This document provides an overview of key concepts related to consumer buying behavior. It discusses the stages of the consumer buying process, types of consumer buying behavior, and categories that affect consumer decisions. Specifically, it outlines the six stages of the buying process, describes four types of buying behavior based on involvement level, and explains how personal, psychological, and social factors influence what and how consumers purchase. These include demographic, motivational, attitudinal, and cultural influences. The document aims to help marketers better understand consumer decision making.
This document provides an overview of consumer buying behavior and the factors that influence it. It discusses the stages of the consumer buying process, types of buying behavior, and categories of factors - including personal, psychological, and social - that affect consumer decisions. Personal factors include demographics. Psychological factors cover motives, perceptions, attitudes, abilities, personalities, and lifestyles. Social influences include opinion leaders, roles and family, reference groups, social class, and culture. Understanding these consumer behavior concepts allows marketers to better target their strategies.
This document summarizes the stages of buying motives that consumers go through. It discusses 5 stages: 1) need arousal where a consumer recognizes a need, 2) information search where they gather information about products, 3) evaluation of alternatives, 4) purchase decision, and 5) post-purchase feelings about the product and whether expectations were met. It also defines buying motives as the reasons a customer purchases goods, which can include economic, social, and psychological factors. Different roles in the buying process are outlined, and techniques for motivational research are summarized.
High involvement purchases require more research and decision effort due to higher costs and perceived risk. Examples include luxury cars and jewelry. Low involvement purchases have little risk and decision effort, like toothpaste or snacks. Involvement level affects whether rational or emotional factors influence decisions. The Elaboration Likelihood Model also describes how involvement impacts attitude formation - high involvement uses the central route of thorough consideration, while low involvement relies more on peripheral cues like endorsements.
This document discusses key concepts in branding, including what branding is, brand awareness, packaging, brand associations, and types of brand ownership. Branding involves using distinct styles, logos, or designs to promote and distinguish a company or product. Brand awareness, achieved through packaging, slogans, endorsements, and other marketing techniques, is crucial for sales. Effective packaging draws in customers and influences purchases. Strong brand names become directly associated with their products. Co-branding and licensing involve collaborations between brands. National brands are available in many stores while store brands are exclusive to one retailer. Reliability builds trust and loyalty among customers.
This document provides an overview of consumer buying behavior and the factors that influence it. It discusses the 5 stages of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also outlines the types of consumer buying behavior (routine response, limited decision making, extensive decision making, impulse buying) and notes that the level of involvement in a purchase impacts the type of behavior. Finally, it briefly discusses industrial buying behavior and the different buying situations that can occur in business-to-business marketing.
Introduction to Consumer Behaviour; Consumer Behaviour
and Marketing Strategy; Consumer Involvement – Levels
of involvement, and Decision Making.
Consumer Decision Process – Stages in Decision Process,
Information Search Process; Evaluative Criteria and
Decision Rules, Consumer Motivation – Types of Consumer
Needs, Ways of Motivating Consumers. Information
Processing and Consumer Perception.
Consumer Attitudes and Attitude Change; Influence of
Personality and Self Concept on Buying Behaviour,
Psychographics and Lifestyles, Impuse Buying.
Diffusion of Innovation and Opinion Leadership, Family
Decision Making, Influence of Reference Group
Industrial Buying Behaviour– Process and factors, Models
of Consumer Behaviour – Harward Seth, Nicosia, E& D,
Economic Model; Introduction to Consumer Behaviour
Audit; Consumer Behaviour Studies in India.
There are four main types of buying behavior: extensive decision making which involves high-risk, expensive purchases like homes or cars where consumers extensively research options; dissonance reducing behavior where consumers have high involvement due to price but see little difference between brands; habitual buying of inexpensive, frequently purchased items like milk or bread based on established attitudes; and variety seeking behavior where consumers have low involvement but switch between brands for variety rather than dissatisfaction with items like snacks.
The document discusses consumer buyer behavior and marketing concepts. It outlines four main goals: 1) Learn the consumer market and model of buyer behavior, 2) Know the four factors influencing buyer behavior, 3) Understand types of buying decisions and stages in the buying process, and 4) Comprehend the adoption and diffusion process for new products. It provides details on stimulus-response models, characteristics affecting consumer behavior like culture, groups, and psychological factors. It also examines the different stages in the buyer decision process and classifications of adopter categories for new products.
This document provides an overview of consumer buying behavior and the factors that influence it. It discusses the stages of the consumer buying process, types of buying behavior, and categories of factors - including personal, psychological, and social - that affect consumer decisions. Personal factors include demographics. Psychological factors cover motives, perceptions, attitudes, abilities, personalities, and lifestyles. Social influences include opinion leaders, roles and family, reference groups, social class, and culture. Understanding these consumer behavior concepts allows marketers to better target their strategies.
This document summarizes the stages of buying motives that consumers go through. It discusses 5 stages: 1) need arousal where a consumer recognizes a need, 2) information search where they gather information about products, 3) evaluation of alternatives, 4) purchase decision, and 5) post-purchase feelings about the product and whether expectations were met. It also defines buying motives as the reasons a customer purchases goods, which can include economic, social, and psychological factors. Different roles in the buying process are outlined, and techniques for motivational research are summarized.
High involvement purchases require more research and decision effort due to higher costs and perceived risk. Examples include luxury cars and jewelry. Low involvement purchases have little risk and decision effort, like toothpaste or snacks. Involvement level affects whether rational or emotional factors influence decisions. The Elaboration Likelihood Model also describes how involvement impacts attitude formation - high involvement uses the central route of thorough consideration, while low involvement relies more on peripheral cues like endorsements.
This document discusses key concepts in branding, including what branding is, brand awareness, packaging, brand associations, and types of brand ownership. Branding involves using distinct styles, logos, or designs to promote and distinguish a company or product. Brand awareness, achieved through packaging, slogans, endorsements, and other marketing techniques, is crucial for sales. Effective packaging draws in customers and influences purchases. Strong brand names become directly associated with their products. Co-branding and licensing involve collaborations between brands. National brands are available in many stores while store brands are exclusive to one retailer. Reliability builds trust and loyalty among customers.
This document provides an overview of consumer buying behavior and the factors that influence it. It discusses the 5 stages of the consumer buying decision process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also outlines the types of consumer buying behavior (routine response, limited decision making, extensive decision making, impulse buying) and notes that the level of involvement in a purchase impacts the type of behavior. Finally, it briefly discusses industrial buying behavior and the different buying situations that can occur in business-to-business marketing.
Introduction to Consumer Behaviour; Consumer Behaviour
and Marketing Strategy; Consumer Involvement – Levels
of involvement, and Decision Making.
Consumer Decision Process – Stages in Decision Process,
Information Search Process; Evaluative Criteria and
Decision Rules, Consumer Motivation – Types of Consumer
Needs, Ways of Motivating Consumers. Information
Processing and Consumer Perception.
Consumer Attitudes and Attitude Change; Influence of
Personality and Self Concept on Buying Behaviour,
Psychographics and Lifestyles, Impuse Buying.
Diffusion of Innovation and Opinion Leadership, Family
Decision Making, Influence of Reference Group
Industrial Buying Behaviour– Process and factors, Models
of Consumer Behaviour – Harward Seth, Nicosia, E& D,
Economic Model; Introduction to Consumer Behaviour
Audit; Consumer Behaviour Studies in India.
There are four main types of buying behavior: extensive decision making which involves high-risk, expensive purchases like homes or cars where consumers extensively research options; dissonance reducing behavior where consumers have high involvement due to price but see little difference between brands; habitual buying of inexpensive, frequently purchased items like milk or bread based on established attitudes; and variety seeking behavior where consumers have low involvement but switch between brands for variety rather than dissatisfaction with items like snacks.
The document discusses consumer buyer behavior and marketing concepts. It outlines four main goals: 1) Learn the consumer market and model of buyer behavior, 2) Know the four factors influencing buyer behavior, 3) Understand types of buying decisions and stages in the buying process, and 4) Comprehend the adoption and diffusion process for new products. It provides details on stimulus-response models, characteristics affecting consumer behavior like culture, groups, and psychological factors. It also examines the different stages in the buyer decision process and classifications of adopter categories for new products.
Consumer behavior is studied based on concepts from psychology, sociology, anthropology, marketing, and economics. It is important to study consumer behavior because customers can no longer be taken for granted. Failure rates of new products are high, with only 56% of new products remaining on the market after 5 years and only 8% of new concepts making it to market, with 83% of those failing to meet objectives. All managers must become skilled at analyzing consumer motivation and behavior in order to succeed.
The document provides an overview of key concepts related to consumer buying behaviour including:
1. Consumer behaviour involves the processes of acquiring, using, and disposing of goods and services, and can be influenced by cultural, social, personal and psychological factors.
2. Studying consumer behaviour helps organizations understand customers to better achieve their objectives and influence economic and social conditions.
3. Consumer decision making can range from routine to extensive processes depending on the product, and can be impacted by circumstances.
4. Understanding consumer habits, motives, decision processes and influences is important for marketers to maximize sales and profits.
There are many individual and organizational factors that influence business-to-business (B2B) buying behavior. These include demographic, situational, social, psychological, and risk-related factors of individual purchasers. The degree of involvement and complexity of the purchasing process also affects behavior. Within organizations, stakeholders, resources, relationships, and standard procedures all shape decision making. Effective B2B marketers understand these influences on customers and tailor communications accordingly to meet objectives.
The document discusses various topics related to consumer behavior, including key concepts like motivation, perception, and the consumer decision-making process. It describes factors that influence consumer behavior such as culture, social class, and the stages of adopting new products. Various consumer behavior theories are also summarized, including those proposed by Freud, Maslow and others relating to psychological motivations and needs.
The document discusses consumer decision making. It outlines the consumer decision making process which includes need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation. It also discusses the types of consumer decisions and factors that influence consumer decision making like marketing efforts, psychological factors, and socio-cultural environment. The goal is to understand the "how" and "why" of consumers' experiences with products and services.
This document discusses consumer behavior and the factors that influence consumer purchasing decisions. It describes:
1. The five stages of the consumer buying process - problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
2. The key factors that influence consumer behavior, including cultural factors, social factors, personal factors, and psychological factors.
3. Different consumer buying situations such as complex buying behavior, dissonance reducing behavior, variety seeking behavior, and habitual buying behavior.
This document provides an introduction to consumer behavior. It discusses the definition of consumer behavior as the process of how individuals search for, purchase, use, and dispose of products and services. The stages of the consumer buying process are described as the pre-purchase stage involving awareness, information search, and analysis, the purchase stage involving decision making and physical exchange, and the post-purchase stage involving satisfaction, cognitive dissonance, and relationship building. Contributing disciplines to the study of consumer behavior include anthropology, sociology, psychology, social psychology, economics, and marketing research. Cognitive dissonance, the psychological discomfort from inconsistent beliefs and actions, is also explained.
The document discusses the five-stage buying process model, which includes the stages of problem recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. It then applies this model specifically to the process of purchasing sustainable seafood. The five stages are outlined for both the general buying process and how each stage would apply when buying sustainable seafood.
The document discusses psychological factors that affect consumer behavior, including motivation, perception, learning, and beliefs/attitudes. It also covers the buyer decision process, which involves need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase decision. The buyer decision process for new products includes stages from awareness to adoption, and is influenced by individual differences in innovativeness and characteristics of the product like relative advantage and compatibility.
People perceive objects differently due to three perceptual processes: selective attention, selective distortion, and selective retention. Selective attention means people only notice stimuli that relate to their current needs, are anticipated, or greatly deviate in size from other stimuli. Selective distortion causes people to interpret ambiguous information in a way that fits their preexisting beliefs. Selective retention means people are more likely to remember information that supports their existing attitudes and forget information about competing products.
This document provides an overview of low-effort judgment and decision-making processes used by consumers for products they are not highly involved with or interested in. It discusses how consumers use shortcuts and heuristics to make quick judgments. These include the representativeness heuristic where consumers compare options to what is representative of a category, and the availability heuristic where judgments are based on what is easily recalled. The document also outlines various low-effort decision-making processes and choice tactics consumers may use, such as satisficing to find an option good enough, not best. It discusses how feelings and habits can influence low-involvement choices as well as the marketing implications of targeting such consumers.
This document summarizes several models of consumer decision making:
1. The Stimulus-Response Model of Buyer Behavior focuses on motivators, determinants, and the effects of communication channels on consumer buying processes.
2. The Sheth-Newman Gross Model of Consumption Values proposes that functional, social, conditional, emotional, and epistemic values influence consumer choices.
3. Additional models discussed include the Solomon Model of Comparison Process, Nicosia Model of firm-consumer interactions, Howard-Sheth Model of extensive, limited, and habitual problem solving, and the Engel-Kollat-Blackwell Model of information input, processing, decision stages, and decision variables.
This document discusses consumer behavior in choosing jeans. It presents factors that influence consumers' decision-making process, including intrinsic attributes like style and fit, and extrinsic attributes like price and brand. It also lists different jeans categories according to price point and fit/style, with pricing ranging from $250 to $3,500. Finally, it notes that the global economic downturn has profoundly impacted consumer spending habits.
1) The document presents a 5-stage model of the consumer buying process for life insurance policies: problem recognition and need, information search, evaluation and selection of alternatives, purchase decision and implementation, and post-purchase evaluation.
2) It defines consumer behavior and insurance, explaining that insurance is a contract where one party agrees to pay for losses of the other party.
3) The stages of the buying process are explained in detail with examples of different life insurance plans, companies, and documents required for purchase.
The document discusses consumer behavior and the consumer decision-making process. It covers topics like need recognition, information search, purchase evaluation, and post-purchase behavior. It also discusses factors that influence consumer decisions at different stages, like cultural, social, individual, and psychological factors.
The document summarizes consumer and business buyer behavior and the factors that influence their purchasing decisions. It discusses the key stages in the consumer and business buying decision processes. Some of the main factors that influence consumer and business purchasing behaviors include culture, social class, personal characteristics, beliefs, attitudes, product perceptions, and group influences. The document also compares the buying processes for complex versus routine purchases.
The document summarizes key concepts around understanding customer behavior and the marketing concept. It discusses how businesses should focus on understanding customer needs and wants in order to satisfy them through their products and services. It outlines Maslow's hierarchy of needs and describes the customer buying process, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.
Consumer buying behavior refers to the processes consumers use to make purchase decisions. There are five stages in the consumer buying process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Consumer behavior can vary based on level of involvement and perceived differences between brands. Marketers must understand the factors influencing consumer decisions in order to develop effective marketing strategies.
Assignment needs to make sure it relates to this week’s readings a.docxrock73
Assignment needs to make sure it relates to this week’s readings and lecture. The assignment also needs demonstrate an understanding of lesson concept and clearly present well-reasoned ideas and concepts.
Consumer Decision Making
Welcome class to week six of the course, we only have three weeks left to go, yeah. We have officially covered over the last five weeks the foundations of what marketing is, along with discussing in depth the elements (four P’s) of the marketing mix. This week, we are going to discover what I like to call the fifth P of the marketing mix, “people.” We are going to learn all about the consumer this week and the vital role “People,” also known as the consumers play within the wonderful world of marketing. Let’s not waste anymore time and jump right into the role of a consumer.
The Importance of Understanding Consumer Behavior
Consumers’ product and service preferences are constantly changing. Marketing managers must understand these desires in order to create a proper marketing mix for a well-defined market. So it is critical that marketing managers have a thorough knowledge of consumer behavior. Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services. Understanding how consumers make purchase decisions can help marketing managers know how to meet the demands, needs, and criterion of the consumer.
The Consumer Decision Making Process
When buying products, particularly new or expensive items, consumers generally follow the consumer decision-making process, a five-step process used by consumers when buying goods or services. The five steps of the consumer decision-making process are: (1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) post-purchase behavior.
These five steps represent a general process that can be used as a guide for studying how consumers make decisions. It is important to note, though that consumers’ decisions do not always proceed in order through all of these steps. In fact, the consumer may end the process at any time or may not even make a purchase. Let’s discuss the five steps of the consumer decision-making process in greater detail.
1. Need Recognition
The first stage in the consumer decision-making process is need recognition. Need recognition is the result of an imbalance between actual and desired states. The imbalance arouses and activates the consumer decision-making process. Need recognition is triggered when a consumer is exposed to either an internal or an external stimulus, which is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and hearing.
Internal stimuli are occurrences you experience such as hunger or thirst. External stimuli are influences from an outside source such as someone’s recommendation of a new restaurant, the color of an automobile, the design of a package, a brand name mentioned by a friend, or a ...
The document discusses consumer behavior and the consumer decision-making process. It describes consumer behavior as how individuals and groups decide to buy, use, and dispose of goods and services. The consumer decision-making process involves 5 stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Marketers aim to understand this process to better target consumers. The document also discusses the adoption process, whereby consumers progress from awareness to adoption of new products through 5 stages: awareness, interest, evaluation, trial, and adoption. Understanding consumer behavior and decision-making is important for marketers.
Consumer behavior is studied based on concepts from psychology, sociology, anthropology, marketing, and economics. It is important to study consumer behavior because customers can no longer be taken for granted. Failure rates of new products are high, with only 56% of new products remaining on the market after 5 years and only 8% of new concepts making it to market, with 83% of those failing to meet objectives. All managers must become skilled at analyzing consumer motivation and behavior in order to succeed.
The document provides an overview of key concepts related to consumer buying behaviour including:
1. Consumer behaviour involves the processes of acquiring, using, and disposing of goods and services, and can be influenced by cultural, social, personal and psychological factors.
2. Studying consumer behaviour helps organizations understand customers to better achieve their objectives and influence economic and social conditions.
3. Consumer decision making can range from routine to extensive processes depending on the product, and can be impacted by circumstances.
4. Understanding consumer habits, motives, decision processes and influences is important for marketers to maximize sales and profits.
There are many individual and organizational factors that influence business-to-business (B2B) buying behavior. These include demographic, situational, social, psychological, and risk-related factors of individual purchasers. The degree of involvement and complexity of the purchasing process also affects behavior. Within organizations, stakeholders, resources, relationships, and standard procedures all shape decision making. Effective B2B marketers understand these influences on customers and tailor communications accordingly to meet objectives.
The document discusses various topics related to consumer behavior, including key concepts like motivation, perception, and the consumer decision-making process. It describes factors that influence consumer behavior such as culture, social class, and the stages of adopting new products. Various consumer behavior theories are also summarized, including those proposed by Freud, Maslow and others relating to psychological motivations and needs.
The document discusses consumer decision making. It outlines the consumer decision making process which includes need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation. It also discusses the types of consumer decisions and factors that influence consumer decision making like marketing efforts, psychological factors, and socio-cultural environment. The goal is to understand the "how" and "why" of consumers' experiences with products and services.
This document discusses consumer behavior and the factors that influence consumer purchasing decisions. It describes:
1. The five stages of the consumer buying process - problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
2. The key factors that influence consumer behavior, including cultural factors, social factors, personal factors, and psychological factors.
3. Different consumer buying situations such as complex buying behavior, dissonance reducing behavior, variety seeking behavior, and habitual buying behavior.
This document provides an introduction to consumer behavior. It discusses the definition of consumer behavior as the process of how individuals search for, purchase, use, and dispose of products and services. The stages of the consumer buying process are described as the pre-purchase stage involving awareness, information search, and analysis, the purchase stage involving decision making and physical exchange, and the post-purchase stage involving satisfaction, cognitive dissonance, and relationship building. Contributing disciplines to the study of consumer behavior include anthropology, sociology, psychology, social psychology, economics, and marketing research. Cognitive dissonance, the psychological discomfort from inconsistent beliefs and actions, is also explained.
The document discusses the five-stage buying process model, which includes the stages of problem recognition, information search, evaluation of alternatives, purchase decision, and postpurchase behavior. It then applies this model specifically to the process of purchasing sustainable seafood. The five stages are outlined for both the general buying process and how each stage would apply when buying sustainable seafood.
The document discusses psychological factors that affect consumer behavior, including motivation, perception, learning, and beliefs/attitudes. It also covers the buyer decision process, which involves need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase decision. The buyer decision process for new products includes stages from awareness to adoption, and is influenced by individual differences in innovativeness and characteristics of the product like relative advantage and compatibility.
People perceive objects differently due to three perceptual processes: selective attention, selective distortion, and selective retention. Selective attention means people only notice stimuli that relate to their current needs, are anticipated, or greatly deviate in size from other stimuli. Selective distortion causes people to interpret ambiguous information in a way that fits their preexisting beliefs. Selective retention means people are more likely to remember information that supports their existing attitudes and forget information about competing products.
This document provides an overview of low-effort judgment and decision-making processes used by consumers for products they are not highly involved with or interested in. It discusses how consumers use shortcuts and heuristics to make quick judgments. These include the representativeness heuristic where consumers compare options to what is representative of a category, and the availability heuristic where judgments are based on what is easily recalled. The document also outlines various low-effort decision-making processes and choice tactics consumers may use, such as satisficing to find an option good enough, not best. It discusses how feelings and habits can influence low-involvement choices as well as the marketing implications of targeting such consumers.
This document summarizes several models of consumer decision making:
1. The Stimulus-Response Model of Buyer Behavior focuses on motivators, determinants, and the effects of communication channels on consumer buying processes.
2. The Sheth-Newman Gross Model of Consumption Values proposes that functional, social, conditional, emotional, and epistemic values influence consumer choices.
3. Additional models discussed include the Solomon Model of Comparison Process, Nicosia Model of firm-consumer interactions, Howard-Sheth Model of extensive, limited, and habitual problem solving, and the Engel-Kollat-Blackwell Model of information input, processing, decision stages, and decision variables.
This document discusses consumer behavior in choosing jeans. It presents factors that influence consumers' decision-making process, including intrinsic attributes like style and fit, and extrinsic attributes like price and brand. It also lists different jeans categories according to price point and fit/style, with pricing ranging from $250 to $3,500. Finally, it notes that the global economic downturn has profoundly impacted consumer spending habits.
1) The document presents a 5-stage model of the consumer buying process for life insurance policies: problem recognition and need, information search, evaluation and selection of alternatives, purchase decision and implementation, and post-purchase evaluation.
2) It defines consumer behavior and insurance, explaining that insurance is a contract where one party agrees to pay for losses of the other party.
3) The stages of the buying process are explained in detail with examples of different life insurance plans, companies, and documents required for purchase.
The document discusses consumer behavior and the consumer decision-making process. It covers topics like need recognition, information search, purchase evaluation, and post-purchase behavior. It also discusses factors that influence consumer decisions at different stages, like cultural, social, individual, and psychological factors.
The document summarizes consumer and business buyer behavior and the factors that influence their purchasing decisions. It discusses the key stages in the consumer and business buying decision processes. Some of the main factors that influence consumer and business purchasing behaviors include culture, social class, personal characteristics, beliefs, attitudes, product perceptions, and group influences. The document also compares the buying processes for complex versus routine purchases.
The document summarizes key concepts around understanding customer behavior and the marketing concept. It discusses how businesses should focus on understanding customer needs and wants in order to satisfy them through their products and services. It outlines Maslow's hierarchy of needs and describes the customer buying process, including need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation.
Consumer buying behavior refers to the processes consumers use to make purchase decisions. There are five stages in the consumer buying process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Consumer behavior can vary based on level of involvement and perceived differences between brands. Marketers must understand the factors influencing consumer decisions in order to develop effective marketing strategies.
Assignment needs to make sure it relates to this week’s readings a.docxrock73
Assignment needs to make sure it relates to this week’s readings and lecture. The assignment also needs demonstrate an understanding of lesson concept and clearly present well-reasoned ideas and concepts.
Consumer Decision Making
Welcome class to week six of the course, we only have three weeks left to go, yeah. We have officially covered over the last five weeks the foundations of what marketing is, along with discussing in depth the elements (four P’s) of the marketing mix. This week, we are going to discover what I like to call the fifth P of the marketing mix, “people.” We are going to learn all about the consumer this week and the vital role “People,” also known as the consumers play within the wonderful world of marketing. Let’s not waste anymore time and jump right into the role of a consumer.
The Importance of Understanding Consumer Behavior
Consumers’ product and service preferences are constantly changing. Marketing managers must understand these desires in order to create a proper marketing mix for a well-defined market. So it is critical that marketing managers have a thorough knowledge of consumer behavior. Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services. Understanding how consumers make purchase decisions can help marketing managers know how to meet the demands, needs, and criterion of the consumer.
The Consumer Decision Making Process
When buying products, particularly new or expensive items, consumers generally follow the consumer decision-making process, a five-step process used by consumers when buying goods or services. The five steps of the consumer decision-making process are: (1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) post-purchase behavior.
These five steps represent a general process that can be used as a guide for studying how consumers make decisions. It is important to note, though that consumers’ decisions do not always proceed in order through all of these steps. In fact, the consumer may end the process at any time or may not even make a purchase. Let’s discuss the five steps of the consumer decision-making process in greater detail.
1. Need Recognition
The first stage in the consumer decision-making process is need recognition. Need recognition is the result of an imbalance between actual and desired states. The imbalance arouses and activates the consumer decision-making process. Need recognition is triggered when a consumer is exposed to either an internal or an external stimulus, which is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and hearing.
Internal stimuli are occurrences you experience such as hunger or thirst. External stimuli are influences from an outside source such as someone’s recommendation of a new restaurant, the color of an automobile, the design of a package, a brand name mentioned by a friend, or a ...
The document discusses consumer behavior and the consumer decision-making process. It describes consumer behavior as how individuals and groups decide to buy, use, and dispose of goods and services. The consumer decision-making process involves 5 stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. Marketers aim to understand this process to better target consumers. The document also discusses the adoption process, whereby consumers progress from awareness to adoption of new products through 5 stages: awareness, interest, evaluation, trial, and adoption. Understanding consumer behavior and decision-making is important for marketers.
The document discusses consumer buying behavior and its importance. It defines consumer buying behavior as the sum of a consumer's attitudes, preferences, intentions, and decisions when purchasing products or services. Understanding consumer behavior helps companies design products that satisfy consumer needs, determine pricing and promotion strategies, and more. The document also outlines the consumer buying decision process and different types of buying behaviors and motives.
This document discusses consumer behavior and how marketers study consumers to better appeal to them and influence their purchasing decisions. It covers topics like the factors that influence consumer behavior such as marketing, social influences, and psychology. Marketers gather data through surveys and online research to understand consumer needs and predict future sales. The stages of the consumer decision process are outlined. Controversial marketing tactics like neuromarketing which studies brain activity are also discussed.
This document discusses consumer buying behavior and the consumer buying process. It defines buying behavior as the decision process and acts of people involved in buying and using products. It explains that there are different types of buying behaviors such as routine response, limited decision making, extensive decision making, and impulse buying. It also outlines some key influencing factors on buying behavior including cultural, social, and psychological factors. Finally, it presents a five stage model of the consumer buying process: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.
Consumer behavior all material Prepared by karventhan karventhanps
The document outlines Mahatma Gandhi's philosophy on customer service. It states that a customer is the most important visitor and the purpose of a business. A business depends on customers, not the other way around, and customers should be served with respect rather than as a favor.
An PPT on Consumer Behaviour and Market SegmentationMOHD AMAAN HASAN
This document provides information about consumer behavior and market segmentation. It lists the names of students and their teacher. It then defines consumer behavior and explains why understanding it is important for marketers. It discusses the four types of consumer behavior and different factors that influence consumer decisions. The document also defines market segmentation and explains the need for it and its benefits. It describes different types of market segmentation including demographic, psychographic, behavioral, and geographic segmentation. Finally, it discusses the importance of conducting a consumer behavior audit to understand internal and external influences on consumers.
This set of slides focuses on why consumer behavior is important for marketers to study as well as the steps involved in the consumer decision process.
Consumer behavior is influenced by three main factors:
1. Consumer and psychological variables like motivation, perception, learning, lifestyle and attitudes shape consumer decision making.
2. Social influences from personal influences, reference groups, family, social class, and culture also impact consumer choices.
3. The specific purchase situation regarding the task, social and physical surroundings, time constraints, and the consumer's state all provide context that affects their purchasing decisions.
The document discusses consumer buying behavior and the factors that influence it. It provides definitions of consumer behavior and discusses the need to study consumer behavior to satisfy customer needs, understand consumer psychology, motives, choices, and preferences. It then describes different types of consumer buying behavior including complex, dissonance-reducing, habitual, and variety seeking behaviors. The stages of the consumer buying decision process are outlined as well as psychological, social, cultural, personal, and economic factors that influence consumer decisions.
Consumer behavior is “the study of individuals, groups, or organizations and all the activities associated with the purchase, use and disposal of goods and services.
Consumer behaviour consists of how the consumer's emotions, attitudes, and preferences affect buying behaviour”.
Psychographic segmentation divides audiences based on lifestyle traits, social class, and behaviors. It uses demographic data to understand audiences' behaviors, habits, and psychologies. Marketers obtain psychographic data from various sources like surveys, social media, and focus groups. Psychographic segmentation involves dividing audiences into groups according to social class, lifestyle characteristics defined by models like the 4Cs, and behaviors related to product usage, benefits, and loyalty. It also segments based on buyer readiness stages that range from awareness to purchase.
The document discusses consumer behavior and the factors that influence purchasing decisions. It describes the five stages of the consumer decision process: problem recognition, information search, alternative evaluation, purchase decision, and post-purchase evaluation. Personal factors like age, personality, and psychological factors like motivation, perception, and attitudes shape consumer behavior. Social factors such as family, reference groups, and culture also impact purchasing. Marketers must understand these influences to develop effective strategies that satisfy consumer needs and wants.
The document discusses consumer behavior and the factors that influence purchasing decisions. It describes the five stages of the consumer decision process: problem recognition, information search, alternative evaluation, purchase decision, and post-purchase evaluation. Personal factors like age, personality, and psychological factors like motivation, perception, and attitudes shape consumer behavior. Social factors such as family, reference groups, and culture also impact purchasing. Marketers must understand these influences to develop effective strategies that satisfy consumer needs and wants.
The document discusses consumer behavior and the factors that influence purchasing decisions. It outlines the stimulus-response model of consumer behavior and lists psychological, personal, cultural, and social factors. It explains the buyer decision process, including need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior. It also discusses the adoption of new products and identifies stages in the adoption process.
This document provides an overview of a summer training report on consumer buying behaviour towards Vijaya Dairy Milk. It includes sections on the introduction, objectives of the study, company profile, research methodology, data analysis and interpretation, conclusions and limitations. The report examines factors that influence consumer purchase decisions such as personal, psychological and social factors. It also describes the different stages of the consumer buying process and types of consumer buying behavior based on involvement level.
Buying Decision Making Process
Buying roles, Stages of the decision process – High and low effort decisions, Post purchase decisions, Models of consumer behaviour
The document discusses the consumer buying decision-making process and buying motives. It describes the 5 stages of the consumer decision making process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also categorizes buying motives as either emotional or rational for both products and retail patronage. The different types of emotional and rational motives that influence consumer purchasing decisions are explained.
1. Chapter 6 Class Notes
Contents of Chapter 6 Class Notes
What is Consumer Buying Behavior?
Stages of Consumer Buying Behavior?
Types of Consumer Buying Behavior.
Categories That Effect Consumer Buying Behavior.
o Personal
o Psychological
o Social
Please Email alex@udel.edu any comments
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What is Consumer Buying Behavior?
Definition of Buying Behavior:
Buying Behavior is the decision processes and acts of people involved in buying
and using products.
Need to understand:
why consumers make the purchases that they make?
what factors influence consumer purchases?
the changing factors in our society.
Consumer Buying Behavior refers to the buying behavior of the ultimate
consumer. A firm needs to analyze buying behavior for:
Buyers reactions to a firms marketing strategy has a great impact on the
firms success.
The marketing concept stresses that a firm should create a Marketing
Mix (MM) that satisfies (gives utility to) customers, therefore need to
analyze the what, where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing
strategies.
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Stages of the Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead
2. to a purchase. All consumer decisions do not always include all 6 stages,
determined by the degree of complexity...discussed next.
The 6 stages are:
1. Problem Recognition(awareness of need)--difference between the desired
state and the actual condition. Deficit in assortment of products. Hunger--
Food. Hunger stimulates your need to eat.
Can be stimulated by the marketer through product information--did not
know you were deficient? I.E., see a commercial for a new pair of shoes,
stimulates your recognition that you need a new pair of shoes.
2. Information search--
o Internal search, memory.
o External search if you need more information. Friends and relatives
(word of mouth). Marketer dominated sources; comparison shopping;
public sources etc.
A successful information search leaves a buyer with possible alternatives,
the evoked set.
Hungry, want to go out and eat, evoked set is
o chinese food
o indian food
o burger king
o klondike kates etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, features
the buyer wants or does not want. Rank/weight alternatives or resume
search. May decide that you want to eat something spicy, indian gets highest
rank etc.
If not satisfied with your choice then return to the search phase. Can you
think of another restaurant? Look in the yellow pages etc. Information from
different sources may be treated differently. Marketers try to influence by
"framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package,
store, method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or
Dissatisfaction. Cognitive Dissonance, have you made the right decision.
This can be reduced by warranties, after sales communication etc.
After eating an indian meal, may think that really you wanted a chinese
meal instead.
Handout...Pillsbury 1-800#s
3. 1-800 #s gives the consumer a way of communicating with the marketer after
purchase. This helps reduce cognitive dissonance when a marketer can answer any
concerns of a new consumer.
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Types of Consumer Buying Behavior
Types of consumer buying behavior are determined by:
Level of Involvement in purchase decision. Importance and intensity of
interest in a product in a particular situation.
Buyers level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products
visible to others, and the higher the risk the higher the involvement. Types of risk:
Personal risk
Social risk
Economic risk
The four type of consumer buying behavior are:
Routine Response/Programmed Behavior--buying low involvement
frequently purchased low cost items; need very little search and decision
effort; purchased almost automatically. Examples include soft drinks, snack
foods, milk etc.
Limited Decision Making--buying product occasionally. When you need to
obtain information about unfamiliar brand in a familiar product category,
perhaps. Requires a moderate amount of time for information gathering.
Examples include Clothes--know product class but not the brand.
Extensive Decision Making/Complex high involvement, unfamiliar,
expensive and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars, homes,
computers, education. Spend alot of time seeking information and deciding.
Information from the companies MM; friends and relatives, store personnel
etc. Go through all six stages of the buying process.
Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying
Behavior. Product can shift from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for
someone that does not go out often at all), but limited decision making for
someone else. The reason for the dinner, whether it is an anniversary celebration,
4. or a meal with a couple of friends will also determine the extent of the decision
making.
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Categories that Effect the Consumer Buying Decision
Process
A consumer, making a purchase decision will be affected by the following three
factors:
1. Personal
2. Psychological
3. Social
The marketer must be aware of these factors in order to develop an appropriate
MM for its target market.
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Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making.
Young people purchase things for different reasons than older people.
Handout...From choices to checkout...
Highlights the differences between male and female shoppers in the supermarket.
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Psychological factors
Psychological factors include:
Motives--
A motive is an internal energizing force that orients a person's activities
toward satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can
identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
o Physiological
5. o Safety
o Love and Belonging
o Esteem
o Self Actualization
Need to determine what level of the hierarchy the consumers are at to
determine what motivates their purchases.
Handout...Nutrament Debunked...
Nutrament, a product marketed by Bristol-Myers Squibb originally was
targeted at consumers that needed to receive additional energy from their
drinks after exercise etc., a fitness drink. It was therefore targeted at
consumers whose needs were for either love and Belonging or esteem. The
product was not selling well, and was almost terminated. Upon extensive
research it was determined that the product did sell well in inner-city
convenience stores. It was determined that the consumers for the product
were actually drug addicts who couldn't not digest a regular meal. They
would purchase Nutrament as a substitute for a meal. Their motivation to
purchase was completely different to the motivation that B-MS had
originally thought. These consumers were at the Physiological level of the
hierarchy. BM-S therefore had to redesign its MM to better meet the needs
of this target market.
Motives often operate at a subconscious level therefore are difficult to
measure.
Perception--
What do you see?? Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. IE we chose what info
we pay attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing,
smell and touch.
Selective Exposure-select inputs to be exposed to our awareness. More
likely if it is linked to an event, satisfies current needs, intensity of input
changes (sharp price drop).
Selective Distortion-Changing/twisting current received information,
inconsistent with beliefs.
Advertisers that use comparative advertisements (pitching one product
against another), have to be very careful that consumers do not distort the
6. facts and perceive that the advertisement was for the competitor. A current
example...MCI and AT&T...do you ever get confused?
Selective Retention-Remember inputs that support beliefs, forgets those that
don't.
Average supermarket shopper is exposed to 17,000 products in a shopping
visit lasting 30 minutes-60% of purchases are unplanned. Exposed to 1,500
advertisement per day. Can't be expected to be aware of all these inputs, and
certainly will not retain many.
Interpreting information is based on what is already familiar, on knowledge
that is stored in the memory.
Handout...South Africa wine....
Problems marketing wine from South Africa. Consumers have strong
perceptions of the country, and hence its products.
Ability and Knowledge--
Need to understand individuals capacity to learn. Learning, changes in a
person's behavior caused by information and experience. Therefore to
change consumers' behavior about your product, need to give them new
information re: product...free sample etc.
South Africa...open bottle of wine and pour it!! Also educate american
consumers about changes in SA. Need to sell a whole new country.
When making buying decisions, buyers must process information.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than
those who have knowledge of a product.
Non-alcoholic Beer example: consumers chose the most expensive six-pack,
because they assume that the greater price indicates greater quality.
Learning is the process through which a relatively permanent change in
behavior results from the consequences of past behavior.
Attitudes--
Knowledge and positive and negative feelings about an object or activity-
maybe tangible or intangible, living or non- living.....Drive perceptions
7. Individual learns attitudes through experience and interaction with other
people.
Consumer attitudes toward a firm and its products greatly influence the
success or failure of the firm's marketing strategy.
Handout...Oldsmobile.....
Oldsmobile vs. Lexus, due to consumers attitudes toward Oldsmobile (as
discovered by class exercise) need to disassociate Aurora from the
Oldsmobile name.
Exxon Valdez-nearly 20,000 credit cards were returned or cut-up after the
tragic oil spill.
Honda "You meet the nicest people on a Honda", dispel the unsavory image
of a motorbike rider, late 1950s. Changing market of the 1990s, baby
boomers aging, Hondas market returning to hard core. To change this they
have a new slogan "Come ride with us".
Attitudes and attitude change are influenced by consumers personality and
lifestyle.
Consumers screen information that conflicts with their attitudes. Distort
information to make it consistent and selectively retain information that
reinforces our attitudes. IE brand loyalty.
There is a difference between attitude and intention to buy (ability to buy).
Personality--
all the internal traits and behaviors that make a person unique, uniqueness
arrives from a person's heredity and personal experience. Examples include:
o Workaholism
o Compulsiveness
o Self confidence
o Friendliness
o Adaptability
o Ambitiousness
o Dogmatism
o Authoritarianism
o Introversion
o Extroversion
o Aggressiveness
o Competitiveness.
8. Traits effect the way people behave. Marketers try to match the store image
to the perceived image of their customers.
There is a weak association between personality and Buying Behavior, this
may be due to unreliable measures. Nike ads. Consumers buy products that
are consistent with their self concept.
Lifestyles--
Recent US trends in lifestyles are a shift towards personal independence and
individualism and a preference for a healthy, natural lifestyle.
Lifestyles are the consistent patterns people follow in their lives.
EXAMPLE healthy foods for a healthy lifestyle. Sun tan not considered
fashionable in US until 1920's. Now an assault by the American Academy of
Dermatology.
Handout...Here Comes the Sun to Confound Health Savvy Lotion
Makers..
Extra credit assignment from the news group, to access Value and Lifestyles (VALS)
Program, complete the survey and Email alex@udel.edu the results. This is a survey
tool that marketers can use to better understand their target market(s).
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Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.
Opinion leaders--
Spokespeople etc. Marketers try to attract opinion leaders...they actually use
(pay) spokespeople to market their products. Michael Jordon (Nike,
McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
Roles and Family Influences--
Role...things you should do based on the expectations of you from your
position within a group.
People have many roles.
Husband, father, employer/ee. Individuals role are continuing to change
therefore marketers must continue to update information.
9. Family is the most basic group a person belongs to. Marketers must
understand:
o that many family decisions are made by the family unit
o consumer behavior starts in the family unit
o family roles and preferences are the model for children's future family
(can reject/alter/etc)
o family buying decisions are a mixture of family interactions and
individual decision making
o family acts an interpreter of social and cultural values for the
individual.
The Family life cycle: families go through stages, each stage creates
different consumer demands:
o bachelor stage...most of BUAD301
o newly married, young, no children...me
o full nest I, youngest child under 6
o full nest II, youngest child 6 or over
o full nest III, older married couples with dependant children
o empty nest I, older married couples with no children living with them,
head in labor force
o empty nest II, older married couples, no children living at home, head
retired
o solitary survivor, in labor force
o solitary survivor, retired
o Modernized life cycle includes divorced and no children.
Handout...Two Income Marriages Are Now the Norm
Because 2 income families are becoming more common, the decision maker
within the family unit is changing...also, family has less time for children,
and therefore tends to let them influence purchase decisions in order to
alleviate some of the guilt. (Children influence about $130 billion of goods
in a year) Children also have more money to spend themselves.
Reference Groups--
Individual identifies with the group to the extent that he takes on many of
the values, attitudes or behaviors of the group members.
Families, friends, sororities, civic and professional organizations.
Any group that has a positive or negative influence on a persons attitude and
behavior.
Membership groups (belong to)
10. Affinity marketing is focused on the desires of consumers that belong to
reference groups. Marketers get the groups to approve the product and
communicate that approval to its members. Credit Cards etc.!!
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)
Honda, tries to disassociate from the "biker" group.
The degree to which a reference group will affect a purchase decision
depends on an individuals susceptibility to reference group influence and the
strength of his/her involvement with the group.
Social Class--
an open group of individuals who have similar social rank. US is not a
classless society. US criteria; occupation, education, income, wealth, race,
ethnic groups and possessions.
Social class influences many aspects of our lives. IE upper middle class
Americans prefer luxury cars Mercedes.
o Upper Americans-upper-upper class, .3%, inherited wealth,
aristocratic names.
o Lower-upper class, 1.2%, newer social elite, from current
professionals and corporate elite
o Upper-middle class, 12.5%, college graduates, managers and
professionals
o Middle Americans-middle class, 32%, average pay white collar
workers and blue collar friends
o Working class, 38%, average pay blue collar workers
o Lower Americans-lower class, 9%, working, not on welfare
o Lower-lower class, 7%, on welfare
Social class determines to some extent, the types, quality, quantity of
products that a person buys or uses.
Lower class people tend to stay close to home when shopping, do not
engage in much prepurchase information gathering.
Stores project definite class images.
Family, reference groups and social classes are all social influences on
consumer behavior. All operate within a larger culture.
Culture and Sub-culture--
11. Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture
determines what people wear, eat, reside and travel. Cultural values in the
US are good health, education, individualism and freedom. In american
culture time scarcity is a growing problem. IE change in meals. Big impact
on international marketing.
Handout...Will British warm up to iced tea?
No...but that is my opinion!!...Tea is a part of the British culture, hot with
milk.
Different society, different levels of needs, different cultural values.
Culture can be divided into subcultures:
o geographic regions
o human characteristics such as age and ethnic background.
IE West Coast, teenage and Asian American.
Culture effects what people buy, how they buy and when they buy.
Understanding Consumer Buying Behavior offers consumers greater satisfaction
(Utility). We must assume that the company has adopted the Marketing Concept
and are consumer oriented.
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