Chapter 5 Consumer Behavior GO PAY ATTENTION TO ADs in chapters there will be question Why people buy because the ratio of benefits to costs is higher for the product or service than for any other Chapter example Katie buying dress Consumer Decision Process o The steps that consumers go through before during and after making purchases o Exhibit 5 1 Need Recognition Information Search Alternative Evaluation Purchase Post Purchase Need Recognition The greater the discrepancy between recognizing an unsatisfied need and wanting to go to a different desired state the greater the need recognition will be o Ex Hungry vs starving Wants goods or services that are not necessarily needed but are desired Ex Salad wont satisfy want for ice cream Can be functional psychological or both o Functional needs pertain to the performance of a product or service like north face serves performance based o Psychological needs the personal gratification consumers associate with a product or service Ex Fancy shoes o Fine line between functional and value service o A key to successful marketing is determining the correct balance of functional and psychological needs that best appeals to the film s target markets Exhibit Marriott cut newspapers and ice cream to save money in places people don t notice Information Search length dependent on risk perceived with purchase Internal search for information buyer examines their own memory and knowledge about it from past experiences External search looks to outside sources for decision o People media internet ex Gossip girl o Can be convenient Factors affecting consumer s search process o Perceived benefits vs costs of search o The locus of control Internal believe they have some control over the outcomes of their actions in which case they generally engage more in search External don t do much like those who think they cant predict stocks no matter how much info Evaluation of Alternatives Attributes Sets o Actual or Perceived Risk Performance Risk ex dress might shrink Financial Risk cost might look for easy to care att Social risk others might not like it positively Physiological Risk Safety Risk car rating Psychological risk way others feel if the product or service does not convey the right image o Universal sets include all possible choices for a product category impossible o Retrieval sets those brands or stores that can be readily brought forth from memory o Evoked set the alternatives that the consumer states they would probably actually consider when making a purchase If brand is in evoked set it increases likelihood of purchase Ex stores universal remembers mall retrieval business style macys evoked o Evaluation criteria salient or important attributes about a particular product can be difficult to evaluate so many Determinant attributes features that are important to the buyer and on which competing brands are perceived to differ whatsspecial about it Consumer decision rules set of criteria that they use to consciously or subconsciously to quickly select from many alternatives 3 rules Compensatory tradeoffs o Multi attribute model o Ex Computer No compensatory base it on one attribute regardless of the values of its other attributes Decision Heuristics mental shortcuts o Price o Brand o Product presentation Purchase and Consumption actual purchases Conversion rate how well they convert purchase intentions into o Use methods to make purchases easier o Shop together online o Alerts or low inventory to push customers to follow through on their initial cart purchases Factors influencing the consumer decision process o SIDE marketing mix 4 P s o Psychological Factors Post Purchase Customer Satisfaction o Can be improved by Build realistic expectations Demonstrate correct use Stand behind it with guarantees and warranty Customer feedback interaction Post purchase cognitive dissonance o Internal conflict that arises from an inconsistency between two beliefs between beliefs and behavior Questioning the appropriateness of a purchase after it was made More likely with expensive things Customer loyalty they include no other brands in evoked set o CRM customer relationship management o Undesirable Consumer Behavior Negative word of mouth Can be combatted people wont talk if there are consequences Motives attitudes perception learning and lifestyle Motives a need or a want that is strong enough to cause the person to seek satisfaction Maslow s Hierarchy of Needs o Physiological biological needs of life eat at Taco Bell o Safety protection and well being organic o Love our interaction hair cut and deodorant o Esteem satisfy inner desires yoga health o Self actualization you are completely happy Attitude an enduring evaluation Cognitive component persons belief system o Cog Aff Can be influenced by communications and ads Affective component emotions how we feel Behavioral component actions we undertake base on what we know and feel o Ex Pirates Perception process by which we select organize and interpret information to forma meaningful picture of the world i e about living in Boston is expensive Learning change in a person s thought process or behavior that arise from experience and takes place throughout the consumer decision process Affects both attitudes and perceptions o Ex Cognitive when she learned more about it o Behavioral bough it Lifestyle the way consumers spend their time and money to live Ex North face brand or functionality o Social Factors Family Kids are playing an increased role Getting them to shop at particular brands can help a company survive Reference Group one or more persons whom an individual uses as a basis for comparison regarding beliefs feelings and behaviros Offer info Providing rewards for specific purchasing behavior smokers Enhancing a consumers self image high fashion Christian Louboutin Culture influence consumer behavior o Situational Factors can override other factors Purchase situation may buy nice for special occasion Shopping situation influenced at the store Store Atmosphere o Atmospherics internal environment that are consistent with image menu and services outback and cheesecake Salespeople o Ex Starbucks had a restart Customer education and satisfaction Know everything a customer could want to know Crowding Promotions In store demonstrations o Some try give away not ok to take advantage Packaging Temporal State mood or time of day Involvement and Consumer Buying Decisions o Extended problem solving for high priced or risky
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