Understanding Consumer Behavior and Purchase Decisions

1. Lecture on Consumer Behavior www.AssignmentPoint.com

2. CONSUMER PURCHASE DECISION PROCESS

3. CONSUMER PURCHASE DECISION PROCESS • Problem Recognition: Perceiving a Need • Information Search: Seeking Value

4. CONSUMER PURCHASE DECISION PROCESS • Alternative Evaluation: Assessing Value • Evaluative criteria • Evoked set • Purchase Decision: Buying Value • Postpurchase Behavior: Value in Consumption or Use • Cognitive dissonance

5. CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations

6. Comparison of problem-solving variations

7. CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations • Routine Problem Solving • Limited Problem Solving • Extended problem Solving • Involvement and Marketing Strategy • Situational Influences

8. Influences on the consumer purchase decision process

9. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Motivation and Personality • Motivation

10. Hierarchy of needs“Maslow”

11. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Motivation and Personality • Personality • National character • Self-concept • Perception • Selective Perception • Subliminal perception

12. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception • Perceived Risk • Learning • Behavioral Learning • Cognitive Learning • Brand Loyalty

13. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Values, Beliefs, and Attitudes • Attitude Formation • Attitude • Beliefs • Attitude Change • Lifestyle

14. VALSTM psychographic segments

15. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Personal Influence • Opinion Leadership • Word of Mouth

16. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Reference Groups • Family Influence • Consumer Socialization • Family Life Cycle

17. Modern US family life cycle

18. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Family Influence • Family Decision Making

19. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Social Class • Culture and Subculture • African-American Buying Patterns • Hispanic Buying Patterns • Asian Buying Patterns

20. Chevy Impala Ad That Targets Korean-Americans

21. Chevy Venture Print Ad That Targetsthe Chinese-American Market

22. Consumer Behavior Consumer behavior is the actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow theseactions.

23. Purchase Decision Process The stages a buyer passes through in making choices about which products and services to buy is the purchase decision process.

24. Evaluative Criteria A consumer’s evaluative criteria represent both the objective and subjective attributes of a brand used to compare different products and brands.

25. Evoked Set An evoked set is the group of brands that a consumer would consider acceptable from among all the brands of the product class of which he or she is aware.

26. Cognitive Dissonance A feeling of postpurchase psychological tension or anxiety is called cognitive dissonance.

27. Involvement Involvement is the personal, social, and economic significance of a purchase to a consumer.

28. Situational Influences Situational influences that have an impact on the purchase decision process are: (1) the purchase task, (2) social surroundings, (3) physical surroundings, 4) temporal effects, and (5) antecedent states.

29. Motivation Motivation is the energizing force that causes behavior that satisfies a need.

30. Personality Personality refers to a person’s consistent behaviors or responses to recurring situations.

31. National Character A national character is a distinct set of personality characteristics common among people of a country or society.

32. Self-Concept A person’s self-concept is the way people see themselves and the way they believe other people see them.

33. Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

34. Subliminal Perception Subliminal perception means that you see or hear messages without being aware of them.

35. Attitude An attitude is “a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

36. Beliefs Beliefs are a consumers subjective perception of how well a product or brand performs on different attributes.

37. Lifestyle Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them.

38. Perceived Risk Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.

39. Learning Learning refers to those behaviors that result from (1) repeated experience and (2) thinking.

40. Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.

41. Opinion Leaders Individuals who exert direct or indirect social influence over others are called opinion leaders.

42. Word of Mouth People influencing each other during their face-to-face conversations is called word of mouth: Satisfied customers tell one person to every three that a dissatisfied customer tells

43. Reference Groups Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.

44. Consumer Socialization The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers is consumer socialization.

45. Family Life Cycle The family life cycle concept describes the distinct phases that a family progresses through from formation to retirement.

46. Social Class Social class is defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped.

47. Subcultures Subgroups within the larger, or national, culture with unique values, ideas and attitudes are referred to as subcultures.