Download Chapter 4 - Marketing Club UMT

Perspective on Consumer
Behavior
Chapter 4
Objectives
• To understand the role that consumer
behavior plays in the development and
implementation of advertising and
promotional programs.
• To understand the consumer decisionmaking process and how it varies for
different types of purchases
Objectives
• To understand internal psychological
processes, their influence on consumer
decision making, and implications for
advertising and promotion
• To understand environmental influences
on consumer behavior
• To understand theories of consumer
learning process
Consumer Behavior
• ..the process and activities that people
engage in when searching for, selecting,
purchasing, using, evaluating, and
disposing of products and services so as to
satisfy their needs and desires.
The decision process model
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Problem recognition
Information search
Alternative evaluation
Purchase decision
Post purchase evaluation
Problem recognition
Out of stock
Dissatisfaction
New needs/wants
Related product/purchases
Marketer induced problem
recognition
• New products
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Information search
• Internal search – scan of info. In memory
or recall of past experiences and
knowledge
• External search – personal sources,
marketer controlled sources, public
sources.
Alternative evaluation
• Compares various brands and
services
• Evoked set – a subset of all the
brands of which consumer is aware
and actively considering in the
decision process
• Evaluative criteria – the dimensions
or attributes of a product or service
that are used to compare different
alternatives.
Purchase decision
• An outcome of the alternative evaluation
stage the consumer may develop a
purchase intention or decision to buy a
certain brand.
Post-purchase evaluation
• The consumer decision process does not
end once the product or service has been
purchased.
• After using the product consumer
compares the level of performance with
expectations.
Post-purchase evaluation
Post-purchase evaluation
• Satisfaction- consumers’
expectations are either met or
exceeded.
• Dissatisfaction – performance is
below expectations.
• Cognitive dissonance – refers to a
feeling of psychological tension or
post-purchase doubt a consumer may
experience after making a difficult
purchase choice.
Environmental influences on consumer
behavior
Various external factors that may influence
their purchase decisions.
• Culture
• Subcultures
• Social class
• Reference groups
• Family influences
• Situational influence
External environments
• Culture - the complexity of learned
meanings, values norms, and customs
shared by members of society.
• Smaller group or segments in a society
that possess similar beliefs, values, norms
and patterns of behavior that set them
apart from the larger cultural group.
External environments
• Social class – relatively homogeneous divisions in a
society into which people sharing similar lifestyles,
values, norms, interests and behaviors can be group.
• Reference group – a group perspective whose
perspective or values are being used by an individual
as the basis for his judgments, opinions or actions.
External environments
• Family influences – many purchased
decisions are made by families rather than
by individuals. (initiator, information
provider, influencer, decision maker,
purchaser and user or consumer)
External environments
Situational determinants – three types;
• usage situation – the circumstance for
product use (e.g. private vs. public)
• the purchase situation – environment at
point of purchase.
• the communication situation – the
condition in which advertising exposure
occur.
Consumers purchase
• The way consumers make a purchase
varies depending on:
• Nature of product or services (e.g.
convenience vs. shopping goods)
• Amount of experience they have with the
product
• The importance of the purchase
Variations in consumer decision
making
• Routine response behavior – routine choice, marketers must get
and maintain their brands in consumers evoked set.
• Limited problem solving – consumer has limited experience in
purchasing product. When consumers purchase product
through limited problem solving marketers must make
information available that will help them in making their
decision.
• Extended problem solving- the most complex decision making
when consumers have little knowledge. Marketers must provide
consumers with detailed information.
Consumer learning process
• Consumer learning- the process by which
individuals acquire purchase knowledge and
experience they apply to future related
behavior.
• From marketers point of view, learning is
best done as a method of creating short cut to
solving problems, the more consumers learn
to use the marketers product, the faster the
decision process becomes, which in turn
results in greater brand loyalty.
Consumer Learning Process
• Two basic approaches:
• Cognitive learning theory – based on
cognitive processes such as perceptions,
beliefs, attitude development and change
as in the decision-making model.
• Behavioral approach – based on the
stimulus and a response. Learning occurs
as a result of responses on external stimuli
in the environment.
Classical conditioning
• Assumes that learning is an associative
process with an already existing
relationship between a stimulus and a
response.
• Example: Pavlov – dogs learned to salivate
at the sound of the bell. Bell is the
conditioned stimulus that elicited a
conditioned response.
Classical conditioning
• It views individual as a passive participant
in the learning process who simply
receives stimuli.
• Marketers strive to associate their brands
with perceptions, images and emotions
known to evoke favorable response from
consumers.
Operant conditioning approach
• Requires individual to operate or act on some
aspect of the environment for learning to
occur.
• Conditioning occurs as a result of exposure to
stimulus that occurs before the response.
• Instrumental conditioning – the individual’s
response is influential in getting a positive or
negative reward.
• Buys a product in a response to ad - may
experience positive or negative outcome.
Operant conditioning
• If a consumer buys a product in a response
to an ad and experiences a positive
outcome, the likelihood that the consumer
purchase the product again increases and
vice versa.