MKTG 303: Advertising and Promotion Buyer Behaviors October 13, 2009 Zeynep Gürhan-Canlı

The Consumer Decision Process Problem Recognition Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation

Variations in Consumer Decision Making Types of Decision Processes: Extended Problem Solving Limited Problem Solving Routine Response Behavior

Maslow’s Hierarchy of Needs Self-actualization needs (self-development, realization) Esteem needs (self-esteem, recognition, status) Social needs (sense of belonging, love) Safety needs (security, protection) Physiological needs (hunger, thirst)

Sources of Problem Recognition Out of stock Dissatisfaction New needs or wants Related product purchase Market-induced recognition New products

Information Search Internal Search– information stored in memory External Search – actively seeking information from various sources Personal sources Friends, relatives, co-workers Market-controlled sources Ads, salespeople, in-store displays Public sources Print articles, news reports Personal experience Handling, examining, testing, using

External Search Ability to search Motivation Perceived cost Level of involvement Need for cognition Shopping enthusiasm Perceived cost Perceived benefit

Perception The process by which an individual receives, selects, organizes and interprets information Stages in the perception process: Sensation Attending to information Interpreting information Responding to information

The Selective Perception Process Selective Exposure Selective Attention Selective Comprehension Selective Retention

Consumer Attitude Affective Cognitive Conative

Attitude Sequence Cognitive  Affective  Conative Affective  Conative  Cognitive Conative  Cognitive  Affective

Consumer Values Attitudes shaped by personal values. Values are strongly held beliefs. Personal values Comfortable life Equality Excitement Freedom Fun, exciting life Happiness Inner peace Accomplishment Security Self-respect

Cognitive Mapping Simulations of knowledge structures. Linkages and levels Marketing messages and linkages Strengthen current linkage Modify current linkage Create a new linkage

Evaluation of Alternatives Evoked set method Evoked set Inept set (not considered due to a negative experience, feeling, or information) Inert set (aware but not considered due to lack of knowledge) Multiattribute method Brand’s performance on a variety of attributes The importance of each attribute Affect referral No need for effort Multiattribute model has previously been used Emotional bond

Trends Consumer Buying Environment Age complexity Gender complexity Individualism Active, busy lifestyles Time pressure Cocooning Pleasure binges Emphasis on health

Business-to-Business Buyer Behavior Users Buyers Influencers Deciders Gatekeepers

Individual Factors Business-to-Business Buying Center Personality features Roles and perceived roles Motivational levels Levels of power Attitude towards risk Levels of cognitive involvement Personal objectives

Business-to-Business Buying Process Identification of needs Establishment of specifications Identification of vendors Vendor evaluation Vendor selection Negotiation of terms Postpurchase evaluation