mc g h g&l chap006

6-1© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

C H A P T E R

Consumer Behavior

6

Copyright © 2014 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

6-2

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

© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Articulate the steps in the consumer buying process.

Describe the difference between functional and psychological needs.

Describe factors that affect information search.

Discuss postpurchase outcomes.

List the factors that affect the consumer decision process.

Describe how involvement influences the consumer decision process.

Consumer Behavior

LO1

LO2

LO3

LO4

LO5

LO6


The Consumer Decision Process

Post purchasePurchaseAlternative

evaluationInformation

searchNeed

recognition


Need Recognition

Functional needs

Psychological needs

Roy

alty

-Fre

e/C

OR

BIS

©D

igita

l Vis

ion

/Pu

nch

Sto

ck


Search for Information

Internal Search for Information

External Search for Information

Courtesy of Refinery29.com.


Factors Affecting Consumers’ Search Process

PerceivedBenefits

PerceivedCosts


The Locus of Control

Internal Locus of Control = more search activities

External Locus of Control = Fate, external factors

Royalty-Free/CORBIS

©Comstock/JupiterImages


Actual or Perceived Risk

Performance risk

Financial risk

Social riskPhysiological risk

Psychological risks


Evaluation of Alternatives: Attribute Sets

Universal

Retrieval

Evoked


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


Purchase and Consumption

Increase Conversion rate

Reduce real or virtual abandoned carts

Merchandise in stock

Reduce the actual wait time

Handout/MCT/Newscom.


Post-purchase:

Customer Satisfaction

DissonanceCustomer Loyalty


CHECK YOURSELF

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

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

3. Distinguish between functional and psychological needs.

4. What are the various types of perceived risk?

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


Factors Influencingthe Consumer Decision Process

• Product• Price• Place• Promotion

Marketing mix

• Motives• Attitudes• Perceptions• Learning• Lifestyle

Psychological factors

• Purchase situation• Shopping situation• Temporal state

Situational factors

• Family• Reference groups• Culture

Social factors

ConsumerDecisionProcess


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 a job interview and (b) the choice of a college to attend?

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


Involvement and Consumer Buying Decisions

High involvement Low involvement

Message (e.g., Ad)

• Greater attention• Deeper processing

• Less attention• Peripheral processing

Developsstrong

attitudesand

purchaseintentions

Generates weak

attitudes andincreased

useof cues


Types of Buying Decisions

Extended Problem Solving

Limited Problem Solving Impulse Buying

Habitual Decision Making

Courtesy Wendy’s International, Inc.


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?

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An attitude is a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea.

Glossary

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Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.

Glossary

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Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

Glossary

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Evaluative criteria consist of a set of salient, or important, attributes about a particular product.

Glossary

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A consumer’s evoked set comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

Glossary

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Extended problem solving occurs during a purchase decision that calls for a lot of effort and time.

Glossary

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Functional needs pertain to the performance of a product or service.

Glossary

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Habitual decision making describes a purchase decision process in which consumers engage little conscious effort.

Glossary

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Impulse buying is a buying decision made by customers on the spot when they see the merchandise.

Glossary

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Involvement is the consumer’s degree of interest in the product or service.

Glossary

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Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time.

Glossary

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Perception is the process by which we select, organize, and interpret information to form a meaningful picture of the world.

Glossary

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Psychological needs pertain to the personal gratification consumers associate with a product and/or service.

Glossary

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Retrieval sets are the brands or stores that can be readily brought forth from memory.

Glossary

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Ritual consumption is a pattern of behaviors tied to life events that affect what and how we consume.

Glossary

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Shopping goods/services are products or services for which consumers will spend time comparing alternatives.

Glossary

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Situational factors are factors specific to the situation.

Glossary

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Specialty goods/services are products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.

Glossary

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Universal sets include all possible choices for a product category.

Glossary