Customer behavior: a broad term that Consumer behavior: Buying behavior of covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products people who purchase products for personal or household use
Routinized Response Behavior • • Purchases made routinely by choosing a preferred brand or one of a limited group of acceptable brands Examples: © Photo. Disc
Routinized Response Behavior Limited Problem Solving • • Situation where the consumer has previously set evaluative criteria for a particular kind of purchase but then encounters a new, unknown brand or item Example:
Routinized Response Behavior • • Limited Problem Solving • Extended Problem Solving Results when brands are difficult to categorize or evaluate High-involvement purchase decisions usually require extended problem solving Examples:
Problem Opportunity Recognition • Consumers complete a step-by-step process when making purchase decisions • Search • Alternative Evaluation Purchase Decision Purchase Act Postpurchase Evaluation
Problem Opportunity Recognition Search • Critical that marketers understand where their consumers are in the process • Must choose actions to match each phase Alternative Evaluation Purchase Decision Purchase Act Postpurchase Evaluation
How do consumers recognize there is a problem? How much and what types of information do consumers search for? How do consumers evaluate their alternatives? How does outlet selection impact marketing strategy?
Problem Opportunity Recognition • Consumer becomes aware of a significant discrepancy between the existing situation and the desired situation • Common Causes of Discrepancy: • • • What is the marketer’s job?
Problem Opportunity Recognition Search • Consumer gathers information related to their attainment of the desired state of affairs • Identifies alternative means of problem solution • • Brands that a consumer actually considers buying before making a purchase decision are known as the evoked set • Evoked set evolves constantly
Problem Opportunity Recognition Search Alternative Evaluation • Consumer evaluates the evoked set • • Outcome of the evaluation stage is the choice of a brand or product (or possibly a decision to renew the search) • Evaluative criteria: • Understanding and influencing consumers evaluative criteria is important in this stage
Bounded Rationality: a limited capacity for processing information ◦ Makes you throw up your hands after a while ◦ Can never make the perfect decision Affective Choice: choices driven by how they make the user feel Attribute-Based vs. Attitude-Based Choice: ◦ Knowledge of specific attributes; quantitative ◦ The use of attitudes, intuitions, and heuristics; qualitative.
Evaluative Criteria Import ance Minimal /Advanced Acceptable Performance Gateway HP Compaq Dell IBM Toshiba Consumer Perceptions Price 30 3/4 5 3 3 4 2 1 Weight 25 4/5 3 4 5 4 3 4 Processor 10 3/3 5 5 5 2 5 5 Battery life 05 1/1 1 3 1 5 Service 10 2/2 3 3 4 3 5 3 Display 20 3/4 3 3 3 5 3 3
Heuristics: What works best for me Family history Bought last Opinion leader (what does friend drive) Price-based (least expensive, most expensive) Promotion-based (seasonal discounts, coupons) Expert consultant
Problem Opportunity Recognition • Selection of What and Where • Search Alternative Evaluation Purchase Decision Purchase Act
Problem Opportunity Recognition Search Alternative Evaluation Purchase Decision • After the purchase, consumers are either satisfied or experience post-purchase anxiety • Post-purchase anxiety that results from an imbalance among an individual’s knowledge, beliefs, and attitudes is called cognitive dissonance • Marketers must try to reduce this anxiety Purchase Act Postpurchase Evaluation
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