Consumer Behavior Ppt 2

8/8/2019 Consumer Behavior Ppt 2

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Consumer Behavior you arewhat you buy

Did you know?

Paper Marketing news

Consumer behavior (web)

Consumer behavior (ppt)

Innovation diffusion (ppt)

NLP

Next week: Market research


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Consumer Decision-Making

Process

PostpurchaseBehavior

Purchase

Evaluationof Alternatives

Information Search

Need Recognition

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

FactorsFactorsaffectaffect

all stepsall steps


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Complete model of consumer behavior

Stimuli

(marketer

dominated,

other)

External

search

Memory

Internal

search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need

recognition

Alternative

evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual

differences

resources

motivation &

involvement knowledge

attitudes

personality,

values, lifestyle

Influences

culture

social class

family situation

Start


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Need Recognition

Preferred State

Marketing helps

consumers recognize

(or create) an imbalance

between present status

and preferred state

When a current product isnt

performing properly

When the consumer is running

out of an product

When another product seems

superior to the one currently used


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The information search stage

An internal search involves thescanning of one's memory to recall previous

experiences or knowledge concerning

solutions to the problem-- often sufficient forfrequently purchased products.

An external search may be necessarywhen past experience or knowledge is

insufficient, the risk of making a wrong

purchase decision is high, and/or the cost of

gathering information is low.

Personal sources

(friends and family)

Public sources (rating

services like Consumer

Reports)

Marketer-dominated

sources (advertisingor sales people)

The evoked set: a group ofbrands from which the buyer can

choose


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go back to your past purchase what were the

specific internal and external sources ofinformation that influenced your decision?

how do you determine (and rate) the credibility of

these sources?

what specific information influenced you?


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Determinants of External Search


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Buyer Behavior

Initiator: the person who first suggests or thinks of the idea of buying aparticular product or service.

Influencer: a person whose views or advice carry weight in making thefinal buying decision

Decider: the person who ultimately makes the final buying decision orany part of it

Buyer: the person who makes the actual purchase

User: the person who consumes the product or service

Other people often influence a consumers purchase decision.

The marketer needs to know which people are involved in thebuying decision and what role each person plays, so that

marketing strategies can also be aimed at these people. (

Think about your past purchase who was in which role?


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Wife

Dominant

Husband

Dominant

Joint

100 50 075 25

Womensclothing

Pots & pans

Child clothing

groceries

vacations

TV sets

Family car Sport equipment

Lawn mower

Paint wallpaper

lamps

Mens leisure clothing

Mens business clothing

camera

Financial planning

furniture

refrigerator

luggage

carpet

NonRx

Toys/games

stereo

hardware

Extent of role specialization

Relative influence of husbands & wives

Information

searchFinaldecision


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Consumer decision makingvaries with the level of involvement in

the purchasing decision

Extensive: problem solving occurs whenbuyers purchase more expensive, less

frequently purchased products in an

unfamiliar product category requiringinformation search & evaluation; may

experience cognitive dissonance.

Limited: problem solving occurs when buyers areconfronted with an unfamiliar brand in a familiar product

category

Routine: response behavior occurswhen buyers purchase low cost, low risk, brand loyal,

frequently purchased, low personal identification or

relevance, items with which they are familiar.

Increase in

Consumer

evaluationprocesses


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quickly list 10 items you have purchased in the past

month

reexamine how long it took you to make a decision

on each

why did such a difference in decision occur?


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Factors affecting

Consumer involvement

Previous experience: low level involvement

Interest: high involvement

Perceived risk of negative consequences: high involvement

Situation: low to high due to risk

Social visibility: involvement increases with product visibility

Offer extensive information on high involvement products

In-store promotion & placement is important for low involvement products

Linking low-involvement product to high-involvement issue can increase sales

So


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Types of consumer involvement

and decision making

Routine Limited Extensive

Involvement Short Low tomoderate

High

Time Low Short to

moderate

Long

Cost Short Low to

moderate

High

Information

Search

Internal only Mostly

internal

Internal &

external

Number of

alternatives

one few many


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think of an important purchasing decision

you have made

what are some of the thoughts you have hadfollowing your purchase? Any regrets?

what has influenced those thoughts?

how have you dealt with the discomfort?

how has the company anticipated or dealt with

your discomfort?


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Postpurchase Behavior

Can minimize through:Effective Communication

Follow-upGuaranteesWarranties

Underpromise &overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decision?Did I make a good decision?

Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?


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Decision Processing


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Persuasive Communication

Nature of Active Cognitive Processing: (initial

attitude, argument quality, etc.)

Favorable

Thoughts

Predominate

Unfavorable

Thoughts

Predominate

Neither or

Neutral

Predominate

Cognitive Structure Change: Are new cognitions

adopted and stored in memory? Are different

responses made salient than previously?

personal relevance

personal importance personal responsibility

Motivated to Process?

dissonance arousal

need for cognition repetition

cognitive complexity

critical thinking

distraction free

low arousal

Ability to Process?

appropriate schema

message pace

repetition

issue familiarity

Enduring positive

attitude change

(persuasion)

Enduring negative

attitude change

(boomerang)

greater persistence

resistant to counterattacks & fading

predictive of behavior

> brand memory

> elaboration

>usage intention

> attitude accessibility

> attitude confidence > attitude-behavior consistency

Peripheral Cues Present?

reciprocity (obligated, did a favor)

consistency (way its done, similar to before)

social proof (peer pressure, conformity)

liking (attractiveness, friendliness)

celebrity (identification, prestige)

authority (expertise, experience, credibility) rapid speech, forceful presentation, charismatic style

scarcity (limited time offer)

tangible rewards

appealing visuals & music (emotional arousal)

fear appeal

weak counter-arguments

Attitude Shift:

short-lived

susceptible to influence

unpredictable

Retain or RegainInitial Attitude

Elaboration Likelihood Method (ELM) of persuasion


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Write in the number that best fits your view:

1 2 3 4

completely mostly mostly completely

false false true true

_____1. I would prefer complex to simple problems.

_____2. I like to have the responsibility of handling a situation that requires a lot of thinking.

_____3. Thinking is not my idea of fun. *

_____4. I would rather do something that requires little thought than something that is sure to

challenge my thinking abilities. *

_____5. I try to anticipate and avoid situations where there is likely chance I will have to think

in depth about something. *

_____6. I find satisfaction in deliberating hard and for long hours.

_____7. I only think as hard as I have to. *

_____8. I prefer to think about small, daily projects to long-term ones. *

_____9. I like tasks that require little thought once Ive learned them. *

_____10. The idea of relying on thought to make my way to the top appeals to me.

_____11. I really enjoy a task that involves coming up with new solutions to problems.

_____12. Learning new ways to think doesnt excite me very much. *

_____13. I prefer my life to be filled with puzzles that I must solve._____14. The notion of thinking abstractly is appealing to me.

_____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat

important but does not require much thought.

_____16. I feel relief rather than satisfaction after completing a task that required a lot of mental

effort. *

_____17. Its enough for me that something gets the job done; I dont care how or why it works. *

_____18. I usually end up deliberating about issues even when they do not affect me personally.

Need for

Cognition Scale

Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scored


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Sleeper Effect:

when secondary source becomes more credible than primary source

over time

persuasion may increase over time with a weak source

forget the source but remember the message

not if source is learned prior to the message (will ignore or bias

processing)

Example: Attack ads during political campaigns

Consumer Behavior Ppt 2

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