9/19/20151 CHAPTER 3 CONSUMER BEHAVIOR

9/19/20152 Consumer Decision Making l Extensive Decision Making: l Highly complex and expensive products, such as car, house. l Limited Decision Making: l Moderate time spend for purchasing, such as shirts, shoes. l Routine Decision Making l Simple and inexpensive products, such as candy bars, soft drinks.

9/19/20153 Consumer Decision Making Process l Problem recognition l Information search: (1) written sources (2) Personal Sources (3)Electronic sources l Evaluation of alternatives: Product test l Purchase Decision l Post Purchase Behaviors: l Cognitive Dissonance

9/19/20154 Need Recognition l Psychological Factors: Maslow’s Hierarchy of Needs l Physiological l Safety l Love l Esteem l Self-actualization

9/19/20155 Alternative Search l Internal sources l store information l Group sources l family, friend, neighbors l Marketing sources l advertising, dealers, sales person, displays l Public sources l consumer report l Personal Experience

9/19/20156 Evaluation of Alternatives l Information about number of brands l Evoked set of alternatives l Evaluations of Attributes l Color,quality, size l Consumers’ perception of attributes l Greatest number of desired attributes that the consumer likes the best l Selection the brand consumer likes the best

9/19/20157 Purchase Decision l Perceived Risk l Consumers reduce risk in their decision by reducing uncertainty l They purchase small quantity l Seek additional information

9/19/20158 Post Purchase Behaviors l Cognitive Dissonance l Dissatisfaction with the purchase If selected brand does not promise the expected performance If unselected brand becomes more favorable or exceed the expectations If expected risk of purchase becomes higher l Reducing the Dissonance Full support by the manufacturer Advertising the product as a best buy Sending a congratulation letter Establishing consumer satisfaction unit

9/19/20159 Factors Influencing Purchasing Decision l Economic Factors: Income, price l Age and life cycle l Geography: Regional factors l Social class l Culture and subculture l Peer pressure: Membership group, Aspiration group, family l Life style: VALS2

9/19/ VALS 2 Principle

9/19/ Situational Influences l Physical surroundings l Lighting, music l Social surroundings l Additional depth of a situation l Temporal Perspectives l Time since last purchase l Task Definition l Personal use or gift l Antecedent States-cash/credit card payment

9/19/ Factors Influencing Purchasing Decision (Cont.) l Diffusion of Innovation (1) Innovator (2.5%) (2) Early Adopters (13.5%) (3) Early Majority (34%) (4) Late Majority (34%) (5) Laggards (16%)

9/19/ Adoption of Innovation

9/19/ Usage and Loyalty l Usage status-experience of consumer(non- users, former users, potential users, first- time users, regular users) l Loyalty status: Hard-core, soft-core, switchers l Customer franchise: Long experience with the product/brand-Coca Cola

9/19/ Consumers in Turkey