1. CHAPTER
CONSUMER BEHAVIOR

2. Consumer Behavior Consumer behavior - the actions a person takes
in purchasing and using products and services,
including the mental and social processes
that come before and after these actions.

3. Purchase Decision Process
Post-purchase Behavior
Assess value in consumption
Purchase
Buying value
Evaluation of Alternatives
Assessing value
Information Search
Seeking a value
Need Recognition
Perceiving a value
Cultural, Social, Individual and
Psychological Factors affect all steps

4. Need Recognition Internal Stimuli and External Stimuli Marketing helps
consumers
recognize an
imbalance between
present status and
preferred state
Internal Stimuli
and
External Stimuli
Present
Status
Preferred
State

5. Information Search: Seeking Value
Internal Search-
Recall information from memory
External Search
information from outside environment
Non-marketing controlled
Marketing controlled

6. FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players

7. Alternative Evaluation Analyze product attributes
Consideration Set
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!

8. Post-purchase Behavior-
Cognitive Dissonance
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.
Can minimize through:
Effective Communication
Follow-up
Guarantees Warranties
Cognitive Dissonance ?
Marketing
Did I make a good decision?
Did I buy the right product?
Did I get a good value?

9. Involvement and Problem-Solving Variations
More
Involvement
Less
Routine
Response
Behavior
Limited
Decision
Making
Extensive

10. Comparison of problem-solving variations

11. When to use Routine Response Behavior
Little involvement in selection
process
Frequently purchased low cost
goods
May stick with one brand
Buy first/evaluate later
Quick decision

12. When to use Limited Decision Making
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide

13. When to use Extensive Decision Making
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive
dissonance

14. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
Motivation – what stimulates behavior to satisfy a need
Maslow’s Hierarchy of Needs

15. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
Perception
Selective Exposure
Selective Comprehension
Selective Retention
Consumer pays attention to certain stimuli and ignores others
Consumer interprets info so that is is consistent with his beliefs
Average consumer only remembers
30% of information heard

16. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
Perceived Risk
Obtain Seals of Approval
Secure Endorsements from Influential People
Provide Free Trials of the Product
Give Extensive Usage Instructions
Provide Warranties and Guarantees

17. How do consumers make purchase decisions?
Psychographics – the analysis of people’s lifestyles
VALS™
Consumer
Segments

18. Sociocultural Influences on Consumer Behavior
Reference Groups
Opinion Leaders
Family Members
Social Influences on Buying Decisions

19. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
Primary
Secondary
Aspirational
Reference
Groups
Direct –
Face
to face
Indirect-
No Personal Contact
Dissociative

20. Why use celebrity spokespersons?
Opinion Leaders

21. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
Family Life Cycle

22. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
Family Decision Making
Information Gatherer
Purchaser
Decision Maker
Influencer
User
Members assume different roles for different products
Men’s clothes?
Breakfast cereal?
Computer?

23. Consumer Behavior
Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.

24. Purchase Decision Process
The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.

25. Involvement
Involvement consists of the personal, social, and economic significance of the purchase to the consumer.

26. Motivation
Motivation is the energizing force that stimulates behavior to satisfy a need.

27. Perception
Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

28. Perceived Risk
Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.

29. Learning
Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.

30. Brand Loyalty
Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.

31. Attitude
An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

32. Beliefs
Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.

33. Opinion Leaders
Opinion leaders are individuals who exert direct or indirect social influence over others.

34. Family Life Cycle
The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors.