2. Chapter 6 Consumer Behavior

3. Objectives bUnderstand basic model of CB bUnderstand decision making process bAppreciate risk, choice criteria, satisfaction, dissonance bRecognize influence of individual factors bUnderstand role of culture & subculture bIdentify social class influences bRecognize influence of reference groups bKey aspects of joint decision making

4. Behavioral Fundamentals: B = ƒ(P,E) Personal interaction Environment + Behavior

5. Environmental Forces Individual Factors The Decision Making Process Culture Sub- culture SES Reference groups Motives Perception Information processing Family Social values, norms, roles Situations Marketing mix Learning Attitudes Personality

6. Decision Making: Situations Less Involvement More Involvement Routine Response Behavior Routine Response Behavior Limited Decision Making Limited Decision Making Extensive Decision Making Extensive Decision Making

7. Decision Making Process Problem recognition

8. Decision Making: Problem Recognition & Involvement High Involvement Low Involvement Problem id Info search EvalChoice Problem id Limited search Choice Consume Limited Eval No buy: Stop/Restart Buy: Consume/Eval

9. The Decision Making Process Problem recognition Information search bLevel of perceived risk bPerformance risk bFinancial risk bPhysical risk bSocial risk bTime-loss risk

10. The Decision Making Process Problem recognition Information search bInformation Search bInternal search bExternal search bTime bEffort bMoney

11. Decision Making Process Problem recognition Information search Alternative evaluation bChoice criteria bFeatures bComplexity Performance Lots of storage Variety of colors Safety

12. Decision Making Process Problem recognition Information search Alternative evaluation Purchase decision Post-purchase consumption & evaluation bPurchase satisfaction and dissatisfaction bCognitive dissonance

13. Simple model of motivated behavior Goal-directed search for incentive causing SatisfactionDissatisfaction yielding Stimulus acts upon Basic need creating Motive resulting in Response behavior

14. Individual Factors: Maslow’s Hierarchy of Needs Physiological Safety Social Esteem Self-Actualization

15. Individual Factors: Perception bSelective perception bSelective exposure bSelective attention bSelective interpretation bStimulus factor bContext bIndividual factor That fish was at least 8 pounds

16. “Any change in behavior or cognition resulting from experience or interpretation of experience.” Individual Factors:Learning

17. Attitudes CognitionAffect Behavior AttitudeTraditional Modern CognitionAffect Behavioral intentions

18. Individual Influences on the Decision-making Process bPersonality bSelf concept bthe real self bthe ideal self

19. Interpersonal Influences on the Decision-making Process bSocial values, norms, role bCulture bSubculture bSocial class bReference groups bFamily bSocial situations

20. Review bUnderstand basic model of CB bUnderstand decision making process bAppreciate risk, choice criteria, satisfaction, dissonance bRecognize influence of individual factors bUnderstand role of culture & subculture bIdentify social class influences bRecognize influence of reference groups bKey aspects of joint decision making