1.  Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products  Consumer behavior: Buying behavior of people who purchase products for personal or household use

2. Routinized Response Behavior Purchases made routinely by choosing a preferred brand or one of a limited group of acceptable brands Examples: © PhotoDisc

3. Routinized Response Behavior Situation where the consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand or item Example: Limited Problem Solving

4. Routinized Response Behavior Results when brands are difficult to categorize or evaluate High-involvement purchase decisions usually require extended problem solving Examples: Limited Problem Solving Extended Problem Solving

5. Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition Consumers complete a step-by-step process when making purchase decisions

6. Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition Critical that marketers understand where their consumers are in the process Must choose actions to match each phase

7.  How do consumers recognize there is a problem?  How much and what types of information do consumers search for?  How do consumers evaluate their alternatives?  How does outlet selection impact marketing strategy?

8. Problem Opportunity Recognition Consumer becomes aware of a significant discrepancy between the existing situation and the desired situation Common Causes of Discrepancy: What is the marketer’s job?

9. Search Problem Opportunity Recognition Consumer gathers information related to their attainment of the desired state of affairs Identifies alternative means of problem solution Brands that a consumer actually considers buying before making a purchase decision are known as the evoked set Evoked set evolves constantly

10. Search Alternative Evaluation Problem Opportunity Recognition Consumer evaluates the evoked set Outcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search) Evaluative criteria: Understanding and influencing consumers evaluative criteria is important in this stage

11.  Bounded Rationality: a limited capacity for processing information ◦ Makes you throw up your hands after a while ◦ Can never make the perfect decision  Affective Choice: choices driven by how they make the user feel  Attribute-Based vs. Attitude-Based Choice: ◦ Knowledge of specific attributes; quantitative ◦ The use of attitudes, intuitions, and heuristics; qualitative.

12. Evaluative Criteria Import ance Minimal /Advanced Acceptable Performance Consumer Perceptions GatewayHPCompaqDellIBMToshiba Price303/4533421 Weight254/5345434 Processor103/3555255 Battery life051/1131315 Service102/2334353 Display203/4333533

13. Heuristics:  What works best for me  Family history  Bought last  Opinion leader (what does friend drive)  Price-based (least expensive, most expensive)  Promotion-based (seasonal discounts, coupons)  Expert consultant

14. Search Alternative Evaluation Purchase Decision Purchase Act Problem Opportunity Recognition Selection of What and Where

15. Search Alternative Evaluation Purchase Decision Purchase Act Post- purchase Evaluation Problem Opportunity Recognition After the purchase, consumers are either satisfied or experience post-purchase anxiety Post-purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes is called cognitive dissonance Marketers must try to reduce this anxiety