Transcript Consumers Rule - Dr. Aziz Madi

Consumer Behavior:
How and Why People Buy
Chapter Objectives
• Define consumer behavior and explain why consumers
buy what they buy
• Describe the prepurchase, purchase, and postpurchase
activities that consumers engage in when making
decisions
• Explain how internal factors influence consumers’
decision-making processes
• Show how situational factors at the time and place of
purchase influence consumer behavior
• Explain how consumers’ relationships with other people
influence their decision-making processes
• Show how the Internet offers consumers opportunities to
participate in consumer-to-consumer marketing
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Decisions, Decisions
• Consumer behavior:
The process we use to
select, purchase, use,
and dispose of goods,
services, ideas, or
experiences to satisfy
needs/desires
• Internal, situational,
and social influences
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Steps in Consumer
Decision Process
• Extended problem-solving versus habitual
decision-making
• Involvement: relative importance of
perceived consequences of the purchase
• Perceived risk: choice of product has
potentially negative consequences
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Decision-Making Process
Problem Recognition
Brandon is fed up with
driving old clunker
Information Search
Brandon talks to friends,
visits car showrooms, etc.
Evaluation of Alternatives
Brandon looks at 3 models
with good/bad features
Product Choice
Brandon chooses one car
based on feature/image
Postpurchase Evaluation
Brandon drives car and is
happy with choice
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Step 1: Problem Recognition
• Occurs when
consumer sees a
significant difference
between current state
and ideal state
• Marketers can develop
ads that stimulate
problem recognition
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Activity
• Marketing activities can create problem
recognition, by showing consumers
benefits of a new product or pointing out
problems with products they already own
• For the following, suggest a creative way
to stimulate problem recognition through
marketing :
 Videogames
 A hamburger
An airline
Furniture
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Step 2: Information Search
• Consumers need adequate information to make
a reasonable decision
• Search memory and the environment for
information
• Internet: search engines, portals, or “shopping
robots”
• Behavioral targeting: Marketers deliver ads for
products consumers look for, by watching what
they do
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Step 3: Evaluation of Alternatives
• Consumers are interested in a small number of
products, then narrow choices and compare
pros/cons
• Evaluative criteria: product characteristics
consumers use to compare competing
alternatives
• Marketers point out their brand’s superiority on
most important evaluative criteria.
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Discussion
• Do you agree that having too many
choices is a bigger problem than not
having enough choices?
• Is it possible to have too much of a good
thing?
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Step 4: Product Choice
• Deciding on one product and acting on
choice
• Heuristic: a mental rule of thumb used for a
speedy decision, such as:
Price equals quality
Brand loyalty
Country of origin
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Step 5: Postpurchase Evaluation
• Consumer satisfaction/dissatisfaction after
purchase of product
• Expectations of product quality are
met/exceeded or not
• Ads/communications must create accurate
expectations of product
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Figure 5.4: Influences on Consumer
Decision Making
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Internal Influences
on Consumer Behavior
• Factors that cause us
each to interpret
information about the
outside world differently:
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Perception
Motivation
Learning
Attitudes
Personality
Age group
The family life cycle
Lifestyle
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Perception
• Process by which we select, organize, and
interpret information from outside world
• Necessary for perception to occur
• Exposure: capable of registering a
stimulus
• Attention: mental processing activity
• Interpretation: assigning meaning to a
stimulus
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Discussion
• Most researchers believe
subliminal techniques are
not much use in
marketing.
• Assuming some forms of
subliminal persuasion
may influence
consumers, do you think
their use is ethical? Why
or why not?
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Motivation
• Internal state that drives us to satisfy
needs by activating goal-oriented behavior
• Once we activate a need, a state of
tension exists that drives the consumer
toward some goal that will reduce this
tension by eliminating the need.
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Figure 5.5: Maslow’s Hierarchy of
Needs and Related Products
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Learning
• A change in behavior caused by
information or experience
• Behavioral learning
 Classical conditioning (perceiving two stimuli at once)
 Operant conditioning (rewards & punishment)
 Stimulus generalization (family branding)
• Cognitive learning
 Observational learning
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Attitudes
• Lasting evaluations of a person, object, or issue
• Three attitude components
Affect (feeling): emotional response
Cognition (knowing): beliefs or knowledge
Behavior (doing): intention to do something
• Marketers must decide which attitude
component will drive consumer preferences
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Personality
• The set of unique psychological
characteristics that consistently
influences the way a person
responds to situations in the
environment
• Personality traits: Innovativeness,
materialism, self-confidence,
sociability, need for cognition
• Self-concept
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Discussion/Activity
• Brands and stores are thought to have
their own particular “personalities”
 Pick a brand or store of interest and come up with a
description of its “personality”
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Age Group and Family Life Cycle
• Goods/services appeal to specific age group
• Family Life Cycle: The stages through which
family members pass as they grow older
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Lifestyle
• Lifestyle: A pattern of living that determines how
people choose to spend their time, money, and
energy
• Psychographics: group consumers according to
psychological and behavioral similarities
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Situational Influences
on Consumer Decisions
• Physical environment dimensions such as
décor, smells, and lighting
• Arousal and pleasure determine consumers’
reaction to store environment
• Time as a situational factor
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Social Influences
on Consumer Decisions
• We are members of many groups that
influence our buying decisions:
 Culture/subcultures
 Social class
 Group memberships
 Opinion leaders
 Sex roles
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Culture
• The values, beliefs, customs, and tastes
produced or practiced by a group of people
• Rituals such as weddings and funerals
• Cultural values: deeply held beliefs about
right and wrong ways to live
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Subcultures
• A group within a society whose members
share a distinctive set of beliefs,
characteristics, or common experiences
• Subcultures important to marketers are racial
and ethnic groups.
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Social Class
• The overall rank or social standing of
groups of people within a society,
according to factors such as family
background, education, occupation, and
income.
• Status symbols such as luxury products
provide a way for people to flaunt their
membership in higher social classes.
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Group Memberships
• Reference group: a set of people a consumer
wants to please or imitate and that thus has
an effect on an individual’s evaluations,
aspirations, or behavior
• Conformity means people change behavior
due to group pressure.
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Opinion Leaders
• People who influence others’ attitudes or
behaviors because others perceive them
as possessing expertise about the product
 Have high interest in product category
 Update knowledge by reading, talking with
salespeople, etc.
 Impart both positive and negative product information
 Are among the first to buy new products
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Gender Roles
• Society’s expectations regarding
appropriate attitudes, behaviors, and
appearance for men and women
• Consumers often associate “sex-typed”
products with one gender or the other.
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Consumer-to-Consumer
E-Commerce
• Online communications and purchases that
occur among individuals without directly
involving the manufacturer or retailer
• Groups of “netizens” around the world with
similar interests, united via the Internet
• Popular online C2C formats
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Gaming
Chat rooms, rings, and lists
Boards
eBay
Blogs
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Discussion
• The Internet provides a unique opportunity
for consumers to communicate and make
purchases from each other.
 What do you think the future of C2C e-commerce is?
 How do you think it will affect traditional marketing
firms?
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Marketing Plan Exercise
• Marketers must understand consumers and
how they select products. Pick a good or
service you like and have purchased in the
past. As part of developing a marketing plan
for this product:
 List what you need to know about consumers of your
product and how they make product decisions.
 How might you gather that information?
 How could you use that information in developing
successful marketing strategies?
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