l4 cons beh - 19-01-10

Consumer

Buying Behavior

January 19, 2010January 19, 2010

Lecture GoalsLecture Goals

• Factors used to explain consumer behavior• Consumers decision-making process• Influences affecting consumers’ decisions

What Is Consumer Behavior?

Activities people undertake when obtaining, consuming, and disposing of products and

services

Obtaining Consuming Disposing

ConsumerInfluences

OrganizationalInfluences

Consumer Behavior

Consumer Influences

Organizational Influences

Culture Ethnicity

Personality Family

Life-stage Values

Income Available Resources

Attitudes OpinionsFeelings

Motivations Past Experiences

Peer GroupsKnowledge

Brand Product FeaturesAdvertising Word of Mouth

Promotions Retail Displays

Price Quality

Service Store Ambiance

Convenience Loyalty ProgramsPackaging

Product Availability

Obtaining Consuming Disposing

· How you decide

you want to buy

· Other products you consider

buying

· Where you buy

· How you pay for

product

· How you transport

product home

· How you use the product

· How you store the product in your

home

· Who uses the product

· How much you consume

· How product compares with

expectations

· How you get rid of

remaining product

· How much you throw away after

use

· If you resell items

yourself or through a

consignment store

· How you recycle some products

What Is Consumer Behavior?

Activities people undertake when obtaining, consuming, and disposing of products and

services

A field of study that focuses on consumer activities

Scope goes beyond just why and how people buy to include

consumption analysis

Consumption Analysis

Why and how people use products in addition to why and how they

buy

Consumer Decision Process Stages

Consumer Decision Process Model

Purchase

Need Recognition

Search for Information

Consumption

Post-consumption Evaluation

Divestment

Pre-purchase Evaluation of Alternatives

Consumer Decision Process ModelNeed Recognition

Need Recognition

An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs

Need Recognition

Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems

Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively

Need Recognition

Individual Differences- Consumer Resources

- Motivation- Knowledge- Attitudes

- Personality, Values, and Lifestyle

Environmental Influences- Culture

- Social Class- Personal Influence

- Family - Situation

MEMORY

Need Recognition

Consumer Decision Process ModelNeed Recognition

Search for Information

Search for Information

Internal search: retrieving know-ledge from memory

External search: collecting informa-tion from peers, family, and the marketplace

SearchInternal

Search

MEMORY

Individual Differences

Environ- mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Search for Information

Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior

Search refers to a receptivity of information that solves problems or needs rather than a search for

specific products

Search for Information

Need Recognition

Search

External Search

Internal Search

MEMORY

Individual Differences

Environmental Influences

Search: Sources of Information

Marketer Dominated

Non-Marketer Dominated Stimuli

- Advertising

- Salespeople

- Infomercials

- Websites

- Point-of-sales materials

Search: Sources of Information

Marketer Dominated

- Friends

- Family

- Opinion leaders

- Media

Search: Sources of Information

Non-Marketer Dominated Stimuli

Information Processing

As consumers are exposed to information from external search, they begin to process the stimuli

Information Processing

M EMORY

Attention

Comprehension

Acceptance

Retention

Exposure

Stimuli:- Marketer

Dominated- Non-marketer

Dominated

Consumer Decision Process ModelNeed Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Pre-purchase Evaluation of Alternatives

SearchInternal

Search

MEMORY

Individual Differences

Environ- mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Pre-purchase Evaluation of Alternatives

The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the

consumer

Pre-purchase Evaluation of Alternatives

Can use new or preexisting evaluations stored in memory

Evaluative criteria: standards and specifications used to compare different products and brands

Alternative can be considered on attributes that are salient or determinant

Pre-purchase Evaluation of Alternatives

Salient attributes such as price and reliability are important to the consumer

Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose

Pre-purchase Evaluation of Alternatives

Consumer Decision Process Model

Purchase

Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Pre-purchase Evaluation of Alternatives

SearchInternal

Search

MEMORY

Individual Differences

Environ- mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase

Purchase

Acquisition of the product that involves choosing a specific retailer, and in-store choices

Purchase

Acquisition of the product that involves choosing a specific retailer, and in-store choices

Purchase intention can change during the purchase stage—it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

Consumer Decision Process Model

Purchase

Need Recognition

Search for Information

Consumption

Pre-purchase Evaluation of Alternatives

Pre-purchase Evaluation of Alternatives

SearchInternal

Search

MEMORY

Individual Differences

Environ- mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase

Consumption

Consumption

The process of using the product or service purchased

Consumption can either occur immediately or be delayed

Consumption

The process of using the product or service purchased

Consumption can either occur immediately or be delayed

How consumers use a product affects satisfaction with product

How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

An Emotional Appeal in Product Consumption

Consumer Decision Process Model

Purchase

Need Recognition

Search for Information

Consumption

Post-consumption Evaluation

Pre-purchase Evaluation of Alternatives

Pre-purchase Evaluation of Alternatives

SearchInternal

Search

MEMORY

Individual Differences

Environ- mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase

Consumption

Post-consumption Evaluation

External Search

SatisfactionDissatisfaction

Post-consumption Evaluation

Consumption is an important determinant of satisfaction

Satisfaction: when consumers’ expectations are matched by perceived performance

Dissatisfaction: when experiences and performance fall short of expectations

Post-Consumption Evaluation

Cognitive dissonance: questioning the purchase decision (post-purchase regret)

Usually, the higher the price, the higher the level of cognitive dissonance

Emotion strongly affects the evaluation of a product or transaction

Consumer Decision Process Model

Purchase

Need Recognition

Search for Information

Consumption

Post-consumption Evaluation

Divestment

Pre-purchase Evaluation of Alternatives

Pre-purchase Evaluation of Alternatives

SearchInternal

Search

MEMORY

Individual Differences

Environ- mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase

Consumption

Post-consumption Evaluation

External Search

SatisfactionDissatisfaction

Divestment

Divestment

How consumers dispose of the packaging or product after use

Options include:DisposalRemarketing or resellingRecycling

How Customers Dispose of Products