
Evaluation of AlternativesEvaluation of Alternatives
Purchase DecisionPurchase Decision
Post-Purchase BehaviorPost-Purchase Behavior
Source: Prentice Hall
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Buyer’s Decision ProcessNEED RECOGNITION
External Stimuli
TV advertising
Magazine ad
Radio slogan
Other stimuli in the environment
External Stimuli
TV advertising
Magazine ad
Radio slogan
Other stimuli in the environment
Internal Stimuli
Hunger
Thirst
A person’s normal needs
Internal Stimuli
Hunger
Thirst
A person’s normal needs
Need RecognitionDifference between current state and desired state
Need RecognitionDifference between current state and desired state
Source: Adapted from Prentice Hall
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Buyer’s Decision ProcessBuyer’s Decision ProcessINFORMATION SEARCHINFORMATION SEARCH
• Family, friends, neighbors• Most influential source of information
• Advertising, salespeople• Receives most information
from these sources
• Mass Media• Consumer-rating groups
• Handling the product• Examining the product• Using the product
Personal Sources Personal Sources
Commercial SourcesCommercial Sources
Public SourcesPublic Sources
Experiential SourcesExperiential Sources
Source: Adapted from Prentice Hall
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Buyer’s Decision ProcessEVALUATION OF ALTERNATIVES
Product AttributesEvaluation of Quality, Price, & Features
Product AttributesEvaluation of Quality, Price, & Features
Degree of ImportanceWhich attributes matter most to me?
Degree of ImportanceWhich attributes matter most to me?
Brand BeliefsWhat do I believe about each available brand?
Brand BeliefsWhat do I believe about each available brand?
Project Total Product SatisfactionBased on what I’m looking for, how satisfied
would I be with each product?
Project Total Product SatisfactionBased on what I’m looking for, how satisfied
would I be with each product?
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.
Evaluation ProceduresChoosing a product (and brand) based on one
or more attributes.Source: Prentice Hall
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Buyer’s Decision ProcessBuyer’s Decision ProcessPURCHASE DECISIONPURCHASE DECISION
Purchase IntentionDesire to buy the most preferred brand/product
Purchase IntentionDesire to buy the most preferred brand/product
Purchase DecisionChoice of the store/brand/product
Purchase DecisionChoice of the store/brand/product
Situational factors
Attitudes of others
Source: Adapted from Prentice Hall
Intention to purchase does not always result in an actual purchase
Intention to purchase does not always result in an actual purchase
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Buyer’s Decision ProcessBuyer’s Decision ProcessPOST-PURCHASE POST-PURCHASE BEHAVIORBEHAVIOR
Consumer’s Expectations of
Product’s Performance
Dissatisfied Customer
Dissatisfied Customer
Satisfied Customer!
Satisfied Customer!
Product’s Perceived
Performance
Product’s Perceived
Performance
•Cognitive DissonanceSource: Prentice Hall
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CognitionCognition
Attitudes,Beliefs
Attitudes,Beliefs
Important Psychological FactorsImportant Psychological Factors
MemoryMemory
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THE HIERARCHY OF EFFECTSTHE HIERARCHY OF EFFECTS
AWARENESS: Consumers learn the brand name and product attributes.
INTEREST: Consumers relate the product benefits to their own needs.
EVALUATION: Consumers compare the goods with existing alternatives.
TRIAL: Consumers obtain direct or vicarious product experience.
ADOPTION: Consumers choose the innovation as a permanent solution
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Selected Concepts in Selected Concepts in Consumer BehaviorConsumer Behavior
Involvement and Buying Decisions
Consideration Set
How Preferences are Formed
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InvolvementInvolvement
The degree of importance the consumer accords to the product class or its purchase
The degree of importance the consumer accords to the product class or its purchase
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InvolvementInvolvement
High
Usually purchase is infrequent, significant perceived risk
Customer actively seeks information
Customized decision process
High
Usually purchase is infrequent, significant perceived risk
Customer actively seeks information
Customized decision process
Low
Usually purchase is familiar and / or inexpensive
Highly selective attention to information
Quick decision
Routine behavior
Low
Usually purchase is familiar and / or inexpensive
Highly selective attention to information
Quick decision
Routine behavior
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Types of Buying DecisionsTypes of Buying Decisions
ComplexBuying
Behavior
Dissonance-Reducing Buying
Behavior
Variety-SeekingBehavior
HabitualBuying
Behavior
HighInvolvement
Significantdifferences
betweenbrands
Fewdifferences
betweenbrands
LowInvolvement
Source: Prentice Hall
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How the Consideration Set Is How the Consideration Set Is FormedFormed
All brands in Product Class
Brands foundaccidentally
Brands foundthrough search
Recalled brands
Unrecalledbrands
Unrecognized brands
Recognized brands
Consideration Set
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????
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Factors Affecting Factors Affecting Inclusion in Consideration Inclusion in Consideration SetSet Top-of-mind awareness - recall
experience - trial, previous purchase, habitual use brand equity
Distribution Shelf space and location Shelf tags, displays and other attention-getting
devices
Nature of the set goal-driven Taxonomic (classification of options)
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How Preferences are FormedHow Preferences are Formed
Preference for a product reflects the customer’s expectation of its ability to satisfy important wants and needs
Preference depends on …
the relative importance of each attribute (weight)
the evaluation of the product on each attribute (belief)