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Consumer Behavior

Consumer Behavior. Chapter 5. What is Consumer Behavior?. “The actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions.”. The Decision-Making Process. Problem Recognition Information Search

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Consumer Behavior

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  1. Consumer Behavior Chapter 5

  2. What is Consumer Behavior? • “The actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions.”

  3. The Decision-Making Process • Problem Recognition • Information Search • Evaluation of Alternatives • Purchase Decisions • Post-Purchase Behavior

  4. Problem Recognition • Difference between ideal state and actual state • Nike • College

  5. Information Search • Internal Search • External Search • Personal sources • Public sources • Market-dominated sources • What resources aided you in choosing a college?

  6. Alternative Evaluation • Evaluative criteria • Leads to the Formation of an Evoked Set • College

  7. Purchase Decisions • Where to buy? • When to buy?

  8. Post-purchase Behavior • Expectation comparison • “Buyers remorse” • Post-purchase anxiety • Cognitive dissonance

  9. Involvement • High v. Low Involvement • High • Low • Routine Problem Solving • Milk • Limited Problem Solving • Restaurant • Extended Problem Solving • Cars

  10. Involvement & Marketing • Low Involvement • Leader • Make quality product available and advertise it • Challengers • Break buying behaviors • High Involvement • Leaders • Make info available • Challengers • Comparative advertising

  11. Situational Influences • Also effect the decision-making process • Purchase task • Social surroundings • Physical surroundings • Temporal effects • Antecedent states

  12. Psychological Influences • Motivation • Personality • Perception • Learning • Values, Beliefs & Attitudes • Lifestyle

  13. Motivation & Personality • Maslow’s Hierarchy of Needs • Must tune products to specific need-level • Personality • “A person’s consistent behaviors or responses to recurring situations.” • National character • Self—concept • Actual self v. Ideal self

  14. Perception • “The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.” • Selective perception • Exposure v. comprehension v. retention • Subliminal perception • Perceived risk

  15. Learning • Behavioral Learning • Drive + Cue + Response → Reinforcement • Cognitive Learning • Making a connection between two or more ideas • Brand Loyalty

  16. Brand Loyalty- Women • Which brands are succeeding? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

  17. Brand Loyalty- Women • Which brands are not succeeding? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

  18. Brand Loyalty- College Students • Brand Keys Inc. survey • Based on Customer Loyalty Index (16,000 people) • Looked at students’ habits before and after graduation • Almost 5,000 students and post-grads surveyed • Students’ attitudes changed because of new environment and more income

  19. Brand Loyalty-College Students • Results • Most loyal to • Least loyal to • Other notables:

  20. Attitudes • “Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.” • Shaped by beliefs and values

  21. Beliefs • Beliefs • Shaped by perception of how brand performs • “The knowledge and inferences a consumer has about objects, their attributes, and their benefits.”- Thurstone

  22. Involvement & Psychological Influences • Decision-making- High-involvement • Beliefs → attitude → behavior • Decision-making- Low-involvement • Beliefs → behavior → affect

  23. Lifestyle • Based on people’s activities, interests, and opinions • VALS program • Discusses 8 lifestyles • Based on resources and self-orientation • Action, principles, and status

  24. Sociocultural Influences • Personal influence • Reference groups • Family • Social class • Culture/Subculture

  25. Personal Influence • Opinion Leaders • Direct or indirect influence • Word of mouth

  26. Reference Groups • People with whom you seek to identify • Membership group • Aspiration group • Dissociative group

  27. Family Influence • Consumer Socialization • Family Life Cycle • Family Decision Making

  28. Social Class • Divisions within society along values, interests, and behavioral lines • Upper, middle, and lower classes • Share certain characteristics

  29. Culture/Subculture • Subcultures are divisions of people with homogenous characteristics • Age groups (See Chapter 3) • Ethnic groups • Hispanics • African Americans • Asians

  30. Hispanics Buying Patterns • Unity through language* • Brand loyal • Influenced by families and peers • Also influenced by advertising • Highly conservative • Common religion • Opinion leaders • Difficulties • Differing backgrounds • Language barrier

  31. African-Americans Buying Patterns • 12% of population • $213 billion annually • Lower annual income than whites • “Younger” subculture • Technological focus • Price conscious • Unique buying patterns

  32. Asian Buying Patterns • Highly educated • Strong family ties • Hard working • Hesitant to use credit

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