Consumer Behavior

Dr. Keith Niedermeier MKTG 101

** No Laptops in Class or Electronic devices allowed in class**

Consumer Decision Making Making Process

Need Recognition
Need: discrepancy between actual state and ideal state Needs can be both Utilitarian and Psychological

Delivering value solving problems

Marketing can influence need recognition

Basic needs
Esteem Control Belonging Meaningfulness

Example: Need for Control

Information Search
Internal Search
Consideration (Evoked) Set

External search
Interpersonal and Word of Mouth

Influenced by Motivation

Evaluation of Alternatives
Influenced by motivation High effort vs. Low effort

Multi-Attribute Model
Ab = (bi X Ii)
-Rate importance of each attribute from 1 to 7: Ii
-Rate each attribute from 3 to +3: bi

LG
Size Picture Price Sound 7 4 6 2 0 2 -1 3

Sony Sharp
2 2 2 0 2 1 3 2

Multi-Attribute Model
Ab = (bi X Ii)
LG Size 7 0 (0) Sony Sharp 2 (14) 2 (14)

Picture
Price Sound

4
6 2

2 (8)

2 (8)

1 (4)

-1 (-6) 2 (12) 3 (18) 3 (6) 0 (0) 2 (4) _________________ 8 34 40

Low Effort Decision Making

Automatic Resource saving

Heuristics
Choice tactics or rules of thumb
Price Habit Normative More is better

Post Purchase Processes

Satisfaction/Dissatisfaction
Foundation of successful business Repeat business is profit center

Factors that influences satisfaction

Performance/quality Value Equity

Expectations

Disconfirmation
Satisfaction (or dissatisfaction) occurs when there is a discrepancy, either positive or negative, between our expectations and the products actual performance. Satisfaction (or dissatisfaction) occurs when our expectations are disconfirmed. Sat = f (perceived performance exp.)

Consumer Decision Making Making Process

Looking Forward
Careers: Brand/Product Management, Marketing Research, Consulting/Analyst, Advertising, Sales
MKTG 211: Consumer Behavior

Consumer Psychology Minor

http://marketing.wharton.upenn.edu/programs/undergrad_ program.cfm

Starbucks Case