consumer online shopping behavior stats - ebriks infotech
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Consumer Online Shopping Behavior Stats - EBriks InfotechTRANSCRIPT
Consumer Behavior– you are
what you buy…
• Did you know?
• Paper
• Marketing news
• Consumer behavior (web)
• Consumer behavior (ppt)
• Innovation diffusion (ppt)
• NLP
• Next week: Market research
• Think of a recent important purchase– briefly draw a
flowchart of the steps you recall moving through from
the awareness of need to post purchase
• What influenced you at each step?
Consumer Decision-Making
Process
PostpurchaseBehavior
Purchase
Evaluation of Alternatives
Information Search
Need Recognition
Cultural, Social, Individual and Psychological
Factors affect
all steps
Complete model of consumer behavior
Stimuli
(marketer
dominated,
other)
External
search
Memory
Internal
search
Exposure
Attention
Comprehension
Acceptance
Retention
Search
Need
recognition
Alternative
evaluation
Purchase
Outcomes
Dissatisfaction Satisfaction
Individual
differences
• resources
• motivation &
involvement
• knowledge
• attitudes
• personality,
values, lifestyle
Influences
• culture
• social class
• family
• situation
Start
• How do you know when to shop? What are the
triggers that initiate an awareness & search?
• What are the internal & external sources of these
triggers?
Need Recognition
Preferred State
Marketing helps
consumers recognize
(or create) an imbalance
between present status
and preferred state
• When a current product isn’t
performing properly
• When the consumer is running
out of an product
• When another product seems
superior to the one currently used
The information search stage
An internal search involves the
scanning of one's memory to recall previous
experiences or knowledge concerning
solutions to the problem-- often sufficient for
frequently purchased products.
An external search may be necessary
when past experience or knowledge is
insufficient, the risk of making a wrong
purchase decision is high, and/or the cost of
gathering information is low.
Personal sources
(friends and family)
Public sources (rating
services like Consumer
Reports)
Marketer-dominated
sources (advertising
or sales people)
The evoked set: a group of
brands from which the buyer can
choose
• go back to your past purchase– what were the
specific internal and external sources of
information that influenced your decision?
• how do you determine (and rate) the credibility of
these sources?
• what specific information influenced you?
Determinants of External Search
Buyer Behavior
• Initiator: the person who first suggests or thinks of the idea of buying a
particular product or service.
• Influencer: a person whose views or advice carry weight in making the
final buying decision
• Decider: the person who ultimately makes the final buying decision or
any part of it
• Buyer: the person who makes the actual purchase
• User: the person who consumes the product or service
Other people often influence a consumers purchase decision.
The marketer needs to know which people are involved in the
buying decision and what role each person plays, so that
marketing strategies can also be aimed at these people.
(Kotler et al, 1994).
Note: teens are increasingly assuming more of these roles
Think about your past purchase– who was in which role?
Wife
Dominant
Husband
Dominant
Joint
100 50 075 25
Women’s
clothing
Pots & pans
Child clothing
groceries
vacations
TV sets
Family car Sport equipment
Lawn mower
Paint wallpaper
lamps
Men’s leisure clothing
Men’s business clothing
camera
Financial planning
furniture
refrigerator
luggage
carpet
NonRx
Toys/games
stereo
hardware
Extent of role specialization
Relative influence of husbands & wives
Information
searchFinal
decision
Consumer decision makingvaries with the level of involvement in
the purchasing decision
• Extensive: problem solving occurs when
buyers purchase more expensive, less
frequently purchased products in an
unfamiliar product category requiring
information search & evaluation; may
experience cognitive dissonance.
• Limited: problem solving occurs when buyers are
confronted with an unfamiliar brand in a familiar product
category
• Routine: response behavior occurs
when buyers purchase low cost, low risk, brand loyal,
frequently purchased, low personal identification or
relevance, items with which they are familiar.
Increase in
Consumer
evaluation
processes
• quickly list 10 items you have purchased in the past
month
• reexamine how long it took you to make a decision
on each
• why did such a difference in decision occur?
Factors affecting
Consumer involvement
• Previous experience: low level involvement
• Interest: high involvement
• Perceived risk of negative consequences: high involvement
• Situation: low to high due to risk
• Social visibility: involvement increases with product visibility
• Offer extensive information on high involvement products
• In-store promotion & placement is important for low involvement products
• Linking low-involvement product to high-involvement issue can increase sales
So…
Types of consumer involvement
and decision making
Routine Limited Extensive
Involvement Short Low to
moderate
High
Time Low Short to
moderate
Long
Cost Short Low to
moderate
High
Information
Search
Internal only Mostly
internal
Internal &
external
Number of
alternatives
one few many
Compensatory Decision: Using product characteristics to guide decision
• Select the best overall brand-- evaluates brand options in terms of each relevant attribute and computes a weighted or summated score for each brand. The consumer chooses the brand with the highest score.
• Compensatory model because a positive score on one attribute can outweigh a negative score on another attribute.
• Conjunctive Decision Rule (cutoff criteria)-- Consumer sets a minimum
standard for each attribute and if a brand fails to pass any standard, it is dropped from
consideration.
• Reduces a large consideration set to a manageable size.
• Often used in conjunction with another decision rule.
• Disjunctive Decision Rule (rank by importance)-- sets a minimum
acceptable standard as the cutoff point for each attribute--any brand that exceeds the
cutoff point is accepted.
• Reduces large consideration set to a more manageable number of
alternatives.
• Consumer may settle for the first satisfactory brand as final choice or may
use another decision rule.
• Synthesized decision rule-- Consumers maintain overall evaluations of
brands in their long term memories. Brands on not evaluated on individual attributes
but on the highest perceived overall rating.
• think of an important purchasing decision
you have made
• what are some of the thoughts you have had
following your purchase? Any regrets?
• what has influenced those thoughts?
• how have you dealt with the discomfort?
• how has the company anticipated or dealt with
your discomfort?
Postpurchase Behavior
Can minimize through:Effective Communication
Follow-upGuaranteesWarranties
Underpromise & overdeliver
Cognitive Dissonance
?Did I make a good decision?
Did I buy the right product?
Did I get a good value?
Sour Grapes–
a story of
cognitive
dissonance
…after being unable to reach the grapes the fox said, “these
grapes are probably sour, and if I had them I would not eat
them.”
--Aesop
Cognitive Dissonance
• psychological discomfort caused by inconsistencies
among a person’s beliefs, attitudes, and actions
• varies in intensity based on importance of issue and
degree of inconsistency
• induces a “drive state” to avoid or reduce dissonance
by changing beliefs, attitudes, or behaviors and
thereby restore consistency
Tendency to avoid information can be countered by eliciting interest,
norm of fairness, or perceive usefulness of information
Post-decision “buyer’s remorse” may be increased by importance or
difficulty or irreversibility of decision
Counter-attitudinal action, freely chosen with little incentive or
justification, leads to attitude change (e.g., new product at special low
price)
Applications:
• think of an innovation in your field
• describe different groups of employees in your
organization who would respond early and
favorably, as well as later and unfavorably
• what are the differences between these groups?
• how could you use this information to market the
innovation to them more effectively?
• Identify an innovation in your organization or an
organization you are familiar with
• Identify the subgroups who responded to the
innovation using the Rogers & Shoemaker
stakeholder model
• What could have been done to facilitate
acceptance by each of these groups?
Decision Processing
Persuasive Communication
Nature of Active Cognitive Processing: (initial
attitude, argument quality, etc.)
Favorable
Thoughts
Predominate
Unfavorable
Thoughts
Predominate
Neither or
Neutral
Predominate
Cognitive Structure Change: Are new cognitions
adopted and stored in memory? Are different
responses made salient than previously?
• personal relevance
• personal importance
• personal responsibility
Motivated to Process?
• dissonance arousal
• need for cognition
• repetition
• cognitive complexity
• critical thinking
• distraction free
• low arousal
Ability to Process?
• appropriate schema
• message pace
• repetition
• issue familiarity
Enduring positive
attitude change
(persuasion)
Enduring negative
attitude change
(boomerang)
• greater persistence
• resistant to counterattacks & fading
• predictive of behavior
• > brand memory
• > elaboration
• >usage intention
• > attitude accessibility
• > attitude confidence
• > attitude-behavior consistency
Peripheral Cues Present?
• reciprocity (obligated, did a favor)
• consistency (way it’s done, similar to before)
• social proof (peer pressure, conformity)
• liking (attractiveness, friendliness)
• celebrity (identification, prestige)
• authority (expertise, experience, credibility)
• rapid speech, forceful presentation, charismatic style
• scarcity (limited time offer)
• tangible rewards
• appealing visuals & music (emotional arousal)
• fear appeal
• weak counter-arguments
Attitude Shift:
• short-lived
• susceptible to influence
• unpredictable
Retain or Regain
Initial Attitude
Elaboration Likelihood Method (ELM) of persuasion
Write in the number that best fits your view:
1 2 3 4
completely mostly mostly completely
false false true true
_____1. I would prefer complex to simple problems.
_____2. I like to have the responsibility of handling a situation that requires a lot of thinking.
_____3. Thinking is not my idea of fun. *
_____4. I would rather do something that requires little thought than something that is sure to
challenge my thinking abilities. *
_____5. I try to anticipate and avoid situations where there is likely chance I will have to think
in depth about something. *
_____6. I find satisfaction in deliberating hard and for long hours.
_____7. I only think as hard as I have to. *
_____8. I prefer to think about small, daily projects to long-term ones. *
_____9. I like tasks that require little thought once I’ve learned them. *
_____10. The idea of relying on thought to make my way to the top appeals to me.
_____11. I really enjoy a task that involves coming up with new solutions to problems.
_____12. Learning new ways to think doesn’t excite me very much. *
_____13. I prefer my life to be filled with puzzles that I must solve.
_____14. The notion of thinking abstractly is appealing to me.
_____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat
important but does not require much thought.
_____16. I feel relief rather than satisfaction after completing a task that required a lot of mental
effort. *
_____17. It’s enough for me that something gets the job done; I don’t care how or why it works. *
_____18. I usually end up deliberating about issues even when they do not affect me personally.
Need for
Cognition Scale
Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scored
Sleeper Effect:
• when secondary source becomes more credible than primary source
over time
• persuasion may increase over time with a weak source
• forget the source but remember the message
• not if source is learned prior to the message (will ignore or bias
processing)
Example: Attack ads during political campaigns
Next week: Survey & questionnaire design
• Think of our graduate program in
management
• Formulate 5 questions that you think would
get at customer (student) satisfaction with the
program
• Term paper
• Bring 1 page with title, 1 paragraph on
purpose & overview
• Citation for 1 journal and one book