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How Organizations Use <br />the CDP Model<br />February 2, 2010<br />
Variables Shaping the Decision Process<br />Environmental Differences:<br />Culture<br />Social Class<br />Family<br />Per...
Social Influences<br />Culture<br />Subcultures<br />Social class<br />Reference groups<br />Families and <br />Households...
Variables Shaping the Decision Process<br />Environmental Differences:<br />Culture:values, ideas, artifacts, and symbols ...
Variables Shaping the Decision Process<br />Environmental Differences:<br />Social Class: division within society composed...
Variables Shaping the Decision Process<br />Environmental Differences:<br />Family:often the primary decision making unit ...
Variables Shaping the Decision Process<br />Environmental Differences:<br />Personal Influence:our behaviors are often aff...
Variables Shaping the Decision Process<br />Individual Differences:<br />Demographics, psychographics, values, and persona...
Consumer Demographics<br />Age<br />Family<br />Life Cycle<br />Education,<br />Income<br />Religion<br />
Family Life Cycle Stages<br />Nine<br /> stages<br /> with <br />different <br />buying <br />behavior<br />Bachelor<br />...
Social Factors<br /><ul><li>Membership
 Reference (opinion leaders)
 Aspirational
Groups
Most important consumer
buying organization
Family
Role =Expected activities
Status =
Esteem given to role by society
Roles &
Status</li></li></ul><li>Psychological Influences<br />Motivation<br />Perception<br />Learning<br />Personality<br />Atti...
Maslow’s Hierarchy of Needs<br />
Perception<br />Process of receiving, organizing, and assigning<br />meaning to information or stimuli detected by our fiv...
Personality<br />An individual’s pattern of traits that influence<br />behavioral responses<br />Psychoanalytic<br />Theor...
Lifestyle & Psychographics<br />Activities<br />Interests<br />Opinions<br />
Attitudes<br />Learned predisposition to respond to an<br /> object in a consistently favorable <br />or unfavorable way<b...
What Is An Attitude?<br />Object<br />Manifested dimensionsand attributes<br />Cognitive Component<br />Beliefs aboutthe o...
Variables Shaping the Decision Process<br />Environmental Differences:<br />Situation behaviors:as situations change, so d...
Situational Factors<br />When consumers buy<br />Where consumers buy<br />Why consumers buy<br />Conditions under <br />wh...
Situational Influences<br />Surroundings<br />Time<br />Consumer<br /> Moods and<br /> Motives<br />Terms<br />
Types of Decision Processes<br />
Consumer Decision Process Continuum<br />Limited Problem Solving (LPS)<br />Midrange Problem Solving<br />Extended Problem...
Consumer Decision Process Continuum: Repeat Purchases<br />Midrange Problem Solving<br />Habitual Problem Solving<br />Ext...
Types of Decision Processes<br />Initial Purchase <br />Extended Problem Solving (EPS): Problem solving of a higher degree...
Types of Decision Processes<br />Initial Purchase <br />Extended Problem Solving (EPS):<br />Often occurs with expensive i...
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L5 consumer behavior - ii 02-02-10

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Transcript of "L5 consumer behavior - ii 02-02-10"

  1. 1. How Organizations Use <br />the CDP Model<br />February 2, 2010<br />
  2. 2. Variables Shaping the Decision Process<br />Environmental Differences:<br />Culture<br />Social Class<br />Family<br />Personal Influence<br />Situation behaviors<br />
  3. 3. Social Influences<br />Culture<br />Subcultures<br />Social class<br />Reference groups<br />Families and <br />Households<br />
  4. 4. Variables Shaping the Decision Process<br />Environmental Differences:<br />Culture:values, ideas, artifacts, and symbols that help individuals interpret, communicate, and evaluate as members of society<br />
  5. 5. Variables Shaping the Decision Process<br />Environmental Differences:<br />Social Class: division within society composed of individuals sharing similar values, interests, and behaviors<br />
  6. 6. Variables Shaping the Decision Process<br />Environmental Differences:<br />Family:often the primary decision making unit with a complex and varying pattern or roles and functions<br />
  7. 7.
  8. 8. Variables Shaping the Decision Process<br />Environmental Differences:<br />Personal Influence:our behaviors are often affected by those with whom we closely associate<br />
  9. 9. Variables Shaping the Decision Process<br />Individual Differences:<br />Demographics, psychographics, values, and personality<br />Consumer resources<br />Motivation<br />Knowledge<br />Attitudes<br />
  10. 10. Consumer Demographics<br />Age<br />Family<br />Life Cycle<br />Education,<br />Income<br />Religion<br />
  11. 11. Family Life Cycle Stages<br />Nine<br /> stages<br /> with <br />different <br />buying <br />behavior<br />Bachelor<br />Young Married<br />Full Nest I<br />Single Parents<br />Divorced and Alone<br />Middle-aged Married<br />Full Nest II<br />Empty Nest<br />Older Single<br />
  12. 12. Social Factors<br /><ul><li>Membership
  13. 13. Reference (opinion leaders)
  14. 14. Aspirational
  15. 15. Groups
  16. 16. Most important consumer
  17. 17. buying organization
  18. 18. Family
  19. 19. Role =Expected activities
  20. 20. Status =
  21. 21. Esteem given to role by society
  22. 22. Roles &
  23. 23. Status</li></li></ul><li>Psychological Influences<br />Motivation<br />Perception<br />Learning<br />Personality<br />Attitude<br />
  24. 24. Maslow’s Hierarchy of Needs<br />
  25. 25. Perception<br />Process of receiving, organizing, and assigning<br />meaning to information or stimuli detected by our five senses<br />
  26. 26. Personality<br />An individual’s pattern of traits that influence<br />behavioral responses<br />Psychoanalytic<br />Theory<br />Hidden buying<br /> motives<br />Dreams, hopes,<br /> fantasies, fears<br />Self-concept<br />Actual<br />Ideal<br />
  27. 27. Lifestyle & Psychographics<br />Activities<br />Interests<br />Opinions<br />
  28. 28. Attitudes<br />Learned predisposition to respond to an<br /> object in a consistently favorable <br />or unfavorable way<br />
  29. 29. What Is An Attitude?<br />Object<br />Manifested dimensionsand attributes<br />Cognitive Component<br />Beliefs aboutthe object<br />Affective Component<br />Emotions or feelingsabout the object<br />Conative Component<br />Behavioral intentiontoward the object<br />Attitude<br />Overall expressiveorientation towardthe object<br />
  30. 30. Variables Shaping the Decision Process<br />Environmental Differences:<br />Situation behaviors:as situations change, so does the individual’s behavior<br />
  31. 31. Situational Factors<br />When consumers buy<br />Where consumers buy<br />Why consumers buy<br />Conditions under <br />which<br />consumers buy<br />
  32. 32. Situational Influences<br />Surroundings<br />Time<br />Consumer<br /> Moods and<br /> Motives<br />Terms<br />
  33. 33. Types of Decision Processes<br />
  34. 34. Consumer Decision Process Continuum<br />Limited Problem Solving (LPS)<br />Midrange Problem Solving<br />Extended Problem Solving (EPS)<br />Low<br />High<br />Degree of Complexity<br />
  35. 35. Consumer Decision Process Continuum: Repeat Purchases<br />Midrange Problem Solving<br />Habitual Problem Solving<br />Extended Problem Solving<br />Limited Problem Solving<br />Low<br />High<br />Degree of Complexity<br />
  36. 36. Types of Decision Processes<br />Initial Purchase <br />Extended Problem Solving (EPS): Problem solving of a higher degree of complexity that influences consumers actions<br />
  37. 37. Types of Decision Processes<br />Initial Purchase <br />Extended Problem Solving (EPS):<br />Often occurs with expensive items or can be fueled by doubts and fears<br />Importance in making the “right choice”<br />All seven consumer decision making stages are often activated<br />Dissatisfaction is often vocal<br />
  38. 38. Types of Decision Processes<br />Initial Purchase<br />Limited Problem Solving (LPS): Problem solving of a lower degree of complexity that influences consumers’ actions<br />
  39. 39. Types of Decision Processes<br />Initial Purchase <br />Limited Problem Solving (LPS):<br />Consumers don’t have motivation, time, or resources to engage in EPS<br />Little search and evaluation before purchase<br />Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance<br />
  40. 40. Types of Decision Processes<br />Initial Purchase<br />Midrange Problem Solving:<br />Many decisions occur along the middle of the continuum<br />Decisions are made with a minimal amount of time and only moderate deliberation<br />
  41. 41. Types of Decision Processes<br />Repeat Purchases <br />Repeated Problem Solving<br />Habitual Decision Making<br />
  42. 42. Types of Decision Processes<br />Repeat Purchases<br />Repeated Problem Solving<br />Habitual Decision Making<br />Impulse Buying<br />Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion (least complex form of LPS)<br />
  43. 43. Types of Decision Processes<br />Impulse Buying<br />Variety Seeking<br />Consumers may be satisfied with the present brand but still engage in brand switching<br />Can be triggered because bored with current brand or because of special offer<br />
  44. 44. Factors Influencing Problem Solving Extent<br />Degree of Involvement (High-Low)<br />Personal Factors (self-image, health, beauty, or physical condition)<br />Product Factors(is there perceived risk in purchasing and using a particular brand or product?)<br />Situational Factors(is the product purchased for personal use or as a gift?)<br />
  45. 45. Factors Influencing Problem Solving Extent<br />Time Availability <br />How much time is available to devote to solving the problem?<br />How quickly does the decision need to be made?<br />
  46. 46. Factors Influencing Problem Solving Extent<br />Time Availability <br />How much time is available to devote to solving the problem?<br />How quickly does the decision need to be made?<br />Consumers’ Mood State<br />How people feel at a particular moment <br />Mood can reduce or increase length and complexity of decision process <br />
  47. 47. Thank You<br />
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