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Consumer Behavior– you are what you buy… How do we make decisions about what we buy? What are stages of the decision process? What can reduce buyers remorse?

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Presentation on theme: "Consumer Behavior– you are what you buy… How do we make decisions about what we buy? What are stages of the decision process? What can reduce buyers remorse?"— Presentation transcript:

1 Consumer Behavior– you are what you buy… How do we make decisions about what we buy? What are stages of the decision process? What can reduce buyers remorse? How would you prepare a pitch for different audiences? Song Airlines Commercial Product Placement Political audience reaction ratings

2 Marketing News: Downsizing products (while keeping the price the same) Downsizing packages get sneakier Market Research: People are more conscious of changes in pricing than changes in quantity Repackaging: Packaging sleeves to maintain freshness Rephrasing: Old packaging was a limited time offer Reframing: Future Friendly Products…uses 15% less energy, water or packaging… Economy: Commodity costs are rising

3 How much?! Chicken of the Sea tuna in 5oz instead of 6 oz cans Doritos, Tostitos & Fritos hold 20% fewer chips (more air) Kraft Premium Saltines & Honey Maid Grahams has 15% fewer crackers (sleeves) Tropicana orange juice from 64-oz carton to 59 oz. Skippy peanut butter indented the container bottom for a reduction of 1.7 oz Special K is down 2.4 oz Dial soap from.5 oz to 4.5 oz Quilted Northern toiler paper lost.5 from width Ice cream down from 1.75 to 1.5 Whole Wheat Pasta from 16 ox to 13.5 Box of Baby Wipes from 80 to 72 Mrs. Stauber 16 oz can of corn down to 14.5 oz

4 Consumer Decision-Making Process Postpurchase Behavior Postpurchase Behavior Purchase Evaluation of Alternatives Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps Cultural, Social, Individual and Psychological Factors affect all steps

5 Complete model of consumer behavior Search Need recognition Alternative evaluation Purchase Stimuli (marketer dominated, other) External search Memory Internal search Exposure Attention Comprehension Acceptance Retention Outcomes DissatisfactionSatisfaction Individual differences resources motivation & involvement knowledge attitudes personality, values, lifestyle Influences culture social class family situation Start

6 How do you know when to shop? What are the triggers that initiate an awareness & search? What are the internal & external sources of these triggers?


8 Need Recognition (& reminding) Preferred State Marketing helps consumers recognize (or create) an imbalance between present status and preferred state When a current product isnt performing properly When the consumer is running out of an product When another product seems superior to the one currently used

9 The information search stage An internal search involves the scanning of one's memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products. An external search may be necessary when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and/or the cost of gathering information is low. Personal sources (friends and family) Public sources (rating services like Consumer Reports) Marketer-dominated sources (advertising or sales people) The evoked set: a group of brands from which the buyer can choose

10 Determinants of External Search

11 Buyer Behavior: The Decision Making Unit Initiator : the person who first suggests or thinks of the idea of buying a particular product or service. Influencer : a person whose views or advice carry weight in making the final buying decision Decider : the person who ultimately makes the final buying decision or any part of it Buyer : the person who makes the actual purchase User : the person who consumes the product or service Other people often influence a consumers purchase decision. The marketer needs to know which people are involved in the buying decision and what role each person plays, so that marketing strategies can also be aimed at these people. (Kotler et al, 1994). Note: teens are increasingly assuming more of these roles Think about your past purchase– who was in which role?

12 Wife Dominant Husband Dominant Joint Womens clothing Pots & pans Child clothing groceries vacations TV sets Family carSport equipment Lawn mower Paint wallpaper lamps Mens leisure clothing Mens business clothing camera Financial planning furniture refrigerator luggage carpet NonRx Toys/games stereo hardware Extent of role specialization Relative influence of husbands & wives Information search Final decision Davis & Rigaux, 1974


14 quickly list 10 items you have purchased in the past month reexamine how long it took you to make a decision on each why did such a difference in decision occur?

15 How to make Choosing Easier

16 Factors affecting Consumer involvement Previous experience : low level involvement Interest : high involvement Perceived risk of negative consequences : high involvement Situation : low to high due to risk Social visibility : involvement increases with product visibility Offer extensive information on high involvement products In-store promotion & placement is important for low involvement products Linking low-involvement product to high-involvement issue can increase sales So…

17 think of an important purchasing decision you have made what are some of the thoughts you have had following your purchase? Any regrets? what has influenced those thoughts? how have you dealt with the discomfort? how has the company anticipated or dealt with your discomfort?

18 Sour Grapes– a story of cognitive dissonance …after being unable to reach the grapes the fox said, these grapes are probably sour, and if I had them I would not eat them. --Aesop

19 Postpurchase Behavior Can minimize through: Effective Communication Follow-up Guarantees Warranties Underpromise & overdeliver Cognitive Dissonance ? ? Did I make a good decision? Did I buy the right product? Did I get a good value?

20 Decision Processing

21 Elaboration Likelihood Model (ELM) was formulated in 1979 by R.E. Petty & J.T. Cacioppo, & describes how attitudes are formed and changed after a exposure to an important and meaningful message. John Cacioppo & Richard Petty ELM: Persuasion & Attitude Change


23 Persuasive Communication Nature of Active Cognitive Processing: (initial attitude, argument quality, etc.) Favorable Thoughts Predominate Unfavorable Thoughts Predominate Neither or Neutral Predominate Cognitive Structure Change: Are new cognitions adopted and stored in memory? Are different responses made salient than previously? personal relevance personal importance personal responsibility Motivated to Process? dissonance arousal need for cognition repetition cognitive complexity critical thinking distraction free low arousal Ability to Process? appropriate schema message pace repetition issue familiarity Enduring positive or negative attitude change (persuasion) greater persistence resistant to counterattacks & fading predictive of behavior > brand memory > elaboration >usage intention > attitude accessibility > attitude confidence > attitude-behavior consistency Peripheral Cues Present? reciprocity (obligated, did a favor) consistency (way its done, similar to before) social proof (peer pressure, conformity) liking (attractiveness, friendliness) celebrity (identification, prestige) authority (expertise, experience, credibility) rapid speech, forceful presentation, charismatic style scarcity (limited time offer) tangible rewards appealing visuals & music (emotional arousal) fear appeal weak counter-arguments Attitude Shift: short-lived susceptible to influence unpredictable Retain or Regain Initial Attitude Elaboration Likelihood Method (ELM) of persuasion


25 back to Attitudes back to 7670 Homepage back to Attitudesback to 7670 Homepage Write in the number that best fits your view: completely mostly mostly completely false false true true _____1. I would prefer complex to simple problems. _____2. I like to have the responsibility of handling a situation that requires a lot of thinking. _____3. Thinking is not my idea of fun. * _____4. I would rather do something that requires little thought than something that is sure to challenge my thinking abilities. * _____5. I try to anticipate and avoid situations where there is likely chance I will have to think in depth about something. * _____6. I find satisfaction in deliberating hard and for long hours. _____7. I only think as hard as I have to. * _____8. I prefer to think about small, daily projects to long-term ones. * _____9. I like tasks that require little thought once Ive learned them. * _____10. The idea of relying on thought to make my way to the top appeals to me. _____11. I really enjoy a task that involves coming up with new solutions to problems. _____12. Learning new ways to think doesnt excite me very much. * _____13. I prefer my life to be filled with puzzles that I must solve. _____14. The notion of thinking abstractly is appealing to me. _____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat important but does not require much thought. _____16. I feel relief rather than satisfaction after completing a task that required a lot of mental effort. * _____17. Its enough for me that something gets the job done; I dont care how or why it works. * _____18. I usually end up deliberating about issues even when they do not affect me personally. Need for Cognition Scale Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scored

26 Sleeper Effect: when secondary source becomes more credible than primary source over time persuasion may increase over time with a weak source forget the source but remember the message not if source is learned prior to the message (will ignore or bias processing) Example: Attack ads during political campaignsAttack ads

27 "Aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteers be at the rghit pclae. The rset can be a toatl mses and you can sitll raed it wouthit porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe."

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