1Ch 5: Consumer Behavior 1Beginning of Part 2 The Planning: Analyzing theAdvertising and Integrated BrandPromotion Environment• We have finished the Process phase of thetext and moving on to Planning• Our perspective changes from a broad viewof advertising and IBP to a managerial view.• The Planning phase leads to thedevelopment of advertising and IBPmaterials© 2006 Thomson/South-WesternAdvertising andConsumer BehaviorChapter 5© 2006 Thomson/South-WesternCh 5: Consumer Behavior 3Consumer BehaviorPerspectives:1. Consumers are Systematic decision makers– Maximizing the benefits from purchases definesthe purchase—consumers are deliberate2. Consumers are Active Interpreters– Cultural/social membership defines purchasesConsumer Behavior: a wide spectrum ofthings that affect, derive from, or form thecontext of human consumption.© 2006 Thomson/South-Western2Consumer Decision-Making:The Systematic DecisionMakerI think,thereforeI buyCh 5: Consumer Behavior 4© 2006 Thomson/South-WesternThe consumer decision-making process1. Need recognition--Functional or Emotional benefits2. Information Search andEvaluation--Internal and External search--Consideration Set--Evaluative Criteria3. Purchase4. Post-purchase use andevaluationCustomer satisfactionCognitive dissonanceCh 5: Consumer Behavior 5© 2006 Thomson/South-WesternCh 5: Consumer Behavior 6Cognitive Dissonance1. The purchase price is high2. There are many close alternatives3. The item is intangible (example?)4. The purchase in important5. The item purchased lasts a long timeThe feelings of doubt and concern after a purchaseis made. Dissonance increases when© 2006 Thomson/South-Western3Modes of Consumer Decision-Making:(Vary by involvement and experience)Ch 5: Consumer Behavior 71. Extended Problem Solving• Deliberate, careful search2. Limited Problem Solving• Common products, limited search3. Habit or Variety Seeking• Variety seeking—switch brands at random• Habit—buy single brand repeatedly4. Brand Loyalty• Conscious commitment to find samebrand each time purchase is made© 2006 Thomson/South-WesternKeyPsychologicalProcesses inAdvertising1. Attitude-- Overall evaluation of an object person or issue oncontinuum=like/dislike; positive/negative2. Brand Attitude– Summary evaluations that reflect preferences forvarious products and services3. Salient Beliefs– Small number of key beliefs. Five to nine salientbeliefs typically form the critical determinants ofattitudeCh 5: Consumer Behavior 8© 2006 Thomson/South-WesternKey Psychological ProcessesCh 5: Consumer Behavior 9Multi-Attribute Models (MAAMs)• Evaluative Criteria: attributes consumers use tocompare brands• Importance Weights: priority assigned to attributes• Consideration Set: group of brands that are focalpoint of decision effort• Beliefs: knowledge and feelings consumer hasabout various brands.© 2006 Thomson/South-Western4Key Psychological ProcessesCh 5: Consumer Behavior 10Information Processing and Perceptual Defense• Cognitive Consistency Impetus: Strongly held beliefs to makeefficient decisions• Advertising Clutter: Large volume of ads causes overload• Selective Attention: Most ads are ignored because they do not fitconsumer’s need state• Cognitive responses: Thoughts that occur to consumer atmoment when beliefs are challenged by persuasive communication© 2006 Thomson/South-WesternKey Psychological ProcessesCh 5: Consumer Behavior 11The Elaboration Likelihood Model (ELM)• Central route persuasion in highinvolvement products• Peripheral cues rather than strongarguments shape attitudes in low-involvement products© 2006 Thomson/South-WesternConsumer as Social BeingI buywhat IamCh 5: Consumer Behavior 12© 2006 Thomson/South-Western5Consuming in the Real WorldSocialclassSocietyRitualsFamilyValuesReferenceGroups(membership/aspiration)Race /EthnicityGenderCultureCommunityObjectMeaningCh 5: Consumer Behavior 13© 2006 Thomson/South-WesternAdvertising as Social Text: HowAds Transmit SocioculturalMeaningAdvertising Advertising //fashion systemfashion systemFashionFashionsystemsystemPossessionPossessionritualritualExchangeExchangeritualritualGroomingGroomingritualritualDivestmentDivestmentritualritualCulturally constituted worldCulturally constituted worldConsumer goodsConsumer goodsIndividual consumerIndividual consumerCh 5: Consumer Behavior 14© 2006 Thomson/South-WesternFactors Affecting ConsumerDecision MakingSUBCULTURESSUBCULTURESMEDIAMEDIANEWSNEWSMAGAZINESMAGAZINESRADIORADIOTELEVISIONTELEVISIONDIRECT MEDIADIRECT MEDIAPRICEPRICEPACKAGINGPACKAGINGADVERTISINGADVERTISINGPROMOTIONPROMOTIONPERSONAL SELLINGPERSONAL SELLINGMARKETER-MARKETER-CONTROLLEDCONTROLLEDSTIMULISTIMULINEEDSNEEDSEDUCATIONEDUCATIONVALUESVALUES // ATTITUDESATTITUDESPASTPASTEXPERIENCEEXPERIENCEPERSONALITYPERSONALITYPLEASUREPLEASUREGENDERGENDERCULTURECULTURELIFE-STYLELIFE-STYLESOCIALSOCIALCLASSCLASSREFERENCEREFERENCEGROUPSGROUPSFAMILYFAMILYSITUATIONALSITUATIONALFACTORSFACTORSCONSUMERCONSUMERDECISIONSDECISIONSCh 5: Consumer Behavior 15© 2006 T