Chapter 5 Understanding Consumer Behavior I Video Michele Skinn on the importance of understanding consumers motivations non profit a Learning the motivation is key b Understand WHY the consumer would want to c or YOUR product brand d Understand their motivation and then market to satisfy their motivation II A Model of Consumer Behavior Adapted from Engle Kollat and Blackwell Comments 42 III The Purchase Decision Process Consists of Five Stages a Problem Recognition Perceiving a need Is the difference between the persons ideal and actual situation enough to trigger a decision Advertising can activate a consumer s decision process by showing the shortcomings of competing or currently owned products b Information Search Seeking Value c Alternative Evaluation Assessing Value d Choice Buying Value e Outcomes Value in consumption or use IV Purchase Decision Process Stages Problem Recognition a A perception that there is a difference between the actual situation and the desired ideal situation b Influenced by i Internal needs and motives and ii FIRMS which can activate Problem Recognition through marketing communications which highlight 1 Limitations of currently owned products or 2 Limitations of competitive products cars HP wireless printer V Purchase Decision Process Stages Information Search a First we do an internal search of memory i What types of things do we recall Brand name location etc b Then we may search externally including i Public Source gov t agencies reports 43 ii Market Dominated sources Info from sellers advertising sales people websites point of purchase displays iii Personal Sources family and friends VI Purchase Decision Process Stages Alternative Evaluation a HOW will the consumer decide WHICH of the possible options to choose b Evaluative Criteria are the Factors that represent the brand s characteristics as perceived by the consumer They are used to compare the possible brand choices often displayed in advertisements c Marketers attempt to understand and to influence these d Consumers use their evaluative criteria to compare the alternatives in their CONSIDERATION SET also called the EVOKED SET e Understanding the CONSIDERATION SET of brands i Consumers search should yield a group of brands ii Brands that consumers actually CONSIDER before making a purchase decision are known as evoked set or consideration set most preferred alternatives All Brands Unknown Brands Unacceptable Brands Overlooked Brands 44 VII Purchase Decision Process Stages Alternative Evaluation Belief Attitudes and Purchase Intention a As they evaluate the brand choices consumers form beliefs and attitudes b The result is an intention including which Brand to buy where to buy about brands when to buy how to pay etc VIII Purchase Decision Process Stages Post Purchase Behavior a Consumers make the purchase choice based on their evaluations and their purchase intentions and then they b Consumers Level of Satisfaction is based on their perception and their product s performance i ii If Perceived Performance is BELOW Expectations then consumers are Dissatisfied If Perceived Performance EQUALS Expectations then consumers are Satisfied iii If Perceived Performance EXCEEDS Expectations then consumers are Delighted satisfaction iv SO Marketers should promise what their brand can deliver v Some marketers will understate product performance to boost later c Cognitive Dissonance is the feeling of anxiety consumers often experience when they must choose between attractive alternatives which one should I choose Buyers remorse Class example iphone vs Droid blog i It can occur REGARDLESS of the level of satisfaction d Marketers help MINIMIZE dissonance by i Reassuring consumers they made the right choice and minimizing product misuse through product literature and instructions ii Offering ways for mechanisms 1 800 web forms etc iii Being RESPONSIVE to problems and questions 45 IX Consumers Decision Making is Influenced by how INVOLVED they are with the decision the following details are from the chart shown in the lecture a When consumers involvement is low they engaged in Routine decision making i Typically such decisions take a short time to make ii The cost of the product is usually low iii Consumers will only search internal iv And they consider one brand or alternative b When consumers involvement is MODERATE they engage in limited decision making i Typically such decisions take a short to moderate time to make ii The cost of the product is usually low to moderate iii Consumers will search mostly internally iv And they consider few brands or alternatives c When consumers involvement is HIGH they engage in extensive decision making i Typically such decisions take a long time to make ii The cost of the product is usually high iii Consumers will search interior and exterior iv And they consider many brands or alternatives d Examples situations information X Psychological Influences on Consumers Purchase Decisions a Motivation the energizing force that stimulates behavior to satisfy a need b Personality A person s tendency to respond in a consistent way to c Perception the processes by which people select organize and interpret 46 d Learning behaviors resulting from repeated experiences and from reasoning e Values Beliefs and Attitudes f Lifestyle A person s mode of living XI Psychological Influences Consumer Decision Making Motivation a Maslow s Hierarch of Needs see Figure 5 5 text page 123 i Physiological Needs Food water oxygen Ad Example ii Safety Needs Freedom from physical harm financial security Ad Example adoption tears of love iii Social Needs Friendship belonging love Ad Example Mercedes car commercial best you can be iv Personal Needs Status respect prestige Ad Example Reach higher with your car v Self actualization needs Self fulfillment Ad Example XII Psychological Influences Consumer Decision Making Personality a Personality is a person s pattern of traits that influence their behaviors i If a person is confident dependent fearful or sexual in their everyday life these same traits likely will influence them in their style of consumer decision making XIII Psychological Influences Consumer Decision Making Perception a Perception is the process of receiving organizing and giving meaning to stimuli detected by one of our five senses b However not everyone gets the same meaning from the same stimuli due in part to i Selective Perception 47 ii Selective Exposure iii Selective Comprehension iv