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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
Alternative Evaluation
Purchase Decision
Purchase Decision
Postpurchase Evaluation
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
Alternative Evaluation
Alternative Evaluation
Purchase Decision
Purchase Decision
Postpurchase Evaluation
Postpurchase Evaluation
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