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 Post-purchase Behavior Assess value in consumption Purchase Buying value Evaluation of Alternatives Assessing value Information Search Seeking a value Need Recognition Perceiving a value Cultural, Social, Individual and Psychological Factors affect all steps

Need Recognition Internal Stimuli and External Stimuli Marketing helps consumers recognize an imbalance between present status and preferred state Internal Stimuli and External Stimuli Present Status Preferred State

Information Search: Seeking Value Internal Search- Recall 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 Analyze product attributes Consideration Set Analyze product attributes Use cutoff criteria Rank attributes by importance Purchase!

Post-purchase Behavior- Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. Can minimize through: Effective Communication Follow-up Guarantees Warranties Cognitive Dissonance ? Marketing Did I make a good decision? Did I buy the right product? Did I get a good value?

Involvement and Problem-Solving Variations More Involvement Less Routine Response Behavior Limited Decision Making Extensive

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 Selective Comprehension Selective Retention Consumer pays attention to certain stimuli and ignores others Consumer interprets info so that is is consistent with his beliefs 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 Reference Groups Opinion Leaders Family Members Social Influences on Buying Decisions

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. Primary Secondary Aspirational Reference Groups Direct – Face to face Indirect- No Personal Contact 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 Men’s 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 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.