Consumer/Buyer Behavior CHAPTER 7 Consumer/Buyer Behavior

WHY INTEREST IN BUYER BEHAVIOR Why might marketers be interested in the behavior of buyers/consumers? How do consumers go about making buying decisions? View the consumer decision-making process

CONSUMER DECISION-MAKING PROCESS Routine Response Behavior Consider the following factors: Cost, Time, Information Search, Frequency of Purchase, Involvement, Familiarity with Products, Amount of Risk, Number of Alternatives, Situation). Limited Problem Solving Extended Problem Solving

FACTORS AFFECTING DECISION MAKING Individual Factors (Demographic, Personality, Self-Concept, Life-Style) Psychological Factors (Perception, motivation, Learning, Beliefs and Attitudes -- to change attitudes you must first change beliefs) Social Factors (Reference Group, Opinion Leaders, Family) Cultural Factors (Values, Sub-culture, Social Class)

Decision-Making Processes Consumers do not consider all brands when making a decision. An evoked set is the outcome of the search process. Evoked Set – Group of brands which are the most preferred alternatives. The evoked set is a subset of all brands the consumer would consider buying.

Decision Making Process In comparing brands, consumers use objective attributes and subjective factors (e.g. prestige). The factors used when evaluating the various brands is the Evaluative Criteria.

Decision-Making Processes (Cont’d) Compensatory Decision Making Model – a perceived weakness in one attribute is made-up for by strengths in other attributes. Non-Compensatory Decision Making Model: Perceived weakness in one attribute cannot be made-up for by strengths in other attributes.

ATTRIBUTE WEIGTHING Number of Attributes Considered: In making a decision six or fewer generally used by most consumers. Salient Attributes: Factors deemed to be important when evaluating brands. Determinant Attribute: Most important factors affecting the decision. Some attributes are seen as being more important than others and are weighted more heavily in the decision.

Choice & Outcomes Consumers evaluate products in terms of pre-purchase expectations. The outcomes can lead to satisfaction or dis-satisfaction. Performance deficiency may lead to changes in the product Expectations deficiency may lead to changes in advertising or education.

Cognitive Dissonance Dissonance is post-purchase doubt that the product may mot have all of the attributes or may not perform as well as you might have expected. It is a feeling of post-purchase psychological tension that you may not have made the best (right) decision. Firms need to be concerned with dissonance and provide post-purchase support or dissatisfaction may result.