BMGT 205: Principles of Marketing
Chapter 6: Consumer 

Behavior
Consumer Behavior - Learning Objectives
LO1

Articulate the steps in the consumer buying process.

LO2

Describe the diffe...
Consumer Behavior
•

This is one of the hottest topics in marketing today

•

Marketers are using “big data” to predict co...
The Consumer Decision Process

Need recognition

Information search

Alternative evaluation

Purchase

Post purchase
The Traditional Marketing Funnel
The Digital Customer Journey

Source: David Edelman, McKinsey and Company.
1. Need Recognition
•

Functional Needs: pertain to
the performance of a product
or service.

!

•

Psychological needs pe...
2. Search for
Information

Internal Search 

for Information

External Search 

for Information

Need recognition

Informa...
Perceived
Benefits

Factors Affecting Consumers’ 

Search Process

Perceived
Costs
Universal

Retrieval

Evoked

Need recognition

Information search

Alternative evaluation

3. Alternative Evaluation

Pur...
Evaluation of Alternatives: 

Attribute Sets
•

Universal sets include all possible choices for a product
category.

•

Re...
Evaluation of Alternatives: 

Evaluate Criteria

Evaluative Criteria

Determinant Attributes
Evaluation of Alternatives: 

Evaluate Criteria
•

Evaluative criteria consist of a set of salient, or
important, attribut...
Actual or Perceived Risk
Performance risk

Psychological risks

Physiological risk

Financial risk

Social risk
Purchase and
Consumption

Increase
Conversion
rate
Reduce real or
virtual 

abandoned carts

Need recognition

Merchandise...
5. Post-purchase:

Customer
Satisfaction

Customer
Loyalty

Dissonance
Post Purchase Reviews
CHECK YOURSELF
•

Name the five stage is the consumer decision process

•

What is the difference between a need and a want...
Factors Influencing

the Consumer Decision Process
••Motives
••Attitudes
••Perceptions
••Learning

••Product
••Price
••Plac...
Involvement and Consumer 

Buying Decisions
Message (e.g., Ad)

High involvement

• Greater attention
• Deeper processing
...
Types of Buying Decisions
•

Extended problem solving occurs during a purchase
decision that calls for a lot of effort and...
http://www.youtube.com/
watch?v=-MC_jmtlrOQ
Car Decision Buying Process: Student
Car Decision Buying Process: Gen X Parent
Car Comparison
•

Dodge Dart: http://youtu.be/pY6VbPcthm4

•

Honda Mini-Van: http://youtu.be/ubaALhzQ3zY
Key Terms
•

An attitude is a person’s enduring evaluation of his or
her feelings about and behavioral tendencies toward a...
Key Terms
•

Evaluative criteria consist of a set of salient, or
important, attributes about a particular product.

•

A c...
Key Terms
•

Habitual decision making describes a purchase decision
process in which consumers engage little conscious eff...
Key Terms
•

Perception is the process by which we select, organize,
and interpret information to form a meaningful pictur...
Key Terms
•

Shopping goods/services are products or services for
which consumers will spend time comparing alternatives.
...
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Bmgt 205 chapter_6

  1. 1. BMGT 205: Principles of Marketing Chapter 6: Consumer 
 Behavior
  2. 2. Consumer Behavior - Learning Objectives LO1 Articulate the steps in the consumer buying process. LO2 Describe the difference between functional and psychological needs. LO3 Describe factors that affect information search. LO4 Discuss postpurchase outcomes. LO5 List the factors that affect the consumer decision process. LO6 Describe how involvement influences the consumer decision process.
  3. 3. Consumer Behavior • This is one of the hottest topics in marketing today • Marketers are using “big data” to predict consumer behavior before it happens • If you want to get into marketing today - focus on this topic, as well as digital marketing and social media • Do a search for “Customer Journey Maps” and get familiar with the overall concepts
  4. 4. The Consumer Decision Process Need recognition Information search Alternative evaluation Purchase Post purchase
  5. 5. The Traditional Marketing Funnel
  6. 6. The Digital Customer Journey Source: David Edelman, McKinsey and Company.
  7. 7. 1. Need Recognition • Functional Needs: pertain to the performance of a product or service. ! • Psychological needs pertain to the personal gratification consumers associate with a product and/or service. Need recognition Information search Alternative evaluation Purchase Post purchase
  8. 8. 2. Search for Information Internal Search 
 for Information External Search 
 for Information Need recognition Information search Alternative evaluation Purchase Post purchase
  9. 9. Perceived Benefits Factors Affecting Consumers’ 
 Search Process Perceived Costs
  10. 10. Universal Retrieval Evoked Need recognition Information search Alternative evaluation 3. Alternative Evaluation Purchase Post purchase
  11. 11. Evaluation of Alternatives: 
 Attribute Sets • Universal sets include all possible choices for a product category. • Retrieval sets are the brands or stores that can be readily brought forth from memory. • A consumer’s evoked set comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.
  12. 12. Evaluation of Alternatives: 
 Evaluate Criteria Evaluative Criteria Determinant Attributes
  13. 13. Evaluation of Alternatives: 
 Evaluate Criteria • Evaluative criteria consist of a set of salient, or important, attributes about a particular product. • Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. What are some of the features of a vacation 
 that would be in your evaluative criteria?
  14. 14. Actual or Perceived Risk Performance risk Psychological risks Physiological risk Financial risk Social risk
  15. 15. Purchase and Consumption Increase Conversion rate Reduce real or virtual 
 abandoned carts Need recognition Merchandise in stock Information search Reduce the 
 actual wait time Alternative evaluation Purchase Post purchase
  16. 16. 5. Post-purchase: Customer Satisfaction Customer Loyalty Dissonance
  17. 17. Post Purchase Reviews
  18. 18. CHECK YOURSELF • Name the five stage is the consumer decision process • What is the difference between a need and a want? • What are the various types of perceived risk?
  19. 19. Factors Influencing
 the Consumer Decision Process ••Motives ••Attitudes ••Perceptions ••Learning ••Product ••Price ••Place ••Promotion Marketing mix Psychological factors Consumer Decision Process ••Family ••Reference groups ••Culture Social factors Situational factors ••Purchase situation ••Shopping situation ••Temporal state
  20. 20. Involvement and Consumer 
 Buying Decisions Message (e.g., Ad) High involvement • Greater attention • Deeper processing Develops strong attitudes and purchase intentions Low involvement • Less attention • Peripheral processing Generates weak attitudes and increased use of cues
  21. 21. Types of Buying Decisions • Extended problem solving occurs during a purchase decision that calls for a lot of effort and time. • Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. • Impulse buying is a buying decision made by customers on the spot when they see the merchandise. • Habitual decision making describes a purchase decision process in which consumers engage little conscious effort.
  22. 22. http://www.youtube.com/ watch?v=-MC_jmtlrOQ
  23. 23. Car Decision Buying Process: Student
  24. 24. Car Decision Buying Process: Gen X Parent
  25. 25. Car Comparison • Dodge Dart: http://youtu.be/pY6VbPcthm4 • Honda Mini-Van: http://youtu.be/ubaALhzQ3zY
  26. 26. Key Terms • An attitude is a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. • Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. • Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.
  27. 27. Key Terms • Evaluative criteria consist of a set of salient, or important, attributes about a particular product. • A consumer’s evoked set comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision. • Extended problem solving occurs during a purchase decision that calls for a lot of effort and time. • Functional needs pertain to the performance of a product or service.
  28. 28. Key Terms • Habitual decision making describes a purchase decision process in which consumers engage little conscious effort. • Impulse buying is a buying decision made by customers on the spot when they see the merchandise. • Involvement is the consumer’s degree of interest in the product or service. • Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time.
  29. 29. Key Terms • Perception is the process by which we select, organize, and interpret information to form a meaningful picture of the world. • Psychological needs pertain to the personal gratification consumers associate with a product and/or service. • Retrieval sets are the brands or stores that can be readily brought forth from memory. • Ritual consumption is a pattern of behaviors tied to life events that affect what and how we consume.
  30. 30. Key Terms • Shopping goods/services are products or services for which consumers will spend time comparing alternatives. • Situational factors are factors specific to the situation. • Specialty goods/services are products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers. • Universal sets include all possible choices for a product category.

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