Consumer online shopping behavior stats e briks infotech
Consumer Behavior– you arewhat you buy… • Did you know? • Paper • Marketing news • Consumer behavior (web) • Consumer behavior (ppt) • Innovation diffusion (ppt) • NLP • Next week: Market research
• Think of a recent important purchase– briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase• What influenced you at each step?
Consumer Decision-Making Process Need Recognition Information SearchCultural, Social, Individual and Psychological Evaluation Factors of Alternatives affect all steps Purchase Postpurchase Behavior
Complete model of consumer behavior Start Need recognition Internal search Influences Search • culture Exposure • social class • familyStimuli Attention Alternative • situation(marketer evaluationdominated, Memory Comprehensionother) Individual differences Acceptance Purchase • resources • motivation & Retention involvement Outcomes • knowledge • attitudes • personality, values, lifestyle External search Dissatisfaction Satisfaction
• How do you know when to shop? What are the triggers that initiate an awareness & search?• What are the internal & external sources of these triggers?
Need Recognition • When a current product isn’t Marketing helps consumers recognize performing properly(or create) an imbalance between present status • When the consumer is running and preferred state out of an product • When another product seems State Preferred superior to the one currently used
The information search stageAn internal search involves thescanning of ones memory to recall previous Personal sourcesexperiences or knowledge concerning (friends and family)solutions to the problem-- often sufficient forfrequently purchased products. Public sources (rating services like ConsumerAn external search may be necessary Reports)when past experience or knowledge isinsufficient, the risk of making a wrongpurchase decision is high, and/or the cost of Marketer-dominatedgathering information is low. sources (advertising or sales people) The evoked set: a group of brands from which the buyer can choose
• go back to your past purchase– what were the specific internal and external sources of information that influenced your decision?• how do you determine (and rate) the credibility of these sources?• what specific information influenced you?
Buyer BehaviorOther people often influence a consumers purchase decision.The marketer needs to know which people are involved in thebuying decision and what role each person plays, so thatmarketing strategies can also be aimed at these people.(Kotler et al, 1994).• Initiator: the person who first suggests or thinks of the idea of buying a particular product or service.• Influencer: a person whose views or advice carry weight in making the final buying decision• Decider: the person who ultimately makes the final buying decision or any part of it• Buyer: the person who makes the actual purchase• User: the person who consumes the product or service Note: teens are increasingly assuming more of these rolesThink about your past purchase– who was in which role?
Relative influence of husbands & wives Wife Dominant Child clothing Women’s clothing Final Information groceries Pots & pans decision search NonRx lamps Toys/games furniture luggage carpet Paint wallpaper refrigerator vacations Men’s leisure clothing Joint Men’s business clothing stereo TV sets camera Financial planning Family car Sport equipment hardware Lawn mower HusbandExtent of role specialization Dominant 100 75 50 25 0
Consumer decision making varies with the level of involvement in the purchasing decision• Extensive: problem solving occurs whenbuyers purchase more expensive, lessfrequently purchased products in anunfamiliar product category requiringinformation search & evaluation; mayexperience cognitive dissonance.• Limited: problem solving occurs when buyers areconfronted with an unfamiliar brand in a familiar product Increase incategory Consumer evaluation processes• Routine: response behavior occurswhen buyers purchase low cost, low risk, brand loyal,frequently purchased, low personal identification orrelevance, items with which they are familiar.
• quickly list 10 items you have purchased in the past month• reexamine how long it took you to make a decision on each• why did such a difference in decision occur?
Factors affecting Consumer involvement • Previous experience: low level involvement • Interest: high involvement • Perceived risk of negative consequences: high involvement • Situation: low to high due to risk • Social visibility: involvement increases with product visibilitySo…• Offer extensive information on high involvement products• In-store promotion & placement is important for low involvement products• Linking low-involvement product to high-involvement issue can increase sales
Types of consumer involvement and decision making Routine Limited ExtensiveInvolvement Short Low to High moderate Time Low Short to Long moderate Cost Short Low to High moderateInformation Internal only Mostly Internal & Search internal externalNumber of one few manyalternatives
Compensatory Decision: Using product characteristics to guide decision• Select the best overall brand-- evaluates brand options in terms of each relevant attribute and computes a weighted or summated score for each brand. The consumer chooses the brand with the highest score.• Compensatory model because a positive score on one attribute can outweigh a negative score on another attribute. • Conjunctive Decision Rule (cutoff criteria)-- Consumer sets a minimum standard for each attribute and if a brand fails to pass any standard, it is dropped from consideration. • Reduces a large consideration set to a manageable size. • Often used in conjunction with another decision rule. • Disjunctive Decision Rule (rank by importance)-- sets a minimum acceptable standard as the cutoff point for each attribute--any brand that exceeds the cutoff point is accepted. • Reduces large consideration set to a more manageable number of alternatives. • Consumer may settle for the first satisfactory brand as final choice or may use another decision rule. • Synthesized decision rule-- Consumers maintain overall evaluations of brands in their long term memories. Brands on not evaluated on individual attributes but on the highest perceived overall rating.
• think of an important purchasing decision you have made• what are some of the thoughts you have had following your purchase? Any regrets?• what has influenced those thoughts?• how have you dealt with the discomfort?• how has the company anticipated or dealt with your discomfort?
Postpurchase Behavior Cognitive Dissonance ?Did I make a good decision?Did I buy the right product? Did I get a good value? Can minimize through: Effective Communication Follow-up Guarantees Warranties Underpromise & overdeliver
Sour Grapes–a story ofcognitivedissonance …after being unable to reach the grapes the fox said, “these grapes are probably sour, and if I had them I would not eat them.” --Aesop
Cognitive Dissonance• psychological discomfort caused by inconsistencies among a person’s beliefs, attitudes, and actions• varies in intensity based on importance of issue and degree of inconsistency• induces a “drive state” to avoid or reduce dissonance by changing beliefs, attitudes, or behaviors and thereby restore consistencyApplications: Tendency to avoid information can be countered by eliciting interest, norm of fairness, or perceive usefulness of information Post-decision “buyer’s remorse” may be increased by importance or difficulty or irreversibility of decision Counter-attitudinal action, freely chosen with little incentive or justification, leads to attitude change (e.g., new product at special low price)
• think of an innovation in your field• describe different groups of employees in your organization who would respond early and favorably, as well as later and unfavorably• what are the differences between these groups?• how could you use this information to market the innovation to them more effectively?
• Identify an innovation in your organization or an organization you are familiar with• Identify the subgroups who responded to the innovation using the Rogers & Shoemaker stakeholder model• What could have been done to facilitate acceptance by each of these groups?
Elaboration Likelihood Method (ELM) of persuasion Persuasive Communication Attitude Shift: • short-lived Motivated to Process? • susceptible to influence • personal relevance • dissonance arousal • unpredictable • personal importance • need for cognition • personal responsibility • repetition Peripheral Cues Present? Ability to Process? • reciprocity (obligated, did a favor) • consistency (way it’s done, similar to before) • cognitive complexity • appropriate schema • social proof (peer pressure, conformity) • critical thinking • message pace • liking (attractiveness, friendliness) • distraction free • repetition • celebrity (identification, prestige) • low arousal • issue familiarity • authority (expertise, experience, credibility) • rapid speech, forceful presentation, charismatic style • scarcity (limited time offer) Nature of Active Cognitive Processing: (initial • tangible rewards attitude, argument quality, etc.) • appealing visuals & music (emotional arousal) Favorable Unfavorable Neither or • fear appeal Thoughts Thoughts Neutral • weak counter-arguments Predominate Predominate Predominate Retain or RegainCognitive Structure Change: Are new cognitions Initial Attitudeadopted and stored in memory? Are different • greater persistenceresponses made salient than previously? • resistant to counterattacks & fading • predictive of behavior • > brand memory Enduring positive Enduring negative • > elaboration attitude change attitude change • >usage intention (persuasion) (boomerang) • > attitude accessibility • > attitude confidence • > attitude-behavior consistency
Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scoredWrite in the number that best fits your view: 1 2 3 4 Need for completely mostly mostly completely Cognition Scale false false true true_____1. I would prefer complex to simple problems._____2. I like to have the responsibility of handling a situation that requires a lot of thinking._____3. Thinking is not my idea of fun. *_____4. I would rather do something that requires little thought than something that is sure to challenge my thinking abilities. *_____5. I try to anticipate and avoid situations where there is likely chance I will have to think in depth about something. *_____6. I find satisfaction in deliberating hard and for long hours._____7. I only think as hard as I have to. *_____8. I prefer to think about small, daily projects to long-term ones. *_____9. I like tasks that require little thought once I’ve learned them. *_____10. The idea of relying on thought to make my way to the top appeals to me._____11. I really enjoy a task that involves coming up with new solutions to problems._____12. Learning new ways to think doesn’t excite me very much. *_____13. I prefer my life to be filled with puzzles that I must solve._____14. The notion of thinking abstractly is appealing to me._____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat important but does not require much thought._____16. I feel relief rather than satisfaction after completing a task that required a lot of mental effort. *_____17. It’s enough for me that something gets the job done; I don’t care how or why it works. *_____18. I usually end up deliberating about issues even when they do not affect me personally.
Sleeper Effect:• when secondary source becomes more credible than primary source over time• persuasion may increase over time with a weak source• forget the source but remember the message• not if source is learned prior to the message (will ignore or bias processing) Example: Attack ads during political campaigns
Next week: Survey & questionnaire design • Think of our graduate program in management • Formulate 5 questions that you think would get at customer (student) satisfaction with the program • Term paper • Bring 1 page with title, 1 paragraph on purpose & overview • Citation for 1 journal and one book