lmsaL lnsLlLuLe of helgher educaLlon lmsaL lnsLlLuLe of helgher educaLlon

onsumer behavlor
1he acLlons a person Lakes ln purchaslng and uslng
producLs and servlces
lncludlng Lhe menLal and soclal processes LhaL
precede and follow Lhese acLlons
1he behavloral sclences help answer quesLlons such
as
Why people choose one producL or brand over
anoLher
Pow Lhey make Lhese cholces and
Pow companles use Lhls knowledge Lo provlde value
Lo consumers
I CCNSUMLk UkCnASL DLCISICN kCCLSS
W8eh|nd the v|s|b|e act of mak|ng a purchase ||es a dec|s|on process that must be
|nvest|gated
W1he purchase dec|s|on process |s the stages a buyer passes through |n mak|ng cho|ces
about wh|ch products and serv|ces to buy
I|ve Stages of Consumer 8ehav|or I|ve Stages of Consumer 8ehav|or
problem recognlLlon
2lnformaLlon search
3alLernaLlve evaluaLlon
4purchase declslon and
3posLpurchase behavlor
problem recognlLlon
2lnformaLlon search
3alLernaLlve evaluaLlon
4purchase declslon and
3posLpurchase behavlor
lnformaLlon Search Seeklng value lnformaLlon Search Seeklng value
1he |nformat|on search stage c|ar|f|es
the opt|ons open to the consumer and
may |nvo|ve
1he |nformat|on search stage c|ar|f|es
the opt|ons open to the consumer and
may |nvo|ve
1wo sLeps of lnformaLlon search 1wo sLeps of lnformaLlon search
Interna| search Interna| search Lxterna| search Lxterna| search
WWhen pasL experlence or
knowledge ls lnsufflclenL
W1he rlsk of maklng a
wrong purchase declslon
ls hlgh
W1he cosL of gaLherlng
lnformaLlon ls low
WWhen pasL experlence or
knowledge ls lnsufflclenL
W1he rlsk of maklng a
wrong purchase declslon
ls hlgh
W1he cosL of gaLherlng
lnformaLlon ls low
Wersonal sources such as
frlends and famlly
Wubllc sources lncludlng
varlous producLraLlng
organlzaLlons such as
onsumer 8eporLs
WMarkeLerdomlnaLed sources
such as adverLlslng company
webslLes and salespeople
Wersonal sources such as
frlends and famlly
Wubllc sources lncludlng
varlous producLraLlng
organlzaLlons such as
onsumer 8eporLs
WMarkeLerdomlnaLed sources
such as adverLlslng company
webslLes and salespeople
AlLernaLlve LvaluaLlon Assesslng value AlLernaLlve LvaluaLlon Assesslng value
1he lnformaLlon search clarlfles Lhe problem for
Lhe consumer by
%%Suggest|ng cr|ter|a to use for the purchase
%%|e|d|ng brand names that m|ght meet the
cr|ter|a
%%Deve|op|ng consumer va|ue percept|on
urchase eclslon uylng value urchase eclslon uylng value
oss|b|||t|es oss|b|||t|es
Irom whom to buy Irom whom to buy
When to buy When to buy
wh|ch depends on such
cons|derat|ons
W1erms of sale
WasL experlence
buylng from Lhe
seller
W8eLurn pollcy
wh|ch depends on such
cons|derat|ons
W1erms of sale
WasL experlence
buylng from Lhe
seller
W8eLurn pollcy
wh|ch can be |nf|uenced by
WsLore aLmosphere
WLlme pressure
WpleasanLness of Lhe
shopplng experlence
wh|ch can be |nf|uenced by
WsLore aLmosphere
WLlme pressure
WpleasanLness of Lhe
shopplng experlence
L ostpurchase 8ehav|or Va|ue |n Consumpt|on or Use L ostpurchase 8ehav|or Va|ue |n Consumpt|on or Use
After buy|ng a product the consumer compares |t w|th expectat|ons and |s e|ther
sat|sf|ed or d|ssat|sf|ed
Sat|sfact|on or d|ssat|sfact|on affects
4consumer va|ue percept|ons
4consumer commun|cat|ons
4repeatpurchase behav|or
Many f|rms work to produce pos|t|ve postpurchase commun|cat|ons among
consumers and contr|bute to re|at|onsh|p bu||d|ng between se||ers and buyers
Cogn|t|ve D|ssonance 1he fee||ngs of postpurchase psycho|og|ca| tens|on or anx|ety a
consumer often exper|ences
I|rms often use ads or fo||owup ca||s from sa|espeop|e |n th|s postpurchase stage to
try to conv|nce buyers that they made the r|ght dec|s|on
After buy|ng a product the consumer compares |t w|th expectat|ons and |s e|ther
sat|sf|ed or d|ssat|sf|ed
Sat|sfact|on or d|ssat|sfact|on affects
4consumer va|ue percept|ons
4consumer commun|cat|ons
4repeatpurchase behav|or
Many f|rms work to produce pos|t|ve postpurchase commun|cat|ons among
consumers and contr|bute to re|at|onsh|p bu||d|ng between se||ers and buyers
Cogn|t|ve D|ssonance 1he fee||ngs of postpurchase psycho|og|ca| tens|on or anx|ety a
consumer often exper|ences
I|rms often use ads or fo||owup ca||s from sa|espeop|e |n th|s postpurchase stage to
try to conv|nce buyers that they made the r|ght dec|s|on
I Invo|vement and rob|emSo|v|ng Var|at|ons I Invo|vement and rob|emSo|v|ng Var|at|ons
L|m|ted rob|em So|v|ng L|m|ted rob|em So|v|ng kout|ne rob|em So|v|ng kout|ne rob|em So|v|ng
Lxtended rob|em So|v|ng Lxtended rob|em So|v|ng
Invo|vement and Market|ng Strategy Invo|vement and Market|ng Strategy
WV|rtua||y a hab|t
W|nvo|ves ||tt|e effort seek|ng
externa| |nformat|on and
eva|uat|ng a|ternat|ves
W1yp|ca||y used for |owpr|ced
frequent|y purchased products
WV|rtua||y a hab|t
W|nvo|ves ||tt|e effort seek|ng
externa| |nformat|on and
eva|uat|ng a|ternat|ves
W1yp|ca||y used for |owpr|ced
frequent|y purchased products
WLow and h|gh consumer
|nvo|vement has |mportant
|mp||cat|ons for market|ng
strategy wh|ch d|ffers for
products that are market
|eaders from the|r cha||engers
WLow and h|gh consumer
|nvo|vement has |mportant
|mp||cat|ons for market|ng
strategy wh|ch d|ffers for
products that are market
|eaders from the|r cha||engers
WLach stage of the consumer
purchase dec|s|on process |s used
WCons|derab|e t|me and effort on
4externa| |nformat|on search
and |n |dent|fy|ng
4eva|uat|ng a|ternat|ves
WUsed |n h|gh|nvo|vement
purchase s|tuat|ons
WLach stage of the consumer
purchase dec|s|on process |s used
WCons|derab|e t|me and effort on
4externa| |nformat|on search
and |n |dent|fy|ng
4eva|uat|ng a|ternat|ves
WUsed |n h|gh|nvo|vement
purchase s|tuat|ons
WInvo|ves the use of moderate
|nformat|onseek|ng efforts
WCften used when the buyer has
||tt|e t|me or effort to spend
WInvo|ves the use of moderate
|nformat|onseek|ng efforts
WCften used when the buyer has
||tt|e t|me or effort to spend
II SCnCLCGICAL INILULNCLS CN
CCNSUMLk 8LnAVICk
A MoLlvaLlon and ersonallLy A MoLlvaLlon and ersonallLy
Mot|vat|on Mot|vat|on ersona||ty ersona||ty
Wls Lhe energlzlng force
LhaL causes behavlor LhaL
saLlsfles a need
Wneeds are hlerarchlcal
WCnce baslc physlologlcal
needs are meL people
seek Lo saLlsfy learned
needs
Wls Lhe energlzlng force
LhaL causes behavlor LhaL
saLlsfles a need
Wneeds are hlerarchlcal
WCnce baslc physlologlcal
needs are meL people
seek Lo saLlsfy learned
needs
WA persons cons|stent behav|or or
responses to recurr|ng s|tuat|ons
Wkesearch suggests that key tra|ts
affect brand and producttype
preferences
WCrosscu|tura| ana|ys|s a|so suggests
that res|dents of d|fferent countr|es
have a nat|ona| character or a
d|st|nct set of persona||ty
character|st|cs common among
peop|e of a country or soc|ety
WA persons cons|stent behav|or or
responses to recurr|ng s|tuat|ons
Wkesearch suggests that key tra|ts
affect brand and producttype
preferences
WCrosscu|tura| ana|ys|s a|so suggests
that res|dents of d|fferent countr|es
have a nat|ona| character or a
d|st|nct set of persona||ty
character|st|cs common among
peop|e of a country or soc|ety
8 ercept|on 8 ercept|on
W1he process by wh|ch an |nd|v|dua| uses
|nformat|on to create a mean|ngfu| p|cture of the
wor|d by
Wse|ect|ng
Worgan|z|ng
W|nterpret|ng
Wercept|on |s |mportant because peop|e
se|ect|ve|y perce|ve what they want and |t affects
how peop|e see r|sks |n a purchase
W1he process by wh|ch an |nd|v|dua| uses
|nformat|on to create a mean|ngfu| p|cture of the
wor|d by
Wse|ect|ng
Worgan|z|ng
W|nterpret|ng
Wercept|on |s |mportant because peop|e
se|ect|ve|y perce|ve what they want and |t affects
how peop|e see r|sks |n a purchase
Learnlng Learnlng
8ehav|ora| Learn|ng 8ehav|ora| Learn|ng
Cogn|t|ve |earn|ng Cogn|t|ve |earn|ng
W1he process of
deve|op|ng
automat|c
responses to a
s|tuat|on bu||t up
Wthrough repeated
exposure to |t
W1he process of
deve|op|ng
automat|c
responses to a
s|tuat|on bu||t up
Wthrough repeated
exposure to |t
WInvo|ves mak|ng
connect|ons between
two or more |deas
Wor s|mp|y observ|ng
the outcomes of
others' behav|ors
Wand ad[ust|ng ones
accord|ng|y
WInvo|ves mak|ng
connect|ons between
two or more |deas
Wor s|mp|y observ|ng
the outcomes of
others' behav|ors
Wand ad[ust|ng ones
accord|ng|y
values ellefs and ALLlLudes values ellefs and ALLlLudes
ALLlLude
-A learned predlsposlLlon Lo respond Lo an ob[ecL or class
of ob[ecLs ln a conslsLenLly favorable or unfavorable way
-Shaped by our values and bellefs whlch are learned
values
-personally or soclally preferable modes of conducL or
sLaLes of exlsLence LhaL are endurlng
8e||efs
- consumers sub[ect|ve percept|on of how we|| a
product or brand performs on d|fferent attr|butes
lll SClCDL1D8AL lnlLDLnLS Cn
CnSDML8 LPAvlC8
Soc|ocu|tura| |nf|uences evo|ve from a forma|
and |nforma| re|at|onsh|ps w|th other peop|e
Inf|uences Inc|ude
Wersona| |nf|uence
Wkeference groups
W1he fam||y
WSoc|a| c|ass
WCu|ture
WSubcu|ture
Soc|ocu|tura| |nf|uences evo|ve from a forma|
and |nforma| re|at|onsh|ps w|th other peop|e
Inf|uences Inc|ude
Wersona| |nf|uence
Wkeference groups
W1he fam||y
WSoc|a| c|ass
WCu|ture
WSubcu|ture
WA ersona| Inf|uence WA ersona| Inf|uence
W8 keference Groups W8 keference Groups
W|nd|v|dua|s who exert
d|rect or |nd|rect soc|a|
|nf|uence over others
W|nd|v|dua|s who exert
d|rect or |nd|rect soc|a|
|nf|uence over others
Weop|e |nf|uenc|ng each other dur|ng
facetoface conversat|ons
Wower of word of mouth has been
magn|f|ed by the Internet and ema||
Weop|e |nf|uenc|ng each other dur|ng
facetoface conversat|ons
Wower of word of mouth has been
magn|f|ed by the Internet and ema||
Cp|n|on |eaders Cp|n|on |eaders
Word of mouth Word of mouth
Wkeference groups are peop|e to whom an
|nd|v|dua| |ooks as a bas|s for se|fappra|sa| or as a
source of persona| standards keference groups
have an |mportant |nf|uence on the purchase of
|uxury products but not of necess|t|es
Wkeference groups are peop|e to whom an
|nd|v|dua| |ooks as a bas|s for se|fappra|sa| or as a
source of persona| standards keference groups
have an |mportant |nf|uence on the purchase of
|uxury products but not of necess|t|es
WC Iam||y Inf|uence WC Iam||y Inf|uence
WD Soc|a| C|ass WD Soc|a| C|ass
WIam||y |nf|uences on consumer behav|or resu|t from three
sources
Wconsumer soc|a||zat|on
Wpassage through the fam||y ||fe cyc|e
Wdec|s|on mak|ng w|th|n the fam||y
WIam||y |nf|uences on consumer behav|or resu|t from three
sources
Wconsumer soc|a||zat|on
Wpassage through the fam||y ||fe cyc|e
Wdec|s|on mak|ng w|th|n the fam||y
W1he re|at|ve|y permanent homogeneous d|v|s|ons |n a soc|ety |nto wh|ch peop|e shar|ng
s|m||ar va|ues |nterests and behav|or are grouped
WDeterm|nants of soc|a| c|ass |nc|ude
Woccupat|on
Wsource of |ncome %not |eve| of |ncome%
Weducat|on
WSoc|a| c|ass |s a bas|s for |dent|fy|ng and reach|ng part|cu|ar|y good prospects for products
and serv|ces
WUpper c|asses are targeted by compan|es for |tems such as f|nanc|a| |nvestments
expens|ve cars and even|ng wear
WM|dd|e c|asses represent a target market for home |mprovement centers and
automob||e parts stores
WLower c|asses are targeted for products such as sports and scanda| magaz|nes
W1he re|at|ve|y permanent homogeneous d|v|s|ons |n a soc|ety |nto wh|ch peop|e shar|ng
s|m||ar va|ues |nterests and behav|or are grouped
WDeterm|nants of soc|a| c|ass |nc|ude
Woccupat|on
Wsource of |ncome %not |eve| of |ncome%
Weducat|on
WSoc|a| c|ass |s a bas|s for |dent|fy|ng and reach|ng part|cu|ar|y good prospects for products
and serv|ces
WUpper c|asses are targeted by compan|es for |tems such as f|nanc|a| |nvestments
expens|ve cars and even|ng wear
WM|dd|e c|asses represent a target market for home |mprovement centers and
automob||e parts stores
WLower c|asses are targeted for products such as sports and scanda| magaz|nes
WL Cu|ture and Subcu|ture WL Cu|ture and Subcu|ture
WCu|ture refers to the set of va|ues |deas and att|tudes
that are accepted by a homogeneous group of peop|e
and transm|tted to the next generat|on Subcu|tures
groups w|th|n the |arger or nat|ona| cu|ture w|th
un|que va|ues |deas and att|tudes
Wthree |argest rac|a|]ethn|c subcu|tures |n the US
Wn|span|cs
WAfr|canAmer|cans
WAs|ans
WLach of these groups exh|b|ts soph|st|cated soc|a| and
cu|tura| behav|ors that affect the|r buy|ng patterns
WCu|ture refers to the set of va|ues |deas and att|tudes
that are accepted by a homogeneous group of peop|e
and transm|tted to the next generat|on Subcu|tures
groups w|th|n the |arger or nat|ona| cu|ture w|th
un|que va|ues |deas and att|tudes
Wthree |argest rac|a|]ethn|c subcu|tures |n the US
Wn|span|cs
WAfr|canAmer|cans
WAs|ans
WLach of these groups exh|b|ts soph|st|cated soc|a| and
cu|tura| behav|ors that affect the|r buy|ng patterns
W Afr|canAmer|can
W8uy|ng atterns Afr|canAmer|cans have the |argest spend|ng power of the three subcu|tures
Wh||e pr|ce consc|ous they are mot|vated by product qua||ty and cho|ce
kespond to products and advert|s|ng that appea| to the|r Afr|canAmer|can pr|de and
her|tage as we|| as address the|r ethn|c features and needs
W n|span|c 8uy|ng atterns
Wn|span|cs represent the |argest subcu|ture
About S0 are |mm|grants
1he ma[or|ty are under the age of S
Sens|t|v|ty to the un|que needs of n|span|cs by f|rms has pa|d huge d|v|dends
W As|an 8uy|ng atterns
W1he As|an |s the fastest grow|ng subcu|ture
About 70 of As|ans are |mm|grants
Most are under the age of 0
As|ans represent a d|verse subcu|ture |nc|ud|ng Ch|nese Iapanese I|||p|nos koreans
As|anInd|ans peop|e from Southeast As|a and ac|f|c Is|anders
1nANk CU
lmsaL lnsLlLuLe of helgher educaLlon lmsaL lnsLlLuLe of helgher educaLlon