chapter six consumer behavior Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. LEARNING OBJECTIVES LO 6-1 Articulate the steps in the consumer buying process. LO 6-2 Describe the difference between functional and psychological needs. LO 6-3 Describe factors that affect information search. LO 6-4 Discuss postpurchase outcomes. LO 6-5 List the factors that affect the consumer decision process. LO 6-6 Describe how involvement influences the consumer decision process. 6-2 The Consumer Decision Process Need Recognition Psychological needs ©Digital Vision/PunchStock Royalty-Free/CORBIS Functional needs 6-3 The Consumer Decision Process Search for Information Internal Search for Information External Search for Information Courtesy of Refinery29.com. 6-4 Factors Affecting Consumers’ Search Process Perceived Benefits Perceived Costs 6-5 The Locus of Control Internal Locus of Control = more search activities Royalty-Free/CORBIS External Locus of Control = Fate, external factors ©Comstock/JupiterImages 6-6 Actual or Perceived Risk Performance risk Psychological risks Physiological risk Financial risk Social risk 6-7 The Consumer Decision Process Evaluation of Alternatives: Attribute Sets Universal Retrieval Evoked 6-8 The Consumer Decision Process Evaluation of Alternatives: Evaluate Criteria Evaluative Criteria Determinant Attributes Digital Vision/Getty Images What are some of the features of a vacation that would be in your evaluative criteria? 6-9 The Consumer Decision Process Evaluation of Alternatives: Consumer Decision Rules Cheerios 10 8 6 8 8.2 Post 8 9 8 3 7.1 Kashi 6 8 10 5 7.2 All photos: ©M. Hruby. 6-10 The Consumer Decision Process Purchase and Consumption Increase Conversion rate Reduce real or virtual abandoned carts Merchandise in stock Handout/MCT/Newscom. Reduce the actual wait time 6-11 Post-purchase: Customer Satisfaction Customer Loyalty Dissonance 6-12 check yourself 1. Name the five stages in the consumer decision process. 2. What is the difference between a need and a want? 3. Distinguish between functional and psychological needs. 4. What are the various types of perceived risk? 5. What are the differences between compensatory and noncompensatory decision rules? 6-13 Factors Influencing the Consumer Decision Process •Product •Price •Place •Promotion •Motives •Attitudes •Perceptions •Learning •Lifestyle Marketing mix Psychological factors Consumer Decision Process Social factors •Family •Reference groups •Culture Situational factors •Purchase situation •Shopping situation •Temporal state 6-14 Psychological Factors: Motives Courtesy Taco Bell 6-15 Psychological Factors: Attitude Behavioral Attitude Cognitive Affective ©K Rousonelos 6-16 Psychological Factors: Learning and Lifestyle Learning affects both attitudes and perceptions Lifestyle involves decisions in spending time and money Royalty-Free/CORBIS 6-17 Social Factors: Family ©Stockbroker/Purestock/SuperStock. 6-18 Social Factors: Reference Groups Groups Provide: •Family •Friends •Coworkers •Famous people •information •rewards •self-image 6-19 Social Factors: Culture 6-20 Situational Factors Purchase Situation Shopping Situation Courtesy Murphy O’Brien Public Relations/Santa Monica, CA 6-21 check yourself 1. What are some examples of specific needs suggested by Maslow’s Hierarchy of Needs? 2. Which social factors likely have the most influence on (a) the purchase of a new outfit for a job interview and (b) the choice of a college to attend? 3. List some of the tactics stores can use to influence consumers’ decision processes. 6-22 Involvement and Consumer Buying Decisions Message (e.g., Ad) High involvement • Greater attention • Deeper processing Develops strong attitudes and purchase intentions Low involvement • Less attention • Peripheral processing Generates weak attitudes and increased use of cues 6-23 Types of Buying Decisions • Extended Problem Solving • Limited Problem Solving – Impulse Buying – Habitual Decision Making Courtesy Wendy’s International, Inc. 6-24 check yourself 1. How do low- versus high-involvement consumers process information in an advertisement? 2. What is the difference between extended versus limited problem solving? 6-25