Consumer behavior The actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions.The behavioral sciences help answer questions such as : Why people choose one product or brand over another, How they make these choices, andHow companies use this knowledge to provide value to consumers
I. CONSUMER PURCHASE DECISION PROCESS•Behind the visible act of making a purchase lies a decision process that must beinvestigated.•The purchase decision process is the stages a buyer passes through in making choicesabout which products and services to buy. : Five Stages of Consumer Behavior 1.problem recognition, 2.information search, 3.alternative evaluation, 4.purchase decision, and 5.post-purchase behavior
B. Information Search: Seeking Value The information search stage clarifies the options open to the consumer and may involve
Two steps of information search Internal search External search •Personal sources, such as•When past experience or friends and family.knowledge is insufficient •Public sources, including various product-rating•The risk of making a organizations such aswrong purchase decision Consumer Reports.is high •Marketer-dominated sources, such as•The cost of gathering advertising, companyinformation is low. websites, and salespeople
C. Alternative Evaluation: Assessing ValueThe information search clarifies the problem forthe consumer by(1)Suggesting criteria to use for the purchase.(2)Yielding brand names that might meet the criteria.(3)Developing consumer value perception.
D. Purchase Decision: Buying Value PossibilitiesFrom whom to buy When to buywhich depends on such which can be influenced byconsiderations •Terms of sale •store atmosphere •Past experience •time pressure buying from the seller •pleasantness of the shopping experience. •Return policy.
E. Postpurchase Behavior: Value in Consumption or UseAfter buying a product, the consumer compares it with expectations and is eithersatisfied or dissatisfied.Satisfaction or dissatisfaction affects oconsumer value perceptions oconsumer communications orepeat-purchase behavior.Many firms work to produce positive postpurchase communications amongconsumers and contribute to relationship building between sellers and buyers.Cognitive Dissonance. The feelings of postpurchase psychological tension or anxiety aconsumer often experiencesFirms often use ads or follow-up calls from salespeople in this postpurchase stage totry to convince buyers that they made the right decision.
F. Involvement and Problem-Solving VariationsRoutine Problem Solving Limited Problem Solving •Virtually a habit •Involves the use of moderate •involves little effort seeking information-seeking efforts. external information and •Often used when the buyer has evaluating alternatives. little time or effort to spend. •Typically used for low- priced, frequently purchased productsExtended Problem Solving Involvement and Marketing Strategy •Each stage of the consumer •Low and high consumer purchase decision process is used •Considerable time and effort on involvement has important oexternal information search implications for marketing and in identifying strategy, which differs for oevaluating alternatives. •Used in high-involvement products that are market purchase situations. leaders from their challengers.
II. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR A. Motivation and Personality 1. Motivation 2. Personality•is the energizing force •A persons consistent behavior or responses to recurring situations.that causes behavior that •Research suggests that key traitssatisfies a need. affect brand and product-type preferences.•Needs are hierarchical •Cross-cultural analysis also•Once basic physiological suggests that residents of different countries have a national character,needs are met, people or a distinct set of personalityseek to satisfy learned characteristics common amongneeds. people of a country or society.
B. Perception•The process by which an individual usesinformation to create a meaningful picture of theworld by •selecting, •organizing •interpreting•Perception is important because peopleselectively perceive what they want and it affectshow people see risks in a purchase.
C. Learning1. Behavioral Learning 2. Cognitive learning•The process of •Involves making connections betweendeveloping two or more ideasautomatic •or simply observingresponses to a the outcomes ofsituation built up others’ behaviors•through repeated •and adjusting onesexposure to it. accordingly.
D. Values, Beliefs, and Attitudes Attitude • A learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. • Shaped by our values and beliefs, which are learned Values • personally or socially preferable modes of conduct or states of existence that are enduring. Beliefs • consumers subjective perception of how well a product or brand performs on different attributes.
III. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIORSociocultural influences evolve from a formaland informal relationships with other people.Influences Include •Personal influence •Reference groups •The family •Social class •Culture •Subculture
•A. Personal Influence Opinion leaders Word of mouth •People influencing each other during•individuals who exert face-to-face conversations.direct or indirect social •Power of word of mouth has beeninfluence over others magnified by the Internet and e-mail •B. Reference Groups •Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference groups have an important influence on the purchase of luxury products but not of necessities.
•C. Family Influence •Family influences on consumer behavior result from three sources: •consumer socialization •passage through the family life cycle •decision making within the family. •D. Social Class•The relatively permanent, homogeneous divisions in a society into which people sharingsimilar values, interests, and behavior are grouped.•Determinants of social class include •occupation, •source of income (not level of income) •education.•Social class is a basis for identifying and reaching particularly good prospects for productsand services. •Upper classes are targeted by companies for items such as financial investments, expensive cars, and evening wear. •Middle classes represent a target market for home improvement centers and automobile parts stores. •Lower classes are targeted for products such as sports and scandal magazines.
•E. Culture and Subculture•Culture refers to the set of values, ideas and attitudesthat are accepted by a homogeneous group of peopleand transmitted to the next generation. Subcultures -groups within the larger, or national, culture withunique values, ideas, and attitudes.•three largest racial/ethnic subcultures in the U.S •Hispanics, •African-Americans •Asians .•Each of these groups exhibits sophisticated social andcultural behaviors that affect their buying patterns.
•1. African-American•Buying Patterns African-Americans have the largest spending power of the three subculturesWhile price conscious, they are motivated by product quality and choice.Respond to products and advertising that appeal to their African-American pride andheritage as well as address their ethnic features and needs.•2. Hispanic Buying Patterns•Hispanics represent the largest subcultureAbout 50% are immigrantsThe majority are under the age of 25.Sensitivity to the unique needs of Hispanics by firms has paid huge dividends.•3. Asian Buying Patterns•The Asian is the fastest growing subculture.About 70% of Asians are immigrantsMost are under the age of 30.Asians represent a diverse subculture, includingChinese, Japanese, Filipinos, Koreans, Asian-Indians, people from Southeast Asia, and PacificIslanders.