Post on 26-Dec-2015
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.
Post-purchase Behavior Assess value in consumption Post-purchase Behavior Assess value in consumption
PurchaseBuying valuePurchase
Buying value
Evaluation of AlternativesAssessing value
Evaluation of AlternativesAssessing value
Information SearchSeeking a value
Information SearchSeeking a value
Need RecognitionPerceiving a value
Need RecognitionPerceiving a value
Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological
Factors Factors affect affect
all stepsall steps
Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological
Factors Factors affect affect
all stepsall steps
Purchase Decision Process
Internal StimuliInternal Stimuliandand
External StimuliExternal Stimuli
Present Status
Preferred State
Marketing helps consumers
recognize an imbalance between present status and
preferred state
Need Recognition
Information Search: Seeking Value
Internal Search- Recall information from memory
External Searchinformation from outside
environment
Non-marketing controlledMarketing controlled
Consideration Consideration SetSet
Purchase!Purchase!
Analyze product attributesAnalyze product attributesAnalyze product attributesAnalyze product attributes
Rank attributes byRank attributes byimportanceimportance
Rank attributes byRank attributes byimportanceimportance
Use cutoff criteriaUse cutoff criteriaUse cutoff criteriaUse cutoff criteria
Alternative Evaluation
Post-purchase Behavior-Cognitive Dissonance
Inner tension that a consumer experiences after recognizing
an inconsistency between behavior and values or opinions.
Cognitive Cognitive DissonanceDissonance
??Did I make a good decision?Did I make a good decision?
Did I buy the right product?Did I buy the right product?
Did I get a good value?Did I get a good value?
Can minimize through:Can minimize through:Effective CommunicationEffective Communication
Follow-upFollow-upGuaranteesGuaranteesWarrantiesWarranties
Involvement and Problem-Solving Variations
More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
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
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
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
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
Motivation – what stimulates behavior to satisfy a need
Maslow’s Hierarchy of Needs
PSYCHOLOGICAL INFLUENCESON CONSUMER BEHAVIOR
• Perception
Selective ExposureSelective Exposure
SelectiveComprehension
SelectiveComprehension
Selective Retention Selective Retention
Consumer pays attention to certain stimuli and ignores others
Consumer pays attention to certain stimuli and ignores others
Consumer interprets info so that is is consistent with his beliefs
Consumer interprets info so that is is consistent with his beliefs
Average consumer only remembers30% of information heard
Average consumer only remembers30% of information heard
PSYCHOLOGICAL INFLUENCESON 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
How do consumers make purchase decisions?
Psychographics – the analysis of people’s lifestyles
VALS™ Consumer Segments
Reference Groups
Reference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily
Members
Social Influences on Buying Decisions
Social Influences on Buying Decisions
Sociocultural Influences on Consumer Behavior
Primary
Secondary
Aspirational
Reference Reference GroupsGroups
Direct – Face to face
–
SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
Indirect-No Personal Contact
Dissociative
Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
Family Decision Making
• Information Gatherer
• Influencer
• Decision Maker• Purchaser
• User
SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
Members assume different roles for different products
Men’s clothes?Breakfast cereal?Computer?
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.
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.
Purchase Decision Process
The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.
The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.
Involvement
Involvement consists of the personal, social, and economic significance of the purchase to the consumer.
Involvement consists of the personal, social, and economic significance of the purchase to the consumer.
Motivation
Motivation is the energizing force that stimulates behavior to satisfy a need.Motivation is the energizing force that stimulates behavior to satisfy a need.
Perception
Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
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.
Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.
Learning
Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.
Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.
Brand Loyalty
Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
Attitude
An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”
An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”
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.
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.
Opinion leaders are individuals who exert direct or indirect social influence over others.
Opinion leaders are individuals who exert direct or indirect social influence over others.
Opinion Leaders
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.
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.
Family Life Cycle