BUAD473 EXAM 1 Chapter 1 Consumer behavior a set of decisions made about the acquisition use or disposal of products services activities experiences people or ideas by human decision making units over time o How a person buys products o i e dipping chocolate placed next to strawberries in stores o One or more decision making entities o Includes how we use time Offering a product service activity experience people or idea offered by a marketing organization to consumers o Acquiring process by which a consumer comes to own an offering Can be buying renting leasing trading or sharing Acquisition behavior can be affected by deadlines i e have a gift card coupon and waiting until last possible second to use it because you don t want to miss out on best purchase interruption during purchase or consumers experiencing a loss having a negative experience o Using process by which a consumer uses an offering Important for marketers must be sensitive to when consumers are likely to use a product whether they find it effective whether they control their consumption of it and how they react after using it spreading pos or neg word of mouth o Disposition the process by which a consumer discards an offering Marketers see profit opportunities in addressing disposition Decision Making Units information gatherer influencer decider concerns i e eco friendly biodegradable products purchaser user o Many roles can be fulfilled by one individual while engaging in consumer behavior and a group can engage in consumer behavior together i e car purchasing as a family Entire markets are designed around linking one consumers disposition decision to other consumer acquisitions Consumer Behavior and Emotions Researchers have studied the powerful role that emotions play in consumer behavior Pos neg emotions such as hope fear regret guilt embarrassment and general moods can affect how consumers think the choices they make how they feel after making a decision what they remember and how much they enjoy an experience o i e love can sometimes describe how we feel about certain brands possessions 1 What affects consumer behavior Cultural environment affects what motivates consumers how they process information and the kinds of decisions they make Age gender social class ethnicity families friends and other factors affect consumer values and lifestyles and then influence the decisions that consumers make 1 The psychological core a Motivation ability and opportunity i Jason is motivated to decide where to go on vacation b Exposure attention perception and comprehension i Therefore he will make sure he is exposed to relevant information He won t pay attention to all vacation info so he will be exposed to info he will never consciously perceive He has to determine and identify what he has perceived to comprehend the information what country mountain resort is involved c Memory and knowledge i To recall information later it depends on Jason s motivation ability and opportunity Jason may store info in his memory but his decision will be based only on info he can retrieve from memory important key point for marketers trying to create strong brand images d Forming and changing attitudes i Jason will form attitudes towards vacations he categorized and comprehended His attitudes could change as he encounters new information Attitudes DO NOT always predict behavior i e pos attitude towards the gym doesn t mean you ll go 2 The process of making decisions a Problem recognition and the search for information i Happens when we realize unfulfilled need Jason realized he needed to go on a vacation and then exposed himself to info about it b Making judgments and decisions i high effort decisions investing a lot of time to exert to make it vs low effort decisions i e which toothepaste to bring High effort decisions will result in lasting attitudes and memories because much thought was put into it while low effort engages in less info search and processes info less deeply less enduring attitudes memories c Making post decision evaluations i Evaluating whether expectations weren t met were met or were surpassed 3 The consumer s culture External Processes a Culture typical or expected behaviors norms and ideas that characterize a group of people 2 b Reference group a group of people consumers compare themselves with for information regarding behavior attitudes or values You share your values with this group and respect their opinions Word of mouth referral comes from within these groups Make us feel as if we should behave in a certain way c Diversity influences regional ethnic and religious groups that directly or indirectly affect the decisions we make Age gender and education background can also affect his impressions of what constitutes a good vacation d Household and social class influences e Values personality and lifestyles 4 Consumer behavior outcomes and issues a Symbols external signs that consumers use to express their identity b Consumer behaviors can diffuse through a market Jason may tell friends about prospective trip and this may influence their vacation decisions It can also spread negative information can have pos and neg effects for marketers c Consumer behavior ethics and responsibility Who benefits from the study of consumer behavior Marketing managers need consumer insights to determine what consumer and clients value o Marketing the activity set of institutions and processes for creating communicating delivering and exchanging offerings with value for individuals groups and society Ethicists and advocacy groups marketer s actions sometimes raise important ethical questions Concerned consumers sometimes join advocacy groups to creative a public awareness Public policy makers and regulators its crucial that legislators regulators and government agencies develop policies and rules to protect consumers from unfair unsafe or inappropriate marketing practices Likewise marketer s decisions are affected by these actions Understanding how consumers comprehend info is important for guarding them against misleading advertising Academics important to be able to pass along this consumer behavior knowledge to students who are learning about it in school Academic research is useful for all stakeholders of consumer behavior Consumers and society understanding consumer behavior gives marketers and other organizations to provide tools for more informed decision making i e since we better understand compared products in a matrix this