MKT305 Week 7 Lecture 2 Consumer Behavior Decision Making I Ne

MKT305: Week 7 Lecture 2: Consumer Behavior: Decision
Making I: Need Recognition and Search
Slide #
Topics
Narration
Slide 1
Introduction
Welcome to Consumer Behavior.
In this lesson we will discuss decision making and need and
search recognition.
Next slide.
Slide 2
Topics
The following topics will be covered in this lesson:
Consumer decision making;
Decision making and choice;
Decision-making perspectives;
Rational decision-making perspective;
Behavioral influence decision-making perspective;
Decision-making approaches;
Extended decision-making;
Limited decision-making;
Habitual decision-making;
Need recognition;
Search behavior;
The consideration set;
External search;
The role of price and quality in search process;
External search and the Internet;
Amount of search; and
Search regret.

Next slide.
Slide 3
Topics, continued
Slide 4
Consumer Decision Making
On a daily basis we make numerous decisions as consumers.
What do I need at the grocery store for dinner? Which grocery
store is on my way home from work? Where will I buy soccer
cleats that my daughter needs for practice? Some decisions are
obviously bigger than others. Making a decision as to what
items are needed to make dinner entails much more than
deciding where to go to college for example.
Remember from our prior lessons that the consumption process
begins with the recognition of a need. For instance, a consumer
realizes that they needs golf balls since they has lost a lot while
practicing on the golf course. However, some consumers may
realize a need for something, but wait to buy it at a later date.
Next slide.
Slide 5
Decision Making and Choice
The end goal of the decision-making process is that a choice is
made. However, we must be conscientious of the fact that the
choice that is made does not necessarily involve a purchase. The
decision-making process does not always involve an actual
tangible product. For example, a consumer may make the choice
to volunteer at their son’s elementary school a few hours a
week. The decision is made to trade the consumer’s time for the
value that they receive from the volunteer experience.

Decision-making is also related to both motivation and emotion.
In terms of motivation, consumers are motivated to make
decisions to address an identified need. Regarding emotion, it
depends upon the type of product that is being considered.
Consumers may become frustrated, impatient, irritated, or angry
as they attempt to make difficult decisions or when they can’t
find acceptable solutions to a problematic situation.
Next slide.
Slide 6
Decision-Making and Choice
The decision-making process can be viewed from a couple
different perspectives including the rational decision-making
perspective and the behavioral influence decision-making
perspective. It is important to note that these perspectives serve
as theoretical frameworks for which decision-making can be
viewed. Additionally, most consumer decisions can be analyzed
by using a combination of these two perspectives.
Next slide.
Slide 7
Rational Decision Making Perspective
The rational decision-making perspective is considered the
traditional approach to studying decision-making. It assumes
that consumers are rational beings that diligently gather
information about purchases, product features, brands, and
attributes before making an informed decision as to what to
purchase. A consumer who buys a new cell phone and gathers
information about text messaging and Internet access
capabilities and monthly service fees before making a decision
as to which provider to use would be following a rational-
decision making process.
Even though this perspective makes sense, not all consumers

follow it in all situations since some decisions are made with
very little thought or effort beforehand. What is considered
rational to one consumer may not be rational to another. For
example, one woman may feel that buying a thousand dollar
Coach handbag is rational, while another woman may feel that it
is irrational to spend this much money for a purse.
Next slide.
Slide 8
Behavioral Influence Decision Making Perspective
The behavioral influence decision-making perspective assumes
that many decisions are learned responses to environmental
influences. Clothing stores that cater to adolescents are known
for piping upbeat, contemporary music into their stores to make
for a more pleasant shopping atmosphere that will encourage
purchases.
Next slide.
Slide 9
Decision Making Approaches
The actual decision-making approach that a consumer takes will
depend upon the amount of involvement a consumer has with
the product and the amount of risk involved with the decision.
As involvement and risk increase, consumers are more cautious
about their decision-making process and often take more time
making the decision. The perceived risk is the perception of the
negative consequences that will result from a specific course of
action that is being considered, as well as the uncertainty of
which course of action is actually the best to take.
Consumers face many different types of risk including financial
which is the risk associated with the cost of the product. Social
risk is the risk that relates to how other consumers will view the
purchase. Performance risk refers to the risk associated with the

likelihood that the product will perform as the consumer expects
it to. While physical risk has to do with the risk associated with
product safety and the likelihood that physical harm will result
from its consumption. Lastly, time risk refers to the risk
associated with the amount of time required to search for the
product.
Next slide.
Slide 10
Extended Decision Making
Decision-making approaches can be classified into three
categories. The first category is known as extended decision-
making. When consumers practice extended decision-making
they often search diligently for information that will aid them in
making a satisfactory decision. The information that is gathered
can be from previous experience or from external sources such
as the Internet. After information is gathered, the consumer
carefully assimilates it and evaluates each option based upon
whether it will meet the need identified. For the most part,
extended decision-making is a lengthy process since it occurs
when there is high involvement and significant purchase risk.
Big ticket items such as automobiles, expensive jewelry,
houses, and televisions are purchased after an extended
decision-making process has taken place.
Next slide.
Slide 11
Limited Decision Making
The second category of decision-making approaches is limited
decision-making. When consumers use limited decision-making,
they do not search for very much information about a product
and often reach a decision based on prior beliefs about products
and their attributes. Little comparison between brands is
performed. Since consumers often experience time constraints,

limited decision-making is used frequently. There are typically
low amounts of purchase risk and product involvement in
limited decision-making situations. For example, the decision to
purchase grocery staples such as bread, milk, eggs, and butter
would typically involve limited decision-making. This is due to
consumers already being aware of the attributes of these
products and often little to no comparisons are made between
products such as these.
Next slide.
Slide 12
Habitual Decision Making
The third category of decision-making is referred to as habitual
decision-making or routine decision-making. This type of
decision-making occurs when the consumer does not seek
information when a need is identified. The consumer’s choice is
often based on habit and the brand the consumer prefers. Most
consumers have favorite types of foods that they routinely
purchase and consume.
Brand loyalty is a strong commitment to buy a product
regardless of the situational influences. The consumer has a
bond with the product. For example, some consumers prefer
Lay’s potato chips over a competing brand. Brand inertia
happens when a consumer repeatedly buys a product without
any real attachment to it.
Next slide.
Slide 13
Check Your Understanding
Slide 14
Need Recognition

As you have already learned, the decision-making process
begins with the recognition of a need. The need is recognized
when there is a difference between the consumer’s actual state
and their desired state. The actual state is their perceived
current state. Their desired state is the perceived state that the
consumer strives for. For example, a consumer realizes that
they have run out of Listerine mouthwash. They have a need for
this product. Since they use it twice daily, the consumer will be
motivated to satisfy this need soon. However, not all needs that
are identified prompt the consumer to make a purchase. For
instance, a consumer who is a runner knows that running shoes
should be replaced after running three hundred to five hundred
miles. Since the consumer runs an average of twenty miles per
week, they know that their running shoes will need to be
replaced within four to five months.
Next slide.
Slide 15
Search Behavior
After a need has been identified, consumers will seek
information to use to satisfy the need. Consumers will search
for such information as the following:
The number of alternatives available;
The price of the alternatives;
The attributes of all alternatives available; and
The performance of each attribute.
Four types of search behaviors have been identified. The first
is referred to as ongoing search. Ongoing search entails seeking
information simply because the consumer has an interest in a
particular topic, product, or organiza tion. High school juniors
often engage in ongoing search when they are gathering
information about where to go to college, the different offerings
of colleges, and the options for academic majors. The focus of

an ongoing search isn’t necessary to make a purchase. Rather,
it is staying up to date on a topic of interest.
The second type of search behavior is known as prepurchase
search. Prepurchase search activities are conducted to locate
information to enable the consumer to make a decision for a
specific purchase. For instance, a family needs a new washing
machine. They search online to gather information regarding the
different models, brands, prices, and features of washing
machines.
One problem that consumers have found with searching the
Internet for information is information overload. Information
overload is when too much information is presented and the
consumer has difficulty assimilating it all. One way to alleviate
information overload is to join social networking sites such as
Facebook. Many businesses are using Facebook to provide
consumers with specific information regarding their products
and they frequently provide input and comments from other
consumers regarding the product features, attributes, and
functionality.
Next slide.
Slide 16
The Consideration Set
Consumers will perform an internal search of products and
services to retrieve knowledge about them that is stored in
memory when a need is identified. This is done to find possible
solutions to the problem that can help the consumer make a
decision. The consideration set is all alternatives that are
considered acceptable for further consideration in decision-
making. For instance, a mother is planning a special sixteenth
birthday party for her daughter and needs a birthday cake. She
conducts an internal search of her memory and remembers that
her daughter’s favorite flavor of cake is chocolate with

chocolate frosting. Typically, Mom makes a cake from a box
mix and uses canned frosting. However, since this is her
daughter’s sweet sixteen birthday party, Mom considers other
alternatives such as getting a decorated chocolate cake with
chocolate frosting from the bakery at the grocery store.
Next slide.
Slide 17
External Search
At times, consumers do not have sufficient information stored
in their memories to help them with adequate problem solving.
Because of this, an external search is necessary. External search
involves gathering information from sources external to the
consumer such as friends, family, salespeople, advertising, or
the Internet. Factors such as how easy it is to obtain the
information, how objective the source of the information is, the
trustworthiness of the source, and the speed with which the
information can be obtained are all considered by consumers
when they are conducting an external search. Typically,
consumers will find information from family and friends to be
dependable. However, information obtained from salespeople or
advertising is considered less credible for input into decision
making.
Next slide.
Slide 18
The Role of Price and Quality in Search Process
Consumers use both price and quality as evaluation criteria to
aid with decision-making and they tend to seek information
regarding price and quality early in the search process. A
product’s price is related to the value that the consumer will
receive. A high price tag on a product typically is a bad thing
for most consumers. This is especially the case for consumers
who are bargain conscious. However, a product’s price may also

signal how desirable the product is and the amount of prestige
that will be associated with it if the consumer purchases it. For
example, many consumers would not want to spend the money
to purchase a BMW automobile since they feel the price is too
high. However, some consumers are willing to pay a higher
price tag for a luxury car because of the prestige that its
possession will provide the consumer.
Consumers are almost always interested in the quality of
products. Quality represents the perceived overall goodness or
badness of a product. Quality perceptions happen before and
after the purchase takes place; however consumers do not
always seek high quality because it may not be necessary or
desired. For instance, a consumer decides to purchase a new
vehicle. The consumer has limited funds and is conscientious of
gas mileage, car payments, and their insurance rates increasing
because they are buying a new car. They decide to purchase a
lower quality economy car that provides them with the features
that they need which includes good gas mileage and low car
payments. They are not interested in buying a larger, nicer car
with more features because these are qualities that they are not
interested in based upon their economic situation.
Next slide.
Slide 19
External Search
The Internet is a tool that allows consumers to use websites
such as Google, Ask, and Bing to search for information in
simplified, efficient ways. Any question a consumer has can be
Googled and within seconds thousands of websites will be at the
consumer’s disposal to peruse. In this way, the Internet has
improved consumer search activities in many different ways.
First, the Internet lowers the costs that are related to the search
and it makes the process more productive. Think about yourself

as an online college student. You have access to the university’s
library online at your fingertips from the comfort of your home.
Previously, many trips to the campus library would have been
necessary to find and retrieve information for completing
research papers and projects. Secondly, searching online can be
an enjoyable activity and provide hedonic value to the
consumer. Third, the ability to control the flow of information
more efficiently is possible with Internet search activities when
compared with a television commercial or radio ad for example.
Studies have revealed that Internet search behavior is impacted
by the construction of the website that the consumer visits. One
study found that consumers spend more time in three
dimensional, interactive web environments than in two
dimensional ones.
Next slide.
Slide 20
Amount of Search
Many differentfactors influence the amount of search that
consumers conduct to gather information to make a decision.
One factor is the amount of experience a consumer has with a
product. Prior experience usually influences how much a
consumer searches. Moderately experienced consumers search
for information more than either experienced or inexperienced
consumers. The second factor influencing the amount of search
conducted is the level of product involvement. Search activities
tend to increase when a consumer has a high level of
involvement with a product. The perceived risk for a consumer
is another factor. As perceived risk increases, search effort
increases. Lastly, the value of the search effort is a factor.
Some consumers find value in the search process itself.
Next slide.

Search Regret
There are times when consumers are unable to find the
information they are seeking and due to this, the search process
becomes emotional for the consumer. They may experience what
is known as search regret. Search regret refers to the negative
emotions that result from a failed search effort. When this
happens, consumers often stop the search process and as a
result, the decision-making process also stops. The consumer
may feel that they have wasted their time by searching for
information to help them self make a decision since the
information they needed was not found.
Next slide.
Slide 22
Slide 23
Summary
We have reached the end of this lesson. Let’s take a look at
what we’ve covered.
First, we learned that consumer decision making begins with an
identified need and that not all decisions are equal. Some
consumers may identify a need, but delay an actual purchase
being made. The end goal of decision-making is to make a
choice. However, the choice does not always involve a purchase
or a tangible product for that matter. We are motivated to make
decisions to address a need. At times, consumer decision-
making may be emotional, depending upon the product being
considered.

We then talked about some different decision making
perspectives. We saw that the decision-making process can be
viewed from a couple different perspectives including the
rational decision-making perspective and the behavioral
influence decision-making perspective. The rational decision-
making perspective is considered the traditional approach to
decision-making and it assumes that consumers are rational
beings that gather sufficient information before making a
decision. The behavioral influence decision-making perspective
assumes that many decisions are learned responses to
environmental influences. Perceived risk is the perception of the
negative consequences that will result from a specific course of
action that is being considered, as well as the uncertainty of
which course of action is actually the best to take. Consumers
face many different types of risk including financial, social,
performance, physical, and time.
We next discussed extended decision making which involves
searching for information to make a satisfactory decision.
Consumers rely upon personal experiences and external sources
to gather information before assimilating it and evaluating their
options. Extended decision-making is often a lengthy process
that involves high involvement and significant purchase risk.
With limited decision-making, consumers do not search for
product information and their decision is based primarily on
prior beliefs about products and their attributes. Limited
decision-making has low product involvement and low purchase
risk. Habitual decision-making occurs when the consumer does
not seek information when a need is identified. Their choice is
based on habit and they may be loyal to certain brands of
products.
Next slide
Slide 24
Summary, continued

Next, we discussed need recognition which is the beginning of
the decision-making process. A need is recognized when there is
a difference between the actual or current state and the desired
state that the consumer strives for. The next step in the
decision-making process is searching for information to satisfy
the identified need. Consumers can conduct ongoing searches
to find information they are interested in or they can conduct a
prepurchase search where they gather information for an
intended upcoming purchase. Some consumers may experience
information overload where they are provided with too much
information to assimilate. We later learned about an internal
search. This type of search relates directly to the consumer’s
experiences with products and services. When a problem is
identified, consumers scan their memory for available solutions.
The consideration set refers to the alternatives that are
considered acceptable for further consideration in decision-
making.
Later we studies external searches. When consumers do not
possess sufficient internal information, they will conduct an
external search whereby they will gather information from
sources that are external to the consumer such as one’s family,
friends, salespeople, advertising, or the Internet.
We next discussed the role of price and quality in the decision-
making process since both are used as evaluation criteria. Price
refers to the perception of the value a consumer will receive a nd
it can determine the desirability of a product. Quality is the
perceived overall goodness or badness of a product.
Then we talked about external search and the Internet. The
Internet has provided consumers with a tool to simplify
searching for information. The lower costs associated with
online searchers and the increase in productivity are two factors
that have been identified. Additionally, consumers are able to
control the flow of information during Internet searchers and

their search behaviors are impacted by how a website is
designed.
You learned that the amount a consumer searches for
information to make a decision is impacted by four different
factors including product experience, product involvement,
perceived risk, and the value of the search effort.
Finally to conclude the lesson, we looked at search regret.
When a consumer searches for information to aid them with
decision making and do not find it, they may experience
negative emotions. This is known as search regret and the
consumer may feel that they have wasted their time with the
search effort since it failed to produce results to help them make
a decision.
This completes the lesson.
MKT305: Week 7 Lecture 1: Consumer Behavior: Consumers in
Situations
Slide #
Topics
Narration
Slide 1
Introduction
Welcome to Consumer Behavior.
In this lesson we will discuss consumers in situations.
Next slide.
Slide 2
Topics
The following topics will be covered in this lesson:

Situations and value;
Time and consumer behavior;
Time pressure;
Time of year;
Time of day or circadian cycles;
Advertiming;
Place shapes shopping activities;
Shopping and shopping activities;
Shopping values;
Impulsive shopping and consumption;
Impulsive versus unplanned consumer behavior;
Distinguishing impulsive and unplanned consumer behavior;
Susceptibility to situational effects;
Consumer self-regulation;
Impulsive versus compulsive behavior;
Retail and service atmospherics;
Atmosphere elements;
Antecedent conditions;
Economic resources;
Orientation;
Mood; and
Security and fearfulness.
Next slide.
Slide 3
Topics, continued
Slide 4
Situations and Value
You should recall from a previous lesson that situational
influences have an effect on our behavior as consumers. As a
review, situational influences are temporary conditions that can
affect communication, shopping, brand preference, purchases,

and consumption. What this means is that we act differently in
different situations. The context of the situation will have an
impact upon our behavior. That said, the value that we receive
from a purchase will vary as well based on the context in which
the act takes place. These situational influences affect our
decision-making and the eventual value experienced.
Next slide.
Slide 4
Time and Consumer Behavior
Do you sometimes feel like there is not enough time in the day
to get everything done that you want to? Probably, your answer
is a resounding, yes! We are all time crunched in this fast-
paced, technological world we live in. Our time though, is
extremely valuable. We spend time working to earn money to
pay the bills, raise children, and to improve our quality of life.
We also need to have time available for consumption activities
such as shopping, cleaning the house, mowing the lawn, and
participating in some fun activities with friends and family.
Our lives also involve pressures involving time such as meeting
deadlines that occur daily or at recurring times of the year.
Situational characteristics that relate to time are referred to as
temporal factors.
Next slide.
Slide 5
Time Pressure
Our world is full of pressures related to time. Some are self-
imposed, while others are not. The urgency with which a
consumer must make a decision based on a real or self-imposed
deadline is known as time pressure. You have undoubtedly
experienced having to make a decision without the benefit of
time. When this occurs, consumers will react in different ways.

When time is minimal, less information is processed by
consumers. It has been found that they are able to remember
less information about product choices than consumers in the
same situation who have sufficient time. Secondly, time
pressured consumers are more apt to make choices that are
simple versus a situation where more time is available to
choose. They might simply pick a high quality, well-known
brand since they don’t have time to weigh other options. Third,
consumers with time pressure prefer to shop alone than with
others.
Next slide.
Slide 6
Time of Year
The time of year may also have an effect on the value we
receive from the consumption process. Regularly occurring
conditions that vary with the time of year is known as
seasonality. We are familiar with this term as it relates to the
four seasons of the year. But, our consumption habits and value
received is different depending upon the time of the year. For
instance, parents are very familiar with the numerous items that
children need throughout the academic school year. School
pictures, sports physicals, and graduation events are all
examples of conditions that vary with the time of year in an
academic setting. Many areas of the country have seasonal
fruits and vegetables that are popular such as the winter
strawberry season in Florida and the fall apple season in upstate
New York. The weather may also dictate purchase decisions
related to apparel to accommodate the season. Interestingly, it
has been discovered that consumers tend to shop earlier in the
day during the winter months and spend more money during the
summer months.
Next slide.

Time of Day or Circadian Circles
Now, let’s discuss a bit of biology for a moment. The human
body is greatly affected by the time of day. Our bodies have a
set rhythm that varies with the time of day. This is known as a
circadian cycle. Our circadian cycle is partly responsible for our
sleep and wake times and how productive we are. Many
individuals experience the afternoon slump that occurs between
one p.m. and three p.m. whereby they feel tired and may lack
motivation. A host of products are available to consumers to
help them gain extra energy, as well as all of the well -known
caffeinated beverages that consumers rely on for a boost such as
coffee, hot tea, soda, and iced tea.
Next slide.
Slide 8
Advertiming
Marketers are aware that as consumers, we are in need of
specific products to help us solve problems. Some problems that
need to be solved may occur at different times of the day or
year. For instance, consumers who live in areas that get snow in
the winter will need products such as salt for de-icing, winter
tires, battery chargers, and windshield scrapers. However,
consumers may not be as receptive to advertisements and
marketing messages received about products such as this during
the warm, summer months. Advertiming is when a company
buys advertising to be conducted at a set time when consumers
will be most receptive.
Next slide.
Slide 9
Slide 10

Place Shapes Shopping Activities
Our options for the places that we shop have increased
dramatically over the past few years. Now, consumers may
regularly shop online via their tablet computers or cell phones.
It is not necessary to go to an actual brick and mortar store to
purchase some products. Some consumers do not reside in areas
of the country that have many retail establishments located
nearby and due to this, they may be forced to shop online to
obtain the products they need.
Next slide.
Slide 11
Shopping and Shopping Activities
You undoubtedly know what shopping is since it is something
that all consumers must do. Officially, shopping is defined as a
set of value-producing activities that increase the chances that
something will be purchased. But, as you can see from the
definition, shopping does not have to conclude with a purchase.
Shopping activities take place in specific places and under
specific conditions or contexts and occur in situations that are
not easily controlled by the consumer. For instance, the store
may be crowded, the consumer may be in a bad mood, or
perhaps the consumer feels rushed during her shopping
experience. These situations can have an effect on how we shop
and whether or not we make a purchase.
Four different types of shopping have been identified. The
first, acquisitional shopping, involves activities geared at a
specific, intended purchase. A woman who buys groceries for
her family each week is participating in acquisitional shopping.
This type of shopping is more task-like in orientation. The
second type is known as epistemic shopping. Epistemic
shopping is oriented toward acquiring knowledge about a
product. A consumer interested in buying a home would benefit
from acquiring knowledge about local housing prices and

financing options for example. Experiential shopping is the
third type and it involves recreational-oriented activities that
offer excitement, relaxation, fun, or social interaction. Some
people may shop for something to do or to have time to catch up
with a friend during a shopping outing or they may shop
because they are bored. The last type of shopping is impulsive
shopping. Impulsive shopping involves spontaneous activities
that are characterized by a decreased regard for consequences,
increased emotional involvement, and a desire for immediate
gratification.
Next slide.
Slide 12
Shopping Value
What motivates consumers to shop? Of course, it is necessary to
purchase goods for survival reasons. However, some consumers
receive great value from their actual shopping experience even
without making a purchase. Some consumers may receive a
different level of value from their shopping experience than
others. The personal shopping value is the overall worth of a
shopping activity when all related costs and benefits are
considered.
The retail environment that we shop in can have a personality.
This may sound silly, but it is true. A retail personality is how
a store is defined in the mind of the shopper based on the
functional qualities of the store and the affective qualities.
When we say functional qualities, we mean the basic features of
a retail store that facilitates the shopping experience. The
affective qualities refer to the ways that retail establishments
create an emotionally rewarding shopping environment. For
instance, shopping at a Macy’s department store is a different
type of experience than shopping at Walmart or Target.
Next slide.

Impulsive Shopping and Compulsion
Previously in this lesson, you learned a little about impulsive
shopping. Impulsive shopping is something that most consumers
do at one time or another. To expand a bit further on this
concept, impulsive consumption is characterized by three
components. The first is that impulsive acts are typically
spontaneous. Secondly, impulsive acts are usually associated
with a decreased regard for consequences. Lastly, impulsive
acts are often motivated by a need for immediate self-
gratification and fulfillment with high levels of emotional
involvement.
Next slide.
Slide 14
Impulsive Versus Unplanned Consumer Behavior
You might think that impulsive shopping is the same as
unplanned shopping, but there are some differences between the
two. The first difference is that unplanned consumer behaviors
are characterized by situational memory. This means that there
is something in the environment that prompts us to remember
that we need to purchase something. For instance, a woman is
shopping for groceries for the family for the week with her
grocery list. However, the list does not contain an item that she
needs. When the woman sees the item on the shelf in the store,
she remembers that she needs it and she puts it in her cart for
purchase. The woman has made an unplanned purchase.
The second difference between impulsive and unplanned
consumer behavior is that unplanned consumer behavior has a
utilitarian orientation meaning that little emotional involvement
is expended regarding the purchase. Impulsive shopping and
unplanned shopping both involve spontaneity since both involve
purchases made without any deliberation or prior decision
making involved.

Next slide.
Slide 15
Slide 16
Distinguishing Impulsive and Unplanned Consumer Behavior
At times, it is not easy to distinguish between impulsive
consumer behavior and unplanned consumer behavior. The line
between the two is sometimes fuzzy since some unplanned
behaviors are impulsive and some impulsive acts are unplanned.
Simple unplanned behavior typically doesn’t include much
emotional involvement or any significant levels of self-
fulfillment or gratification. Further, often unplanned purchases
involve very minimal consequences and because of this, they do
not really have negative consequences.
Next slide.
Slide 17
Susceptibility to Situational Effects
How susceptible are consumers to both impulsive and unplanned
consumer behavior? The answer to this question is that
consumers are very susceptible to both, but not all consumers
are equally susceptible. For example, a consumer who is frugal
by nature is less susceptible to making either an impulsive or
unplanned purchase in comparison to a consumer who is highly
materialistic. Our individual characteristics are partly
responsible for our consumer behaviors. Impulsivity is a
personality trait that represents how sensitive a consumer is to
immediate rewards. Consumers with high impulsivity are more
prone to impulsive acts.
Retailers capitalize on our susceptibility as consumers by
providing retail shopping environments, merchandising, free

samples, music and knowledgeable salespeople to encourage us
to make purchases. Online retailers have created transaction
processes that are simple which may encourage some consumers
to make purchases online.
Next slide.
Slide 18
Consumer Self-Regulation
One way that consumers control their purchase behaviors is
through what is called self-regulation. Consumer self-regulation
is the tendency for a consumer to inhibit outside influences
from interfering with their shopping. As you can probably
imagine, some consumers are much better at self-regulating
their behavior than others. Consumers with a high ability to
self-regulate are referred to as action-oriented. Action-oriented
consumers are not as affected by the emotions that are
generated through the shopping experience. Consumers with
a low ability to self-regulate are referred to as state-oriented.
State-oriented consumers have a higher level of emotional
involvement and are more likely to make an unplanned purchase
than an action-oriented consumer.
Next slide.
Slide 19
Impulsive Versus Compulsive
You have already learned what impulsive consumer behavior is
and its characteristics. Compulsive consumer behavior shares
some of its characteristics with impulsive behavior. Both
behaviors involve a certain degree of emotional involvement
and possess the possibility for negative consequences. However,
compulsive behavior differs from impulsive behavior in three
ways.
The first is that compulsive behavior is harmful. Secondly,

compulsive behavior is somewhat uncontrollable. The last
difference is that compulsive behavior is driven by chronic
depression. Think about a consumer who is obsessed with
buying shoes. She has over three hundred pairs of shoes in her
closet, yet she still keeps buying more. Her behavior can be
considered harmful and out of control because she is not in a
financial position to be able to afford all of the shoes she is
buying. As a result, she is unable to pay her rent for two
months and is evicted from her apartment. Later on in our
lesson, we discuss compulsive behavior in more depth and
address the chronic depression component.
Next slide.
Slide 20
Retail and Service Atmospherics
You have already learned that the physical environment plays a
significant role in a consumer’s shopping behavior, value
received, and satisfaction. To expand upon this a bit, let’s talk
about atmospherics. Atmospherics refers to the emotional
nature of an environment and the feelings it creates when all of
the physical attributes are combined. The functional quality of
the environment is a description of the total attributes that make
the shopping experience efficient for the consumer. Examples
of functional qualities of the environment are convenience, wide
selection, low prices, and knowledgeable employees. A
consumer who takes their car to Jiffy Lube in their
neighborhood for an oil and filter change is maximizing upon
the functional qualities of this type of business. This is also an
example of what is known as a service environment. In a service
environment, consumers rely upon the expertise of the
employees, the convenience of the environment, and the
capability of all staff.
On the flip side, the affective quality is a representation of the
emotional meaning of the environment resulting from the total

effect of all attributes that affect how the consumer feels in the
environment. For instance, consumers who visit an amusement
park such as Disneyland or SeaWorld realize the ambiance of
the environment as soon as they step through the entrance gate.
Using colors, lights, music, and smells, these parks have done
their homework regarding how they want their visitors to feel.
Further, the staff is trained to be extremely friendly and helpful.
Next slide.
Slide 21
Atmosphere Elements
Now let’s talk about the specific elements of the atmosphere
that can have an impact on a consumer’s perception of a
shopping environment. Merchants use odors, music, color, and
merchandising to create a positive shopping environment that is
pleasant and prompts consumers to make purchases. In terms of
odors, retailers use them because they have an effect on our
cognitive processing of information. For instance, citrus smells
have been found to create higher levels of pleasant emotions
and increased receptivity to product information.
The use of music in retail atmospheres can have a strong effect
on consumers. Foreground music is music that becomes the
point of attention for the consumer and it can have a strong
effect on a consumer’s willingness to approach or avoid an
environment. Think about a retail establishment that is playing
a type of music that the consumer does not like. The likelihood
that the consumer will remain in this store to shop decreases
significantly. Music played below the audible threshold is
known as background music. Most service providers and
retailers typically provide some type of background music for
shoppers.
Color is also used to affect consumer reactions and perceptions
since consumers respond differently to different colors. For

example, blue is a color that is universally liked. Consumers
who see a product in a predominantly blue background often
think the product is of higher quality and because of this they
are willing to pay more for it. On the other hand, red and orange
promote feelings of poor quality and low price.
Merchandising refers to how products are placed and displayed
to increase the chances that consumers will purchase the
products. This is accomplished through the use of specific
product displays, visual imagery, and signage that is appealing
to consumers. Merchandising at its finest can be seen in high
end department stores with much thought and energy put into
how the merchandise will be displayed. This is in contrast to
how merchandise is displayed in stores such as Target or
Walmart.
Next slide.
Slide 22
Antecedent Conditions
Antecedent conditions are situational characteristics that the
consumer brings to a particular information processing,
purchase, or consumption environment. Examples of antecedent
conditions include economic resources, orientation, mood, and
security and fearfulness which can shape the value in a
situation.
Next slide.
Slide 23
Economic Resources
As you just learned, one antecedent condition is a consumer’s
economic resources. A consumer’s buying power is the total
amount of economic resources the consumer brings to a specific
purchase setting. This total amount may include cash, credit
card spending limits, and funds available through debit card or
checking account. The amount of money a consumer has on

hand will often dictate where they shop.
Many Americans live from paycheck to paycheck. During the
past few years, with the country experiencing an economic
crisis with employee layoffs, further hardships have been
created for families to contend with. Additionally, consumers
also experienced hardships related to trying to pay their
mortgages after interest rates rose on their adjustable rate
mortgages. To aid with these financial hardships, consumers
often rely upon check advance services that are available
through such establishments such as Amscot who offer payday
loans. These payday loans allow the consumer to make ends
meet by providing a way for them to get their pay before their
company issues them the check. However, the interest rate
charges for a payday loan are often extremely high since the
loan payback is required within three weeks. The increased
expenses associated with the financing for a home mortgage or a
payday loan decrease the consumer’s overall buying power.
Not all consumers budget their finances. In fact, most
consumers do not perform any type of formal budget process.
However, consumers who do budget have different spending
habits than those that don’t use a budget. Typically, consumers
who budget their finances are morefrugal. Some consumers
perform mental budgeting which is a mental account of their
expenditures. If the consumer over spends in one area, more
than likely, they will make up for it by spending less in another
area.
Next slide.
Slide 24
Orientation
As consumers, we typically are oriented to shop a certain way
that provides value for us. A shopper’s orientation may be a
temporary state. For instance, a family facing an economic

hardship may change their grocery shopping habits to
accommodate the hardship. They may do more comparison
shopping, purchase store brand products which are cheaper,
shop during weekly sales, and use manufacturer and store
coupons. Their orientation has become more price conscious as
they try to save money. A consumer who usually has a strong
experiential orientation may temporarily become more task-
oriented.
Next slide.
Slide 25
Mood
It will probably not come as a surprise to you that the
antecedent condition of mood has an impact upon our shopping
behaviors. Consumers bring their current mood with them when
they go shopping. Consumers in bad moods have been known to
binge consume. For instance, a woman has a bad day at work
and on her way home she stops at a seven eleven and purchases
some Oreos. Her bad mood enhances the value of the Oreos
temporarily because it provides her with hedonic value from the
delicious chocolate taste and it also serves a therapeuti c purpose
by helping to improve her mood.
The mood that consumers bring to a shopping experience has
the potential to exaggerate the actual experience. A consumer
in a good mood may receive even greater hedonic value from
shopping then they usually do. Our mood can also affect our
spending habits and satisfaction. Shoppers in a bad mood are
more likely to only buy what they need and they experience
lower satisfaction than a consumer in a good mood.
Next slide.
Slide 26
Security and Fearfulness
The last antecedent condition concerns our security and

fearfulness. With the increasing rates of vandalism, muggings,
car jackings, assaults, abductions, and terrorism in our country,
consumers are constantly reminded of the dangers that lurk
when we are out and about in our community. Criminals target
unsuspecting victims in large store parking lots and consumers
are fearful for their safety at times. This is especially the case
for consumers who feel vulnerable. Areas where large numbers
of people gather such as airports and shopping malls are known
to be potential targets for terrorist activity which creates even
more fear in consumers.
Consumers can be affected by fearfulness during their shopping
experience. A consumer who shops while in a fearful mood
won’t shop in the manner that they typically do. They will buy
less and enjoy the experience less. Some fearful shoppers may
opt to do their shopping online from the safety and security of
their home. However, consumers may be fearful of providing
their private information during a purchase transaction due to
the risk of identity theft.
Next slide.
Slide 27
Slide 28
Summary
We have reached the end of this lesson. Let’s take a look at
what we’ve covered.
We began our lesson talking about how situational influences
have an effect on value and that the context of a situation will
have an impact on how we behave as consumers. Then, we
discussed the value of time for consumers and defined temporal

factors which are situational characteristics related to time.
Time pressure is the urgency with which a consumer must make
a decision based upon either a self-imposed or real deadline. We
then noted that regularly occurring conditions that vary with
time of year is known as seasonality and that consumption
habits and value are affected by the time of year. The time of
day or circadian cycle is the set rhythm in our bodies that varies
with the time of day and is responsible for our sleep and wake
cycles and productivity. Our options for shopping have
increased dramatically over the years with more online shopping
being conducted.
You then learned that the official definition of shopping is
value-producing activities that increase the changes that
something will be purchased. The four different types of
shopping activities were identified and include acquisitional,
epistemic, experiential, and impulsive.
You then learned that the personal shopping value is the overall
worth of a shopping activity when all related costs and benefits
are considered and that retail environments can have a
personality. A retail personality is how a store is defined in the
mind of the shopper based on the functional qualities of the
store and the affective qualities. Impulsive consumption is
characterized by three components including being spontaneous,
a decreased regard for consequences, and a need for immediate
self-gratification.
Next, our discussion continued with a comparison of impulsive
shopping versus unplanned shopping. Unplanned shopping
differs from impulsive shopping in that it involves situational
memory and a utilitarian orientation. Impulsive shopping and
unplanned shopping share the characteristic of spontaneity. At
times, it is not easy to distinguish between impulsive consumer
behavior and unplanned consumer behavior. The line between
the two is sometimes fuzzy since some unplanned behaviors are

impulsive and some impulsive acts are unplanned. All
consumers are susceptible to impulsive and unplanned
purchases, but individual characteristics and personality traits
play a role also. The tendency for a consumer to inhibit outside
influences from interfering with shopping is known as consumer
self-regulation. Some consumers are much better at self-
regulating than others. Consumers who have high levels of self-
regulation are known as action-oriented. Those with low levels
are known as state-oriented.
Next slide
Slide 29
Summary, continued
Our lesson continued with the three characteristics of
compulsive behavior which are that it is harmful, somewhat
uncontrollable, and driven by chronic depression. Next, we
discussed retail and service atmospheres and learned that the
emotional nature of an environment and the feelings created
when the attributes are combined is known as atmospherics.
Atmosphere elements create a positive, pleasant shopping
experience for consumers. The use of odors, music, colors, and
merchandising are all examples of how atmosphere elements can
impact upon the feelings created for the consumer during the
shopping experience.
We next learned that situational characteristics the consumer
brings to a particular information processing, purchase, or
consumption environment are known as antecedent conditions.
Examples of antecedent conditions are economic resources,
orientation, mood, and security and fearfulness. The first
antecedent condition of economic resources includes a
consumer’s buying power which is the total amount of economic
resources the consumer brings to a specific purchase setting.
The second antecedent condition is orientation. Orientation
refers to the type of shopper we typically are. However, our

shopping orientation may be temporary when situations warrant
more price consciousness. Mood, the third antecedent
condition, impacts upon our shopping behaviors. Consumers in
a good mood receive greater value from their purchases than
those in a bad mood. Mood also has the potential to exaggerate
the actual shopping experience. Our spending habits and
satisfaction are affected by our mood as well.
Finally to conclude the lesson we looked at the last antecedent
condition which relates to a consumer’s sense of security and
his fearfulness level. Due to increases in crime, consumers may
not feel safe and secure while shopping and any fear that is felt
may affect shopping behaviors. Some consumers have turned to
the Internet to shop to alleviate these concerns.
This completes the lesson.

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MKT305 Week 7 Lecture 2 Consumer Behavior Decision Making I Ne