Consumer Behavior
NPC
Lecture 3
Consumer Buying
Process
Problem recognition:
Perceiving need
Information search:
Seeking value
Alternative evaluation:
Assessing value
Purchase decision:
Buying value
Post-purchase behavior:
Consumption value
NPC
Lecture 3
How is the Need/Want
Created?
Psychological states
ideal
actual
Opportunity Recognition
ideal
actual
Need Recognition
NPC
Lecture 3
Information Search:
Identifying Alternatives
Inert Set
Inept Set
?
x 
Evoked/Consideration Set
NPC
Lecture 3
Compensatory and
Non-compensatory Decision Making
Brand
Model
Price
Panasonic
SL-SX500
$ 150
Phillips
AZ7383
100
Phillips
AZ7583
120
Sony
D-E409CK
140
Aiwa
XP-SP1200
145
Sony
D-E401
100
(A CR best buy)
Error
Headphones Correction
Bumps
Locate
Speed
Rating:
Excellent
Very
Good
Good
Fair
Panasonic
SL-SW505
150
JVC
XL-P34
80
Sony
D-ES55
200
Panasonic
SL-S230
80
Aiwa
XP-570
75
Poor
NPC
Portable Compact Disc Players
Source: Consumer Reports’
Lecture 3
Cognitive Dissonance…
is a feeling of post-purchase psychological tension or
anxiety.
To alleviate cognitive dissonance,
consumers often:
• seek confirming information
• avoid disconfirming information
NPC
Lecture 3
Perceived Risk is the anxiety experienced when
outcomes are unknown, yet one believes that there
may be negative consequences.
• monetary
• functional
• physical
• social
• psychological
High Involvement purchase decisions typically involve extensive
information search, consideration of several product attributes and
brands, the formation of attitudes, and word-of-mouth
communication. (e.g., automobile, stereo system)
Low Involvement purchase decisions typically involve little
information search, and examine brands on the basis of price.
They tend to be privately consumed. (e.g., soap, toothpaste)
NPC
Lecture 3
Influences on the Consumer
Purchase Decision Process
Marketing mix
•
•
•
•
Psychological
•
•
•
•
•
Motivation
Personality
Perception
Learning
Values, beliefs
and attitude
• Lifestyle
Product
Price
Promotion
Place
Consumer Decision Process
Sociocultural
Problem recognition
Information search
Alternative evaluation
Purchase decision
Post-purchase behavior
• Personal
influence
• Reference groups
• Family
• Social class
• Culture
• Subculture
Situation
• Purchase task
• Social surroundings
• Physical
surroundings
• Temporal effects
• Antecedent states
NPC
Lecture 3
Selective perception filters
Messages
Selective exposure
Selective comprehension
Selective retention
NPC
Lecture 3
Learning refers to those behaviors that result from:
• repeated experience and/or,
• thinking
Behavioral Learning is the process of developing
automatic responses to a situation built up through
repeated exposure to it.
Cognitive Learning is learning via thinking, reasoning,
and mental problem solving without direct experience.
NPC
Lecture 3
5
Value Drivers
of Market Choice Behavior
Functional
Value
Social
Value
Market
Choice
Behavior
Conditional
Value
Epistemic
Value
Emotional
Value
NPC
Lecture 3
Organizational Buying Behavior
NPC
Lecture 3
Types of B2B Customers
Commercial

Manufacturers, construction companies, service
firms, transport companies, some professional
groups, and resellers
Institutional

Organizations that provide services without the
motivation of profit such as hospitals and
universities
Government

The government market consists of federal,
provincial/state, and local/municipal governments
NPC
Lecture 3
Business Market Characteristics
Derived:
Link between
demand for
industrial product
and demand for
consumer
products
Fluctuating:
Patterns and
preferences in the
household market
can change the
demand for
industrial goods
Stimulating:
Some industrial
products must
market to the
ultimate
consumer directly
NPC
Lecture 3
Business Market Characteristics
Relationship
Marketing:
Marketing
activities directed
at establishing/
maintaining
relationships
Longer-term
and closer
relationships with
fewer suppliers
Closer
interactions
among multiple
functions on both
buying and selling
sides
NPC
Lecture 3
Business Market Characteristics
Supply Chain
Management:
Linking with
strategic suppliers,
intermediaries,
and customers to
improve efficiency
JIT:
Just-in-time
production to
deliver defect-free
parts to
production just
when needed
ERP:
Software that can
help enhance the
flow of a supply
chain
NPC
Lecture 3
Organizational Buying Process
Problem Recognition
General Description of
Need
Detailed Description
of Product Specs
Supplier Search
Acquisition and
Analysis of Proposals
Supplier Selection
Selection of an Order
Routine
NPC
Performance Review
Lecture 3
Buying Situations
Size of buying centre
Straight Rebuy
Risk
Modified Rebuy
New Buy
increases
increases
NPC
Lecture 3
Buying Center Roles
Users
Influencers
Buyers
Deciders
Gatekeeper
NPC
Lecture 3