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Consumer Behavior

The process and the activities that people


engage in when searching for, selecting,
purchasing, using, evaluating, and disposing
of products and services so as to satisfy their
needs and wants.

The Consumer Decision


Process
Problem
Problem Recognition
Recognition
Information
InformationSearch
Search
Alternative
AlternativeEvaluation
Evaluation
Purchase
PurchaseDecision
Decision
Postpurchase
PostpurchaseEvaluation
Evaluation

Consumer Decision Process and


Relevant Internal Psychological
Decision Process Stages
Processes
Processes
that Occur at Psychological
Each Stage
Problem
ProblemRecognition
Recognition

Motivation
Motivation

Information
InformationSearch
Search

Perception
Perception
Learning
Learning

Alternative
AlternativeEvaluation
Evaluation
Attitude
AttitudeFormation
Formation
Purchase
PurchaseDecision
Decision
Integration
Integration
Postpurchase
PostpurchaseEvaluation
Evaluation

Sources of Problem
Recognition

Problem recognition caused by a difference between


consumers ideal state and actual state

Causes of sources of problem recognition:

Out of stock

Dissatisfaction

New needs or wants

Related product purchase

Market-induced recognition

New products available

Maslows Hierarchy of Needs


Self-actualization needs
(self-development, realization)

Esteem needs
(self-esteem, recognition, status)

Social needs
(sense of belonging, love)

Safety needs
(security, protection)

Physiological needs
(hunger, thirst)

Probing the Minds of


Consumers
Psychoanalytic
Theory
& motivation
Motivation Research reveals
consumer
Focus Groups
Motivation
Research

A group of consumers with similar backgrounds or interests discuss a


product, idea or issue.

In-Depth

Interviews

A respondent allowed to talk freely in an unstructured interview - to


obtain insights into his or her motives, ideas or opinions.

Projective

Techniques

Methods allowing consumers to project values, motives, attitudes or


needs on some external object.

Association

Tests

Consumers respond with the first thing that comes to mind when
presented with some verbal or pictorial stimulus.

Variations in
Consumer Decision Making
Consumers do not always engage in all five steps of the purchase
decision process nor proceed in the sequence presented
Three major variations of consumer decision making process:

Extended Problem Solving - consumers need detailed information that helps them in
making their purchase decision
Limited Problem Solving - brand information, etc. must be available to consumers to
help them make their decision.
Routine Response Behavior brands considered for purchase are in the evoked set,
or because of brand loyalty.
Brands not in the evoked set must encourage trial and brand switching.

Levels of
Consumer Decision Making
Extensive Problem
Solving
Limited Problem
Solving

Routine Response
Behavior

Information Search
Starts with Internal

Search -

Information stored in memory

Personal experience - handling, examining, testing, using

Next step if internal search is not adequate


External

Search actively seeks information


from various sources

Personal information sources most credible info source


Friends, relatives, co-workers

Public information sources also credible info source

Print articles, news reports

Marketer-controlled sources least credible info source


Ads, salespeople, in-store displays

Perception
The process by which an individual receives,
selects, organizes and interprets information

Stages in the perception process:


Sensationthe immediate and direct response of the senses to
a stimulus (such as an ad)
Selecting informationdetermining whether incoming
information will be attended to, and how much attention it will
be given.
Interpretationthe process by which incoming information is
interpreted and assigned meaning.
Selective perception filtering or screening may occur at
various stages of the perceptual process such as exposure,
attention, comprehension and retention

The Selective Perception


Process
Selective Exposure
Selective Attention
Selective Comprehension
Selective Retention

Consumer Learning
Processes

Cognitive Learning

Behavioral Learning

Consumers learn through information processing and


problem solving

Learning via association (classical conditioning)


Learning via reinforcement (instrumental conditioning)

Modeling Processes

Based on observation of outcomes and consequences


experienced by others

Consumer Learning
Processes
Goal
Cognitive Learning
ProcessPurposive
behavior

Insight
Goal
achievement

Consumer Learning
Processes
Classical
Conditioning
Unconditioned
Unconditioned
Unconditioned
Unconditioned
stimulus
response
stimulus
response
Process
(waterfall)
(freshness,purity)
purity)
(waterfall)
(freshness,
Association develops through
contiguity and repetition
Conditioned
Conditioned
stimulus
stimulus
(Lirilsoap)
soap)
(Liril

Conditioned
Conditioned
response
response

(freshness,purity)
purity)
(freshness,

Consumer Learning
Processes
Instrumental
Conditioning
Behavior
Positive
Behavior
Positiveor
ornegative
negative
(consumer
uses
(consumer uses
consequences
occur
consequences
occur
Process
product
or
service)
product or service)
(reward
(rewardor
orpunishment)
punishment)

Increase
Increaseor
ordecrease
decreasein
in
probability
probabilityof
ofrepeat
repeat
behavior
behavior(purchase)
(purchase)

Alternative Evaluation
Important factors and processes during the
Alternative Evaluation Stage:

Criteria and consequences


Attitude formation / change
Integration process and decision making
rules

Evaluation of Alternatives
All available brands
Brand A

Brand B

Brand C

Brand D

Brand E

Brand F

Brand G

Brand H

Brand I

Brand J

Brand K

Brand L

Brand M

Brand N

Brand O

Evoked Set of Brands


Brand B

Brand E

Brand F

Brand I
Brand M

Evaluative Criteria and


Consequences

Evaluative Criteria - used to compare various


alternatives dimensions or attributes of a product or
service

Objective criteria specs, price, warranty, color, size

Subjective criteria - style, appearance, image

Consequences outcomes that result from using a


product or service
Functional consequences concrete and tangible
Pyscho-social consequences abstract: emotional,
symbolic

Consumer Attitudes
Learned predispositions to respond toward an objectan
individuals overall feelings toward or evaluation of an
object.

Consumers may hold attitudes toward:

Individuals
Brands
Companies
Organizations
Product categories
Retailers
Advertisements
Media

Multiattribute Attitude
Model
Attitudes are a function of:
A = Bi X Ei
A = Attitude
Bi = Beliefs about brands performance on attribute i
Ei = Importance attached to the attribute i
N = Number of salient attributes considered by the
consumer

Ways to Influence or Change


Attitudes

Add a new attribute to the attitude formation process

Change perceptions of the importance or value of an


attribute

Increase or change the strength or belief rating of a


brand on an important attribute

Change perceptions of belief ratings for a competing


brand

Purchase Decision Making


Outcome of the alternative evaluation stage

Purchase decisions could be based on

Formal and Informal decision making rules


In-store purchase and decision making - occurs almost
simultaneously (for low involvement, non-durables)

Top-of-mind awareness of a brand, influence of packing, shelf


displays, point-of-purchase materials, and various sales
promotion, etc. are important

Brand loyalty

Purchase intention - a predisposition to buy a certain


brand.

Integration Processes and


Decision
Rules - Integration processes
Evaluation of alternatives
product knowledge, meaning, and beliefs are combined to
arrive at a purchase decision

Integration processes

Formal integration rules - based on examination and


comparison of alternatives on specific attributes

Compensatory integration strategies


Non-compensatory integration strategies (Conjunctive,
Disjunctive , Lexicographic rules)

Informal integration rules/heuristics - easy to use and apply


(rule of thumb)

Buy the least expensive brand / most expensive


Buy the brand on sale
Affect referral rule buy on basis of overall affective impression
(feelings) about the brand
Others

Hypothetical Use of Popular Decision Rules


Purchase an Ultralight Laptop
DECISION RULE
Compensatory rule

MENTAL STATEMENT
I selected the computer that came out best when I
balanced the good ratings against the bad ratings.

Conjunctive rule

I selected the computer that had no bad features.

Disjunctive rule

I picked the computer that excelled in at least one


attribute.

Lexicographic rule

I looked at the feature that was most important to me and


chose the computer that ranked highest on that attribute.

Affect referral rule

I bought the brand with the highest overall rating.

Integration Processes and


Decision Making Rules

Promotional planners need to understand

Integration processes and the types of decision


making rules consumers use in a different
situations
Advertising messages must be consistent with
these decision rules, or suggest how consumers
might go about making a decision.
Some purchase decisions occur at the time of
purchase as a result of a constructive process
(a combination of decision making processes)

Post Purchase Evaluation

Cognitive dissonance - post-purchase psychological


tension / doubt or feeling consumers may experience after
making a difficult purchase choice

Consumers often look to advertising for supportive information


regarding the choice they have made

Customer satisfaction post-use the consumer


compares the level of product performance with
expectations

Satisfaction results when the consumers expectations are either


met or exceeded
Dissatisfaction results when performance is below expectations.

Environmental Influences on
Consumer Behavior
Culture

Subculture
Social class
Reference
groups
Situations

Environmental Influences on
Consumer Behavior

Other Situational Determinants - external


factor that must be considered

Three types

usage situation
purchase situation
communications situation

A Simple Model of Consumer Decision Making


External Influences
Input

Firms Marketing Efforts


1. Product
2. Promotion
3. Price
4. Channels of distribution
Consumer Decision Making
1.

Process

Output

Need / Problem Recognition


(utilitarian / self-expressive)

Actual state

Desired state
2. Pre-purchase Info Search

Internal

external
3. Evaluation of Alternatives Integration Process
Post-decision Behavior
Purchase
1. Trial
2. Repeat purchase
3. Long term purchase

Socio-cultural Environment
1. Family
2. Informal sources (WOM)
3. Other noncommercial sources
4. Social class
5. Subculture and culture
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience

Postpurchase Evaluation

IMC Communications Task


Grid
Decision
Role
Role in
Decision
Marking
Process
Initiator
Influencer
Decider
Purchaser
User

Communication
Task
Desired result or
effect from
communication

Target
Audience

Where and IMC Options


When

Primary
Best way to Best IMC tool
group to reach reach at each to accomplish
at each stage stage
communication
task