1. CHAPTER CONSUMER BEHAVIOR 05 McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 5-2 LEARNING OBJECTIVES Consumer Behavior LO1Articulate the steps in the consumer buying process. LO2Describe the difference between functional and psychological needs. LO3Describe factors that affect information search. LO4Discuss post-purchase outcomes. LO5 List the factors that affect the consumer decision process. LO6 Describe how involvement influences the consumer decision process.

3. 5-3 The Consumer Decision Process

4. 5-4 Need Recognition Functional needs Psychological needs Royalty-Free/CORBIS ©Digital Vision/PunchStock

5. 5-5 Search for Information Internal Search for Information External Search for Information

6. 5-6 Factors Affecting Consumers’ Search Process Perceived Benefits Perceived Costs

7. 5-7 The Locus of Control Internal Locus of Control = more search activities External Locus of Control = Fate, external factors Royalty-Free/CORBIS ©Comstock/JupiterImages

8. 5-8 Actual or Perceived Risk Performance risk Financial risk Psychological risk

9. 5-9 Evaluation of Alternatives: Attribute Sets Universal Retrieval Evoked

10. 5-10 Evaluation of Alternatives: Evaluate Criteria Evaluative Criteria Determinant Attributes What are some of the features of a vacation that would be in your evaluative criteria? Digital Vision/Getty Images

11. 5-11 Evaluation of Alternatives: Consumer Decision Rules Consumer Decision Rules

12. 5-12 Evaluation of Alternatives: Decision Heuristics Mental Shortcuts PriceBrand Product presentation Amos Morgan/Getty Images

13. 5-13 Check Yourself 1. What is the difference between a need and a want? 2. Distinguish between functional and psychological needs. 3. What are the various types of perceived risk? 4. What are the differences between compensatory and noncompensatory decision rules?

14. 5-14 Purchase and Consumption Increase Conversion rate Reduce real or virtual abandoned carts Merchandise in stock Reduce the actual wait time

15. 5-15 Post-purchase: Customer Satisfaction Build realistic expectations Demonstrate correct product use Provide money back guarantee Encourage feedback Customer contact Digital Vision/Getty Images

16. 5-16 Post-purchase: Dissonance Firm’s attempt to reduce dissonance by reinforcing the decision Thank you letters, congratulations letters, quality ratings ©Lars A Niki

17. 5-17 Post-purchase: Customer loyalty Marketers attempt to solidify a loyal relationship. Satisfied customers purchases and buy from the same company again. ©Lou Cypher/Corbis

18. 5-18 Check Yourself 1. Identify the five stages in the consumer decision process.

19. 5-19 Factors Influencing the Consumer Decision Process

20. 5-20 Psychological Factors: Motives Courtesy Taco Bell

21. 5-21 Psychological Factors: AttitudeAttitude BehavioralAttitude CognitiveAffective ©K Rousonelos

22. 5-22 Psychological Factors: Perception How has society’s perception of people with tattoos changed in recent years? Ryan McVay/Getty Images

23. 5-23 Psychological Factors: Learning and Lifestyle Learning affects both attitudes and perceptions Lifestyle involves decisions in spending time and money Royalty-Free/CORBIS

24. 5-24 Social Factors: Family Digital Vision/Getty Images

25. 5-25 Social Factors: Reference Groups Groups Family Friends Coworkers Famous people Provide: information rewards self-image

26. 5-26 Social Factors: Reference Groups GEICO Commercial Photo by James Devaney/WireImage

27. 5-27 Social Factors: Culture Royalty-FreeCORBIS C Squared Studios/Getty Images Geoff Manasse/Getty Images

28. 5-28 Situational Factors Purchase SituationShopping Situation Courtesy Murphy O’Brien Public Relations/Santa Monica, CA

29. 5-29 Check Yourself 1. What are the types of needs suggested by Maslow’s Hierarchy of Needs? 2. Which social factors likely have the most influence on: a. The purchase of a new outfit for going out dancing? b. The choice of a college to attend? 3. List some of the tactics stores can use to influence consumers’ decision processes.

30. 5-30 InvolvementInvolvement and Consumer Buying Decisions

31. 5-31 Types of Buying Decisions Extended Problem Solving Limited Problem Solving – Impulse Buying Impulse Buying – Habitual Decision Making Habitual Decision Courtesy Wendy’s International, Inc.

32. 5-32 Check Yourself 1. How do low versus high involvement consumers process information in an advertisement? 2. What is the difference between extended versus limited problem solving?

33. 5-33 Return to slide An attitude is a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. Glossary

34. 5-34 Return to slide Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. Glossary

35. 5-35 Return to slide 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

36. 5-36 Return to slide Evaluative criteria consist of a set of salient, or important, attributes about a particular product. Glossary

37. 5-37 Return to slide 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

38. 5-38 Return to slide Extended problem solving occurs during a purchase decision that calls for a lot of effort and time. Glossary

39. 5-39 Return to slide Functional needs pertain to the performance of a product or service. Glossary

40. 5-40 Return to slide Habitual decision making describes a purchase decision process in which consumers engage little conscious effort. Glossary

41. 5-41 Return to slide Impulse buying is a buying decision made by customers on the spot when they see the merchandise. Glossary

42. 5-42 Return to slide Involvement is the consumer’s degree of interest in the product or service. Glossary

43. 5-43 Return to slide Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. Glossary

44. 5-44 Return to slide Psychological needs pertain to the personal gratification consumers associate with a product and/or service. Glossary

45. 5-45 Return to slide Retrieval sets are the brands or stores that can be readily brought forth from memory. Glossary

46. 5-46 Return to slide Ritual consumption is a pattern of behaviors tied to life events that affect what and how we consume. Glossary

47. 5-47 Return to slide Shopping goods/services are products or services for which consumers will spend time comparing alternatives. Glossary

48. 5-48 Return to slide Situational factors are factors specific to the situation. Glossary

49. 5-49 Return to slide 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

50. 5-50 Return to slide Universal sets include all possible choices for a product category. Glossary