customer behavior: a broad term that covers both individual consumers who buy goods and services for...

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Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products Consumer behavior: Buying behavior of people who purchase products for personal or household use

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Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase business products

Consumer behavior: Buying behavior of 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:

© PhotoDisc

Routinized Response Behavior

• 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:

Limited Problem Solving

Routinized Response Behavior

• Results when brands are difficult to categorize or evaluate

• High-involvement purchase decisions usually require extended problem solving

• Examples:

Limited Problem Solving

Extended Problem Solving

SearchSearch

Alternative Alternative EvaluationEvaluation

Purchase Purchase DecisionDecision

Purchase Purchase ActAct

Post-Post-purchase purchase EvaluationEvaluation

Problem Problem Opportunity Opportunity RecognitionRecognition

•Consumers complete a step-by-step process when making purchase decisions•

SearchSearch

Alternative Alternative EvaluationEvaluation

Purchase Purchase DecisionDecision

Purchase Purchase ActAct

Post-Post-purchase purchase EvaluationEvaluation

Problem Problem Opportunity Opportunity RecognitionRecognition

•Critical that marketers understand where their consumers are in the process

•Must choose actions to match each phase

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 Problem Opportunity Opportunity RecognitionRecognition

•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?

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Problem Problem Opportunity Opportunity RecognitionRecognition

•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

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Alternative Alternative EvaluationEvaluation

Problem Problem Opportunity Opportunity RecognitionRecognition

•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

Importance

Minimal /Advanced Acceptable

Performance

Consumer Perceptions

Gateway HP Compaq Dell IBM Toshiba

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 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

SearchSearch

Alternative Alternative EvaluationEvaluation

Purchase Purchase DecisionDecision

Purchase Purchase ActAct

Problem Problem Opportunity Opportunity RecognitionRecognition

•Selection of What and Where•

SearchSearch

Alternative Alternative EvaluationEvaluation

Purchase Purchase DecisionDecision

Purchase Purchase ActAct

Post-Post-purchase purchase EvaluationEvaluation

Problem Problem Opportunity Opportunity RecognitionRecognition

•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