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4-1 1. Chapter 4 Consumer Behaviour. 4-2 LO1 Describe the steps in the consumer buying decision process LO2 Identify what determines how much time consumers.

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Presentation on theme: "4-1 1. Chapter 4 Consumer Behaviour. 4-2 LO1 Describe the steps in the consumer buying decision process LO2 Identify what determines how much time consumers."— Presentation transcript:

1 4-1 1. Chapter 4 Consumer Behaviour

2 4-2 LO1 Describe the steps in the consumer buying decision process LO2 Identify what determines how much time consumers will spend searching for information before buying a product or service LO3 Summarize how psychological, social, and situational factors influence consumers’ buying behaviour LO4 Explain how involvement influences the consumer buying decision process LEARNING OBJECTIVES Chapter 4: Consumer Behaviour

3 4-3 SOCIAL MEDIA AND DELL: A WINNING COMBINATION Social media has revolutionized consumer communication Dell is one of the top social media brands in the world Founding principle: listen & learn from your customers Feedback = improve LO3, LO4

4 4-4 THE CONSUMER DECISION PROCESS LO1

5 4-5 STEP 1: NEED RECOGNITION Need Recognition Functional needs Psychological needs LO1

6 4-6 Information Search Internal Search for Information External Search for Information LO2 STEP 2: INFORMATION SEARCH

7 4-7 Perceived Benefits Perceived Costs Discussion question What is the difference in search time between the following: A wedding gift for a) coworker, b) your brother, c) your best friend? LO2 FACTORS AFFECTING CONSUMERS’ SEARCH PROCESSES

8 4-8 Internal Locus of Control: some control over outcomes = engage in more search activities External Locus of Control: Fate, external factors control all outcomes = why bother? LO2 FACTORS AFFECTING CONSUMERS’ SEARCH PROCESSES

9 4-9 Actual versus Perceived Risk Performance risk Social risk Financial risk Physiological risk Psychological risk LO2 FACTORS AFFECTING CONSUMERS’ SEARCH PROCESSES

10 4-10 Consumers can spend considerable time searching for both specialty and shopping goods or services; the difference lies in _______________. A)the amount of time they have B)the amount of money they have budgeted C)the psychological risk D)the kind of search LO2

11 4-11 Alternative Evaluation Evaluative Criteria Evaluative Criteria Determinant Attributes Determinant Attributes LO2 STEP 3: ALTERNATIVE EVALUATION

12 4-12 LO2 SOCIAL & MOBILE MARKETING 4.1: SHOPPING ONLINE WITH FRIENDS Social shopping is easy & user-friendly Social shopping is easy & user-friendly Bring along friends & never leave the comfort of your home! Bring along friends & never leave the comfort of your home! Sites such as ShopTogether & Sesh.com make it easy Sites such as ShopTogether & Sesh.com make it easy

13 4-13 LO2 ALTERNATIVE EVALUATION: COMPENSATORY & NON-COMPENSATORY

14 4-14 ? Product Presentation Price Brand LO2 ALTERNATIVE EVALUATION: DECISION HEURISTICS Mental shortcuts

15 4-15 Decision heuristics are ________ that help a consumer narrow down his or her choices. A)mental shortcuts B)breathing exercises C)logical steps D)compensatory decision rules LO2

16 4-16 Purchase Decision LO2 STEP 4: PURCHASE DECISION

17 4-17 Increase Conversion rate Reduce real or virtual abandoned carts Merchandise in stock Reduce the actual wait time LO2 PURCHASE & CONSUMPTION Make it easy Open more check-outs Plenty on hand

18 4-18 Ritual consumption LO2 PURCHASE & CONSUMPTION

19 4-19 Postpurchase LO2 STEP 5: POSTPURCHASE

20 4-20 POSTPURCHASE OUTCOMES LO2

21 4-21 UNDESIRABLE CONSUMER BEHAVIOUR LO2 Negative word-of- mouth & rumours can be very damaging Negative word-of- mouth & rumours can be very damaging The Internet is an effective way to spread negativity The Internet is an effective way to spread negativity Marketers must respond quickly! Marketers must respond quickly!

22 4-22 In order to increase customer conversion rates, marketers use all of the following techniques except: A)have plenty of stock on hand. B)do not alert customers when their on-line shopping cart is about to time out. C)reduce abandoned carts by making it easy for customers. D)open up more check out lanes. LO2

23 4-23 LO3 FACTORS INFLUENCING CONSUMER BUYING DECISIONS

24 4-24 LO3 PSYCHOLOGICAL FACTORS: MOTIVES

25 4-25 LO3 PSYCHOLOGICAL FACTORS: ATTITUDE Your evaluation or feeling towards an object or idea Your evaluation or feeling towards an object or idea Learned & long-lasting but they can change abruptly Learned & long-lasting but they can change abruptly Affective vs. behavioural components Affective vs. behavioural components

26 4-26 Discussion question How has society’s perception of people with tattoos changed in recent years? LO3 PSYCHOLOGICAL FACTORS: PERCEPTION

27 4-27 Affects both attitudes and perceptions Affected by social experiences LO3 PSYCHOLOGICAL FACTORS: LEARNING

28 4-28 LO3 ENTREPRENEURIAL MARKETING 4.1: SOCKS THAT START BUSINESSES “Sharing is caring” Cole + Parker socks: bold, colourful, creative, quality Cole + Parker socks: bold, colourful, creative, quality Stand-out-in-the crowd, jazz up your life Stand-out-in-the crowd, jazz up your life 1% of sales goes to help start-ups in developing countries 1% of sales goes to help start-ups in developing countries

29 4-29 Decision makersInfluencers LO3 SOCIAL FACTORS: FAMILY

30 4-30 LO3 SOCIAL FACTORS: REFERENCE GROUPS Groups Family Friends Co-workers Famous people Provide: Information Rewards Self-image

31 4-31 LO3 SOCIAL FACTORS: CULTURE Shared meanings, beliefs, morals & customs Shared meanings, beliefs, morals & customs Your culture group can be your school, country, religion Your culture group can be your school, country, religion Culture greatly influences consumer behaviour Culture greatly influences consumer behaviour Marketers must understand differences among countries Marketers must understand differences among countries

32 4-32 Temporal State Purchase Shopping LO3 SITUATIONAL FACTORS

33 4-33 Which of the following is a way in which reference groups might provide information to consumers? A)Leading by example B)Indirectly, through observation C)Contacting the seller D)Web research LO3

34 4-34 LO4 INVOLVEMENT & CONSUMER BUYING DECISIONS

35 4-35 Extended Problem Solving Limited Problem Solving Impulse Buying Habitual Decision Making LO4 TYPES OF BUYING DECISIONS

36 4-36 What type of buying decision requires the least amount of time and effort? A)extended B)habitual decision making C)limited problem solving D)impulse buying LO4

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