Chapter Five Consumer Behavior Beginning Case Need to identify understand and carefully consider demands of women with specific and unique fit and style requirements To understand consumer behavior must ask why people buy products services o People buy one product service instead of another because they perceive it to be the better value for them Consumer Decision Process model represents steps consumers go through before during and after making purchases Need Recognition consumer decision process begins when consumers recognize they have unsatisfied need would like to go from actual needy state to different desired state o Wants are gods or services that are not necessarily needed but desired o Functional Needs pertain to performance of product or service High performance outerwear made with materials like Polartec o Psychological Needs pertain to personal gratification consumers associate w product or service o Majority of products services are likely to satisfy both needs in diff degrees o If hotel chain relies on solid reputation for simple reliability no point in providing luxuries that customers find unnecessary Marriott is focusing in key customer needs wants good deals necessary amenities while cutting costs on features that guests probably never even notice Search For Information about various options that exist to satisfy that need o Degree of perceived risk with associated with purchasing product or service o Internal Search for Information buyer examines their memory knowledge about product service gathered through past experience If go to Applebee s and always want salad o External Search for Information buyer seeks info outside of his her personal knowledge base to help make buying decision talk w friends family o Factors Affecting Consumers Search Process Perceived benefits versus perceived costs of search Locus of control Internal believe they have some control over outcomes External believe fate other factors control outcomes Accrual or perceived risk associated with purchase decision Performance risk involves perceived danger inherent in poorly performing product service Financial risk is associated w monetary outlay includes initial cost of purchase cost of using item service Social risk involves fears that consumers suffer when they worry other might not regard their purchases positively Evaluation of Alternatives Physiological risk safety fear of an actual harm should the product not perform properly Psychological risk associated with way people feel if product or service doesn t convey right image o Attribute sets consumers mind organizes and categorizes alternatives to aid his her decisions process Universal sets all possible choices for product only on subset Retrieval sets brands or stores that can be readily brought to memory Evoked sets alternative brands stores consumers states would consider in making purchasing decision o Evaluation criteria consists of important attributes about particular product Determination attributes product service features that are important to buyer competing brands perceived to differ Consumer decision rules set of criteria consumers use to quickly select from alternatives o Compensatory Decision Rule consumers when evaluating characteristics against another good characteristics compensate for bad Multi attribute model assigns weights to importance of each factor then multiplies each performance rating by importance rating to get overall score Sony Lenovo Dell Allows tradeoff between various factors to be explicitly incorporated into purchase decision o Noncompensatory Decision Rule choose product or service on basis of one characteristic or subset of characteristics o Decision Heuristics mental shortcuts that helps consumer narrow choices Purchase and Consumption after evaluating alternatives customers ready to buy o Conversion rate measure how well convert purchase intentions in purchase o Thanks to internet social shopping has become far easier more user friendly because consumers can bring along friends w o anyone leaving home Post purchase Outcome entails actual rather than potential customers satisfied customers become loyal purchase again and spread positive word of mouth o Customer Satisfaction realistic expectations correct product use warranties customer feedback thank customers for support o Post purchase Cognitive Dissonance internal conflict that arises from inconsistency between two believes or beliefs and behavior Occurs when customer questions appropriateness of purchase after decision has already been made o Customer Loyalty marketers attempt to solidify loyal friendship w customer o Undesirable Customer Behavior passive customers are those who don t repeat purchase or don t recommend product to others Negative word of mouth consumer spreads negative information Factors Influencing Consumer Decision Process about product service or store to others Psychological Factors motives attitudes perception learning lifestyle o Motives when need is not satisfied motivates us drives us to get satisfaction Need want that is strong enough to cause person to seek satisfaction Maslow s Hierarchy of Needs categorizes fives groups of needs Physiological deal with basic biological necessities Safety protection and physical well being Love interactions w others Esteem allow people to satisfy inner desires Self actualization when feel completely satisfied w life how you live o Attitude persons enduring evaluation of his her feelings about behavioral tendencies toward object or idea Learned long lasting develop over period of time may change Cognitive component persons belief system or what we believe true Affective component involves emotions or what we feel about issue Behavioral component pertains to actions we undertake based on what we know feel When incongruence among three cognitive dissonance may occur Terrible feeling that people try avoid convince self good idea Based on positive reviews cognitive component and positive feelings toward actors affective component many people see Pirates of Caribbean behavior component and come out with positive attitude o Perception process by which we select organize and interpret info to form a meaningful picture of world Influences our acquisition consumption tendency to assign meaning o Learning change in persons thought process or behavior arising from experience takes place throughout consumer decision process o Lifestyle way consumers spend time money to live Question of
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