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Discussion Slide

Consumer Buying Behavior

Consumer purchase process Consumer buying environment Traditional factors affecting consumer buying Recent trends in consumer behavior

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Consumer Decision-Making Process

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Information Search
Internal search Evoked set External search

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External Search
Ability to search Motivation
Level of involvement Need for cognition Shopping enthusiasm

Perceived cost Perceived benefit

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Attitude
Affective Cognitive Conative

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Attitude Sequence
Cognitive Affective Conative Affective Conative Cognitive Conative Cognitive Affective

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Information Processing
Elaboration Likelihood Model (ELM)
Central route Peripheral route

Route depends on
Motivation Ability

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Cognitive Map for Ruby Tuesdays

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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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Evaluation of Alternatives
Evoked set method.
Evoked set Inept set Inert set

Multiattribute approach. Affect referral

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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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Postpurchase Evaluation
Evaluation of product performance. Cognitive dissonance. Impacts future purchases. Impacts word-of-mouth communications.

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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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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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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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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

Low risk
High observability Low complexity Easy trial Change-prone target market

Rapid diffusion

Individual adoption decision Extensive marketing effort

Large relative advantage

High compatibility

Strong felt need

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Time and Diffusion

Purchase Time Adopter Categories Rate of Adoption

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Adopter Categories
A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.

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Adopter Categories

Early Adopters 13.5% Innovators 2.5%

Laggards

Early Majority 34%

Late Majority 34%

16%

Percentage of Adopters by Category Sequence

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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 to reject 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?

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