1 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 Chapter Six: Consumer Behavior

2 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-1 Purchase Decision Process Postpurchase behavior: Value in consumption of user Purchase decision: Buying value Alternative evaluation: Assessing value Alternative evaluation: Assessing value Information search: Seeking value Problem recognition: Perceiving need Problem recognition: Perceiving need

3 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-B Consumer involvement, knowledge, and problem-solving variations Routine problem solving (e.g., milk and bread) Routine problem solving (e.g., milk and bread) Limited problem solving (e.g., small appliances) Limited problem solving (e.g., small appliances) Extended problem solving (e.g., stocks and bonds) Extended problem solving (e.g., stocks and bonds) Consumer involvement Consumer knowledge High Low

4 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 High Low Characteristics ofExtendedLimitedRoutine purchase decisionproblemproblemproblem processsolvingsolvingsolving High Low Characteristics ofExtendedLimitedRoutine purchase decisionproblemproblemproblem processsolvingsolvingsolving Number of brands ManySeveralOne examined Number of brands ManySeveralOne examined Number of sellers ManySeveralFew concerned Number of sellers ManySeveralFew concerned Number of product ManyModerateOne attributes evaluated Number of product ManyModerateOne attributes evaluated Number of external ManyFewNone information sources used Number of external ManyFewNone information sources used Time spent searchingConsiderableLittleMinimal Consumer Involvement ES6-3 Comparison of problem-solving variations

5 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-B Consumer involvement, knowledge, and problem-solving variations Routine problem solving (e.g., milk and bread) Routine problem solving (e.g., milk and bread) Limited problem solving (e.g., small appliances) Limited problem solving (e.g., small appliances) Extended problem solving (e.g., stocks and bonds) Extended problem solving (e.g., stocks and bonds) Consumer involvement Consumer knowledge High Low

6 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-4 Influences on the consumer purchase decision process Marketing mix influences ProductProduct PricePrice PromotionPromotion PlacePlace Promotion Influences Purchase taskPurchase task Social surroundingsSocial surroundings Physical surroundingsPhysical surroundings Temporal effectsTemporal effects Antecedent statesAntecedent states Problem recognition Information search Alternative evaluation Purchase decision Postpurchase behavior Consumer Decision Process Psychological Influences MotivationMotivation PersonalityPersonality PerceptionPerception LearningLearning Values, beliefs and attitudeValues, beliefs and attitude LifestyleLifestyle Sociocultural Influences Personal influencePersonal influence Reference groupsReference groups FamilyFamily Social classSocial class CultureCulture SubcultureSubculture

7 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-C Selective perception filters Messages Selective exposure Selective comprehension Selective retention

8 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-D Brand loyalty tendency by product category (Percent of U.S. consumers with strong brand preference) Mayonnaise Soft drinks Bar soap Canned soup Cigarettes Baked macaroni & cheese Dry cereals Spaghetti sauce Pain relievers Toilet paper Facial tissue Cold remedies Dog food Cake mix Paper towels Frozen vegetables Frozen entries Cat food

9 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-E Word of mouth influence (Percent of men and women who seek advice regarding selected products and services) 50% 40% 30% 20% 10% Men Women Men Women Men Women Men Women Men Women Car mechanic Where to eat out What movies to see What car to buy Where to get hair cut 40% 49% 39% 38% 26% 28% 15% 22% 10% 24%

10 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-7 Modern family life cycle Young single Middle-aged divorced without children Middle-aged married without children Young divorced with children Young married without children Young married with children Middle-aged divorced with children Middle-aged divorced without dependent children Young divorced without children Usual flow Recycled flow Traditional family flow Middle-aged married with children Middle-aged married without dependent children Older married Older unmarried

11 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-F Where children between the ages of 5 and 14 spend $165 billion annually 28% Play items 30% Food and beverages 15% Clothes 9% Video arcades 11% Movies, videos & sports 7% Other

12 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-G Ownership of consumer electronics among African-Americans, Hispanics, and Asian-Americans Percent owning among.... Product VCR Answering machine Compact disk player Personal computer Camcorder Cellular telephone VCR Answering machine Compact disk player Personal computer Camcorder Cellular telephone African- Americans African- Americans 73.5% % Hispanics 73.1% % Asian- Americans Asian- Americans 89.4% %

13 ©IRWIN a Times Mirror Higher Education Group, Inc., company 1997 ES6-A Proportion of marketing budget spent on attracting new customers vs. retaining current customers among U.S. companies % Customer Attraction 46% Customer Retention 45% Customer Attraction 55% Customer Retention