Consumer Behaviour Models Chapter 3 Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Chapter Objectives To understand the role consumer behaviour plays in the development and implementation of advertising and promotion programs. To understand the consumer decision-making process and how it varies for different types of purchase. Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Chapter Objectives To understand various internal psychological processes, their influence on consumer decision making, and implication for advertising and promotion. To recognize external factors such as culture, social class, group influences, and situational determinants and how they affect consumer behaviour. Chapter 3 : Consumer Behaviour Models

Consumer Decision Making Process Need Recognition Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation Chapter 3 : Consumer Behaviour Models

Consumer Decision Process Need Recognition Information Search Alternative Evaluation Purchase Decision Postpurchase Evaluation Motivation Perception Attitude Formation Integration Learning Decision Process Stages Psychological Processes Chapter 3 : Consumer Behaviour Models

Sources of Need Recognition Out of stock. Purchase decision is routine. Resolved by choosing familiar brand. Dissatisfaction. Dissatisfied with current state of product/service. (I.E. Comfort/style). Advertising is used to help consumers recognize need for new product. Chapter 3 : Consumer Behaviour Models

Sources of Need Recognition New needs or wants. Created by life changes. (I.E. Graduation, employment status, financial situation). Wants are desired but not essential. Related product purchase. Purchase of a new product will most likely trigger purchase of accessories. (I.E. New camera will require film). Chapter 3 : Consumer Behaviour Models

Sources of Need Recognition Marketer-induced recognition. Marketers’ encourage discontentment with current state or situation. Brand switching is encouraged by sales promotion. New products. Innovative products may stimulate a need. Consumers may not see a need for what the marketer is selling. Chapter 3 : Consumer Behaviour Models

Examining Consumer Motivations Marketers recognize need recognition will influence the remainder of the decision process. To better understand consumer’s reasoning marketer’s devote considerable attention to motives. Motives - factors that compel a consumer to take a particular action. Chapter 3 : Consumer Behaviour Models

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) Chapter 3 : Consumer Behaviour Models

Market Research Methods In-depth interviews. The consumer talks freely in an unstructured interview to obtain insights into his or her motives, ideas or opinions. Projective techniques. Methods allowing consumers to project values, motives, attitudes or needs on some external object. Chapter 3 : Consumer Behaviour Models

Market Research Methods Association tests. Consumers respond with the first thing that comes to mind when presented with some verbal or pictorial stimulus. Focus groups. A group of consumers with similar backgrounds or interests discuss a product, idea or issue. Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Information Search Internal search The scanning of information stored in memory regarding various purchase alternatives External search Engaged when internal search does not yield enough information (external sources of information are used.) Chapter 3 : Consumer Behaviour Models

External Information Search Personal sources Friends, relatives, co-workers Market-controlled sources Ads, salespeople, displays Public sources Print articles, news reports Personal experience Handling, examining, testing, using Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Perception The process by which individuals receive, attends to, interprets and stores information to create a picture of the world. Selective perception Filtering process in which internal and external factors influence what is received and how it is processed. Occurs in all 4 stages of perception process. Chapter 3 : Consumer Behaviour Models

Stages in Perceptual Process Stage 1: sensation. Immediate direct response of the senses to a stimulus. Selective exposure. Consumers choose whether or not to make themselves available for information. Chapter 3 : Consumer Behaviour Models

Stages in Perceptual Process Stage 2: selecting the information. Personality, needs, motives, expectations will affect information that is selected. Selective attention. Consumer focuses on certain stimuli while excluding others. Chapter 3 : Consumer Behaviour Models

Stages in Perceptual Process Stage 3: interpreting the information. Organizing, categorizing, and interpreting the incoming information. Selective comprehension. Interpreting information based on their own attitudes, beliefs, motives and experiences. Chapter 3 : Consumer Behaviour Models

Stages in Perceptual Process Stage 4: retaining the information. Storage of information into short-term and long-term memory. Selective retention. Consumers do not remember everything they see, hear, or read. Chapter 3 : Consumer Behaviour Models

The Selective Perception Process Selective Exposure Selective Attention Selective Comprehension Selective Retention Chapter 3 : Consumer Behaviour Models

Evaluation of Alternatives All available brands Brand A Brand B Brand C Brand D Brand E Brand F Brand G Brand H Brand I Brand J Brand K Brand L Brand M Brand N Brand O Evoked Set of Brands Brand B Brand E Brand I Brand M Brand F Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Evaluative Criteria Dimensions or attributes of a product or service used to compare alternatives. (I.E) purchase of an automobile. Objective criteria - price, warrantee, etc. Subjective criteria - style, appearance, image. Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Evaluative Criteria Marketer’s view their product as a bundle of attributes Consumer’s view the product as a set of consequences: Functional consequences are concrete, tangible outcomes Psychological consequences are abstract and subjective Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Consumer Attitudes Learned predispositions to respond toward an object—an individual’s overall feelings toward or evaluation of an object. Summarize consumer’s evaluation of an object and represent positive or negative feelings and behaviours. Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Consumer Attitudes Consumers hold attitudes toward: Individuals Brands Companies Organizations Product categories Retailers Advertisements Media Chapter 3 : Consumer Behaviour Models

Attitude Change Strategies Increase or change the strength or belief rating of a brand on an important attribute Change consumers’ perceptions of the importance or value of an attribute Add a new attribute to the attitude formation process Change perceptions of belief ratings for a competing brand Chapter 3 : Consumer Behaviour Models

Chapter 3 : Consumer Behaviour Models Purchase Decision At some point consumer stops evaluating alternatives and makes purchase decision. Consumer develops a purchase intention or predisposition to buy a certain brand. Purchase decisions will be different depending on the complexity of the product. Chapter 3 : Consumer Behaviour Models

Integration Processes The way product knowledge, meanings and beliefs are combined to evaluate two or more alternatives. Consumers make purchase selections by using formal integration strategies. Process involves deliberate evaluation of the alternatives attribute by attribute. Chapter 3 : Consumer Behaviour Models

Postpurchase Evaluation After consumption the consumer assesses level of performance of the product or service. Feedback acquired from actual use of a product influences the likelihood of future purchases. Advertising is used to reinforce consumer decisions to purchase their brands. Chapter 3 : Consumer Behaviour Models

Satisfaction/Dissatisfaction A judgment consumers make with respect to the pleasurable level of consumption-related fulfillment. Satisfaction occurs when expectations are either met or exceeded. Dissatisfaction results when performance is below expectations. Chapter 3 : Consumer Behaviour Models

Behavioral Learning Theory Classical conditioning Assumes that learning is an associative process with an already existing relationship between a stimulus and a response. Operant conditioning The individual must actively operate or act on some aspect of the environment for learning to occur. Response is positive reinforcement (reward) or negative reinforcement (punishment) Chapter 3 : Consumer Behaviour Models

Classical Conditioning Theory Conditioned stimulus (Brita water filtration pitcher) Association develops through contiguity and repetition Unconditioned (waterfall) response (freshness, purity) Chapter 3 : Consumer Behaviour Models

Operant Conditioning Process Behavior (consumer uses product or service) Positive or negative consequences occur (reward or punishment) Increase or decrease in probability of repeat behavior (purchase) Chapter 3 : Consumer Behaviour Models

Environmental Influences on Consumers Culture Subculture Social class Reference groups Situations Chapter 3 : Consumer Behaviour Models

Roles in Family Decision-Making Process Initiator - initiates purchase decision. Information provider - gathers information to be used in making decision. Influencer - influences criteria used in selection process. Chapter 3 : Consumer Behaviour Models

Roles in Family Decision-Making Process Decision maker(s) - makes the purchase decision. Purchasing agent - physically makes the purchase. Consumer - user of the product. Chapter 3 : Consumer Behaviour Models