2. Model of Consumer Behavior 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 Decision Process Need Recognition Source: Prentice Hall Information Search Evaluation of Alternatives Purchase Decision Post-Purchase Behavior
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6. Buyer’s Decision Process EVALUATION 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
13. Types of Buying Decisions 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 Consideration Set Is Formed ? ? ? ? All brands in Product Class Brands found accidentally Brands found through search Recalled brands Unrecalled brands Unrecognized brands Recognized brands Consideration Set
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18. Model of Preference Formation Overall Preference for a Brand = w 1 b 1j + w 2 b 2j + w 3 b 3j + . . .
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.
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.
