Consumer Behavior Chapter 6

What is Consumer Behavior? “Describes how consumers make purchase decisions and how they use and dispose of goods and services, and also analyzes the factors that influence purchase decisions.” “Describes how consumers make purchase decisions and how they use and dispose of goods and services, and also analyzes the factors that influence purchase decisions.”

The Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Behavior

Problem Recognition Difference between ideal state and actual state Difference between ideal state and actual state Nike Nike College College

Information Search Internal Search Internal Search External Search External Search How much research? How much research? Perceived risk Perceived risk Knowledge Knowledge Prior experience Prior experience Interest Interest What resources aided you in choosing a college? What resources aided you in choosing a college?

Evaluation of Alternatives Evaluative criteria Evaluative criteria Leads to the Formation of an Evoked Set Leads to the Formation of an Evoked Set College College

Purchase Decisions Where to buy? Where to buy? When to buy? When to buy?

Post-purchase Behavior Expectation comparison Expectation comparison “Buyers remorse” “Buyers remorse” Post-purchase anxiety Post-purchase anxiety Cognitive dissonance Cognitive dissonance Can marketers do anything about it? Can marketers do anything about it?

Involvement High v. Low Involvement High v. Low Involvement High High Low Low Routine Problem Solving Routine Problem Solving Milk Milk Limited Problem Solving Limited Problem Solving Restaurant Restaurant Extended Problem Solving Extended Problem Solving Cars Cars

Involvement & Marketing Low Involvement Low Involvement Leader Leader Make quality product available and advertise it Make quality product available and advertise it Challengers Challengers Break buying behaviors Break buying behaviors High Involvement High Involvement Leaders Leaders Make info available Make info available Challengers Challengers Comparative advertising Comparative advertising

Situational Influences Purchase task Purchase task Social surroundings Social surroundings Physical surroundings Physical surroundings Temporal effects Temporal effects Antecedent states Antecedent states

Psychological Influences Motivation Motivation Personality Personality Perception Perception Learning Learning Values, Beliefs & Attitudes Values, Beliefs & Attitudes Lifestyle Lifestyle

Motivation & Personality Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs Must tune products to specific need-level Must tune products to specific need-level Personality Personality “A person’s consistent behaviors or responses to recurring situations.” “A person’s consistent behaviors or responses to recurring situations.” National character National character Self—concept Self—concept Actual self v. Ideal self Actual self v. Ideal self

Perception “The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.” “The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.” Selective perception Selective perception Exposure v. comprehension v. retention Exposure v. comprehension v. retention Subliminal perception Subliminal perception Perceived risk Perceived risk Source:

Learning Behavioral (Experiential) Learning Behavioral (Experiential) Learning Drive + Cue + Response → Reinforcement Drive + Cue + Response → Reinforcement Cognitive (Conceptual) Learning Cognitive (Conceptual) Learning Making a connection between two or more ideas Making a connection between two or more ideas Brand Loyalty Brand Loyalty

Top 20 Most Desired Brands- Men 1. Crest 2. BMW 3. National Geographic 4. Panasonic 5. Hyundai 6. Kleenex 7. Coca-Cola 8. Microsoft 9. Tide 10. Lexus 11. Apple 12. Bed Bath & Beyond 13. Ford 14. Animal Planet 15. Hitachi 16. Mercedes-Benz 17. FedEx 18. Proctor & Gamble 19. Hallmark 20. Geico Source: men-are-from-geico-worlds-most-desired/

Top 20 Most Desired Brands- Women 1. Johnson & Johnson 2. Sony 3. Kleenex 4. National Geographic 5. MasterCard 6. Google 7. Amazon 8. Visa 9. General Electric 10. Toshiba 11. Crest 12. Microsoft 13. Disney 14. Target 15. Tropicana 16. BMW 17. Febreze 18. Ford 19. Olay 20. Chase Source: men-are-from-geico-worlds-most-desired/

Brand Loyalty- College Students Brand Keys Inc. survey Brand Keys Inc. survey Based on Customer Loyalty Index (16,000 people) Based on Customer Loyalty Index (16,000 people) Looked at students’ habits before and after graduation Looked at students’ habits before and after graduation Almost 5,000 students and post-grads surveyed Almost 5,000 students and post-grads surveyed Students’ attitudes changed because of new environment and more income Students’ attitudes changed because of new environment and more income

Brand Loyalty-College Students Results Results Most loyal to Most loyal to Least loyal to Least loyal to Other notables: Other notables:

Values, Beliefs, & Attitudes Values Values What is important? What is important? Beliefs Beliefs “An organized pattern of knowledge that an individual holds as true.” “An organized pattern of knowledge that an individual holds as true.” Attitudes Attitudes “Learned tendency to respond consistently toward a given object.” “Learned tendency to respond consistently toward a given object.” Shaped by beliefs and values Shaped by beliefs and values

Involvement & Psychological Influences Decision-making- High-involvement Decision-making- High-involvement Beliefs → attitude → behavior Beliefs → attitude → behavior Decision-making- Low-involvement Decision-making- Low-involvement Beliefs → behavior → affect Beliefs → behavior → affect

Lifestyle Based on people’s activities, interests, and opinions Based on people’s activities, interests, and opinions VALS program VALS program Discusses 8 lifestyles Discusses 8 lifestyles Based on resources and self-orientation Based on resources and self-orientation Action, principles, and status Action, principles, and status Source:

Sociocultural Influences Personal influence Personal influence Reference groups Reference groups Family Family Social class Social class Culture/Subculture Culture/Subculture

Personal Influence Opinion Leaders Opinion Leaders Direct or indirect influence Direct or indirect influence Word of mouth Word of mouth

Reference Groups Formal and informal groups that influence the buying behavior of the individual Formal and informal groups that influence the buying behavior of the individual Two broad classifications Two broad classifications Primary Primary Secondary Secondary Three types Three types Membership group Membership group Aspiration group Aspiration group Dissociative group Dissociative group Source:

Family Influence Consumer Socialization Consumer Socialization Family Life Cycle Family Life Cycle Family Decision Making Family Decision Making Source:

Social Class Divisions within society along values, interests, and behavioral lines Divisions within society along values, interests, and behavioral lines Upper, middle, and lower classes Upper, middle, and lower classes Share certain characteristics Share certain characteristics

Culture/Subculture Subcultures are divisions of people with homogenous characteristics Subcultures are divisions of people with homogenous characteristics Age groups Age groups Ethnic groups Ethnic groups