consumer behavior
DESCRIPTION
Consumer Behavior. Problem recognition: Perceiving need. Information search: Seeking value. Alternative evaluation: Assessing value. Purchase decision: Buying value. Post-purchase behavior: Consumption value. Consumer Buying Process. Psychological states. ideal. actual. - PowerPoint PPT PresentationTRANSCRIPT
NPC
Lecture 3
Consumer Behavior
NPC
Lecture 3
Consumer BuyingProcess
Post-purchase behavior: Consumption value
Purchase decision: Buying value
Alternative evaluation:Assessing value
Information search:Seeking value
Problem recognition:Perceiving need
NPC
Lecture 3
How is the Need/Want Created?
ideal
ideal
actual
actual
Need Recognition
Opportunity Recognition
Psychological states
NPC
Lecture 3
Evoked/Consideration Set
Inert Set
Inept Set
Information Search: Identifying Alternatives
x ?
NPC
Lecture 3Source: Consumer Reports’
Panasonic
Phillips
Phillips
Sony
Aiwa
Sony
Panasonic
JVC
Sony
Panasonic
Aiwa
SL-SX500
AZ7383
AZ7583
D-E409CK
XP-SP1200
D-E401
SL-SW505
XL-P34
D-ES55
SL-S230
XP-570
$ 150
100
120
140
145
100
150
80
200
80
75
Rating:
(A CR best buy)
Excellent
Good
Fair
Poor
VeryGood
Error LocateBrand Model Price Headphones Correction Bumps Speed
Compensatory andNon-compensatory Decision Making
Portable Compact Disc Players
NPC
Lecture 3
Cognitive Dissonance…
is a feeling of post-purchase psychological tension or anxiety.
To alleviate cognitive dissonance,consumers often:• seek confirming information• avoid disconfirming information
NPC
Lecture 3
High Involvement purchase decisions typically involve extensive information search, consideration of several product attributes and brands, the formation of attitudes, and word-of-mouth communication. (e.g., automobile, stereo system)
Low Involvement purchase decisions typically involve little information search, and examine brands on the basis of price. They tend to be privately consumed. (e.g., soap, toothpaste)
Perceived Risk is the anxiety experienced when outcomes are unknown, yet one believes that theremay be negative consequences. • monetary• functional• physical• social• psychological
NPC
Lecture 3
Influences on the Consumer Purchase Decision Process
Marketing mix• Product• Price• Promotion• Place
Situation• Purchase task• Social surroundings• Physical surroundings• Temporal effects• Antecedent states
Problem recognitionInformation search
Alternative evaluationPurchase decision
Post-purchase behavior
Consumer Decision ProcessPsychological• Motivation• Personality• Perception• Learning• Values, beliefs
and attitude• Lifestyle
Sociocultural• Personal
influence• Reference groups• Family• Social class• Culture• Subculture
NPC
Lecture 3
Selective perception filters
Messages
Selective exposure
Selective comprehension
Selective retention
NPC
Lecture 3
Learning refers to those behaviors that result from:• repeated experience and/or, • thinkingBehavioral Learning is the process of developingautomatic responses to a situation built up throughrepeated exposure to it. Cognitive Learning is learning via thinking, reasoning,and mental problem solving without direct experience.
NPC
Lecture 3
Value Driversof Market Choice Behavior
FunctionalValue
SocialValue
ConditionalValue
EpistemicValue
EmotionalValue
MarketChoice
Behavior
5
NPC
Lecture 3
Organizational Buying Behavior
NPC
Lecture 3
Types of B2B Customers
Commercial Manufacturers, construction companies, service
firms, transport companies, some professional groups, and resellers
Institutional Organizations that provide services without the
motivation of profit such as hospitals and universities
Government The government market consists of federal,
provincial/state, and local/municipal governments
NPC
Lecture 3
Business Market Characteristics
Derived:Link between demand for
industrial product and demand for
consumer products
Fluctuating:Patterns and
preferences in the household market
can change the demand for
industrial goods
Stimulating:Some industrial products must market to the
ultimate consumer directly
DEMAN
D
NPC
Lecture 3
Relationship Marketing:Marketing
activities directed at establishing/
maintaining relationships
Longer-termand closer
relationships with fewer suppliers
Closer interactions
among multiple functions on both buying and selling
sides
BUYE
R-SE
LLER
RELA
TIONS
HIPS
Business Market Characteristics
NPC
Lecture 3
Supply Chain Management:
Linking with strategic suppliers, intermediaries, and
customers to improve efficiency
JIT:Just-in-time
production to deliver defect-free
parts to production just when needed
ERP:Software that can help enhance the flow of a supply
chain
SUPP
LY C
HAIN
Business Market Characteristics
NPC
Lecture 3
Problem Recognition
General Description of Need
Detailed Description of Product Specs
Supplier Search
Acquisition and Analysis of Proposals
Supplier Selection
Selection of an Order Routine
Performance Review
Organizational Buying Process
NPC
Lecture 3
Modified Rebuy
New Buy
Straight Rebuy
Buying Situations
increases increases
Risk
Size of buying centre
NPC
Lecture 3
Gatekeeper
Users
Influencers
Buyers
Deciders
Buying Center Roles