1. Elements of Consumer Behavior, and Defining the Market Hierarchy
BA396 Supplement

2. Consumer Behavior EKB Model Need Recognition Information Search
Information Evaluation
Purchase Decision
Post-purchase
Attitude Formation

3. Consumer Behavior EKB Model Needs: * Functional - product related
* Psychological
- stimulation
- social
- status/power
- self-reward
Information:
* Amount of information
* Sources
- internal/external
* Reduce search?
Need Recognition
Information Search
Information Evaluation
Purchase Decision
Post-purchase
Attitude Formation

4. Consumer Behavior Buying Process and Decision Making Need Recognition
Information Search
Information Evaluation & Trial
Purchase Decision
Post-purchase
Attitude Formation
Adoption

5. Consumer Behavior Buying Process and Decision Making
Need Recognition
Information Search
Information Evaluation & Trial
Purchase Decision
Post-purchase
Attitude Formation
Adoption
Habitual Decision Making
Limited Problem Solving
Extended Problem Solving

6. Consumer Behavior
Who are your competitors, and how do customers end up selecting your product?
Hierarchy of Markets
Competition at different ‘levels’
Try to understand consumer’s decision process
Within a household competition regarding the importance of different generic markets
this will increase when resources are limited -- transportation will compete with food or housing

7. Consumer Behavior Hierarchy of Markets Desire Generic Level
all products and services that compete for the consumer’s dollars
Generic Level
demand for broadly defined need
Specific Product Level
car, bicycle, single family dwelling, apt.
Brand
Honda, Chevrolet, Schwinn, Trek, BikEE

8. Hierarchy of Markets Diet Food Example 1 prepared unprepared Entrée
Supplement
frozen
fresh
frozen
fresh
Weight
Watchers
Stouffers
Store Deli
restaurant

9. Hierarchy of Markets Example 2 Food prepared unprepared Entrée
Supplement E S
‘Fast’
Sit-down
American
Asian
Mexican
American
Asian

10. Census Information http://www.census.gov/dmd/www/products.html
Click on “intro to Census 2000 data products”  United States (PDF)
Click on the Public Use Presentation Library and browse through the different presentations
About ½ way down the list, there is presentation on the geographic concepts discussed in class. Look for:
Title: Census 2000: Geographic Concepts and Products (September 2002)  Number of slides: 36 Description: This presentation gives an overview of Census 2000 geographic concepts and products and the various geographic units for which Census 2000 data are available.

11. Census Information http://www.census.gov/dmd/www/products.html
Click on the Public Use Presentation Library and browse through the different presentations
About the sixth presentation on the list, there is presentation that covers the short form and long form information. Look for:
Title: Census 2000: and Its Data Products (September 2002) Number of slides: 41 Description: An overview of the Census 2000 questions, the data sets, and the products released and the released media.

12. Segmentation Requirements
Customers have different response elasticities
Salesx1=Advx.5 x SalesPrx.2 x Distrx.3
Salesx2=Advx.2 x SalesPrx.4 x Distrx.2
Response differences can be identified and matched with customer descriptions
Knowledge of market segments must be translatable to retail mix combinations
Sufficient demand in at least one segment
Characteristics stable over time

13. Bases of Segmentation Geographic Demographic Psychographic Behavioral
Nations, regions, states
Demographic
Age, gender, family size, income
Psychographic
Social class, lifestyle, personality, AIO inventories
Behavioral
Usage rate, occasion for use, benefits, loyalty