CHAPTER

CONSUMER BEHAVIOR

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.

Purchase Decision Process

Need Recognition Need Recognition
Perceiving a value Perceiving a value

Information Search Information Search Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological Factors Factors affect affect all steps all steps
Seeking a value Seeking a value

Evaluation of Alternatives Evaluation of Alternatives

Assessing value Assessing value

Buying value Buying value

Purchase Purchase

Assess value in consumption Assess value in consumption

Post-purchase Behavior Post-purchase Behavior

Need Recognition
Marketing helps consumers recognize an imbalance between present status and preferred state

Internal Stimuli and External Stimuli

Preferred State

Present Status

Information Search: Seeking Value

Internal SearchRecall information from memory

External Search
information from outside environment Non-marketing controlled Marketing controlled

FIGURE 5-2 Consumer Reports evaluation of portable MP3-capable CD players

Alternative Evaluation
Consideration Set
Analyze product attributes Analyze product attributes

Use cutoff criteria Use cutoff criteria

Rank attributes by Rank attributes by importance importance

Purchase!

Post-purchase BehaviorCognitive Dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

Cognitive Dissonance

Did I make a good decision? Did I buy the right product? Did I get a good value?

Can minimize through: Effective Communication Follow-up Guarantees Warranties

Involvement and Problem-Solving Variations

Routine Routine Response Response Behavior Behavior

Limited Limited Decision Decision Making Making

Extensive Extensive Decision Decision Making Making

Less Involvement

More Involvement

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 INFLUENCES ON CONSUMER BEHAVIOR Motivation what stimulates behavior to satisfy a need

Maslows Hierarchy of Needs

PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Perception

Selective Selective Exposure Exposure

Consumer pays attention to certain Consumer pays attention to certain stimuli and ignores others stimuli and ignores others Consumer interprets info so that is is Consumer interprets info so that is is consistent with his beliefs consistent with his beliefs Average consumer only remembers Average consumer only remembers 30% of information heard 30% of information heard

Selective Selective Comprehension Comprehension

Selective Selective Retention Retention

PSYCHOLOGICAL INFLUENCES ON 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 peoples lifestyles

VALS Consumer Segments

Sociocultural Influences on Consumer Behavior

Social Influences on Social Influences on Buying Decisions Buying Decisions

Reference Reference Groups Groups Opinion Opinion Leaders Leaders Family Family Members Members

SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Direct Face to face Reference Groups Indirect- No Personal Contact Primary

Secondary

Aspirational

Dissociative

Why use celebrity spokespersons?

Opinion Leaders

SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR

Family Life Cycle

SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR

Family Decision Making
Information Gatherer Influencer Purchaser User Decision Maker

Members assume different roles for different products Mens clothes? Breakfast cereal? Computer?

Consumer Behavior

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

Purchase Decision Process

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

Involvement

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

Motivation

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

Perception

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

Perceived Risk

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

Learning

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

Brand Loyalty

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

Attitude

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

Beliefs

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

Opinion Leaders

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

Family Life Cycle

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