l4 cons beh - 19-01-10
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Consumer
Buying Behavior
January 19, 2010January 19, 2010
Lecture GoalsLecture Goals
• Factors used to explain consumer behavior• Consumers decision-making process• Influences affecting consumers’ decisions
What Is Consumer Behavior?
Activities people undertake when obtaining, consuming, and disposing of products and
services
Obtaining Consuming Disposing
ConsumerInfluences
OrganizationalInfluences
Consumer Behavior
Consumer Influences
Organizational Influences
Culture Ethnicity
Personality Family
Life-stage Values
Income Available Resources
Attitudes OpinionsFeelings
Motivations Past Experiences
Peer GroupsKnowledge
Brand Product FeaturesAdvertising Word of Mouth
Promotions Retail Displays
Price Quality
Service Store Ambiance
Convenience Loyalty ProgramsPackaging
Product Availability
Obtaining Consuming Disposing
· How you decide
you want to buy
· Other products you consider
buying
· Where you buy
· How you pay for
product
· How you transport
product home
· How you use the product
· How you store the product in your
home
· Who uses the product
· How much you consume
· How product compares with
expectations
· How you get rid of
remaining product
· How much you throw away after
use
· If you resell items
yourself or through a
consignment store
· How you recycle some products
What Is Consumer Behavior?
Activities people undertake when obtaining, consuming, and disposing of products and
services
A field of study that focuses on consumer activities
Scope goes beyond just why and how people buy to include
consumption analysis
Consumption Analysis
Why and how people use products in addition to why and how they
buy
Consumer Decision Process Stages
Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Post-consumption Evaluation
Divestment
Pre-purchase Evaluation of Alternatives
Consumer Decision Process ModelNeed Recognition
Need Recognition
An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs
Need Recognition
Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems
Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively
Need Recognition
Individual Differences- Consumer Resources
- Motivation- Knowledge- Attitudes
- Personality, Values, and Lifestyle
Environmental Influences- Culture
- Social Class- Personal Influence
- Family - Situation
MEMORY
Need Recognition
Consumer Decision Process ModelNeed Recognition
Search for Information
Search for Information
Internal search: retrieving know-ledge from memory
External search: collecting informa-tion from peers, family, and the marketplace
SearchInternal
Search
MEMORY
Individual Differences
Environ- mental
Influences
Need Recognition
Attention
Comprehension
Acceptance
Retention
Exposure
CDP Model
Stimuli
Search for Information
Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior
Search refers to a receptivity of information that solves problems or needs rather than a search for
specific products
Search for Information
Need Recognition
Search
External Search
Internal Search
MEMORY
Individual Differences
Environmental Influences
Search: Sources of Information
Marketer Dominated
Non-Marketer Dominated Stimuli
- Advertising
- Salespeople
- Infomercials
- Websites
- Point-of-sales materials
Search: Sources of Information
Marketer Dominated
- Friends
- Family
- Opinion leaders
- Media
Search: Sources of Information
Non-Marketer Dominated Stimuli
Information Processing
As consumers are exposed to information from external search, they begin to process the stimuli
Information Processing
M EMORY
Attention
Comprehension
Acceptance
Retention
Exposure
Stimuli:- Marketer
Dominated- Non-marketer
Dominated
Consumer Decision Process ModelNeed Recognition
Search for Information
Pre-purchase Evaluation of Alternatives
Pre-purchase Evaluation of Alternatives
SearchInternal
Search
MEMORY
Individual Differences
Environ- mental
Influences
Need Recognition
Attention
Comprehension
Acceptance
Retention
Exposure
CDP Model
Stimuli
Pre-purchase Evaluation of Alternatives
The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the
consumer
Pre-purchase Evaluation of Alternatives
Can use new or preexisting evaluations stored in memory
Evaluative criteria: standards and specifications used to compare different products and brands
Alternative can be considered on attributes that are salient or determinant
Pre-purchase Evaluation of Alternatives
Salient attributes such as price and reliability are important to the consumer
Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose
Pre-purchase Evaluation of Alternatives
Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Pre-purchase Evaluation of Alternatives
Pre-purchase Evaluation of Alternatives
SearchInternal
Search
MEMORY
Individual Differences
Environ- mental
Influences
Need Recognition
Attention
Comprehension
Acceptance
Retention
Exposure
CDP Model
Stimuli
Purchase
Purchase
Acquisition of the product that involves choosing a specific retailer, and in-store choices
Purchase
Acquisition of the product that involves choosing a specific retailer, and in-store choices
Purchase intention can change during the purchase stage—it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources
Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Pre-purchase Evaluation of Alternatives
Pre-purchase Evaluation of Alternatives
SearchInternal
Search
MEMORY
Individual Differences
Environ- mental
Influences
Need Recognition
Attention
Comprehension
Acceptance
Retention
Exposure
CDP Model
Stimuli
Purchase
Consumption
Consumption
The process of using the product or service purchased
Consumption can either occur immediately or be delayed
Consumption
The process of using the product or service purchased
Consumption can either occur immediately or be delayed
How consumers use a product affects satisfaction with product
How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed
An Emotional Appeal in Product Consumption
Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Post-consumption Evaluation
Pre-purchase Evaluation of Alternatives
Pre-purchase Evaluation of Alternatives
SearchInternal
Search
MEMORY
Individual Differences
Environ- mental
Influences
Need Recognition
Attention
Comprehension
Acceptance
Retention
Exposure
CDP Model
Stimuli
Purchase
Consumption
Post-consumption Evaluation
External Search
SatisfactionDissatisfaction
Post-consumption Evaluation
Consumption is an important determinant of satisfaction
Satisfaction: when consumers’ expectations are matched by perceived performance
Dissatisfaction: when experiences and performance fall short of expectations
Post-Consumption Evaluation
Cognitive dissonance: questioning the purchase decision (post-purchase regret)
Usually, the higher the price, the higher the level of cognitive dissonance
Emotion strongly affects the evaluation of a product or transaction
Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Post-consumption Evaluation
Divestment
Pre-purchase Evaluation of Alternatives
Pre-purchase Evaluation of Alternatives
SearchInternal
Search
MEMORY
Individual Differences
Environ- mental
Influences
Need Recognition
Attention
Comprehension
Acceptance
Retention
Exposure
CDP Model
Stimuli
Purchase
Consumption
Post-consumption Evaluation
External Search
SatisfactionDissatisfaction
Divestment
Divestment
How consumers dispose of the packaging or product after use
Options include:DisposalRemarketing or resellingRecycling
How Customers Dispose of Products