1. Part 3 CUSTOMER BEHAVIOR AND E-MARKETING.

2. 6: Consumer Buying Behavior
7: Business Markets and Buying Behavior
8: Reaching Global Markets
9: Digital Marketing and Social Networking

3. Chapter 6 Consumer Buying Behavior
Professor Jason C. H. Chen, Ph.D.
School of Business Administration
Gonzaga University
Spokane, WA 99258

4. Learning Objectives
To recognize the stages of the consumer buying decision process
To understand the types of consumer decision making and the level of involvement
To explore how situational influences may affect the consumer buying decision process
To understand the psychological influences that may affect the consumer buying decision process
To examine the social influences that may affect the consumer buying decision process
To examine consumer misbehavior

5. Buying Behavior Buying behavior Consumer buying behavior:
It is the decision _________ and _______ of people involved in buying and using products
Consumer buying behavior:
It refers to the buying behavior of ultimate consumers.
Products are purchased for personal or household use and not for business purposes
processes
actions

6. Understanding Buying Behavior
Customers’ overall opinions and attitudes toward a firm’s products have a great impact on the firm’s success
To find out what satisfies buyers, marketers must examine the main influences on what, where, when, and how consumers buy.
By gaining a deeper understanding of the factors that affect buying behavior, marketers are in a better position to predict how consumers will respond to marketing strategies
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

7. Consumer Buying Decision Process
Affected by the following influences:
____________
Surroundings, time, purchase reason, and buyer’s mood and condition
perception, motives, learning, attitudes, personality and lifestyles
________
Roles, family, reference groups and opinion leaders, culture and subculture
Not all decision processes lead to a purchase
Not all consumer decisions include all five stages
Situational
Psychological
Social

8. Figure 6.1 - Consumer Buying Decision Process and Possible Influences on the Process
[1]
[2]
[3]
[4]
[5]

9. 1. Problem Recognition Stage
Occurs when a buyer becomes aware of a _________ between a desired state and an actual condition.
Speed of consumer problem recognition can be rapid or slow
Some consumers are unaware of their problems or needs
Marketers use sales personnel, advertising, and packaging to help trigger recognition of such needs or problems
difference
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

10. 1. Problem Recognition Stage
Occurs when a buyer becomes aware of a _________ between a desired state and an actual condition.
Speed of consumer problem recognition can be rapid or slow
Some consumers are unaware of their problems or needs
Marketers use sales personnel, advertising, and packaging to help trigger recognition of such needs or problems
difference
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

11. 2. Information Search _________ search Internal
Buyers search their memories for information about products that might solve their problem
_________ search
External
Buyers seek information from sources other than their memories

12. 3. Evaluation of Alternatives
Consideration set: Group of _______ within a product category that a buyer views as possible alternatives
Evaluative criteria:
To assess the products in a consideration set, the buyer use evaluation criteria: objective (e.g., size) and subjective (style) product characteristics that are important to a buyer
Marketers influence consumers’ evaluations by framing the alternatives by:
Describing the alternatives and their attributes in a certain manner
brands

13. 4. Purchase Stage The buyer: Chooses the product or brand to be bought
Product __________ may influence the decision
Chooses the seller
Negotiates the terms of the transaction
Makes the actual purchase or terminates the process
availability
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

14. 5. Post-purchase Evaluation
Cognitive dissonance: ________ in buyer’s mind about whether decision to buy certain product was right
Cause
Purchase of _________ , high-involvement product lacking desirable features of competing brands
Lessened by contacting recent customers regarding the purchase
Marketers sometimes attempt to reduce cognitive dissonance by having salespeople call or recent customers to make sure they are satisfied with their new purchase.
Doubts
expensive

15. Level of Involvement
Degree of interest in a product and the importance the individual places on that product
High-involvement products - Visible to others and are expensive
Low-involvement products - Less expensive and have less associated social risk

16. Level of Involvement Enduring involvement Situational involvement
Long-term and ongoing interest in a product or product category
Situational involvement
Temporary and dynamic and results from a particular set of circumstances

17. Factors Influencing Level of Involvement
Product categories
sports
Loyalty to a specific brand
Interest in a specific advertisement
funny commercial
Medium
TV show
Certain decisions and behaviors
a love of shopping

18. Table 6.1 - Consumer Decision Making
Routinized response: when buying frequently purchased, low-cost item that require very little search-and-decision effort.
Limited: when they purchase products occasionally or from unfamiliar brands in a familiar product category – need more time.
Extended: occurs with high-involvement, unfamiliar, expensive, or infrequently purchased items – e.g., car, home

19. Consumer Decision Making Strategies
Impulse buying – An unplanned buying behavior resulting from a powerful urge to buy something immediately
When have you made a purchase solely on impulse?
Were you satisfied or dissatisfied with the purchase?
Consumer Buying Behaviors
Routinized Response
Limited Problem Solving
Extended Problem Solving
Impulse Buying
Most students probably will indicate they have purchased a product on impulse.
Typical impulse products include candy, a compact disc, or a pair of jeans.
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

20. Consumer Decision Making
Routinized response behavior
Buying frequently purchased, low-cost items that require very little search-and-decision effort
Limited decision making
Purchasing products occasionally or from unfamiliar brands in a familiar product category
Extended decision making
Occurs with high-involvement, unfamiliar, expensive, or infrequently-purchased items
Impulse buying
No conscious planning and stems from a powerful urge to buy something immediately

21. Situational Influences on the Buying Decision Process
Physical Surroundings
Social Surroundings
Time Dimension
Purchase Reason
Mood of Consumer
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

22. Possible Influences on the Decision Process
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

23. Situational Influences
Influences that result from circumstances, time, and location that affect the consumer buying decision process
Can influence the decision making process (buyers) at ____ stage
Cause the individual to shorten, lengthen, or terminate the process
Five categories of situational influences:
Physical surroundings
Social surroundings
Time perspective
Reason for purchase
Buyer’s momentary mood and condition
any
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

24. Psychological Influences on the Buying Decision Process
Factors that in part determine people’s general behavior, thus influencing their behavior as consumers
Operate on buyers internally, but are acted on by outside forces :
Psychological Influences on the Buying Decision Process
Psychological Influences
Perception
Motives
Lifestyle
Personality and Self-Concept
Learning
Attitudes
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

25. Psychological Influences
Partly determine people’s general behavior and influence their behavior as consumers
Strongly affected by external social forces
Consumer behavior based psychological influences
Perception
Motives
Learning
Attitudes and personality
Self-concept and lifestyles

26. The Perception Process
[1] 1 3 2
Selective Exposure
Selective Distortion
Selective Retention
[3]
[2]
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.

27. Perception
Perception is the process of selecting, organizing, and interpreting information inputs to produce meaning
Information inputs: Sensations received through sight, taste, hearing, smell, and touch
Perception process
1) Selective _________ : Selecting some sensory inputs and ignore others
2) Perceptual ____________: Organizing and integrating new information with what is stored in memory
3) Interpretation: Assigning meaning to what has been organized
exposure
organization

28. Selective Exposure Selective _________ distortion retention
The selective nature of perception may also result in two other conditions.
Selective _________
distortion
Changing or twisting of information that is inconsistent with personal feelings or beliefs
It occurs when a person receives information inconsistent with personal feeling or beliefs.
Selective _________
retention
Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

29. Problems in Perception
Probability that seller’s information never ________ the target
Buyer receives information but perceives it differently than was intended
Buyers who perceive information inputs to be inconsistent with prior beliefs will forget the information quickly
reaches

30. Motive
Internal energizing force that directs a person’s activities toward satisfying needs or achieving goals
Buyers are affected by a set of motives rather than by just one.
Physical feelings, states of mind, or emotions
Maslow’s hierarchy of needs: Humans seek to satisfy five levels of needs from most to least basic to survival
Patronage motives: Influence which establishments a customer frequents

31. Figure 6.2 - Maslow’s Hierarchy of Needs
Self-actualization
needs
People’s needs to grow and develop
Respect, recognition
Esteem needs
Social acceptance (love and affection)
Social needs
Safety needs
Life insurance
Basic level
Requirements for survival such as food, water, clothing etc.
Physiological needs

32. Learning
Changes in a person’s thought processes and behavior caused by information and experience
Consequences of behavior influences learning behavior
Customers learn about products through __________
Indirect experience - Salespeople, advertisements, websites, friends, and relatives
However, marketers may encounter problems in attracting and holding consumers’ attention, providing them with information for making purchase decisions, and convincing them to try the product.
experience

33. Attitude
Enduring evaluation of feelings about and behavioral tendencies toward an object or idea
Develops toward something that is:
Tangible or intangible
Living or nonliving
Acquired through:
Experience
Interaction with other people

34. Components of Attitude
Cognitive
Knowledge and information about the object or idea
Affective
Feelings and emotions toward the object or idea
Behavioral
Actions regarding the object or idea

35. Attitude - Academic Models
Attitude Toward the Object Model (Fishbein model)
Used to understand and predict consumer’s attitude
Consists of elements that combine to form the overall attitude
Beliefs about product attributes
Strength and evaluation of beliefs
Behavioral Intentions Model (Theory of Reasoned Action)
Focuses on intentions to act or purchase
Considers consumer perceptions of what other people believe is the best choice among a set of alternatives

36. Attitude Scales
Attitude scales usually consists of a series of adjectives, phrases, or sentences about an object
Used to indicate the intensity of individual feelings toward the object by reacting to the adjectives, phrases, or sentences
E.g., measuring people’s attitudes toward shopping might ask respondents to indicate the extent to which they agree or disagree with a number of statements, such as “shopping is more fun than watching TV.”

37. Personality
Internal traits and behavioral tendencies resulting in consistent patterns of behavior in certain situations
Influences types and brands of products purchased
Marketers aim advertising for specific personality types
Self concept (image): Perception or view of oneself
Buyers purchase products that reflect and enhance their self-concepts
Purchase decisions are important to the development and maintenance of a stable self-concept

38. Lifestyle
A lifestyle is an individual’s pattern of living expressed through:
Activities
Interests
Opinions
Influences:
Consumers’ product needs
Brand preferences
Choice of media
How and where individual shop

39. Types of Social Influences
Social influences: Forces other people exert on one’s buying behavior
Roles
Actions and activities performed based on expectations of the individual and surrounding persons
Family influences
Directly impact consumer buying decision process
Consumer socialization: Process through which a person acquires the knowledge and skills to function as a consumer
Exert: use, exercise
Reference groups
A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members

40. Types of Social Influences
Opinion leader
Member of an informal group who provides information about a specific topic to other group members seeking information
Social class
An open group of individuals with similar social rank
Culture
Accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations
Subculture
Group of individuals whose characteristics, values, and behavioral patterns are:
Similar within the group
Different from other group

41. Table 6.2 - Types of Family Decision Making

42. Table 6.3 - Examples of Opinion Leaders and Topics

43. Criteria for Grouping People in to Classes
Occupation and education
Income and wealth
Race and ethnicity
p.163
Group
Possessions

44. Class (Percent of Population) Buying Characteristics
Table Social Class Behavioral Traits and Purchasing Characteristics for Upper Americans
Class (Percent of Population)
Behavioral Traits
Buying Characteristics
Upper-upper (0.5)
Social elite
Of aristocratic, prominent families
Inherited their position in society
Spend money on private clubs, various causes, and the arts
Lower-upper (3.8)
Newer social elite
Successful professionals earning very high incomes
Earned their position in society
Purchase material symbols of their status
Provide a substantial market for luxury product offerings
Upper-middle (13.8)
Career-oriented, professional degree holders
Demand educational attainment of their children
Provide a substantial market for quality product offerings
(28.1%)

45. Class (Percent of Population) Buying Characteristics
Table Social Class Behavioral Traits and Purchasing Characteristics for Middle Americans
Class (Percent of Population)
Behavioral Traits
Buying Characteristics
Middle class (32.8)
Work conscientiously and adhere to culturally defined standards
Average-pay white-collar workers
Price sensitive
Spend on family-oriented, physical activities
Working class (32.3)
Average-pay blue-collar workers
Hold jobs that entail manual labor and moderate skills
Some are union members
Reside in small houses or apartments in depressed areas
Impulsive as consumers yet display high loyalty to national brands
Seek best bargains
(65.1%)

46. Class (Percent of Population) Buying Characteristics
Table Social Class Behavioral Traits and Purchasing Characteristics for Lower Americans
Class (Percent of Population)
Behavioral Traits
Buying Characteristics
Upper-lower (9.5)
Low-income individuals who generally fail to rise above this class
Reject middle-class morality
Living standard is just above poverty
Frequently purchase on credit
Lower-lower (7.3)
Poverty stricken
Some are unemployed
In spite of their problems, often good-hearted toward others
May be forced to live in less desirable neighborhoods
Spend on products needed for survival
Able to convert discarded goods into usable items
(16.8%)

47. Consumer Misbehavior
Behavior that violates generally accepted norms of a particular society
Shoplifting
Consumer fraud
Piracy
Abusive consumers

48. Table 6.5 - Motivations for Unethical or Illegal Misbehavior

49. Video Case 6.1
Starbucks Refines the Customer Experience

50. Summary
Starbucks is popular in the United States thanks to its focus on the customer experience. While the company continues to improve its American stores through innovations such as mobile pay, Starbucks is also expanding globally, especially in Asian markets. It is also diversifying; Starbucks recently purchased premium-juice company Evolution Fresh and is adding the company’s nutritious blended drinks to the traditional Starbucks menu. Starbucks plans to open more Evolution Fresh stores as the demand for healthy foods increases. The company is also competing with energy drink companies after releasing its all-natural Starbucks Refreshers. Starbucks is also promoting its focus on social responsibility.

51. 1. In terms of situational influences and level of involvement, what are the benefits of mobile pay?
Starbucks is working to keep customers involved by creating routinized response behavior. Mobile pay reduces search-and-decision effort, and the ease of payment and accumulation of Starbucks rewards makes it easy for their customers to prefer Starbucks as a brand.
Starbucks is also taking advantage of customers’ momentary conditions to make sure they have an easy and fast way to pay.

52. 2. With Evolution Fresh, which psychological influences on consumer buying decisions does Starbucks seem to be addressing?
Motives, attitudes, personalities, and lifestyles are all important to Starbucks. With Evolution Fresh, Starbucks is primarily addressing consumers’ attitudes, especially perceptions and interpretations of the company.
By providing products such as smoothies, juices, salads, and wraps, Starbucks is creating the impression that it cares about consumers’ health and is working to fit into their healthy lifestyles.

53. 3. Why would Starbucks want customers to know that it believes in social responsibility?
Starbucks wants to improve consumers’ perceptions and interpretations of the company and its actions. If consumers believe the company values ethical and socially responsible behavior, they will be more involved with the brand and more willing to purchase the company’s products.