1. chapter consumer behavior five McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. LEARNING OBJECTIVES 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. Consumer Behavior 5-2

3. The Consumer Decision Process 5-3

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

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

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

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

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

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

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

11. Evaluation of Alternatives: Decision Heuristics Mental Shortcuts PriceBrand Product presentation Amos Morgan/Getty Images 5-11

12. Purchase and Consumption Increase Conversion rate Reduce real or virtual abandoned carts Merchandise in stock Reduce the actual wait time 5-12

13. Post-purchase: Customer Satisfaction Dissonance Customer Loyalty 5-13

14. Factors Influencing the Consumer Decision Process 5-14

15. InvolvementInvolvement and Consumer Buying Decisions 5-15

16. Types of Buying Decisions Extended Problem Solving Extended Problem Solving Limited Problem Solving – Impulse Buying Impulse Buying – Habitual Decision Making Habitual Decision Making Courtesy Wendy’s International, Inc. 5-16

17. 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 5-17

18. 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 5-18

19. 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 5-19

20. Return to slide Evaluative criteria consist of a set of salient, or important, attributes about a particular product. Glossary 5-20

21. 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 5-21

22. Return to slide Extended problem solving occurs during a purchase decision that calls for a lot of effort and time. Glossary 5-22

23. Return to slide Functional needs pertain to the performance of a product or service. Glossary 5-23

24. Return to slide Habitual decision making describes a purchase decision process in which consumers engage little conscious effort. Glossary 5-24

25. Return to slide Impulse buying is a buying decision made by customers on the spot when they see the merchandise. Glossary 5-25

26. Return to slide Involvement is the consumer’s degree of interest in the product or service. Glossary 5-26

27. Return to slide Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. Glossary 5-27

28. Return to slide Psychological needs pertain to the personal gratification consumers associate with a product and/or service. Glossary 5-28

29. Return to slide Retrieval sets are the brands or stores that can be readily brought forth from memory. Glossary 5-29

30. Return to slide Ritual consumption is a pattern of behaviors tied to life events that affect what and how we consume. Glossary 5-30

31. Return to slide Shopping goods/services are products or services for which consumers will spend time comparing alternatives. Glossary 5-31

32. Return to slide Situational factors are factors specific to the situation. Glossary 5-32

33. 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 5-33

34. Return to slide Universal sets include all possible choices for a product category. Glossary 5-34