Marketing paper
Jimmonika
chapter_5abb.pptxConsumer Behavior
5th P – “People”
Chapter 5
Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption (Chapter 5)
Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others (Chapter 6)
Model of Consumer Behavior
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Consumer Decision-Making Process
Problem
Recognition
Information
Search
Evaluation
Of
Alternatives
Purchase
Decision
Post-purchase
Evaluation
Also post purchase…..
Cognitive Dissonance: Discomfort caused by postpurchase conflict
Holding of two contradictory ideas
Consumers try to reduce dissonance by changing one of the two attitudes
Not sure if I got a good deal or made the right choice
As a marketer we want to reduce dissonance
Types of consumer decisions
Three major types of decision processes:
Extended Problem Solving
Limited Problem Solving
Routine Problem Solving
Variety Seeking Behavior
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Extended Problem Solving (High Involvement)
Product category or brand is new or purchase in the category is infrequent
More risk involved (financial, social, physical)
Decisions require more time and effort
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High Involvement Strategies for Marketers
Provide a wide depth of product information through multiple formats
Engage with customers through social media and personal selling to answer questions and provide customer service
Market Challengers – compare their products to leader
Limited problem solving (Low Involvement)
Consumers are not motivated, able or lack the opportunity to search for information extensively
Alternatives are analyzed superficially
Some brands may be new, but category is familiar
Alternatives are weighted using heuristics
Low or no information search
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Routine Problem Solving (Low Involvement)
Decisions are made with little or no conscious effort (Auto-pilot)
Consumer is familiar with brand and category
Decisions are low risks
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Variety-seeking Behavior (Low Involvement)
Brands still play an important role, but consumer is motivated to try different products
Not necessarily dissatisfied with a brand or product
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Low Involvement Strategies for Marketers
Maintain product quality
Avoid stockout situations
Repetitive/reminder advertising messages
Situational Influences
Purchase task - reason for decision
Social surroundings – presence of others
Physical surroundings – décor, music, etc.
Temporal effects - time
Antecedent states – mood, budget
Psychological Factors
Lifestyle
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Motivation and Personality
Perception
Learning
Values, Beliefs and Attitudes
In order to be persuaded need MAO
Motivation – inner state of arousal directed to achieve a goal
Drives processing of information
Felt involvement
Cognitive
Affective
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What Affects Motivation?
Personal relevance
Values, Goals, Needs
Perceived Risk
Inconsistency with attitudes
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Needs, Wants & Demands
All purchases are driven by needs
Maslow’s Hierarchy of Needs explains how needs are prioritized
Physiological
Safety
Social
Self-Actualization
Personal/Esteem
In order to be persuaded need MAO
Ability – resources to act
Knowledge and experience
Intelligence, education, age
Monetary resources
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In order to be persuaded need MAO
Opportunity
Time
Distraction free
Information
Amount, Complexity, Repetition, Control
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Personality and self-concept
Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer’s environment
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Individuality Personality Traits often seen in Brands
Dominance
Autonomy
Defensiveness
Adaptability
Aggressiveness
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Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes
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Types of Perception
Selective attention is the tendency for people to screen out most of the information to which they are exposed
Selective comprehension is the tendency for people to interpret information in a way that will support what they already believe
Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands
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Role of Perceived Risk
Perceived Risk represents the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
Greater risk, greater time spent researching
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Learning
The change in an individual’s behavior arising from experience. Occurs through interplay of:
Behavioral Learning
Cognitive Learning
Brand Loyalty
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Attitudes, Values, & Beliefs
Attitude – learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way
Relatively global and enduring evaluation
Object
Issue
Person
Action
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Attitudes are learned over time
Attitudes can be based on:
Experience, exposure, beliefs, etc.
Cognitions and Affect
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Characteristics of Attitudes
Favorability
Accessibility
Confidence
Persistence
Resistance
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We can have attitudes toward…
Companies and Brands
Ads
People and Stores
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How do we change attitudes?
Change beliefs about the extent to which a brand has certain attributes
Change the perceived importance of attributes
Add new attributes
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Attitudes shaped by…
Values
Strongly held beliefs (priorities) about various topics or concepts
More enduring than attitudes
Shaped during childhood, informative years
Affected by personality
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Attitudes shaped by…
Beliefs – consumer’s subjective perception of how a product or brand performs on different attributes
Based on personal experience, advertising, WOM
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Persuasion (cont)
Beliefs can be created/influenced by:
Inference: A process of “filling in” missing information/conclusion making
Attribution: An inference of the reason for a person’s behavior or outcome
Heuristics: rules of thumb
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Lifestyle
A person’s pattern of living as expressed in his or her psychographics
Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment
Activities (work, hobbies, social events, memberships, sports)
Interests (family, job, recreation, food, media)
Opinions (social issues, politics, products, environment)
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Sociocultural Influences on CB
Opinion leadership – exert direct or indirect social influence
Also called influentials or leading adopters
WOM
Family Influence
Reference Groups
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Types of Reference Groups
Aspirational Groups
Groups an individual wished to belong to
Membership Groups
Groups with direct influence and to which a person belongs
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Negative Reference Groups
Dissociative Groups
Groups with which a person wishes to maintain a distance from because of differences in values or behaviors
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Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors
Measured by a combination of occupation, income, education, wealth, and other variables
Sociocultural Influences on CB
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Culture is the learned values, perceptions, wants, and behavior from family and other important institutions
Sociocultural Influences on CB
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Characteristics Affecting Consumer Behavior
Subculture are groups of people within a culture with shared value systems based on common life experiences and situations
African American (AACM)
Hispanic
Asian
GLBT
Mature consumers
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