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

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

Use cutoff criteria

Rank attributes by 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?

Can minimize through: Effective Communication Follow-up Guarantees Warranties

Did I get a good value?

Involvement and Problem-Solving Variations

Routine Response Behavior

Limited Decision Making

Extensive Decision 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 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 peoples 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

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 Purchaser Decision Maker

Influencer

User

Members assume different roles for different products

Mens clothes? Breakfast cereal? Computer?

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 consumers 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.