Consumer Behavior

1. Consumer Behavior Chapter Four

2. Chapter Four: Consumer Behavior Objectives • Identify elements of a consumer behavior model. • Address the five stages of the consumer decision-making process. • Describe consumer decision making in terms of extensive, limited, or routine problem solving. • Describe psychological influences that impact consumer behavior. • Describe the social influences that impact consumer behavior.

3. Social influences • Culture and subculture • Social class • Role and status • Reference groups • Family and household A Consumer Behavior Model Consumer Behavior • Psychological influences • Motivation • Perception • Beliefs • Personality • Lifestyle • Situational influences

4. The Consumer Decision-Making Process Post-Purchase Processes Purchase Alternative Evaluation Stages Information Search Problem Recognition

5. The Consumer Decision-Making Process (cont.) Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes • Problem recognition (creates need) • Difference between actual and desired state • “Cues”* • Information search (creates alternatives) • Internal information search • External information search • “Evoked Set”*

6. The Consumer Decision-Making Process (cont.) • Alternative Evaluation (creates preferences) • Price • Ease of use • Performance • Style • e.g., Fishbein Model* • A = ∑ (biei) … • Where A is attitude, • b is belief, and • e is evaluative criterion Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes This step can be skipped if purchase is habitual. Consumers then rely on memory of past purchases.

7. The Consumer Decision-Making Process (cont.) Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes • Purchase (creates possession) • Decision vs. Behavior • Decision Rule* Purchase Intention Actual Purchase • Intervening factors (“second thoughts”) • Too expensive • Impulses • False information

8. The Consumer Decision-Making Process (cont.) Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes • Post-Purchase Processes (creates evaluation) • Cognitive Consistency/Dissonance* • e.g. Buyer’s Remorse • Reduction Strategies/Tactics • Expectations influence level of satisfaction • Quality refers to overall product quality, reliability and the extent to which it meets consumers’ needs.

9. Extended, Limited, and RoutineConsumer Decision Making

10. Social influences • Culture and subculture • Social class • Role and status • Reference groups • Family and household A Consumer Behavior Model Consumer Behavior • Psychological influences • Motivation • Perception • Beliefs • Personality • Lifestyle • Situational influences

11. Psychological Influences on Consumer Behavior Motivation (and Involvement*) Involvement/Lucky Charms Unsatisfied need or want Hunger Drive or motive = stimulus Go to Restaurant Action, purchase good Eat Food Reduce need or want Not Hungry

12. Marketers Influence Perceptions Perception Perception:The manner in which we collect, organize, and interpret information Selective perception: - Individuals pay attention to different stimuli, perceiving them selectively. Selective distortion: - Consumers adapt information to fit their own existing knowledge or beliefs (cognitive assonance). Selective retention: - Consumers only retain information about a good or service that supports personal knowledge or beliefs (reduce dissonance).

13. Learning Cues Stimuli Response: an attempt to satisfy an individual drive Drive Example: You too, want Sprite. You see Jordan drinking Sprite. You buy Sprite.

14. AttitudesValues*andBeliefs • Attitudes: Relatively enduring and consistent feelings (affective responses) about a good or service • Beliefs: Associations between a product and attributes of that product • Fast food and smoking cause heart attacks. • Intel processors only exist in quality computers. Marketers are trying to create positive attitudes about their products and create beliefs that their products have desirable attributes.

15. Personality and Lifestyles Personality and Buying • Personality: An individual’s unique psychological characteristics leading to specific response tendencies over time • Lifestyles:An individual’s style of living as expressed through activities, interests, and opinions • Psychographics: Classification of consumers according to lifestyles and personality

16. Social Influences on Consumer Behavior • Culture: “a society’s personality” • A continuously changing totality of learned and shared meanings, rituals, norms, and traditions among the members of an organization or society • Values • Enduring beliefs about a specific mode of conduct or desirable end-state that guides the selection or evaluation of behavior • Cultures are set apart by values, e.g. . . . • Western Cultures stress success, achievement, and competitiveness. • Eastern Cultures emphasize collective welfare. Values Terminal Instrumental

17. Social Class, Role, and Status Influences on Consumer Behavior • Social Classes:Share similar values, attitudes, interests, and opinions. Can be determined by a combination of occupation, education, income, wealth, and values. • Role:Behavior based on the activities people are expected to perform according to individuals around them • Role of women in the United States • Role of women in Islamic countries • Man in a marriage relationship • Partners in a gay or lesbian relationship • Status:The esteem that society bestows upon a particular role • Soccer mom • Company president • Judge • Car salesperson • Advertising creative

18. Family and Household Influences on Consumer Behavior • Influence on consumers purchasing behavior • Decision makers and influencers of decisions: • Husband • Wife • Children • Cleaning personnel • Guests • Roommates Parents and grandparents (decision makers) respond to children’s influence in deciding which toys to purchase.

19. Reference Groups and Opinion Leaders • Reference groups*: Any group that positively or negatively affects a person’s values, attitudes or behavior • Associate reference groups: • Groups an individual belongs to—the individual adopts certain behavior patterns of these groups. • Dissociative reference groups: • Groups people do not want to associate with • Aspirational reference groups: • Groups an individual aspires to join or associate with • Opinion Leaders*:A reference group member who provides information about a specific sphere that interests reference group participants.

20. Situational Influences on Consumer Behavior* • Occasion • Time • Importance • Available Funds • Marketing Mix • Etc.