Chapter 5: UNDERSTANDINGthe BUYER BEHAVIOR and COMMUNICATION PROCESS 5.1

Household Consumer Behavior Complex Process through which Individuals Acquire, Use and Dispose of Products or Services to Satisfy Their Needs and Desires THE CONSUMER AS A DECISION MAKER - 4 STAGES Need Recognition: Functional or Emotional Benefits Need Recognition: Functional or Emotional Benefits Information Search & Alternative Evaluation Information Search & Alternative Evaluation Internal Information Search Internal Information Search External Information Search External Information Search Consideration Set Consideration Set Evaluation Criteria Evaluation Criteria5.2

Is this a Functional or Emotional Appeal for Foster Grant Sunglasses? 5.3

Household Consumer Behavior (con’t) THE CONSUMER AS A DECISION MAKER - 4 STAGES (con’t) Purchase -Consumer Commits to a Brand with Purchase Decision Purchase -Consumer Commits to a Brand with Purchase Decision Post Purchase Use & Evaluation Post Purchase Use & Evaluation Consumer Satisfaction Consumer Satisfaction Cognitive Dissonance Cognitive Dissonance5.4

Household Consumer Behavior (con’t) FOUR MODES OF CONSUMER DECISION MAKING EMERGING FROM: Sources of Involvement & Prior Experience Create: Sources of Involvement & Prior Experience Create: Extended Problem Solving Extended Problem Solving Limited Problem Solving Limited Problem Solving Habit or Variety Seeking Habit or Variety Seeking Brand Loyalty Brand Loyalty5.5

How Does This Ad Comply with the Conditions of Extended Problem Solving? 5.6

Household Consumer Behavior (con’t) THE CONSUMER AS A DECISION MAKER: Key Psychological Processes Attitudes and Beliefs Attitudes and Beliefs Brand Attitudes Brand Attitudes Beliefs Beliefs Salient Beliefs Salient Beliefs Multiattribute Attitude Models Multiattribute Attitude Models Evaluative Criteria Evaluative Criteria Importance Weight Importance Weight The Consideration The Consideration Beliefs Beliefs5.7

Household Consumer Behavior (con’t) THE CONSUMER AS A DECISION MAKER :Key Psychological Processes (con’t) Perception Perception We Use it to Create a Reality We Use it to Create a Reality Creates an Orientation to the World Creates an Orientation to the World Has Specific Implications for Each Consumer Has Specific Implications for Each Consumer Experimental-Hedonic Influences Experimental-Hedonic Influences Emphasis on Pleasure & Personal Enhancement Emphasis on Pleasure & Personal Enhancement Consumers Buy & Consume to Feel Good Consumers Buy & Consume to Feel Good In Contrast to Rigorous Cognitive Evaluation In Contrast to Rigorous Cognitive Evaluation of Other Factors 5.8

This Ad Would Seem to Be Appealing to Experiential- Hedonic Motives 5.9

The Consumer in a Sociocultural Consumption Context CULTURE Total Life Ways of a People Total Life Ways of a People The Way People Eat, Groom, Celebrate & Mark Their Space/Position The Way People Eat, Groom, Celebrate & Mark Their Space/Position Cultures are Small Cultures are SmallVALUES Express in Words & Deeds Express in Words & Deeds Examples - Individual Freedom, Propriety & Restrained, Examples - Individual Freedom, Propriety & Restrained, Behavior, etc. Behavior, etc.RITUALS Cultures Affirm, Express & Maintain Values Cultures Affirm, Express & Maintain Values Ritual-laden Holidays Perpetuate American Culture Ritual-laden Holidays Perpetuate American Culture5.10

Culture is the “Total Life Ways of People.” How is Life in Singapore Different From the U.S.? 5.11

The Consumer in a Sociocultural Consumption Context (con’t) SOCIETY Social Class Social Class Family Family Reference Groups Reference Groups Race & Ethnicity Race & Ethnicity Gender Gender Community Community5.12

Is this Ad Using a Reference Group Appeal? 5.13

Business Buyer Behavior STAGES IN BUYING PROCESS Need Recognition Need Recognition Product & Scheduling Specifications Product & Scheduling Specifications Evaluation of Products Evaluation of Products Product & Supplier Choice Product & Supplier Choice Product & Supplier Evaluation Product & Supplier Evaluation5.14

Business Buyer Behavior NATURE OF DECISION MAKING IN BUSINESS MARKET Styles Styles Rational Rational Conservative Conservative Type of Decision Type of Decision Straight Rebuy Straight Rebuy Modified Rebuy Modified Rebuy New Task Buying New Task Buying5.15

What Type of Decision is a Zip Drive?

Business Buyer Behavior (con’t) NATURE OF DECISION MAKING IN BUSINESS MARKET (con’t) Buying Center Buying Center Several Different People Involved in a Single Decision Several Different People Involved in a Single Decision May Require Different Promotional Tools May Require Different Promotional Tools Business Buyer Behavior on the Internet Business Buyer Behavior on the Internet Internet Buying is Efficient Internet Buying is Efficient Sites Offer Product & Pricing Information from Many Sources Simultaneously Sites Offer Product & Pricing Information from Many Sources Simultaneously5.17

Evaluation Criteria Used in Business Decision Making Efficiency of Product Supplied Efficiency of Product Supplied Certainty of Supply Certainty of Supply Dependability in Meeting Schedules Dependability in Meeting Schedules Technical Assistance From the Seller Technical Assistance From the Seller Product Features Product Features Supplier Loyalty/Patronage Supplier Loyalty/Patronage 5.18

The Communication Process COMPONENTS IN A MODEL OF COMMUNICATIONS Intentions Intentions Source Source Message Message Medium Medium Receivers Receivers Effects Effects Noise & Feedback Noise & Feedback5.19

Issues in Communication and Information Processing INFORMATION PROCESSING & PERPETUAL DEFENSES Two Major Obstacles to Overcome for a Message Two Major Obstacles to Overcome for a Message to Have an Effect: Cognitive Consistency Impetus and Information Overload Cognitive Consistency Impetus Cognitive Consistency Impetus Mental State Mental State New Information New Information Cognitive Consistency Cognitive Consistency5.20

Issues in Communication and Information Processing (con’t) INFORMATION PROCESSING & PERPETUAL DEFENSE (con’t) Information Overload Information Overload Consumers Employ Perceptual Defenses to Simplify & Control Information Processing Consumers Employ Perceptual Defenses to Simplify & Control Information Processing Selective Exposure Selective Exposure Selective Attention Selective Attention Selective Comprehension Selective Comprehension Selective Retention Selective Retention5.21

Issues in Communication and Information Processing (con’t) INFORMATION PROCESSING & PERPETUAL DEFENSE (con’t) Information Overload (con’t) Information Overload (con’t) Shaping Attitudes via Perceptual Route Shaping Attitudes via Perceptual Route Low-Involvement Products Low-Involvement Products Attitude Formation Attitude Formation Peripheral Cues Peripheral Cues –Any Feature of a Promotion that Prompts a Pleasant Emotional Response 5.22