6 CONSUMER BEHAVIOR Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Consumer Behavior Articulate the steps in the consumer buying process. Describe the difference between functional and psychological needs. Describe factors that affect information search. Discuss postpurchase outcomes. List the factors that affect the consumer decision process. Describe how involvement influences the consumer decision process. LO1 LO2 LO3 LO4 LO5 LO6

The Consumer Decision Process Post purchase Purchase Alternative evaluation Information search Need recognition

Need Recognition Functional needs Psychological needs Royalty-Free/CORBIS Psychological needs ©Digital Vision/PunchStock

Search for Information Internal Search for Information External Search for Information Courtesy of Refinery29.com.

Factors Affecting Consumers’ Search Process Perceived Benefits Perceived Costs

The Locus of Control Internal Locus of Control = more search activities Royalty-Free/CORBIS External Locus of Control = Fate, external factors ©Comstock/JupiterImages

Actual or Perceived Risk Performance risk Financial risk Social risk Physiological risk Psychological risks

Evaluation of Alternatives: Attribute Sets Universal Retrieval Evoked

Evaluation of Alternatives: Evaluate Criteria Evaluative Criteria Determinant Attributes Digital Vision/Getty Images What are some of the features of a vacation that would be in your evaluative criteria?

Purchase and Consumption Increase Conversion rate Reduce real or virtual abandoned carts Merchandise in stock Reduce the actual wait time Handout/MCT/Newscom.

Post-purchase: Customer Satisfaction Dissonance Customer Loyalty Undesirable Consumer Behavior

CHECK YOURSELF Name the five stages in the consumer decision process. What is the difference between a need and a want? Distinguish between functional and psychological needs. What are the various types of perceived risk? What are the differences between compensatory and noncompensatory decision rules? How do firms enhance postpurchase satisfaction and reduce cognitive dissonance?

Factors Influencing the Consumer Decision Process Product Price Place Promotion Marketing mix Motives Attitudes Perceptions Learning Lifestyle Psychological factors Consumer Decision Process Family Reference groups Culture Social factors Purchase situation Shopping situation Temporal state Situational factors

CHECK YOURSELF What are the types of needs suggested by Maslow’s Hierarchy of Needs? Which social factors likely have the most influence on (a) the purchase of a new outfit for a job interview and (b) the choice of a college to attend? List some of the tactics stores can use to influence consumers’ decision processes.

Involvement and Consumer Buying Decisions Message (e.g., Ad) High involvement Low involvement • Greater attention • Deeper processing • Less attention • Peripheral processing Develops strong attitudes and purchase intentions Generates weak attitudes and increased use of cues

Types of Buying Decisions Extended Problem Solving Limited Problem Solving Impulse Buying Habitual Decision Making

CHECK YOURSELF How do low versus high involvement consumers process information in an advertisement? What is the difference between extended versus limited problem solving?

Glossary An attitude is a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea.

Glossary Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.

Glossary Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

Glossary Evaluative criteria consist of a set of salient, or important, attributes about a particular product.

Glossary A consumer’s evoked set comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

Glossary Extended problem solving occurs during a purchase decision that calls for a lot of effort and time.

Glossary Functional needs pertain to the performance of a product or service.

Glossary Habitual decision making describes a purchase decision process in which consumers engage little conscious effort.

Glossary Impulse buying is a buying decision made by customers on the spot when they see the merchandise.

Glossary Involvement is the consumer’s degree of interest in the product or service.

Glossary Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time.

Glossary Perception is the process by which we select, organize, and interpret information to form a meaningful picture of the world.

Glossary Psychological needs pertain to the personal gratification consumers associate with a product and/or service.

Glossary Retrieval sets are the brands or stores that can be readily brought forth from memory.

Glossary Ritual consumption is a pattern of behaviors tied to life events that affect what and how we consume.

Glossary Shopping goods/services are products or services for which consumers will spend time comparing alternatives.

Glossary Situational factors are factors specific to the situation.

Glossary Specialty goods/services are products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.

Glossary Universal sets include all possible choices for a product category.