1. 6
CONSUMER BEHAVIOR
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2. Consumer Behavior Articulate the steps in the consumer buying process.
Describe the difference between functional and psychological needs.
Describe factors that affect information search.
Discuss postpurchase outcomes.
List the factors that affect the consumer decision process.
Describe how involvement influences the consumer decision process.
LO1
LO2
LO3
LO4
LO5
LO6

3. The Consumer Decision Process
Post purchase
Purchase
Alternative evaluation
Information search
Need recognition

4. Need Recognition Functional needs Psychological needs
Royalty-Free/CORBIS
Psychological needs
©Digital Vision/PunchStock

5. Search for Information
Internal Search for Information
External Search for Information
Courtesy of Refinery29.com.

6. Factors Affecting Consumers’ Search Process
Perceived
Benefits
Perceived
Costs

7. The Locus of Control
Internal Locus of Control = more search activities
Royalty-Free/CORBIS
External Locus of Control = Fate, external factors
©Comstock/JupiterImages

8. Actual or Perceived Risk
Performance risk
Financial risk
Social risk
Physiological risk
Psychological risks

9. Evaluation of Alternatives: Attribute Sets
Universal
Retrieval
Evoked

10. Evaluation of Alternatives: Evaluate Criteria
Evaluative Criteria
Determinant Attributes
Digital Vision/Getty Images
What are some of the features of a vacation that would be in your evaluative criteria?

11. Purchase and Consumption
Increase Conversion rate
Reduce real or virtual abandoned carts
Merchandise in stock
Reduce the actual wait time
Handout/MCT/Newscom.

12. Post-purchase: Customer Satisfaction Dissonance Customer Loyalty
Undesirable Consumer Behavior

13. CHECK YOURSELF Name the five stages in the consumer decision process.
What is the difference between a need and a want?
Distinguish between functional and psychological needs.
What are the various types of perceived risk?
What are the differences between compensatory and noncompensatory decision rules?
How do firms enhance postpurchase satisfaction and reduce cognitive dissonance?

14. Factors Influencing the Consumer Decision Process
Product
Price
Place
Promotion
Marketing mix
Motives
Attitudes
Perceptions
Learning
Lifestyle
Psychological factors
Consumer
Decision
Process
Family
Reference groups
Culture
Social factors
Purchase situation
Shopping situation
Temporal state
Situational factors

15. CHECK YOURSELF
What are the types of needs suggested by Maslow’s Hierarchy of Needs?
Which social factors likely have the most influence on (a) the purchase of a new outfit for a job interview and (b) the choice of a college to attend?
List some of the tactics stores can use to influence consumers’ decision processes.

16. Involvement and Consumer Buying Decisions
Message (e.g., Ad)
High involvement
Low involvement
• Greater attention
• Deeper processing
• Less attention
• Peripheral processing
Develops
strong attitudes
and purchase
intentions
Generates weak
attitudes and
increased use
of cues

17. Types of Buying Decisions
Extended Problem Solving
Limited Problem Solving
Impulse Buying
Habitual Decision Making

18. CHECK YOURSELF
How do low versus high involvement consumers process information in an advertisement?
What is the difference between extended versus limited problem solving?

19. Glossary
An attitude is a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea.

20. Glossary
Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.

21. Glossary
Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

22. Glossary
Evaluative criteria consist of a set of salient, or important, attributes about a particular product.

23. Glossary
A consumer’s evoked set comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

24. Glossary
Extended problem solving occurs during a purchase decision that calls for a lot of effort and time.

25. Glossary
Functional needs pertain to the performance of a product or service.

26. Glossary
Habitual decision making describes a purchase decision process in which consumers engage little conscious effort.

27. Glossary
Impulse buying is a buying decision made by customers on the spot when they see the merchandise.

28. Glossary
Involvement is the consumer’s degree of interest in the product or service.

29. Glossary
Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time.

30. Glossary
Perception is the process by which we select, organize, and interpret information to form a meaningful picture of the world.

31. Glossary
Psychological needs pertain to the personal gratification consumers associate with a product and/or service.

32. Glossary
Retrieval sets are the brands or stores that can be readily brought forth from memory.

33. Glossary
Ritual consumption is a pattern of behaviors tied to life events that affect what and how we consume.

34. Glossary
Shopping goods/services are products or services for which consumers will spend time comparing alternatives.

35. Glossary
Situational factors are factors specific to the situation.

36. Glossary
Specialty goods/services are products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers.

37. Glossary
Universal sets include all possible choices for a product category.