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Perception
- 2. Consumer Behavior Consumer behavior - the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
- 3. Post-purchase Behavior Assess value in consumption Post-purchase Behavior Assess value in consumption Purchase Buying value Purchase Buying value Evaluation of Alternatives Assessing value Evaluation of Alternatives Assessing value Information Search Seeking a value Information Search Seeking a value Need Recognition Perceiving a value Need Recognition Perceiving a value Cultural, Social,Cultural, Social, Individual andIndividual and PsychologicalPsychological FactorsFactors affectaffect all stepsall steps Cultural, Social,Cultural, Social, Individual andIndividual and PsychologicalPsychological FactorsFactors affectaffect all stepsall steps Purchase Decision Process
- 4. Internal StimuliInternal Stimuli andand External StimuliExternal Stimuli Present Status Preferred State Marketing helps consumers recognize an imbalance between present status and preferred state Need Recognition
- 5. Information Search: Seeking Value Internal Search- Recall information from memory External Search information from outside environment Non-marketing controlled Marketing controlled
- 6. FIGURE 5-2FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players
- 7. Consideration SetConsideration Set Purchase!Purchase! Analyze product attributesAnalyze product attributesAnalyze product attributesAnalyze product attributes Rank attributes byRank attributes by importanceimportance Rank attributes byRank attributes by importanceimportance Use cutoff criteriaUse cutoff criteriaUse cutoff criteriaUse cutoff criteria Alternative Evaluation
- 8. Post-purchase Behavior- Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. CognitiveCognitive DissonanceDissonance ?Did I make a good decision?Did I make a good decision? Did I buy the right product?Did I buy the right product? Did I get a good value?Did I get a good value? Can minimize through:Can minimize through: Effective CommunicationEffective Communication Follow-upFollow-up GuaranteesGuarantees WarrantiesWarranties
- 9. Involvement and Problem-Solving Variations More Involvement Less Involvement Routine Response Behavior Routine Response Behavior Limited Decision Making Limited Decision Making Extensive Decision Making Extensive Decision Making
- 10. Comparison of problem-solving variations
- 11. When to use Routine Response Behavior Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision
- 12. When to use Limited Decision Making Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide
- 13. When to use Extensive Decision Making High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance
- 14. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Motivation – what stimulates behavior to satisfy a need Maslow’s Hierarchy of Needs
- 15. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception Selective Exposure Selective Exposure Selective Comprehension Selective Comprehension Selective Retention Selective Retention Consumer pays attention to certain stimuli and ignores others Consumer pays attention to certain stimuli and ignores others Consumer interprets info so that is is consistent with his beliefs Consumer interprets info so that is is consistent with his beliefs Average consumer only remembers 30% of information heard Average consumer only remembers 30% of information heard
- 16. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Perceived Risk • Obtain Seals of Approval • Secure Endorsements from Influential People • Provide Free Trials of the Product • Give Extensive Usage Instructions • Provide Warranties and Guarantees
- 17. How do consumers make purchase decisions? Psychographics – the analysis of people’s lifestyles VALS™ Consumer Segments
- 18. Reference Groups Reference Groups Opinion Leaders Opinion Leaders Family Members Family Members Social Influences on Buying Decisions Social Influences on Buying Decisions Sociocultural Influences on Consumer Behavior
- 19. Primary Secondary Aspirational ReferenceReference GroupsGroups Direct – Face to face – SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Indirect- No Personal Contact Dissociative Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
- 20. Why use celebrity spokespersons? Opinion Leaders
- 21. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Life Cycle
- 22. Family Decision Making • Information Gatherer • Influencer • Decision Maker• Purchaser • User SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Members assume different roles for different products Men’s clothes? Breakfast cereal? Computer?
- 23. Consumer Behavior Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
- 24. Purchase Decision Process The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.
- 25. Involvement Involvement consists of the personal, social, and economic significance of the purchase to the consumer. Involvement consists of the personal, social, and economic significance of the purchase to the consumer.
- 26. Motivation Motivation is the energizing force that stimulates behavior to satisfy a need. Motivation is the energizing force that stimulates behavior to satisfy a need.
- 27. Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
- 28. 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. Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.
- 29. Learning Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning. Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.
- 30. Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
- 31. Attitude An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.” An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”
- 32. Beliefs Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people. Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
- 33. Opinion leaders are individuals who exert direct or indirect social influence over others. Opinion leaders are individuals who exert direct or indirect social influence over others. Opinion Leaders
- 34. The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. Family Life Cycle