Consumer Behavior Chapter 6 What is Consumer Behavior? “Describes how consumers make purchase decisions and how they use and dispose of goods and services, and also analyzes the factors that influence purchase decisions.” The Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Behavior Problem Recognition Difference between ideal state and actual state Nike College Information Search Internal Search External Search How much research? Perceived risk Knowledge Prior experience Interest What resources aided you in choosing a college? Evaluation of Alternatives Evaluative criteria Leads to the Formation of an Evoked Set College Purchase Decisions Where to buy? When to buy? Post-purchase Behavior Expectation comparison “Buyers remorse” Post-purchase anxiety Cognitive dissonance Can marketers do anything about it? Involvement High v. Low Involvement Routine Problem Solving Milk Limited Problem Solving High Low Restaurant Extended Problem Solving Cars Involvement & Marketing Low Involvement Leader Challengers Make quality product available and advertise it Break buying behaviors High Involvement Leaders Make info available Challengers Comparative advertising Situational Influences Purchase task Social surroundings Physical surroundings Temporal effects Antecedent states Psychological Influences Motivation Personality Perception Learning Values, Beliefs & Attitudes Lifestyle 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 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 Source: http://www.impactlab.net Learning Behavioral (Experiential) Learning Cognitive (Conceptual) Learning Drive + Cue + Response → Reinforcement Making a connection between two or more ideas Brand Loyalty Top 20 Most Desired Brands- Men 1. Crest 2. BMW 3. National Geographic 4. Panasonic 5. Hyundai 6. Kleenex 7. Coca-Cola 8. Microsoft 9. Tide 10. Lexus 11. Apple 12. Bed Bath & Beyond 13. Ford 14. Animal Planet 15. Hitachi 16. Mercedes-Benz 17. FedEx 18. Proctor & Gamble 19. Hallmark 20. Geico Source: http://www.walletpop.com/2011/02/02/women-are-from-amazonmen-are-from-geico-worlds-most-desired/ Top 20 Most Desired Brands- Women 1. Johnson & Johnson 2. Sony 3. Kleenex 4. National Geographic 5. MasterCard 6. Google 7. Amazon 8. Visa 9. General Electric 10. Toshiba 11. Crest 12. Microsoft 13. Disney 14. Target 15. Tropicana 16. BMW 17. Febreze 18. Ford 19. Olay 20. Chase Source: http://www.walletpop.com/2011/02/02/women-are-from-amazonmen-are-from-geico-worlds-most-desired/ 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 Brand Loyalty-College Students Results Most loyal to Least loyal to Other notables: Values, Beliefs, & Attitudes Values Beliefs What is important? “An organized pattern of knowledge that an individual holds as true.” Attitudes “Learned tendency to respond consistently toward a given object.” Shaped by beliefs and values Involvement & Psychological Influences Decision-making- High-involvement Beliefs → attitude → behavior Decision-making- Low-involvement Beliefs → behavior → affect Lifestyle Based on people’s activities, interests, and opinions VALS program Discusses 8 lifestyles Based on resources and self-orientation Action, principles, and status Source: http://www.e-flux.com Sociocultural Influences Personal influence Reference groups Family Social class Culture/Subculture Personal Influence Opinion Leaders Direct or indirect influence Word of mouth Reference Groups Formal and informal groups that influence the buying behavior of the individual Two broad classifications Primary Secondary Three types Membership group Aspiration group Dissociative group Source: http://wwwinsidesocal.com Family Influence Source: http://foodhelp.wa.gov Consumer Socialization Family Life Cycle Family Decision Making Social Class Divisions within society along values, interests, and behavioral lines Upper, middle, and lower classes Share certain characteristics Culture/Subculture Subcultures are divisions of people with homogenous characteristics Age groups Ethnic groups