2 Consumer Behavior Consumer behavior - the actions a person takes in purchasing and using products and services,including the mental and social processesthat come before and after these actions.
3 Purchase Decision Process Post-purchase BehaviorAssess value in consumptionPurchaseBuying valueEvaluation of AlternativesAssessing valueInformation SearchSeeking a valueNeed RecognitionPerceiving a valueCultural, Social, Individual andPsychological Factors affect all steps
4 Need Recognition Internal Stimuli and External Stimuli Marketing helps consumersrecognize animbalance betweenpresent status andpreferred stateInternal StimuliandExternal StimuliPresentStatusPreferredState
5 Information Search: Seeking Value Internal Search-Recall information from memoryExternal Searchinformation from outside environmentNon-marketing controlledMarketing controlled
6 FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players
8 Post-purchase Behavior- Cognitive DissonanceInner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.Can minimize through:Effective CommunicationFollow-upGuarantees WarrantiesCognitive Dissonance?MarketingDid I make a good decision?Did I buy the right product?Did I get a good value?
9 Involvement and Problem-Solving Variations MoreInvolvementLessRoutineResponseBehaviorLimitedDecisionMakingExtensive
11 When to use Routine Response Behavior Little involvement in selectionprocessFrequently purchased low costgoodsMay stick with one brandBuy first/evaluate laterQuick decision
12 When to use Limited Decision Making Low levels of involvementLow to moderate cost goodsEvaluation of a few alternative brandsShort to moderate time to decide
13 When to use Extensive Decision Making High levels of involvementHigh cost goodsEvaluation of many brandsLong time to decideMay experience cognitivedissonance
14 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Motivation – what stimulates behavior to satisfy a needMaslow’s Hierarchy of Needs
15 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PerceptionSelective ExposureSelective ComprehensionSelective RetentionConsumer pays attention to certain stimuli and ignores othersConsumer interprets info so that is is consistent with his beliefsAverage consumer only remembers30% of information heard
16 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Perceived RiskObtain Seals of ApprovalSecure Endorsements from Influential PeopleProvide Free Trials of the ProductGive Extensive Usage InstructionsProvide Warranties and Guarantees
17 How do consumers make purchase decisions? Psychographics – the analysis of people’s lifestylesVALS™ConsumerSegments
18 Sociocultural Influences on Consumer Behavior Reference GroupsOpinion LeadersFamily MembersSocial Influences on Buying Decisions
19 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.PrimarySecondaryAspirationalReferenceGroupsDirect–Faceto faceIndirect-No Personal ContactDissociative
20 Why use celebrity spokespersons? Opinion Leaders
21 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Life Cycle
22 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Decision MakingInformation GathererPurchaserDecision MakerInfluencerUserMembers assume different roles for different productsMen’s clothes?Breakfast cereal?Computer?
23 Consumer BehaviorConsumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
24 Purchase Decision Process The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.
25 InvolvementInvolvement consists of the personal, social, and economic significance of the purchase to the consumer.
26 MotivationMotivation is the energizing force that stimulates behavior to satisfy a need.
27 PerceptionPerception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
28 Perceived RiskPerceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.
29 LearningLearning refers to those behaviors that result from (1) repeated experience and (2) reasoning.
30 Brand LoyaltyBrand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
31 AttitudeAn attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”
32 BeliefsBeliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
33 Opinion LeadersOpinion leaders are individuals who exert direct or indirect social influence over others.
34 Family Life CycleThe family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.