2. Advertising and Consumer Behavior Chapter 5

3. Ch 5: Consumer Behavior 2 Consumer Behavior Perspectives: 1.Consumers are Systematic decision makers –Maximize the benefits from purchases defines the response 2.Consumers are Active interpreters –Cultural/social membership defines response Consumer Behavior: a wide spectrum of things that affect, derive from, or form the context of human consumption.

4. Consumer Decision-Making: The Systematic Decision Maker I think, therefore I buy Ch 5: Consumer Behavior 3

5. The consumer decision-making process 1.Need recognition --Functional or Emotional benefits 2.Information Search and Evaluation --Internal and External search --Consideration Set --Evaluative Criteria 3.Purchase 4. Post-purchase use and evaluation Customer satisfaction Cognitive dissonance Ch 5: Consumer Behavior 4

6. Modes of Consumer Decision- Making Ch 5: Consumer Behavior 5 1.Extended problem solving 2. Limited problem solving 3. Habit or variety seeking 4. Brand loyalty

7. Psychological Aspects of Advertising 1.Brand Attitudes –Summary evaluations that reflect preferences for various products and services 2.Salient Beliefs –Five to nine salient beliefs typically form the critical determinants of attitude Ch 5: Consumer Behavior 6

8. Key Psychological Processes Ch 5: Consumer Behavior 7 1.Multi-Attribute Models (MAAMs) Analysis components include evaluative criteria, importance weights, consideration set, and beliefs 2.Information processing and perceptual defense Major obstacles include cognitive consistency and advertising clutter (selective attention) 3.The Elaboration Likelihood Model (ELM) Central route persuasion in high involvement products Peripheral cues rather than strong arguments shape attitudes toward low- involvement products

9. Consumer as Social Being I buy what I am Ch 5: Consumer Behavior 8

10. Sociocultural Consumption Social class Social class Society Rituals Family Values Reference Groups Reference Groups Race / Ethnicity Race / Ethnicity Gender Culture Community Object Meaning Object Meaning Ch 5: Consumer Behavior 9

11. Ads Transmit Sociocultural Meaning Advertising / fashion system Advertising / fashion system FashionsystemFashionsystem PossessionritualPossessionritualExchangeritualExchangeritualGroomingritualGroomingritualDivestmentritualDivestmentritual Culturally constituted world Consumer goods Individual consumer Ch 5: Consumer Behavior 10

12. Factors Affecting Decision Making SUBCULTURESSUBCULTURES MEDIAMEDIA NEWSMAGAZINESRADIOTELEVISION DIRECT MEDIA NEWSMAGAZINESRADIOTELEVISION PRICEPACKAGINGADVERTISINGPROMOTION PERSONAL SELLING PRICEPACKAGINGADVERTISINGPROMOTION MARKETER-CONTROLLEDSTIMULIMARKETER-CONTROLLEDSTIMULI NEEDSNEEDS EDUCATIONEDUCATION VALUES / ATTITUDES PASTEXPERIENCEPASTEXPERIENCE PERSONALITYPERSONALITY PLEASUREPLEASURE GENDERGENDER CULTURECULTURE LIFE-STYLELIFE-STYLE SOCIALCLASSSOCIALCLASS REFERENCEGROUPSREFERENCEGROUPS FAMILYFAMILY SITUATIONALFACTORSSITUATIONALFACTORS CONSUMERDECISIONSCONSUMERDECISIONS Ch 5: Consumer Behavior 11