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Consumer Behavior Consumer Behavior Chapter Four Chapter Four Chapter Four: Consumer Behavior Objectives Identify elements of a consumer behavior model. Address the five stages of the consumer decisionmaking process. Describe consumer decision making in terms of extensive, limited, or routine problem solving. Describe psychological influences that impact consumer behavior. Describe the social influences that impact consumer behavior. A Consumer Behavior Model • Social influences - Culture and subculture - Social class - Role and status - Reference groups - Family and household • Psychological influences - Motivation - Perception - Beliefs - Personality - Lifestyle • Situational influences Consumer Behavior The Consumer Decision-Making Process Stages Post-Purchase Processes Purchase Alternative Evaluation Information Search Problem Recognition The Consumer Decision-Making Process (cont.) Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes Problem recognition (creates need) Difference between actual and desired state “Cues”* Information search (creates alternatives) Internal information search External information search “Evoked Set”* The Consumer Decision-Making Process (cont.) Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes Alternative Evaluation (creates preferences) Price Ease of use Performance Style e.g., Fishbein Model* A = ∑ (biei) … Where A is attitude, b is belief, and e is evaluative criterion This step can be skipped if purchase is habitual. Consumers then rely on memory of past purchases. The Consumer Decision-Making Process (cont.) Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes Purchase (creates possession) Decision vs. Behavior Purchase Intention Actual Purchase Intervening factors (“second thoughts”) Too expensive Impulses False information Decision Rule* The Consumer Decision-Making Process (cont.) Problem Recognition Information Search Alternative Evaluation Purchase Post-Purchase Processes Post-Purchase Processes (creates evaluation) Cognitive Consistency/Dissonance* e.g. Buyer’s Remorse Reduction Strategies/Tactics Expectations influence level of satisfaction Quality refers to overall product quality, reliability and the extent to which it meets consumers’ needs. Extended, Limited, and Routine Consumer Decision Making A Consumer Behavior Model • Social influences - Culture and subculture - Social class - Role and status - Reference groups - Family and household • Psychological influences - Motivation - Perception - Beliefs - Personality - Lifestyle • Situational influences Consumer Behavior Psychological Influences on Consumer Behavior Motivation (and Involvement*) Involvement/Lucky Charms Unsatisfied need or want Drive or motive = stimulus Hunger Go to Restaurant Action, purchase good Eat Food Reduce need or want Not Hungry Perception Marketers Influence Perceptions Perception: The manner in which we collect, organize, and interpret information Selective perception: - Individuals pay attention to different stimuli, perceiving them selectively. Selective distortion: - Consumers adapt information to fit their own existing knowledge or beliefs (cognitive assonance). Selective retention: - Consumers only retain information about a good or service that supports personal knowledge or beliefs (reduce dissonance). Learning Cues Drive Stimuli Example: You see Jordan drinking Sprite. Response: an attempt to satisfy an individual drive You too, want Sprite. You buy Sprite. Attitudes Values* and Beliefs Attitudes: Relatively enduring and consistent feelings (affective responses) about a good or service Beliefs: Associations between a product and attributes of that product Fast food and smoking cause heart attacks. Intel processors only exist in quality computers. Marketers are trying to create positive attitudes about their products and create beliefs that their products have desirable attributes. Personality and Lifestyles Personality and Buying Personality: An individual’s unique psychological characteristics leading to specific response tendencies over time Lifestyles: An individual’s style of living as expressed through activities, interests, and opinions Psychographics: Classification of consumers according to lifestyles and personality Social Influences on Consumer Behavior Culture: “a society’s personality” A continuously changing totality of learned and shared meanings, rituals, norms, and traditions among the members of an organization or society Values Enduring beliefs about a specific mode of conduct or desirable end-state that guides the selection or evaluation of behavior Cultures are set apart by values, e.g. . . . • Western Cultures stress success, achievement, and competitiveness. • Eastern Cultures emphasize collective welfare. Values Terminal Instrumental Social Class, Role, and Status Influences on Consumer Behavior Social Classes: Share similar values, attitudes, interests, and opinions. Can be determined by a combination of occupation, education, income, wealth, and values. Role: Behavior based on the activities people are expected to perform according to individuals around them Role of women in the United States Role of women in Islamic countries Man in a marriage relationship Partners in a gay or lesbian relationship Status: The esteem that society bestows upon a particular role Soccer mom Company president Judge Car salesperson Family and Household Influences on Consumer Behavior Influence on consumers purchasing behavior Decision makers and influencers of decisions: Husband Wife Children Cleaning personnel Guests Roommates Parents and grandparents (decision makers) respond to children’s influence in deciding which toys to purchase. Reference Groups and Opinion Leaders Reference groups*: Any group that positively or negatively affects a person’s values, attitudes or behavior Associate reference groups: - Dissociative reference groups: - Groups people do not want to associate with Aspirational reference groups: - Groups an individual belongs to—the individual adopts certain behavior patterns of these groups. Groups an individual aspires to join or associate with Opinion Leaders*: A reference group member who provides information about a specific sphere that interests reference group participants. Situational Influences on Consumer Behavior* Occasion Time Importance Available Funds Marketing Mix Etc.