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Consumer Behavior Chapter 6 Consumer Behavior Chapter 6

What is Consumer Behavior? n “Describes how consumers make purchase decisions and how they What is Consumer Behavior? n “Describes how consumers make purchase decisions and how they use and dispose of goods and services, and also analyzes the factors that influence purchase decisions. ”

The Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Behavior The Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Behavior

Problem Recognition n Difference between ideal state and actual state n Nike n College Problem Recognition n Difference between ideal state and actual state n Nike n College

Information Search n n n Internal Search External Search How much research? n Perceived Information Search n n n Internal Search External Search How much research? n Perceived risk Knowledge Prior experience n Interest n n n What resources aided you in choosing a college?

Evaluation of Alternatives n Evaluative criteria n Leads to the Formation of an Evoked Evaluation of Alternatives n Evaluative criteria n Leads to the Formation of an Evoked Set n College

Purchase Decisions n Where to buy? n When to buy? Purchase Decisions n Where to buy? n When to buy?

Post-purchase Behavior n n Expectation comparison “Buyers remorse” Post-purchase anxiety n Cognitive dissonance n Post-purchase Behavior n n Expectation comparison “Buyers remorse” Post-purchase anxiety n Cognitive dissonance n n Can marketers do anything about it?

Involvement n High v. Low Involvement n n n Routine Problem Solving n n Involvement n High v. Low Involvement n n n Routine Problem Solving n n Milk Limited Problem Solving n n High Low Restaurant Extended Problem Solving n Cars

Involvement & Marketing n Low Involvement n Leader n n Challengers n n Make Involvement & Marketing n Low Involvement n Leader n n Challengers n n Make quality product available and advertise it Break buying behaviors High Involvement n Leaders n n Make info available Challengers n Comparative advertising

Situational Influences n n n Purchase task Social surroundings Physical surroundings Temporal effects Antecedent Situational Influences n n n Purchase task Social surroundings Physical surroundings Temporal effects Antecedent states

Psychological Influences n n n Motivation Personality Perception Learning Values, Beliefs & Attitudes Lifestyle Psychological Influences n n n Motivation Personality Perception Learning Values, Beliefs & Attitudes Lifestyle

Motivation & Personality n Maslow’s Hierarchy of Needs n n Must tune products to Motivation & Personality n Maslow’s Hierarchy of Needs n n Must tune products to specific need-level Personality “A person’s consistent behaviors or responses to recurring situations. ” n National character n Self—concept n n Actual self v. Ideal self

Perception n n “The process by which an individual selects, organizes, and interprets information Perception n n “The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. ” Selective perception n Exposure v. comprehension v. retention Subliminal perception Perceived risk Source: http: //www. impactlab. net

Learning n Behavioral (Experiential) Learning n n Cognitive (Conceptual) Learning n n Drive + Learning n Behavioral (Experiential) Learning n n Cognitive (Conceptual) Learning n n Drive + Cue + Response → Reinforcement Making a connection between two or more ideas Brand Loyalty

Top 20 Most Desired Brands- Men 1. Crest 2. BMW 3. National Geographic 4. Top 20 Most Desired Brands- Men 1. Crest 2. BMW 3. National Geographic 4. Panasonic 5. Hyundai 6. Kleenex 7. Coca-Cola 8. Microsoft 9. Tide 10. Lexus 11. Apple 12. Bed Bath & Beyond 13. Ford 14. Animal Planet 15. Hitachi 16. Mercedes-Benz 17. Fed. Ex 18. Proctor & Gamble 19. Hallmark 20. Geico Source: http: //www. walletpop. com/2011/02/02/women-are-from-amazonmen-are-from-geico-worlds-most-desired/

Top 20 Most Desired Brands- Women 1. Johnson & Johnson 2. Sony 3. Kleenex Top 20 Most Desired Brands- Women 1. Johnson & Johnson 2. Sony 3. Kleenex 4. National Geographic 5. Master. Card 6. Google 7. Amazon 8. Visa 9. General Electric 10. Toshiba 11. Crest 12. Microsoft 13. Disney 14. Target 15. Tropicana 16. BMW 17. Febreze 18. Ford 19. Olay 20. Chase Source: http: //www. walletpop. com/2011/02/02/women-are-from-amazonmen-are-from-geico-worlds-most-desired/

Brand Loyalty- College Students n Brand Keys Inc. survey Based on Customer Loyalty Index Brand Loyalty- College Students n Brand Keys Inc. survey Based on Customer Loyalty Index (16, 000 people) n Looked at students’ habits before and after graduation n Almost 5, 000 students and post-grads surveyed n Students’ attitudes changed because of new environment and more income n

Brand Loyalty-College Students n Results Most loyal to n Least loyal to n Other Brand Loyalty-College Students n Results Most loyal to n Least loyal to n Other notables: n

Values, Beliefs, & Attitudes n Values n n Beliefs n n What is important? Values, Beliefs, & Attitudes n Values n n Beliefs n n What is important? “An organized pattern of knowledge that an individual holds as true. ” Attitudes n n “Learned tendency to respond consistently toward a given object. ” Shaped by beliefs and values

Involvement & Psychological Influences n Decision-making- High-involvement n n Beliefs → attitude → behavior Involvement & Psychological Influences n Decision-making- High-involvement n n Beliefs → attitude → behavior Decision-making- Low-involvement n Beliefs → behavior → affect

Lifestyle n n Based on people’s activities, interests, and opinions VALS program n n Lifestyle n n Based on people’s activities, interests, and opinions VALS program n n Discusses 8 lifestyles Based on resources and self-orientation n Action, principles, and status Source: http: //www. e-flux. com

Sociocultural Influences n n n Personal influence Reference groups Family Social class Culture/Subculture Sociocultural Influences n n n Personal influence Reference groups Family Social class Culture/Subculture

Personal Influence n Opinion Leaders n n Direct or indirect influence Word of mouth Personal Influence n Opinion Leaders n n Direct or indirect influence Word of mouth

Reference Groups n n Formal and informal groups that influence the buying behavior of Reference Groups n n Formal and informal groups that influence the buying behavior of the individual Two broad classifications n n n Primary Secondary Three types n n n Membership group Aspiration group Dissociative group Source: http: //wwwinsidesocal. com

Family Influence n n n Source: http: //foodhelp. wa. gov Consumer Socialization Family Life Family Influence n n n Source: http: //foodhelp. wa. gov Consumer Socialization Family Life Cycle Family Decision Making

Social Class n Divisions within society along values, interests, and behavioral lines Upper, middle, Social Class n Divisions within society along values, interests, and behavioral lines Upper, middle, and lower classes n Share certain characteristics n

Culture/Subculture n Subcultures are divisions of people with homogenous characteristics Age groups n Ethnic Culture/Subculture n Subcultures are divisions of people with homogenous characteristics Age groups n Ethnic groups n