CONSUMER BEHAVIOR Model of Consumer Decision Making Process 1. Problem Recognition 5. Postpurchase Behavior Psychological: Motivation, Personality, Perception, Learning, Lifestyle 2. Information Search Sociocultural: Reference groups, Family, Culture, Subculture 4. Purchase Decision 3. Alternative Evaluation 2. Information Search The process by which we survey the environment for appropriate data to make a reasonable decision Company associated sources Internal Information Search Online Third-party sources E-WOM External (Prepurchase vs. Ongoing) Marketer-dominated sources Offline Public sources Personal sources Consumer Reports’ evaluation of smartphones 3. Evaluation of Alternatives 5. Post Purchase Assessment Use/Non Use Disposal Post Purchase Assessment Satisfaction Cognitive Dissonance Psychological Influences Motivation Lifestyle Personality (Psychographics) Attitude Perception Learning MOTIVATION MASLOW’S HIERARCHY OF NEEDS • The energizing force that stimulates behavior to satisfy a need. • Determines the direction and the intensity of a behavior. Selfactualization Personal (status, • A need creates a state of respect) tension that drives the consumer to attempt to Social (friendship, reduce or eliminate it. belonging, love) Safety (security) Physiological (food, water) Involvement • The personal, social, and economic significance of the purchase to the consumer. • Marketing Implication: In-store promotion, eye-catching package design, and good displays. Coupons, cents-off, 2for-1 offers Extensive and informative promotion to target market High vs. Low? Heuristics: Mental shortcuts, rules-of-thumb for efficient decisions Perception 1. Selective Perception • • • Selective Exposure: Consumer notices certain stimuli and ignores others Selective Comprehension: Consumer changes or distorts information that conflicts with feelings or beliefs Selective Retention: Consumer mostly remembers the information that supports personal beliefs 2. Subliminal Perception “KN” car! Learning Any change in the content or organization of longterm memory or a relatively permanent change in behavior. 1. Behavioral learning – Classical conditioning (Stimulus generalization) – Operant conditioning 2. Cognitive Learning – Modeling – Conceptual learning Attitude Learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. Beliefs (β) Multiattribute Model Importance Smith Princeton Rutgers Northlan d Academic reputation 6 8 9 6 3 All women 7 9 3 3 3 Cost 4 2 2 6 9 Proximity to home 3 2 2 6 9 Athletics 1 1 2 5 1 Party atmosphere 2 1 3 7 9 Library facilities 5 7 9 7 2 163 142 153 131 Attitude Score Lifestyle VALS System Personality CULTURE Organized system that enables people to function as members of society Subcultures Situational Factors 1. Purchase task 2. Social surroundings (coconsumers, sales staff) 3. Physical surroundings (decoration, odors, temperature, point-ofpurchase stimuli) 4. Temporal effects (time) 5. Antecedent States (personal circumstances) Social Factors • Social class: A group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms. • Reference groups serve as information sources and influence perceptions, constrain or stimulate consumer behavior. • Family • Opinion leaders