McGraw-Hill/Irwin Copyright © 2012 McGraw-Hill Companies, Inc., All right reversed 4 Perspectives on Consumer Behavior

4-2 Consumer Behavior The process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services

4-3 Consumer Decision Making Decision Stage Psychological Process LearningPost-purchase evaluation Problem recognition Motivation Information searchPerceptionAlternative evaluationAttitude formationPurchase decisionIntegration

4-4 Sources of Problem Recognition Out of Stock Dissatisfaction New Needs or Wants New Needs or Wants Related Products, Purchases Market-Induced Recognition Market-Induced Recognition New Products New Products

4-5 Ad Highlighting Consumer Dissatisfaction

4-6 Marketer-Induced Problem Recognition

4-7 Maslow’s Hierarchy of Needs Social needs (sense of belonging, love) Safety needs (security, protection) Physiological needs (hunger, thirst) Esteem needs (self-esteem, recognition, status) Self- actualization needs (self-development and realization)

4-8 To What Needs is CHPA Appealing?

4-9 Freudian Psychoanalytic Approach Strong inhibitions Strong inhibitions Symbolic meanings Symbolic meanings Surrogate behaviors Surrogate behaviors Complex and unclear motives Subconscious Mind Subconscious Mind

4-10 Probing the Minds of Consumers In-depth interviews Association tests Focus groups Projective techniques

4-11 Sexy Ads Get Noticed

4-12 Information Search Market sources Personal sources Public sources Personal experience

4-13 Perceptions Marketers want to know How consumers sense external information How they select and use sources of information How information is interpreted and given meaning

4-14 The Perception Process Receive Select Organize Interpret

4-15 Gaining Attention With Color WE CAN SUM IT UP IN TWO WORDS: EXCEPTIONAL, EXTRAORDINARY, FANTASTIC, FRESH TASTE. ADMITTEDLY, WE’RE BAD AT SUMMATION. There just aren’t enough adjectives to describe the straight-from-the-orange taste of Tropicana Pure Premium.®

4-16 What is a sensation? Immediate, direct response of the senses Taste Smell Sight Touch Hearing

4-17 Appealing to the Senses Perfume on sidewalks Scented cards Product Samples

4-18 The Selective Perception Process Selective Retention Selective Comprehension Selective Attention Selective Exposure

4-19 Selective Attention to Advertising

4-20 Subliminal Perception Perceiving Stimuli Below the Conscious Threshold of Perception

4-21 Evaluation of Alternatives All Available Brands Brand ABrand BBrand CBrand DBrand E Brand FBrand GBrand HBrand IBrand J Brand KBrand LBrand MBrand NBrand O Evoked Set of Brands Brand BBrand E Brand I Brand M Brand F

4-22 Two Forms of Evaluation Criteria Evaluative Criteria Objective Price Warranty Service Price Warranty Service Style Appearance Image Style Appearance Image Subjective

4-23 Different Perspectives: Marketer’s View Enough power? Traction okay? Too expensive ?

4-24 Different Perspectives: Consumer’s View Functional Will it cut the taller grass? How close can I get to shrubs? Will the neighbors be impressed? Will it be as fun to use later this summer? Will I have more time for golf? Will it pull that trailer I saw at the store? Psychological

4-25 Consumers Have Many Attitudes Individuals Products Brands Companies Organizations Retailers Media Ads Attitudes Toward

4-26 Multi-Attribute Attitude Model

4-27 Measuring Components of Model Beliefs How likely is it that Nike running shoes provide good cushioning? Very likely _ _ _ _ _ _ _ _ _ Very unlikely Importance Good cushioning in a running shoe is: Very important _ _ _ _ _ _ Not at all important Attitude Toward the Object How do you feel about purchasing Nike running shoes? Very good _ _ _ _ _ _ _ _ _ Very bad

4-28 Ways to Change Attitudes Change perceptions or beliefs about a competing brand Add a new attribute to the attitude formation mix Change perceptions of the value of an attribute Change beliefs about an important attribute

4-29 Adding Attributes Changes Attitudes

4-30 The Decision Process Integration processes Pre- evaluation Heuristics Affect referral decision rule Decision Purchase intention Brand loyalty Post evaluation Satisfaction Cognitive dissonance Dis- satisfaction

4-31 Consumer Learning Learning is the process by which consumers acquire consumption- related knowledge and experience that they apply to future behavior

4-32 How Consumers Learn Conditioning Based on conditioning through association or reinforcement/ punishment Based on conditioning through association or reinforcement/ punishment Thinking Based on intellectual evaluation and problem solving Modeling Based on emulation (copying) of behavior of others

4-33 Classical Conditioning Process (Association) Unconditioned stimulus (lollipop) Conditioned stimulus (Mariah’s Lollipop Bling) Unconditioned response (sweetness) Conditioned stimulus (sweetness)

4-34 Lollipop Bling Uses Classical Conditioning

4-35 Instrumental Conditioning Process Behavior (consumer uses product or service) Positive or negative consequences occur from use of product, leading to reward or punishment Increase or decrease in probability of repeat behavior (purchase)

4-36 Kyocera Focuses on Negative Outcomes

4-37 Shaping Shaping is the reinforcement of successive acts that lead to a desired behavior pattern

4-38 The Shaping Process

4-39 Cognitive Learning Theory Purposive behavior Insight Goal achievement Goal

4-40 External Influences on Consumer Behavior Culture Subculture Social Class Reference Group Situational determinants

4-41 Subculture Ads

4-42 Reference Groups A group whose perspectives or values are being used as the basis for one’s… Judgments Opinions Actions Types of reference groups Associative Aspirational Disassociative

4-43 Situational Determinants Usage Situation Purchase Situation Communications Situation

4-44 Alternative Approaches Complimentary Approaches Participant observation Individual interviews Ethnographies New Methodologies Cultural influences Social influences Environmental influences New Insights