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Consumer Behavior Chapter 6 What is Consumer Behavior?  “Describes how consumers make purchase decisions and how they use and dispose of goods and services, and also analyzes the factors that influence purchase decisions.” The Decision-Making Process Problem Recognition Information Search Evaluation of Alternatives Purchase Post-Purchase Behavior Problem Recognition  Difference between ideal state and actual state  Nike  College Information Search    Internal Search External Search How much research?  Perceived risk Knowledge Prior experience  Interest    What resources aided you in choosing a college? Evaluation of Alternatives  Evaluative criteria  Leads to the Formation of an Evoked Set  College Purchase Decisions  Where to buy?  When to buy? Post-purchase Behavior   Expectation comparison “Buyers remorse”    Post-purchase anxiety Cognitive dissonance Can marketers do anything about it? Involvement  High v. Low Involvement    Routine Problem Solving   Milk Limited Problem Solving   High Low Restaurant Extended Problem Solving  Cars Involvement & Marketing  Low Involvement  Leader   Challengers   Make quality product available and advertise it Break buying behaviors High Involvement  Leaders   Make info available Challengers  Comparative advertising Situational Influences      Purchase task Social surroundings Physical surroundings Temporal effects Antecedent states Psychological Influences       Motivation Personality Perception Learning Values, Beliefs & Attitudes Lifestyle Motivation & Personality  Maslow’s Hierarchy of Needs   Must tune products to specific need-level Personality    “A person’s consistent behaviors or responses to recurring situations.” National character Self—concept  Actual self v. Ideal self Perception   “The process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.” Selective perception    Exposure v. comprehension v. retention Subliminal perception Perceived risk Source: http://www.impactlab.net Learning  Behavioral (Experiential) Learning   Cognitive (Conceptual) Learning   Drive + Cue + Response → Reinforcement Making a connection between two or more ideas Brand Loyalty Top 20 Most Desired Brands- Men 1. Crest 2. BMW 3. National Geographic 4. Panasonic 5. Hyundai 6. Kleenex 7. Coca-Cola 8. Microsoft 9. Tide 10. Lexus 11. Apple 12. Bed Bath & Beyond 13. Ford 14. Animal Planet 15. Hitachi 16. Mercedes-Benz 17. FedEx 18. Proctor & Gamble 19. Hallmark 20. Geico Source: http://www.walletpop.com/2011/02/02/women-are-from-amazonmen-are-from-geico-worlds-most-desired/ Top 20 Most Desired Brands- Women 1. Johnson & Johnson 2. Sony 3. Kleenex 4. National Geographic 5. MasterCard 6. Google 7. Amazon 8. Visa 9. General Electric 10. Toshiba 11. Crest 12. Microsoft 13. Disney 14. Target 15. Tropicana 16. BMW 17. Febreze 18. Ford 19. Olay 20. Chase Source: http://www.walletpop.com/2011/02/02/women-are-from-amazonmen-are-from-geico-worlds-most-desired/ Brand Loyalty- College Students  Brand Keys Inc. survey     Based on Customer Loyalty Index (16,000 people) Looked at students’ habits before and after graduation Almost 5,000 students and post-grads surveyed Students’ attitudes changed because of new environment and more income Brand Loyalty-College Students  Results    Most loyal to Least loyal to Other notables: Values, Beliefs, & Attitudes  Values   Beliefs   What is important? “An organized pattern of knowledge that an individual holds as true.” Attitudes   “Learned tendency to respond consistently toward a given object.” Shaped by beliefs and values Involvement & Psychological Influences  Decision-making- High-involvement   Beliefs → attitude → behavior Decision-making- Low-involvement  Beliefs → behavior → affect Lifestyle   Based on people’s activities, interests, and opinions VALS program   Discusses 8 lifestyles Based on resources and self-orientation  Action, principles, and status Source: http://www.e-flux.com Sociocultural Influences      Personal influence Reference groups Family Social class Culture/Subculture Personal Influence  Opinion Leaders   Direct or indirect influence Word of mouth Reference Groups   Formal and informal groups that influence the buying behavior of the individual Two broad classifications    Primary Secondary Three types    Membership group Aspiration group Dissociative group Source: http://wwwinsidesocal.com Family Influence    Source: http://foodhelp.wa.gov Consumer Socialization Family Life Cycle Family Decision Making Social Class  Divisions within society along values, interests, and behavioral lines   Upper, middle, and lower classes Share certain characteristics Culture/Subculture  Subcultures are divisions of people with homogenous characteristics   Age groups Ethnic groups