1. Chapter 08 Consumer Buying Behavior Part Four Customer Behavior

2. Copyright © Houghton Mifflin Company. All rights reserved.8 | 2 Chapter Learning Objectives 1.Describe the level of involvement and types of consumer problem-solving processes 2.Recognize the stages of the consumer buying decision process 3.Explain how situational influences may affect the consumer buying decision process 4.Understand the psychological influences that may affect the consumer buying decision process 5.Be familiar with the social influences that affect the consumer buying decision process

3. Copyright © Houghton Mifflin Company. All rights reserved.8 | 3 Chapter Outline Level of Involvement and Consumer Problem- Solving Processes Consumer Buying Decision Process –Problem Recognition –Information Search –Evaluation of Alternatives –Purchase –Postpurchase Evaluation Situational Influences on the Buying Decision Process

4. Copyright © Houghton Mifflin Company. All rights reserved.8 | 4 Chapter Outline (cont’d) Psychological Influences on the Buying Decision Process –Perception –Motives –Learning –Attitudes –Personality and Self-Concept –Lifestyles

5. Copyright © Houghton Mifflin Company. All rights reserved.8 | 5 Chapter Outline (cont’d) Social Influences on the Buying Decision Process –Roles –Family Influences –Reference Groups –Personality and Self-Concept –Opinion Leaders –Social Classes –Culture and Subcultures

6. Copyright © Houghton Mifflin Company. All rights reserved.8 | 6 Introduction Buying Behavior –The decision processes and acts of people involved in buying and using products Consumer Buying Behavior –Buying behavior of people who purchase products for personal use and not for business purposes

7. Copyright © Houghton Mifflin Company. All rights reserved.8 | 7 Level of Involvement and Consumer Problem-Solving Processes Level of Involvement –An individual’s degree of interest in a product and the importance of the product for that person Enduring involvement is ongoing and long term Situational involvement is temporary and dynamic Routinized Response Behavior –The process used when buying frequently purchased, low-cost items that require little search- and-decision effort

8. Copyright © Houghton Mifflin Company. All rights reserved.8 | 8 Level of Involvement and Consumer Problem-Solving Processes (cont’d) Limited Problem Solving –The process that buyers use when purchasing products occasionally or when they need information about an unfamiliar brand in a familiar product category Extended Problem Solving –The process employed when purchasing unfamiliar, expensive, or infrequently bought products Impulse Buying –An unplanned buying behavior resulting from a powerful urge to buy something immediately

9. Copyright © Houghton Mifflin Company. All rights reserved.8 | 9

10. Copyright © Houghton Mifflin Company. All rights reserved.8 | 10 Figure 8.1: Consumer Buying Decision Process and Possible Influences on the Process

11. Copyright © Houghton Mifflin Company. All rights reserved.8 | 11 Consumer Buying Decision Process Problem Recognition –Occurs when a buyer becomes aware of a difference between a desired state and an actual condition –May occur rapidly or slowly Information Search –Internal search Buyers search their memories for information about products that might solve their problem –External search Buyers seek information from outside sources

12. Copyright © Houghton Mifflin Company. All rights reserved.8 | 12 Consumer Buying Decision Process (cont’d) Evaluation of Alternatives –Consideration set A group of brands that the buyer views as alternatives for possible purchase –Evaluative criteria Objective and subjective characteristics that are important to a buyer –Framing the alternatives Describing the alternatives and their attributes in a certain manner to make a particular characteristic appear more important especially to the inexperienced buyer

13. Copyright © Houghton Mifflin Company. All rights reserved.8 | 13 Consumer Buying Decision Process (cont’d) Purchase –Choosing the product or brand to be bought based on the outcome of the evaluation stage –The choice of seller may affect the final product selection. –Factors such as terms of sale, price, delivery, and warranties may affect the sale.

14. Copyright © Houghton Mifflin Company. All rights reserved.8 | 14 Consumer Buying Decision Process (cont’d) Postpurchase Evaluation –Cognitive dissonance A buyer’s doubts shortly after a purchase about whether the decision was the right one –Buyers are mostly likely to seek reassurance after the purchase of an expensive, high-involvement product

15. Copyright © Houghton Mifflin Company. All rights reserved.8 | 15 Situational Influences on the Buying Decision Process Situational Influences –Factors that can influence a buyer’s purchase decision and may cause the buyer to short, lengthen, or terminate the process. Major Situational Factors –Physical surroundings –Social surroundings –Time perspective –Reason for purchase –Buyer’s momentary mood and condition

16. Copyright © Houghton Mifflin Company. All rights reserved.8 | 16 Figure 8.2: Fish or Birds?

17. Copyright © Houghton Mifflin Company. All rights reserved.8 | 17 Psychological Influences on the Buying Decision Process Psychological Influences –Factors that in part determine people’s general behavior, thus influencing their behavior as consumers Perception –The process of selecting, organizing, and interpreting information inputs to produce meaning Information Inputs –Sensations received through the sense organs

18. Copyright © Houghton Mifflin Company. All rights reserved.8 | 18 Psychological Influences on the Buying Decision Process (cont’d) Selective Exposure –The process of selecting inputs to be exposed to our awareness while ignoring others Selective Distortion –An individual’s changing or twisting of information when it is inconsistent with personal feelings or beliefs Selective Retention –Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

19. Copyright © Houghton Mifflin Company. All rights reserved.8 | 19 Psychological Influences on the Buying Decision Process (cont’d) Perceptual Organization –Organizing and integrating new information with what is already stored in memory. Closure occurs when a person mentally fills in missing elements in a pattern or statement 12312312312312312….

20. Copyright © Houghton Mifflin Company. All rights reserved.8 | 20 Psychological Influences on the Buying Decision Process (cont’d) Perceptual Interpretation –The assignment of meaning to what has been organized based on what is expected or what is familiar –Attempts by marketers to influence interpretation can fail because consumers block out seller’s information. consumers interpret seller’s information differently than intended. consumers discard information that is inconsistent with prior beliefs.

21. Copyright © Houghton Mifflin Company. All rights reserved.8 | 21 Psychological Influences on the Buying Decision Process (cont’d) Motives –An internal energizing force that directs a person’s behavior toward satisfying needs or achieving goals Maslow’s Hierarchy of Needs –The five levels of needs that humans are motivated to seek and satisfy, from least to most important are Physiological needs—food, water, sex, clothing, shelter Safety needs—security, freedom Social needs—love, affection, belonging Esteem needs—respect, recognition, self-worth Self-actualization needs—personal growth needs

22. Copyright © Houghton Mifflin Company. All rights reserved.8 | 22 Figure 8.3: Maslow’s Hierarchy of Needs Maslow believed that people seek to fulfill five categories of needs.

23. Copyright © Houghton Mifflin Company. All rights reserved.8 | 23 Psychological Influences on the Buying Decision Process (cont’d) Learning –Changes in an individual’s thought processes and behavior caused by information and experience –Behaviors that produce satisfying consequences are likely to be repeated. Consumers learn about products by –experiencing the products personally. –gaining additional product knowledge from seller- provided information. –indirect information from other purchasers/users.

24. Copyright © Houghton Mifflin Company. All rights reserved.8 | 24 Psychological Influences on the Buying Decision Process (cont’d) Attitudes –An individual’s enduring evaluation of, feelings about, and behavioral tendencies toward an object or idea Attitudinal Components –Cognitive Knowledge and information about the object or idea –Affective Feelings and emotions toward the object or idea –Behavioral Individual’s action regarding the object or idea

25. Copyright © Houghton Mifflin Company. All rights reserved.8 | 25 Psychological Influences on the Buying Decision Process (cont’d) Attitude Scale –A means of measuring consumer attitudes by gauging the intensity of an individual’s reactions to adjectives, phrases, or sentences about an object

26. Copyright © Houghton Mifflin Company. All rights reserved.8 | 26 Psychological Influences on the Buying Decision Process (cont’d) Personality and Self-Concept –Personality A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations –Self-concept (self-image) Perception or view of oneself Lifestyles –Lifestyle An individual’s pattern of living expressed through activities, interests, and opinions

27. Copyright © Houghton Mifflin Company. All rights reserved.8 | 27 Social Influences on the Buying Decision Process Social Influences –The forces other people exert on one’s buying behavior Role –Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons –Multiple role-expectation sets affect behavior. –Roles influence both general and buying behaviors.

28. Copyright © Houghton Mifflin Company. All rights reserved.8 | 28 Social Influences on the Buying Decision Process (cont’d) Family Influences –Consumer socialization The process through which a person acquires the knowledge and skills to function as a consumer Family Decision-Making Processes –Autonomic—equally shared decision making –Husband-dominant—husband makes decisions –Wife-dominant—wife makes decisions –Syncratic—decisions made jointly

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30. Copyright © Houghton Mifflin Company. All rights reserved.8 | 30 Social Influences on the Buying Decision Process (cont’d) Reference Groups –Any group that positively or negatively affects a person’s values, attitudes, or behavior Membership Aspirational Disassociative Opinion Leader –A knowledgeable, accessible individual who provides information about a specific sphere of interests to followers

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32. Copyright © Houghton Mifflin Company. All rights reserved.8 | 32 Social Influences on the Buying Decision Process (cont’d) Social Class –An open group of individuals with similar social rank –Individuals in the same social class develop and assume common behavioral patterns. have similar attitudes, values, language patterns, and possessions. –Influences many major life decisions –Influences shopping patterns and spending habits

33. Copyright © Houghton Mifflin Company. All rights reserved.8 | 33 Source: Adapted from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research. Dec. 1983, pp. 265- 280. Reprinted with permission from The University of Chicago Press. With data from J. Paul Peter and Jerry C. Olson, Consumer Behavior Marketing Strategy Perspective (Homewood, IL: Irwin, 1987), p. 433. Copyright © 1987 The McGraw-Hill Companies, Inc. Reprinted with permission.

34. Copyright © Houghton Mifflin Company. All rights reserved.8 | 34 Social Influences on the Buying Decision Process (cont’d) Culture –The accumulated values, knowledge, beliefs, customs, objects, and concepts of a society Culture influences buying behavior. Cultural changes affect product development, promotion, distribution, and pricing. Subcultures –Groups of individuals whose characteristic values and behavior patterns are similar and differ from those of the surrounding culture African American Hispanic Asian American

35. Copyright © Houghton Mifflin Company. All rights reserved.8 | 35 After reviewing this chapter you should: 1.Understand the level of involvement and types of consumer problem-solving processes 2.Recognize the stages of the consumer buying decision process 3.Explain how situational influences may affect the consumer buying decision process 4.Understand the psychological influences that may affect the consumer buying decision process 5.Be familiar with social influences that affect the consumer buying decision process