More Related Content
Consumer behavior
- 1.
- 2. Model of ConsumerBehavior Source: Adapted from Prentice Hall Marketing and Other Stimuli Product Price Place Promotion Environmental Factors Buyer’s Decision Process Factors Affecting Consumer Behavior Buyer’s Decision Process Buyer’s Response Product Choice Brand Choice Store/Dealer Choice Purchase Timing Purchase Amount
- 3. The Buyer’s DecisionProcess Need Recognition Source: Prentice Hall Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Behavior
- 4. Buyer’s Decision ProcessNEED RECOGNITION External Stimuli TV advertising Magazine ad Radio slogan Other stimuli in the environment Internal Stimuli Hunger Thirst A person’s normal needs Need Recognition Difference between current state and desired state Source: Adapted from Prentice Hall
- 5. Buyer’s Decision ProcessINFORMATION SEARCH Family, friends, neighbors Most influential source of information Advertising, salespeople Receives most information from these sources Mass Media Consumer-rating groups Handling the product Examining the product Using the product Personal Sources Commercial Sources Public Sources Experiential Sources Source: Adapted from Prentice Hall
- 6. Buyer’s Decision ProcessEVALUATION OF ALTERNATIVES Product Attributes Evaluation of Quality, Price, & Features Degree of Importance Which attributes matter most to me? Brand Beliefs What do I believe about each available brand? Project Total Product Satisfaction Based on what I’m looking for, how satisfied would I be with each product? Evaluation Procedures Choosing a product (and brand) based on one or more attributes. Source: Prentice Hall
- 7. Buyer’s Decision ProcessPURCHASE DECISION Purchase Intention Desire to buy the most preferred brand/product Purchase Decision Choice of the store/brand/product Situational factors Attitudes of others Source: Adapted from Prentice Hall Intention to purchase does not always result in an actual purchase
- 8. Buyer’s Decision ProcessPOST-PURCHASE BEHAVIOR Consumer’s Expectations of Product’s Performance Dissatisfied Customer Satisfied Customer! Product’s Perceived Performance Cognitive Dissonance Source: Prentice Hall
- 9. Important Psychological FactorsCognition Attitudes, Beliefs Memory
- 10. Selected Concepts inConsumer Behavior Involvement and Buying Decisions Consideration Set How Preferences are Formed
- 11. Involvement The degreeof importance the consumer accords to the product class or its purchase
- 12. Involvement High Usuallypurchase is infrequent, significant perceived risk Customer actively seeks information Customized decision process Low Usually purchase is familiar and / or inexpensive Highly selective attention to information Quick decision Routine behavior
- 13. Types of BuyingDecisions Complex Buying Behavior Dissonance- Reducing Buying Behavior Variety- Seeking Behavior Habitual Buying Behavior High Involvement Significant differences between brands Few differences between brands Low Involvement Source: Prentice Hall
- 14. How the ConsiderationSet Is Formed ? ? ? ? All brands in Product Class Brands found accidentally Brands found through search Recalled brands Unrecalled brands Unrecognized brands Recognized brands Consideration Set
- 15. Factors Affecting Inclusionin Consideration Set Top-of-mind awareness - recall experience - trial, previous purchase, habitual use brand equity Distribution Shelf space and location Shelf tags, displays and other attention-getting devices Nature of the set goal-driven Taxonomic (classification of options)
- 16. How Preferences areFormed Preference for a product reflects the customer’s expectation of its ability to satisfy important wants and needs Preference depends on … the relative importance of each attribute (weight) the evaluation of the product on each attribute (belief)
- 17. Model of PreferenceFormation 1. Identify relevant attributes 2. Determine importance weights for those attributes (W i ) 3. Determine beliefs about a brand on those attributes (b i ) 4. Sum all attributes used in evaluating the brand weighted by the value of each attribute
- 18. Model of PreferenceFormation Overall Preference for a Brand = w 1 b 1j + w 2 b 2j + w 3 b 3j + . . .
- 19. Example of PreferenceFormation Decay Prevention Taste Whitens Teeth Ultra Brite 2 6 7 Crest 7 4 2 Colgate 7 6 5 (6) (4) (2) = 6 × 2 + 4 × 6 + 2 × 7 = 50 = 6 × 7 + 4 × 6 + 2 × 5 = 76 = 6 × 7 + 4 × 4 + 2 × 2 = 62 Attitude (Ultra Brite) Attitude (Colgate) Attitude (Crest)
Editor's Notes
- #3 Consumer Behavior Consumer behavior refers to the buying behavior of final consumers -- individuals and households who buy goods and services for personal consumption. Model of Consumer Behavior Marketers control the stimuli or inputs consisting of the four Ps: Product, Place, Price, and Promotion. Environmental and situational influences, though perhaps beyond the control of the marketer, also influence many consumer choices. But what happens between the marketing stimuli input and the buyer’s response or output? That “black box” processing is the central question for marketers. Teaching Tip: You may wish to discuss the “buyer’s black box” in more detail at this stage. Students sometimes become involved in the controversy regarding the presence or absence of consciousness in consumers. Consider using a two-side in-class discussion: Side A: Experimental psychologists argue that what we call consciousness is merely a set of complex learned responses -- an ordinary physiological function. Side B: Sociologists and social psychologists argue that consciousness is greater than the sum of its physiological parts. For marketers, the issue is sometimes linked to free will: Do marketers create needs by conditioning consumers? Do marketers offer need-fulfillers to needs consumer’s create in their “black box?” Model of Consumer Behavior This CTR corresponds to Figure 5-1 on p. 135 and to the material on pp. 134-135.
- #14 Types of Buying Decisions This CTR corresponds to Figure 5-5 on p. 151 and relates to the material on pp. 151-152. Types of Buying Decision Behavior Complex Buying Behavior. Consumers undertake this type of behavior when they are highly involved in a purchase and perceive differences among brands. Involvement increases with the product is expensive, infrequently purchased, risky, and highly self-expressive. Dissonance-Reducing Buying Behavior. Consumers engage in this behavior when they are highly involved with an expensive, infrequent, or risky purchase, but see little difference among brands. Without objective differentiation to confirm the purchase, buyers often seek support to reduce postpurchase dissonance -- the feeling they may have made the wrong decision. Habitual Buying Behavior. This behavior occurs under conditions of low consumer involvement and little significant brand differences. Consumers do not search extensively for information about brands. Brand familiarity aids in promoting products under essentially passive learning conditions. Variety-Seeking Buying Behavior. Consumers may seek variety when involvement is low and there are significant perceived differences among brands. Differences may be product features -- new taste, improvements, extra ingredients -- or promotional benefits such as coupons, rebates, and price reductions.