3 consumer behavior

7/31/2019 3 Consumer Behavior

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3-1

Consumer purchase process

Consumer buying environment

Traditional factors affecting

consumer buying

Recent trends in consumerbehavior

Discussion Slide

Consumer Buying Behavior

3


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3-2

Consumer Decision-Making

Process


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3-3

Information Search

Internal search

Evoked setExternal search


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3-4

External Search

Ability to search

Motivation

Level of involvementNeed for cognition

Shopping enthusiasm

Perceived cost

Perceived benefit


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3-5

Attitude

Affective

Cognitive

Conative


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3-6

Attitude Sequence

Cognitive Affective Conative

Affective Conative Cognitive

Conative Cognitive Affective


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3-7

Information Processing

Elaboration Likelihood Model (ELM)

Central route

Peripheral route Route depends on

Motivation

Ability


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3-8

Cognitive Map for Ruby Tuesdays


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3-9

Principles concerning processing of

information and cognitive mapping. Cognitive mapping enhances movement of

messages from short-term memory to long-term

memory. Most persuasive messages reinforce current

linkages.

Repetition is necessary to establish new linkages.

Difficult to modify or create new linkages.


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3-10

Evaluation of Alternatives

Evoked set method.

Evoked set

Inept set

Inert set

Multiattribute approach.

Affect referral


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3-11

Alternative Purchase Decisions

Temporary change in consumers situation.

Desire for variety.

Impulse purchase.

Marketing communication material.

Influence of friend or relative.


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3-13

Traditional factors affecting

consumer purchasing behaviors

Demographics (age, gender, income, etc.)

Heredity and home environment

Family life cycle

Life changing events

Cultural environment

Social environment Situational environment


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3-14

Common Reasons Purchases

Are Made

Products/services provide utility

To satisfy physical needs

To satisfy psychological needs To satisfy social needs

To satisfy emotional needs

To satisfy epistemic needs


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3-15

Recent Trends Affecting

Consumer Buying Behavior Changes in cultural values and attitudes

Time pressure and busy lifestyle

Cocooning

Indulgences and pleasure binges

Desire for excitement, fantasy

Emphasis on health

Clanning


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OPINION LEADERSHIP & INNOVATION 16

Diffusion Process

The process by which the acceptance of an

innovation is spread by communication to

members of social system over a period of

time.


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Adoption Process

The stages through which an individual

consumer passes in arriving at a decision to

try (or not to try), to continue using (or

discontinue using) a new product.


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Elements of the Diffusion Process

The Innovation

The Channels of Communication

The Social System

Time


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Factors Affecting the Spread of

Innovations

High

observability

Rapid

diffusion

Lowrisk

Low

complexity

Large relative

advantage

High

compatibility

Strong felt

need

Extensive

marketing

effort

Individualadoption

decision

Change-prone

target market

Easy trial


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Time and Diffusion

Purchase Time

Adopter Categories

Rate of Adoption


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Adopter Categories

Innovators

2.5%

Early

Adopters

13.5%

Laggards

16%

Percentage of Adopters by Category Sequence

Early

Majority

34%

Late

Majority

34%


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Stages in Adoption Process

Awareness

Interest

Evaluation Trial

Adoption


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Stages in Adoption Process

Awareness

Consumer is first exposed to the product innovation.

Interest Consumer is interested in the product and searches for additional

information.

Evaluation Consumer decides whether or not to believe that this product or

service will satisfy the need--a kind of mental trial.

Trial

Consumer uses the product on a limited basis

Adoption If trial is favorable, consumer decides to use the product on a full,

rather than a limited basis--if unfavorable, the consumer decides toreject it.


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Adoption Process & Extended Decision Making


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Issues in Profiling Consumer Innovators

Defining the Consumer Innovator

Interest in the Product Category

The Innovator Is an Opinion Leader

Personality Traits

Media Habits

Social Characteristics

Demographic Characteristics Are There Generalized Consumer Innovators?

3 consumer behavior

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