Rachel Lissak D Whitney BMGT350 Fall 2011 Ch 6 1 I The Importance of Understanding Consumer Behavior Consumer product and service preferences are constantly changing Consumer Behavior processes a consumer uses to make purchase decisions as well as to use and dispose of purchased goods or services also includes factors that influence purchase decisions and product use II The Consumer Decision Making Process o When buying products consumers generally follow the consumer decision Consumer Decision Making Process Information Search Need Recognition Evaluation of Alternatives Purchase Postpurchase Behavior o Cultural social individual and psychological factors affect all steps o Do not always go through the steps in this order o The process could end at any time or the consumer may decide not to make a purchase Need Recognition satisfy it o Need Recognition result of imbalance between actual and desired states Want recognition of an unfulfilled need and a product that will Can be for a specific product or for a certain feature or attribute of a product o Need Recognition is triggered when a consumer is exposed to either internal or external stimuli Stimulus any unit of input affecting one or more of the five senses Internal stimuli occurrences you experience i e hunger or thirst External stimuli influences from an outside sources i e recommendation of a new restaurant or an advertisement o Objective of a marketing manager is to get consumers to recognize an imbalance between their present status and preferred status through advertising and sales promotion o Marketers observe trends in the marketplace to create new products and services to meet the wants of customers o Most common ways that consumers recognize unfulfilled wants 1 A product isn t performing properly 2 The consumer is about to run out of something that is generally kept 3 They become aware of a product that seems superior to one they are on hand currently using Information Search various alternatives o After recognizing a need or want consumers search for information about the Rachel Lissak D Whitney BMGT350 Fall 2011 Ch 6 2 o An information search can occur internally externally or both Internal Information Search the process of recalling past information from memory Stems from a previous experience with a product External Information Search process of seeking information from an outside environment o 2 basic types of external information sources 1 Nonmarketing Controlled Information Source a product information source that is not associated with advertising or promotion Including Personal experience trying or observing a new product Personal sources recommendations from family friends acquaintances or co workers Public sources consumer reports and other rating organizations 2 Marketing Controlled Information Source a product information source that originates with marketers promoting the product Including Mass media advertising radio TV newspaper magazines Sales Promotion contests displays premiums Salespeople Product labels and Packaging Some consumers don t trust Marketing controlled information sources because they feel that they stress positive attributes and ignore faults Internet o Extent to which an individual conducts an external search depends on 1 Perceived Risk As perceived risk of the purchase increases the consumer enlarges the search and considers more alternative brands 2 Consumer Knowledge The more knowledgeable they are the more efficiently they will be able to conduct the search 3 Prior Experience Consumers who have had a positive product experience with a product are more likely to limit their search to items related to the positive experience 4 Level of Interest in the G or S A consumer who is more interested in a product will spend more time searching for information and alternative o Evoked Set the Consideration set a group of brands resulting from an information search from which a buyer can further evaluate the options and make a choice Evaluation of Alternatives and Purchase After constructing an evoked set of alternative products the consumer is ready to make their decision Rachel Lissak D Whitney BMGT350 Fall 2011 Ch 6 3 One way to begin narrowing choices is to pic a product attribute and exclude all products in the set that don t have it If new brands are added to the evoked set then the consumer s evaluation of the existing brands in that set changes and certain brands from the original set may become more desirable o To Buy or Not to Buy Consumers Must Decide Whether to Buy When to Buy What to Buy Product Type Brand Where to Buy Type of Retailer Specific Retailer Online or in Store How to Pay III Postpurchase Behavior When buying products consumers expect certain outcomes How well there expectations are met determines whether or not they are satisfied with the purchase Important for the marketer an important element of postpurchase evaluation is to reduce any lingering doubts that the decision was sound IV Types of Consumer Buying Decisions and Consumer Involvement o 3 Categories of consumer buying decisions 1 Routine response behavior 2 Limited decision making 3 Extensive decision making o Good and services in these 3 categories are described in terms of 5 factors Involvement the amount of time and effort a buyer invests in the search evaluation and decision processes of consumer behavior 1 Most significant 2 Length of Time to make a decision 3 Cost of good or service 4 Degree of information search 5 Number of alternatives considered Involvement Time Cost Routine Limited Extensive Low Short Low Low to moderate High Short to moderate Long Low to moderate High Information Search Internal Only Mostly internal Internal and external Rachel Lissak D Whitney BMGT350 Fall 2011 Ch 6 4 Number of Alternatives One Few Many o Routine Response Behavior the type of decision making exhibited by consumers buying frequently purchased low cost goods and services requires little search and decision time Aka low involvement products Buy first and evaluate later o Limited Decision Making the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category Before the consumer makes a decision they will most likely evaluate several other brands o Extensive Decision Making the most complex type of consumer decision making used when buying an unfamiliar expensive product or an infrequently bought item requires use
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