consumer and business behavior ch 5 edited

8/10/2019 Consumer and Business Behavior Ch 5 Edited

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Consumer DecisionsMarketing Psychology for

Profit


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What is Consumer Behavior?

Processes a consumer uses to makepurchase decisions, as well as use and

dispose of purchased goods orservices; also includes factors thatinfluences purchase decision and

product use


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Consumer Decision Making

Process

Postpurchase

Behavior

Purchase

Evaluationof Alternatives

Information Search

Problem Recognition

Cultural, Social,Individual andPsychological

Factors

affectall steps


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1: Problem Recognition

Result of an imbalance b/t actual anddesired states

What is a need? What is a want?

How to recognize unfilled wants?


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2: Information Search

Internal Search recalling pastinformation stored in memory

External Search seekinginformation in the outsideenvironment

Private (non marketing sources) Public (non marketing sources)

Marketing controlled sources


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What drives Search?

Perceived Risk

Performance risk

Financial risk

Physical risk

Social risk Time loss risk


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Driving Search

Need More

Informat ion

More RiskLess knowledge

Less productexperience

High level of interest

Less RiskMore knowledge

More productexperience

Low level of interest

Need Less

Informat ion


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3: Evaluation of Alternatives

Consideration set

Analyze product attributes

Use cut off criteria [pros/cons]

Multi-attribute models


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4: Purchase

To buy or not to buy

Marketing determines whichattributes are most important ininfluencing a consumers choice(differentiationlater)


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5: Post Purchase Behavior

Cognitive dissonance: Did I make a good decision?

Did I buy the right one? Get a good value? Marketing minimizes through:

Effective communication

Follow up

Guarantees Warranties


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Types of Buying Decisions

Complex buying behavior

Dissonance reducing buying behavior

Habitual buying behavior

Variety seeking buying behavior


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Types of buyer behaviour

Complex buyer behaviour e.g. Intel Pentium

Processor

Dissonance-reducing behaviour (brand

reduces after-sales discomfort)

Habitual buying behaviour e.g. salt - little

difference

variety seeking behaviour - significant

brand differences e.g soap powder


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Factors that AffectInvolvement Levels

Situation

Social Visibility

Interest

Perceived Risk ofNegative

Consequences

PreviousExperience

FactorsDetermining

Level ofInvolvement


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Factors Influencing

Buying DecisionsSocialFactors

IndividualFactors

Psycho-logicalFactors

CulturalFactors

CONSUMERDECISION-MAKING

PROCESS

BUY /

DONT BUY


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Cultural Factors

Culture: set of values, norms,attitudes & other meaningful symbolsthat shape human behavior and theirartifacts or products of thatbehavior as they are transmittedfrom generations.

Subcultures Social class [based on $, education

and job]


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Social Factors

Social influences Reference groups

Direct: primary and secondary groups Opinion leaders

Family


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Individual Factors

Gender (behold the power of women)

Age

Family Life Cycle

Personality

Self concept Lifestyle


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Psychological Factors Perception: process by which people

select, organize and interpret stimuliinto a meaningful picture

Selective exposure Selective distortion Selection retention

Motivation Learning Values, Beliefs & Attitudes what can

marketing influence?


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Motivation and Maslow

Physiological

Safety

Social

Esteem

Self-Actualization


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What do you need to know

about your customers? What are five things that someone

should know about me?

Describe yourself demographically List 10 things you are thinking right

now.

consumer and business behavior ch 5 edited

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