Consumer BehaviorConsumer Behavior

Chapter 6Chapter 6

What is Consumer What is Consumer Behavior?Behavior?

““Describes how consumers make Describes how consumers make purchase decisions and how they use purchase decisions and how they use and dispose of goods and services, and dispose of goods and services, and also analyzes the factors that and also analyzes the factors that influence purchase decisions.”influence purchase decisions.”

The Decision-Making The Decision-Making ProcessProcess

Problem Recognition

Information Search

Evaluation of Alternatives

Purchase

Post-Purchase Behavior

Problem RecognitionProblem Recognition Difference between ideal state and Difference between ideal state and

actual stateactual state NikeNike

CollegeCollege

Information SearchInformation Search Internal SearchInternal Search External SearchExternal Search How much research?How much research?

Perceived riskPerceived risk KnowledgeKnowledge Prior experiencePrior experience InterestInterest

What resources aided you in choosing a What resources aided you in choosing a college?college?

Evaluation of Alternatives Evaluation of Alternatives Evaluative criteriaEvaluative criteria

Leads to the Formation of an Evoked SetLeads to the Formation of an Evoked Set

CollegeCollege

Purchase DecisionsPurchase Decisions Where to buy?Where to buy?

When to buy?When to buy?

Post-purchase BehaviorPost-purchase Behavior Expectation comparisonExpectation comparison ““Buyers remorse”Buyers remorse”

Post-purchase anxietyPost-purchase anxiety Cognitive dissonanceCognitive dissonance

Can marketers do anything about it?Can marketers do anything about it?

InvolvementInvolvement High v. Low InvolvementHigh v. Low Involvement

HighHigh LowLow

Routine Problem SolvingRoutine Problem Solving MilkMilk

Limited Problem SolvingLimited Problem Solving RestaurantRestaurant

Extended Problem SolvingExtended Problem Solving CarsCars

Involvement & MarketingInvolvement & Marketing Low InvolvementLow Involvement

LeaderLeader Make quality product available and advertise itMake quality product available and advertise it

ChallengersChallengers Break buying behaviorsBreak buying behaviors

High InvolvementHigh Involvement LeadersLeaders

Make info availableMake info available ChallengersChallengers

Comparative advertisingComparative advertising

Situational InfluencesSituational Influences Purchase taskPurchase task Social surroundingsSocial surroundings Physical surroundingsPhysical surroundings Temporal effectsTemporal effects Antecedent statesAntecedent states

Psychological InfluencesPsychological Influences MotivationMotivation PersonalityPersonality PerceptionPerception LearningLearning Values, Beliefs & AttitudesValues, Beliefs & Attitudes LifestyleLifestyle

Motivation & PersonalityMotivation & Personality Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

Must tune products to specific need-levelMust tune products to specific need-level

PersonalityPersonality ““A person’s consistent behaviors or A person’s consistent behaviors or

responses to recurring situations.”responses to recurring situations.” National characterNational character Self—conceptSelf—concept

Actual self v. Ideal selfActual self v. Ideal self

PerceptionPerception ““The process by which an The process by which an

individual selects, individual selects, organizes, and interprets organizes, and interprets information to create a information to create a meaningful picture of the meaningful picture of the world.”world.”

Selective perceptionSelective perception Exposure v. comprehension Exposure v. comprehension

v. retentionv. retention Subliminal perceptionSubliminal perception

Perceived riskPerceived risk

Source: http://www.impactlab.net

LearningLearning Behavioral (Experiential) LearningBehavioral (Experiential) Learning

Drive + Cue + Response Drive + Cue + Response → Reinforcement→ Reinforcement

Cognitive (Conceptual) LearningCognitive (Conceptual) Learning Making a connection between two or more ideasMaking a connection between two or more ideas

Brand LoyaltyBrand Loyalty

Top 20 Most Desired Brands- Top 20 Most Desired Brands- MenMen

1. Crest 1. Crest 2. BMW2. BMW3. National Geographic 3. National Geographic 4. Panasonic4. Panasonic5. Hyundai 5. Hyundai 6. Kleenex 6. Kleenex 7. Coca-Cola 7. Coca-Cola 8. Microsoft 8. Microsoft 9. Tide9. Tide10. Lexus10. Lexus

11. Apple11. Apple12. Bed Bath & Beyond 12. Bed Bath & Beyond 13. Ford 13. Ford 14. Animal Planet14. Animal Planet15. Hitachi 15. Hitachi 16. Mercedes-Benz 16. Mercedes-Benz 17. FedEx 17. FedEx 18. Proctor & Gamble 18. Proctor & Gamble 19. Hallmark 19. Hallmark 20. Geico20. Geico

Source: http://www.walletpop.com/2011/02/02/women-are-from-amazon-men-are-from-geico-worlds-most-desired/

Top 20 Most Desired Brands- Top 20 Most Desired Brands- WomenWomen

1. Johnson & Johnson 1. Johnson & Johnson 2. Sony2. Sony3. Kleenex 3. Kleenex 4. National Geographic4. National Geographic5. MasterCard 5. MasterCard 6. Google6. Google7. Amazon 7. Amazon 8. Visa 8. Visa 9. General Electric9. General Electric10. Toshiba10. Toshiba

11. Crest11. Crest12. Microsoft 12. Microsoft 13. Disney13. Disney14. Target14. Target15. Tropicana 15. Tropicana 16. BMW 16. BMW 17. Febreze 17. Febreze 18. Ford 18. Ford 19. Olay 19. Olay 20. Chase20. Chase

Source: http://www.walletpop.com/2011/02/02/women-are-from-amazon-men-are-from-geico-worlds-most-desired/

Brand Loyalty- College Brand Loyalty- College StudentsStudents

Brand Keys Inc. surveyBrand Keys Inc. survey Based on Customer Loyalty Index (16,000 Based on Customer Loyalty Index (16,000

people)people) Looked at students’ habits before and after Looked at students’ habits before and after

graduation graduation Almost 5,000 students and post-grads Almost 5,000 students and post-grads

surveyedsurveyed Students’ attitudes changed because of Students’ attitudes changed because of

new environment and more incomenew environment and more income

Brand Loyalty-College Brand Loyalty-College StudentsStudents

ResultsResults Most loyal toMost loyal to Least loyal to Least loyal to Other notables:Other notables:

Values, Beliefs, & AttitudesValues, Beliefs, & Attitudes ValuesValues

What is important?What is important? BeliefsBeliefs

““An organized pattern of knowledge that an An organized pattern of knowledge that an individual holds as true.”individual holds as true.”

AttitudesAttitudes ““Learned tendency to respond consistently Learned tendency to respond consistently

toward a given object.”toward a given object.” Shaped by beliefs and valuesShaped by beliefs and values

Involvement & Psychological Involvement & Psychological InfluencesInfluences

Decision-making- High-involvementDecision-making- High-involvement Beliefs → attitude → behaviorBeliefs → attitude → behavior

Decision-making- Low-involvementDecision-making- Low-involvement Beliefs → behavior → affectBeliefs → behavior → affect

LifestyleLifestyle Based on people’s Based on people’s

activities, interests, activities, interests, and opinionsand opinions

VALS programVALS program Discusses 8 Discusses 8

lifestyleslifestyles Based on resources Based on resources

and self-orientationand self-orientation Action, principles, Action, principles,

and statusand status

Source: http://www.e-flux.com

Sociocultural InfluencesSociocultural Influences Personal influencePersonal influence Reference groupsReference groups FamilyFamily Social classSocial class Culture/SubcultureCulture/Subculture

Personal InfluencePersonal Influence Opinion LeadersOpinion Leaders

Direct or indirect influenceDirect or indirect influence

Word of mouthWord of mouth

Reference GroupsReference Groups Formal and informal Formal and informal

groups that influence the groups that influence the buying behavior of the buying behavior of the individualindividual

Two broad classificationsTwo broad classifications PrimaryPrimary SecondarySecondary

Three typesThree types Membership groupMembership group Aspiration groupAspiration group Dissociative groupDissociative group

Source: http://wwwinsidesocal.com

Family InfluenceFamily Influence Consumer Consumer

SocializationSocialization

Family Life CycleFamily Life Cycle

Family Decision Family Decision MakingMaking

Source: http://foodhelp.wa.gov

Social ClassSocial Class Divisions within society along values, Divisions within society along values,

interests, and behavioral linesinterests, and behavioral lines Upper, middle, and lower classesUpper, middle, and lower classes Share certain characteristicsShare certain characteristics

Culture/SubcultureCulture/Subculture Subcultures are divisions of people Subcultures are divisions of people

with homogenous characteristicswith homogenous characteristics Age groups Age groups Ethnic groups Ethnic groups