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 Perceiving a value
Information Search Cultural, Social, Individual and Psychological Factors affect all steps
Seeking a value
Evaluation of Alternatives Assessing value
Purchase
Buying value
Post-purchase Behavior
Assess value in consumption
Need Recognition Marketing helps consumers recognize an imbalance between present status and preferred state
Present Status
Internal Stimuli and External Stimuli Preferred State
Information Search: Seeking Value Internal SearchRecall information from memory
External Search information from outside environment Non-marketing controlled Marketing controlled
FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players
Alternative Evaluation Consideration Set
Analyze product attributes
Use cutoff criteria
Purchase!
Rank attributes by importance
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 Response Behavior
Less Involvement
Limited Decision Making
Extensive Decision Making
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
Maslow’s Hierarchy of Needs
PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception Selective Exposure
Consumer pays attention to certain stimuli and ignores others
Selective Comprehension
Consumer interprets info so that is is consistent with his beliefs
Selective Retention
Average consumer only remembers 30% of information heard
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 people’s lifestyles
VALS™ Consumer Segments
Sociocultural Influences on Consumer Behavior
Social Influences on Buying Decisions
Reference Groups
Opinion Leaders
Family 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
Primary
Secondary
Indirect- – No Personal Contact
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
• Purchaser • Decision Maker
• Influencer
• User
mbers assume different roles for different products
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Consumer Behavior
Consumer behavior consists of 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
The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.
Involvement
Involvement consists of the personal, social, and economic significance of the purchase to the consumer.
Motivation
Motivation is the energizing force that stimulates behavior to satisfy a need.
Perception
Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
Perceived Risk
Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.
Learning
Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.
Brand Loyalty
Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
Attitude
An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”
Beliefs
Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
Opinion Leaders
Opinion leaders are individuals who exert direct or indirect social influence over others.
Family Life Cycle
The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.