1. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

2. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER 3 The Consumer Decision Process

4. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process

5. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs?

6. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process The CDP represents a road map of consumers’ minds that marketers and managers can use to help guide product mix, communications, and sales strategies

7. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process P&G used consumer information regarding various decision process stages to create and market Dryel By permission of Drexel.

8. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Stages

9. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Divestment Pre-purchase Evaluation of Alternatives

10. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Need Recognition

11. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs

12. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively

13. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition Individual Differences - Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle Environmental Influences - Culture - Social Class - Personal Influence - Family - Situation MEMORYMEMORY Need Recognition

14. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Need Recognition Search for Information

15. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli

16. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search for Information Internal search: retrieving know- ledge from memory or genetic tendencies External search: collecting informa- tion from peers, family, and the marketplace

17. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search for Information Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior Search refers to a receptivity of information that solves problems or needs rather than a search for specific products

18. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search for Information Need Recognition Search External Search Internal Search MEMORYMEMORY Individual Differences Environmental Influences

19. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search: Sources of Information Marketer Dominated Non-Marketer Dominated Stimuli

20. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. - Advertising - Salespeople - Infomercials - Websites - Point-of-sales materials Search: Sources of Information Marketer Dominated

21. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. - Friends - Family - Opinion leaders - Media Search: Sources of Information Non-Marketer Dominated Stimuli

22. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Information Processing As a consumer is exposed to information from external search, they begin to process the stimuli

23. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Information Processing MEMORYMEMORY Attention Comprehension Acceptance Retention Exposure Stimuli: - Marketer Dominated - Nonmarketer Dominated

24. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search: Information Processing Exposure Attention Comprehension Acceptance Retention

25. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Ads That Create a Brand Image

26. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

27. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli

28. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer

29. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Can use new or preexisting evaluations stored in memory Evaluative criteria: standards and specifications used to compare different products and brands Alternative can be considered on attributes that are salient or determinant

30. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Salient attributes such as price and reliability are important to the consumer Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose

31. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

32. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase

33. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices

34. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices Purchase intention can change during the purchase stage—it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

35. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Pre-purchase Evaluation of Alternatives

36. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase Consumption

37. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed

38. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed How consumers use a product affects satisfaction with product How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

39. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. An Emotional Appeal in Product Consumption

40. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Pre-purchase Evaluation of Alternatives

41. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase Consumption Post-consumption Evaluation External Search SatisfactionDissatisfaction

42. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-consumption Evaluation Consumption is an important determinant of satisfaction Satisfaction: when consumers’ expectations are matched by perceived performance Dissatisfaction: when experiences and performance fall short of expectations

43. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluation Cognitive dissonance: questioning the purchase decision (post- purchase regret) Usually, the higher the price, the higher the level of cognitive dissonance Emotion strongly affects the evaluation of a product or transaction

44. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Divestment Pre-purchase Evaluation of Alternatives

45. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase Consumption Post-consumption Evaluation External Search SatisfactionDissatisfaction Divestment

46. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Divestment How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling

47. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Organizations Use the CDP Model

48. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Identify relationships and variables that affect consumer decision making Identify topics for additional research Develop and implement marketing mix strategies

49. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Individual Differences: Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes

50. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Culture Social Class Family Personal Influence Situation behaviors

51. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Culture: values, ideas, artifacts, and symbols that help individuals interpret, communicate, and evaluate as members of society

52. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Social Class: division within society composed of individuals sharing similar values, interests, and behaviors

53. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Family: often the primary decision making unit with a complex and varying pattern or roles and functions

54. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Personal Influence: our behaviors are often affected by those with whom we closely associate

55. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Situation behaviors: as situations change, so does the individual’s behavior

56. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Psychological Processes Influencing Consumer Behavior Information processing Learning Attitude and behavior change

57. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes

58. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Continuum Midrange Problem Solving Limited Problem Solving (LPS) Extended Problem Solving (EPS) High Low Degree of Complexity

59. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Continuum: Repeat Purchases Midrange Problem Solving Habitual Problem Solving Extended Problem Solving High Low Degree of Complexity Limited Problem Solving

60. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Extended Problem Solving (EPS): Problem solving of a higher degree of complexity that influences consumers actions

61. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Extended Problem Solving (EPS): Often occurs with expensive items or can be fueled by doubts and fears Importance in making the “right choice” All seven consumer decision making stages are often activated Dissatisfaction is often vocal

62. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Limited Problem Solving (LPS): Problem solving of a lower degree of complexity that influences consumers’ actions

63. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Limited Problem Solving (LPS): Consumers don’t have motivation, time, or resources to engage in EPS Little search and evaluation before purchase Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance

64. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Midrange Problem Solving: Many decisions occur along the middle of the continuum Decisions are made with a minimal amount of time and only moderate deliberation

65. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Repeated Problem Solving Habitual Decision Making

66. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Impulse Buying Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion (least complex form of LPS) Repeated Problem Solving Habitual Decision Making

67. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Impulse Buying Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion Least complex form of LPS but differs in some important ways Repeated Problem Solving Habitual Decision Making

68. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Impulse Buying Variety Seeking Consumers may be satisfied with the present brand but still engage in brand switching Can be triggered because bored with current brand or because of special offer Repeated Problem Solving Habitual Decision Making

69. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent

70. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent Degree of Involvement: Level of perceived personal importance and interest evoked by a stimulus in a specific situation (High-Low)

71. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent Degree of Involvement (High-Low) Personal Factors (self-image, health, beauty, or physical condition) Product Factors (is there perceived risk in purchasing and using a particular brand or product?) Situational Factors (is the product purchased for personal use or as a gift?)

72. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent Degree of Involvement (High-Low) Perceptions of differences among alternatives

73. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made?

74. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made? Consumers’ Mood State How people feel at a particular moment Mood can reduce or increase length and complexity of decision process

75. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

76. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

77. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-Purchase Processes: Need Recognition, Search, and Evaluation CHAPTER 4

78. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition

79. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition The difference between consumers’ actual and desired states The need recognition process centers on the degree of discrepancy between the actual state and desired state

80. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition Process

81. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition Process

82. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition Understanding need recognition may identify a segment with unsatisfied desires Unsatisfied needs help identify new business and product opportunities for the future Analyzing need recognition can reveal existing barriers

83. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Can Activate Need Recognition Change consumers’ desired state with new products or innovations

84. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Can Activate Need Recognition

85. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Can Activate Need Recognition Change consumers’ desired state with new products or innovations Influence how consumers perceive their current state

86. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Can Activate Need Recognition Change consumers’ desired state with new products or innovations Influence how consumers perceive their current state Remind consumers of a need

87. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Can Activate Need Recognition Generic need recognition occurs when companies seek to grow the size of the total market for a product category

88. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Selective need recognition is the result of stimulating the need for a specific brand within a category How Companies Can Activate Need Recognition

89. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search

90. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search The motivated acquisition of knowledge stored in memory or acquisition of information from the environment

91. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Internal Search Internal search involves scanning and retrieving decision-relevant knowledge stored in memory

92. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Internal Search

93. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. External Search External search involves collecting information from the environment

94. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. During external search, consumers may gather information from a variety of sources including: - Advertisements - Magazines - Internet - Friends and family members

95. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. External Search When motivated by an upcoming purchase decision, external search is known as pre-purchase search

96. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. External Search When information acquisition takes place on a relatively regular basis, regardless of sporadic purchase needs, it is known as ongoing search

97. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. External Search External search can occur: to make better consumption choices to create a knowledge base for future decisions simply for enjoyment

98. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What to Search? Which choice alternatives should the consumer search? Those choice alternatives that consumers gather information about during pre-purchase search are referred to as the external search set

99. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What to Search? Depending on the consumer’s experience and the importance of the decision, a considerable amount of effort may be invested into identifying search set members Consumers must also decide what they wish to learn about each of the set members

100. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Where to Search? Different informational sources are available to the consumer

101. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Where to Search? Consumers are more likely to rely upon the opinions of other individuals than information sources with vested interests in their decisions Other consumers respected for their expertise in a particular product category are referred to as opinion leaders or influentials

102. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Search on the Internet Consumers are increasingly turning to the Internet for their search needs

103. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Search on the Internet Particular search words or phrases used by consumers fall into three categories 70% Generic terms; representing product categories 20% Specific retailers; e.g., Best Buy, Gateway.com 10% Specific products; e.g., Canon digital camcorder, HP notebook

104. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Search on the Internet

105. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Much Do Consumers Search? Cost versus benefit perspective: people search for decision-relevant information when the perceived benefits of the new information are greater than perceived costs of acquiring the information

106. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Much Do Consumers Search? Cost versus benefit perspective: people search for decision-relevant information when the perceived benefits of the new information are greater than perceived costs of acquiring the information Benefit: making better decisions Cost: time/effort spent searching

107. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Much Do Consumers Search? While making better purchase decisions is the primary benefit of pre-purchase search, this benefit depends on the perceived risk involved - Perceived risk represents consumers’ uncertainty about the potential positive and negative consequences of the purchase decision

108. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers’ Knowledge and the Amount of Search

109. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Benefit from Understanding Search Adjusting the breadth of a product line based on consumers’ willingness to search Monitoring consumers’ price comparison activities to gauge their price sensitivity

110. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Benefit from Understanding Search Focus promotions on sources that consumers search most, including individuals that provide information Monitor search activities to identify new ways to reach and gain customers

111. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation

112. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation The evaluation of choice alternatives Intertwined with the search process

113. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation

114. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Forming the Consideration Set

115. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation Consideration set: alternatives considered during decision making (also known as the evoked set)

116. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Companies Can Get Into Consumers’ Consideration Sets Ask to be in the set Offer incentives Modify the product offering

117. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing the Consideration Set Primarily from Memory Retrieval set: consideration set that depends on recall of alternatives from memory

118. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing the Consideration Set Primarily from Memory Retrieval set: consideration set that depends on recall of alternatives from memory Not all alternatives retrieved from memory will be considered Consumers limit their consideration to those alternatives toward which they are favorably predisposed

119. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing the Consideration Set Without Prior Knowledge Consumers may talk to others or consider all brands in the store

120. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing the Consideration Set Without Prior Knowledge Consumers may talk to others or consider all brands in the store External factors have greater oppor- tunity to affect consideration set with less knowledgeable consumers than when search is from memory Recognition of brands or products at point of sale is important to get into consumers’ consideration set

121. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evaluating Alternatives

122. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Deciding How to Evaluate Choice Alternatives Rely on preexisting product evaluations stored in memory Direct Experience: prior purchase or consumption experiences with product Indirect Experience: experiences or impressions gained second-hand

123. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Deciding How to Evaluate Choice Alternatives Rely on preexisting product evaluations stored in memory Construct new evaluations based on information acquired through internal or external search Direct Experience: prior purchase or consumption experiences with product Indirect Experience: experiences or impressions gained second-hand

124. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Evaluating Alternatives

125. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations The Categorization Process: the evaluation of a choice alternative based on the evaluation of the category to which it is assigned

126. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations The Categorization Process: the evaluation of a choice alternative based on the evaluation of the category to which it is assigned Categories may be general (drinks) or specific (colas) Evaluation of a category can be transferred to a new product assigned to that category Brand extensions allow firms to use categorization to their advantage

127. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations The Piecemeal Process: constructing an evaluation of a choice alternative by considering its advantages and disadvantages along important product dimensions

128. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations The Piecemeal Process: Determine the particular criteria or product dimensions to be used in evaluation Evaluate each considered alternative based on the identified criteria Cutoff: restriction or requirement for acceptable performance Signals: product attributes used to infer other product attributes (e.g., using high price to infer higher quality)

129. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Perceptions Based on Signals

130. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Noncompensatory Evaluation Strategies: a product’s weakness on one attribute cannot be offset by strong performance on another attribute

131. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Noncompensatory Evaluation Strategies Lexicographic strategy: brands are compared initially on the most important attribute, and the winner is chosen. If more than one is evaluated similarly on that attribute, the second most important is considered, and so on, until a winner is identified.

132. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Noncompensatory Evaluation Strategies Elimination by aspects: similar to the lexicographic strategy; however, the consumer imposes cutoffs Conjunctive strategy: each brand is compared, one at a time, against a set of attributes which is established for each salient attribute. If a brand meets the cutoffs for all attributes, it is chosen.

133. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Noncompensatory Evaluation Strategies

134. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Compensatory Evaluation Strategies

135. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Compensatory Evaluation Strategies: a perceived weakness of one attribute may be offset or compensated for by the perceived strength of another attribute

136. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Compensatory Evaluation Strategies Simple additive: the consumer counts or adds the number of times each alternative is judged favorably in terms of the set of salient evaluative criteria. The alternative with the largest number of positive attributes is chosen.

137. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Constructing New Evaluations Compensatory Evaluation Strategies Weighted additive: judgments about an alternative’s attribute performance are weighted by the attribute’s importance. The alternative with the best overall performance is chosen.

138. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Good Are We at Evaluating Alternatives? Consumers are often not very good at figuring out which alternative is best for them - Tend to rely on certain signals (e.g., price, brand name, warranty, package) to make inferences about a product quality; however, such signals may be inaccurate - Often possess limited abilities to accurately evaluate choice alternatives

139. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

140. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

141. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase CHAPTER 5

142. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. To Buy or Not to Buy?

143. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Process

144. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Process Consumers decide: Whether to buy When to buy What to buy (product type/brand) Where to buy How to pay

145. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Process Fully Planned Purchase Partially Planned Purchase Unplanned Purchase

146. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Process Fully Planned Purchase: both the product and brand are chosen in advance Purchase planning is more likely to occur when product involvement is high with purchase affected by in-store factors and marketing efforts

147. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Process Partially Planned Purchase: intent to buy the product exists, but brand choice is deferred until shopping When involvement is low, consumers resort to buying a brand they know and like but may also be influenced by price reductions or special displays

148. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Process Unplanned Purchase: both the product and brand are chosen at point of sale In-store influences can guide product and brand choices made by consumers reminding them of a need and triggering a purchase

149. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Factor When and if purchase occurs is affected by timing factors such as seasonality Timing also affects the price and the likelihood of a purchase When making a purchase, consumer must also decide how to pay—cash, checks, or plastic

150. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why People Shop While consumers may shop “to acquire something,” there are many other personal and social reasons

151. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why People Shop While consumers may shop “to acquire something,” there are many other personal and social reasons Consumers who dislike shopping embrace the Internet and other forms of direct marketing to make shopping quicker, easier, and less personally involving

152. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why People Shop

153. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Why People Shop While consumers may shop “to acquire something,” there are many other personal and social reasons Consumers who dislike shopping embrace the Internet and other forms of direct marketing to make shopping quicker, easier, and less personally involving Marketers should consider how their core customers think of shopping—is it fun or is it a chore for them?

154. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Decision Process

155. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Purchase Decision Process

156. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Deciding where and how to purchase - Retail choice is an interactive process where the type of store and specific retailer affect each other - Consumer characteristics are matched to store characteristics and purchase characteristics - Past experience and store image also influence specific store choice The Purchase Decision Process

157. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Retail Image Consumers rely on their overall perception of a store (store image) Involves both functional and emotional attributes The perceived level of crowding within the store may also affect shopping behavior, reducing shopping for some consumers while appealing to other segments

158. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Retail Image

159. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Retail Image

160. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Retail Image

161. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Determinants of Retailer Success - Location - Nature and quality of assortment - Price - Advertising and promotion - Sales personnel - Service offered - Physical store attributes - Nature of store clientele - Point-of-purchase-displays - Consumer logistics

162. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Location Perceived in terms of time and hassle in addition to actual distance Cognitive maps or consumer perceptions of store locations and shopping areas are more important than actual location Consumers generally overestimate both actual distance and time

163. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Nature and Quality of Assortment Depth, breadth, and quality of assortment - Specialty stores - Mass merchandisers - Department stores - Value merchants

164. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Nature and Quality of Assortment Assortment breadth: how vast or wide the variety of products sold (mass retailers)

165. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Nature and Quality of Assortment Assortment breadth: how vast or wide the variety of products sold (mass retailers) Assortment depth: how deep the categories of product sold (specialty store)

166. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Nature and Quality of Assortment

167. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Nature and Quality of Assortment Assortment breadth: how vast or wide the variety of products sold (mass retailers) Assortment depth: how deep the categories of product sold (specialty store) Category killers: specialize in one category of merchandise and provide a dominant assortment of products (Home Depot, Toys ’R Us)

168. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Price Price as a determinant of store patronage varies by type of product Importance of price depends on the nature of the buyer The consumer’s perception of price is usually more important than the actual price Consumers ultimately rely on their overall image of a retailer to filter the effects of price advertising

169. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Price Effects of price promotions on: - Building store patronage - Demand for different brands - Short-term buying behavior - Long-term buying behavior

170. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Advertising and Promotion Image advertising: Visual components and words that help consumers form an expectation about their experience in the store and about what kinds of consumers will be satisfied with the store’s experience

171. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Image Advertising

172. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Advertising and Promotion Information advertising: Details provided about products, prices, hours of operation, locations, and other attributes that might influence purchase decisions

173. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Salespeople are important when choosing a store or shopping center Sales Personnel

174. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Salespeople are important when choosing a store or shopping center What makes a salesperson effective? Sales Personnel

175. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Salespeople are important when choosing a store or shopping center What makes a salesperson effective? - Perceived knowledge and expertise - Perceived trustworthiness - Customer knowledge - Adaptability Sales Personnel

176. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Salespeople are important when choosing a store or shopping center What makes a salesperson effective? - Perceived knowledge and expertise - Perceived trustworthiness - Customer knowledge - Adaptability Sales Personnel Recruiting, training, and motivating effective sales associates benefits retailers

177. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Services Offered Varies depending on the type of outlet and consumer expectations Includes such considerations as self-service facilities, ease of merchandise return, delivery, credit, and overall good service

178. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Physical Store Attributes The physical properties of the retail environment designed to create an effect on consumer purchases are referred to as store atmospherics Can help shape the direction and duration of consumer attention, express the store’s character, or elicit particular emotional reactions

179. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Physical Store Attributes Store atmospherics - Elevators - Lighting - Air conditioning - Convenient and visible washrooms - Layout - Aisle placement and width - Parking facilities - Carpeting - Architecture

180. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Store Clientele The type of person who shops in a store affects consumer purchase intention because of the tendency to match one’s self-image with that of the store Some customers may be attracted to or repelled from a store due to their perception of the store and its clientele

181. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Point-of-Purchase Materials POP displays and signs can increase the odds of capturing attention and stimulating purchase - E-Theater - Digital POP - Computer Enhanced Merchandising - Digital Self-Service

182. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Point-of-Purchase Materials Advantages of POP displays: Inexpensive compared to other forms of promotion They reach people where they buy the products They add atmosphere to retail stores

183. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Logistics The speed and ease with which consumers move through the retail and shopping process - Preparation to shop - Arriving at the store - Entering the store - Movement through the store - Checkout - Travel home and home-warehousing - Inventory stockouts (which prompt repurchase)

184. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Logistics The purchase process is facilitated, positively or negatively, by consumer logistics What consumers expect and demand from a purchase situation changes depending on what type of store they are visiting

185. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape

186. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Consumers want to purchase goods and services from a variety of retailing formats Marketers have implemented multichannel retailing to reach diverse segments through a variety of formats based on their lifestyles and shopping preferences

187. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Location-Based Retailing Retailers that have a physical location for consumers to visit Can be free-standing or housed in a mall, strip center, central market, or central business district

188. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Location-Based Retailing Value-oriented retailers - offer consumers lower prices than other retailing forms because of the large economies of scale generated by high sales volume - convenience of buying many different types of products in one store or have a large selection of items

189. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Location-Based Retailing The Shopping Mall - People visit malls less often and spend less time than they used to - Malls are becoming lifestyle centers and emphasizing the entertainment value of shopping - Shift toward making malls become “a place to be,” not just “a place to shop”

190. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Direct Marketing refers to strategies used to reach consumers somewhere other than a store

191. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Direct Marketing More consumer shopping and buying activities are occurring in someplace other than the store Most in-home shoppers are active retail shoppers who shop at home for reasons other than deliberate avoidance of the store or shopping mall

192. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Direct Marketing Direct selling: any form of face- to-face contact between a salesperson and a customer away from a fixed retail location - door-to-door selling - in-home parties

193. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Direct Marketing Direct selling: any form of face- to-face contact between a salesperson and a customer away from a fixed retail location - door-to-door selling - in-home parties Direct mail ads

194. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Direct Marketing Direct selling: any form of face- to-face contact between a salesperson and a customer away from a fixed retail location -door-to-door selling -in-home parties Direct mail ads Direct mail catalogs

195. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Direct Marketing Telemarketing - outbound telemarketing - inbound telemarketing: use a toll free number to place orders directly

196. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Direct Marketing Telemarketing - outbound telemarketing - inbound telemarketing: use a toll free number to place orders directly Direct response ads: ads that require a direct response from consumers

197. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Purchase Behavior and E-Commerce

198. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Changing Retail Landscape Purchase Behavior and E-Commerce The technology of websites determines what can be offered to consumers, but only consumers determine which technologies are accepted Today, more people use the Internet for search and pre- purchase evaluation than purchase

199. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Resources: What People Spend When They Purchase Money Time Attention

200. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Concept of Time Budgets People have “unlimited” money budgets: have potential to earn as much money as they want People have limited time budgets: maximum of 24 hours per day How consumers allocate their time depends on their timestyles

201. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Concept of Time Budgets

202. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Time and Money Budgets Timestyles: determines how consumers allocate their time As people work and make more money, leisure time decreases— leading to an increased value of time

203. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Discretionary time: leisure time when individuals feel no sense of economic, legal, moral, social or physical compulsion or obligation Nondiscretionary time: Includes physical obligations, social obligations and moral obligations Time and Money Budgets

204. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Time and Money Budgets Time-Using Goods

205. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Time and Money Budgets Time-Using Goods Goods that require time to use, such as television, skiing, fishing, golfing, and playing tennis As consumer have less leisure time, they are often willing to spend more money on the precious time they do have (travel, extreme sports, and eating out)

206. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Time and Money Budgets Time-Saving Goods

207. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Time and Money Budgets Time-Saving Goods Goods and services that gain leisure time by decreasing nondiscretionary time expenditures Housecleaning services or dishwashers and microwave ovens free up time to spend on leisure or other activities Some firms position products with time-saving benefits

208. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Polychronic Time Use Polychronic time involves combining activities simultaneously

209. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Polychronic Time Use Polychronic time involves combining activities simultaneously Trend has given rise to products: cellular phones (talk and walk or drive) online radio services (listen to music while working on computers) beepers for dental patients (wait for appointments and shop) prepared meals (shop for groceries and buy completed dinner at same store)

210. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Time and Money Budgets Time Prices

211. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Time and Money Budgets Time Prices Products have economic prices as well as time prices How much time it takes to shop for, install, or use a product Firms sometimes use time prices in their ads (only takes 2 hours to install or 10 seconds for quick-dry paint)

212. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Cognitive resources: mental capacity available for undertaking various information-processing activities

213. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Cognitive resources: mental capacity available for undertaking various information-processing activities Capacity: cognitive resources that an individual has available at any given time for processing information

214. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Cognitive resources: mental capacity available for undertaking various information-processing activities Capacity: cognitive resources that an individual has available at any given time for processing information How much of this resource do consumers spend when shopping or making a purchase?

215. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Attention: allocation of cognitive resources

216. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Attention: allocation of cognitive resources Attention consists of two dimensions:

217. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Attention: allocation of cognitive resources Attention consists of two dimensions: Direction: focus of attention Intensity: the amount of capacity focused in a particular direction

218. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Attention: allocation of cognitive resources Attention consists of two dimensions: Direction: focus of attention Intensity: the amount of capacity focused in a particular direction Gaining attention represents one of the most formidable challengers a marketer may face

219. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Shallow Attention Many products are not important enough to warrant consumers investing a large amount of cognitive resources Consumers attempt to find acceptable rather than optimal solutions for their consumption needs

220. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Exceeding Cognitive Capacity Because capacity is limited, it is possible to provide too much information and exceed capacity (information overload) Consumers can become confused and make poor choices or they may stop processing information before they are overloaded

221. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Cognitive Resources Exceeding Cognitive Capacity The amount of attention given to a product or specific purchase choice depends on factors such as involvement, situation, personality, and other variables

222. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Communicating with Consumers: Integrated Marketing Communications

223. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Integrated Marketing Communications (IMC) A systematic, cross-organizational marketing communication process that is customer-centric, data- driven, technically anchored, and branding effective

224. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Integrated Marketing Communications (IMC) IMC programs are comprehensive IMC programs are unified IMC programs are targeted IMC programs have coordinated execution of all the communications components of the organization IMC programs emphasize productivity in reaching targets when selecting communication channels and allocating resources to media

225. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

226. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

227. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Purchase Processes: Consumption and Post- Consumption Evaluations CHAPTER 6

228. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior

229. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Consumers’ usage of the acquired product

230. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories

231. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Knowing how many and which consumers fall into the user and nonuser categories Size of user market is one indicator of market attractiveness Size of nonuser group speaks to future growth opportunities Characterized along many dimensions

232. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior

233. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When Does Consumption Occur?

234. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When Does Consumption Occur? How much time passes between purchase and consumption?

235. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When Does Consumption Occur? How much time passes between purchase and consumption? What time of day is product used?

236. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior When does Consumption Occur? How much time passes between purchase and consumption? What time of day is product used? When in the year or during which season is product consumed?

237. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. An Attempt to Expand Consumption

238. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Where Does Consumption Occur?

239. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Where Does Consumption Occur? The situation in which consumption occurs can affect product choice— e.g., beers sales for in-home versus on-premise consumption

240. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior How Is the Product Consumed?

241. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior How Is the Product Consumed? How is the product prepared? Is it consumed alone or with other products? Is it used as intended or have consumers invented a new use?

242. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior How Much Is Consumed?

243. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Would Consumers Pour the Same Amount into Each Glass?

244. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Consumers may be similar in what they consume, but different in how much they consume Usage volume segmentation: dividing consumers into segments based on amount of consumption ( heavy, moderate, and light users) Firms can encourage consumption or change amount consumed How Much Is Consumed?

245. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Enhance the frequency of consumption Enhance the amount consumed per consumption occasion Basic Strategies for Increasing the Amount of Consumption

246. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior Encouraging more frequent consumption

247. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Behavior The Influence of Package Size

248. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences

249. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Does It Feel?

250. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Does It Feel? Positive or negative things you feel when using a product

251. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Does It Feel? Positive or negative things you feel when using a product Firms can position products based on: - Positive feelings resulting from consumption - Elimination of negative feelings resulting from consumption

252. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience?

253. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage

254. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement

255. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome

256. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement

257. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences How Rewarding or Punishing Was the Experience? Positive reinforcement: when consumer receives positive outcome from product usage Negative reinforcement: when consumption helps person avoid negative outcome Punishment: when consumption leads to negative outcome

258. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Need Product Purchase Product Consumption Avoiding Negative Outcomes Negative Reinforcement Purchase Need Product Purchase Product Consumption Receiving Negative Outcomes Punishment Purchase Need Product Purchase Product Consumption Receiving Positive Outcomes Positive Reinforcement

259. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences Did It Confirm or Disconfirm Expectations?

260. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Experiences Did It Confirm or Disconfirm Expectations? Consumption can meet, exceed, or fall short of expectations

261. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Well Different Brands Are Meeting Consumers’ Expectations

262. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Shaping Interpretation of the Consumption Experience Beyond the consumption experience, consumers’ interpretation can be affected by their expectations of the experience and their mood at the time of consumption

263. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Norms and Rituals Consumption norms: informal rules that govern our consumption behavior Consumption rituals: a type of expressive, symbolic activity constructed of multiple behaviors that occur in a fixed, episodic sequence, and that tend to be repeated over time Holiday rituals (gift giving, parties)

264. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption Norms and Rituals

265. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Compulsive Consumption A response to an uncontrollable drive or desire to obtain, use, or experience a feeling, substance, or activity that leads an individual to repetitively engage in a behavior that will ultimately cause harm to the individual and possibly others Gambling Addiction (shopping, alcohol, food) Internet (web dependency)

266. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Understanding Consumption Ethnography involves describing and understanding consumer behavior by interviewing and observing consumers in real-world situations

267. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluations

268. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluations Evaluations also occur following consumption

269. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluations Evaluations also occur following consumption Consumers experience satisfaction or dissatisfaction

270. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Satisfaction Scores by Company

271. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Importance of Satisfaction It Influences Repeat Buying Positive post-consumption evaluations are essential for retaining customers The likelihood that customers will remain loyal depends on their level of satisfaction However, customer satisfaction does not guarantee loyalty

272. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers often communicate with others about their consumption experiences It Shapes Word-of-Mouth and Word-of-Mouse Communication Importance of Satisfaction

273. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Negative Word-of-Mouth

274. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Word-of-Mouse

275. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Dissatisfaction Can Lead to Complaints and Lawsuits Importance of Satisfaction

276. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Complaints

277. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Satisfaction Affects Consumers’ Price Sensitivity Importance of Satisfaction

278. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Customer Satisfaction-Price Sensitivity Relationship

279. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Implications for Customer Recruitment Importance of Satisfaction Monitor satisfaction levels of competitors’ customers Formulate strategies to attract dissatisfied customers of competitors

280. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. It Ultimately Affects Shareholder Value Importance of Satisfaction

281. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Determines Satisfaction? Product performance Consumption feelings Expectations

282. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Expectancy Disconfirmation Model Satisfaction depends on a comparison of pre-purchase expectations to actual outcomes

283. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Expectancy Disconfirmation Model Negative disconfirmation: when product delivers less than expected Positive disconfirmation: when product delivers more than expected Confirmation: product matches expectations

284. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Negative Disconfirmation Can Cause: Regret: when consumers believe that an alternative course of action other than the once chosen would have produced a better outcome Rage: when consumers are extremely upset

285. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Biggest Threats to Consumers’ Satisfaction

286. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What Increases Consumers’ Satisfaction