Consumer Behavior Summer 05

8/9/2019 Consumer Behavior Summer 05

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What is Consumer Behavior?What is Consumer Behavior?

• 80% of new products fail to meet financial expectations!!!!

• Study of individuals, groups, or organizations and the processes used to select, secure, use and dispose of products,services, experiences, or ideas to satisfy needs and the impactsthat these processes have on consumers and society.

• Answers the uestion of "#$

• Are managers telepathic? Do decisions regarding the 4 P’s justcome to them?

• What are some commonly asked questions regardingconsumer’s ehavior?


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Commonly asked questions!Commonly asked questions!

• Product related!

»What do they think o" the product?»What do they think o" competitor’s product?

»#o$ do you use the product?

»What is their Aad %Aproduct?

• &i"estyle related !

»What are your hopes%dreams?

»What is your place in the $orld? 'role(


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Applications o" ConsumerApplications o" Consumer

Behavior Behavior

• )arketing strategy! MANAGERIAL RELEVANCE

» Use common sense/ Look at successes and failures.

• *egulatory Policy! Warning &aels% +utrition

&aeling

• ,ocial )arketing% -*.-# ads» Drug .se

» #/0 prevention


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1verall )odel 1" Consumer Behavior 1verall )odel 1" Consumer Behavior


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Consumer Decision MakingConsumer Decision Making

ProcessProcess

Postpurchase

Behavior

Postpurchase

Behavior

Purchase

Purchase

2valuationo" Alternatives

2valuationo" Alternatives

/n"ormation ,earch

/n"ormation ,earch

Prolem *ecognition

Prolem *ecognition

Cultural3 ,ocial3/ndividual andPsychological

actors

a""ectall steps

Cultural3 ,ocial3/ndividual andPsychological

actors

a""ectall steps


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1: Problem Recognition1: Problem Recognition

• Result of an imbalance b/t actualand desired states

•

How to recognize unfilled wants?


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/nvolvement and -ypes o" /nvolvement and -ypes o"

Decision )akingDecision )aking

/nvolvement and -ypes o" /nvolvement and -ypes o"

Decision )akingDecision )aking5465

&o$6purchase involvement #igh6purchase involvement

+ominal decision making &imited decision making 27tended decision making

Problem recognition

Selective

Problem recognition

Generic

Problem recognition

Generic

Information searchInternal

Limited external

Information searchLimited internal

Information searchInternal

External

Alternative evaluation

Few attributes

Simle decision rules

Few alternatives

Alternative evaluation

!an" attributes

#omlex decision rules

!an" alternatives

Purchase Purchase Purchase

Posturchase

$o dissonance

Limited evaluation

Posturchase

$o dissonance

%er" limited evaluation

Posturchase

&issonance

#omlex evaluation


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2: nformation !earc"2: nformation !earc"

• nternal !earc" # recalling $astinformation stored in memor%

• &'ternal !earc" # seekinginformation in t"e outsideen(ironment» Pri(ate )non marketing sources*

» Public )non marketing sources*

»Marketing controlled sources


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-he 8 ,tages o" Consumer-he 8 ,tages o" Consumer

/n"ormation Processing/n"ormation Processing

CP)CP)


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Consumer /n"ormationConsumer /n"ormation

Processing! ,tage 5Processing! ,tage 5

27posure to in"ormation

• Consumers come in contact $ith themarketer’s message

• 9aining e7posure is a necessary ut

insu""icient "or communication success

• A "unction o" key managerial decisions

regarding the si:e o" the udget and the

choice o" media and vehicles


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,elective Attention! ,tage ;,elective Attention! ,tage ;

Attention

• ocus on and consider a

message to $hich one has een

e7posed

• #ighly selective


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-o attract consumers attention!

• Appeals to cognitive and hedonic needs

• .se o" novel stimuli

• .se o" intense stimuli

• .se o" motion


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/llustration o" selective attention

http://var/www/apps/conversion/tmp/scratch_4/bmpwnd.exe%20bmp%5Cf0510b.bmp


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Appeals to Cognitive andAppeals to Cognitive and

#edonic +eeds#edonic +eeds

#edonic +eeds

+eeds that makethem "eel good

and ring pleasure

Cognitive +eeds

/mmediate"unctional needs

o" the consumer


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#edonic +eeds#edonic +eeds

#edonic appeal to

the love "or aies



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.se o" /ntense ,timuli.se o" /ntense ,timuli

.se o" intensity

http://var/www/apps/conversion/tmp/scratch_4/bmpwnd.exe%20bmp%5Co0531b.bmp


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.se o" )otion.se o" )otion

Another illustration

o" motion

in advertising



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Comprehension! ,tage


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Consumer /n"ormationConsumer /n"ormation

Processing! ,tage 4Processing! ,tage 4

Agreement $ith $hat is comprehended

-he matter o" $hether consumers yield to

6 that is3 agree $ith 6 $hat they have

comprehended


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Agreement! ,tage 4Agreement! ,tage 4

• Comprehension y itsel" does not

ensure that the message in"luences

consumers’ ehavior • Agreement depends on

» $hether the message is credile

» $hether the in"ormation appeals to theconsumer


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*etention and ,earch%*etrieval o"*etention and ,earch%*etrieval o"

,tored /n"ormation,tored /n"ormation

-hese t$o in"ormation processing stages3

retention and in"ormation search and

retrieval3 oth involve memory "actors

related to consumer choice


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2lements o" )emory2lements o" )emory

)emory

)emory involves the related issues o" $hat

consumers rememer aout marketing

stimuli and ho$ they access and retrieve

in"ormation $hen making consumption

choices


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• ,ensory stores',,(!

» /n"ormation is rapidly lost unless attention isallocated to the stimulus

• ,hort6-erm )emory',-)(!» &imited processing capacity

» +ot thought or rehearsed in"ormation $ill e lost

in


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• &ong6-erm )emory '&-)(!» A virtual storehouse o" unlimited in"ormation

» /n"ormation is organi:ed into coherent and

associated cognitive units called schemata3

memory organization pacets3 or nowledge

structures

» -he marketer’s jo is to provide positively

valued in"ormation that consumers $ill store in

&-)


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A Consumer’s >no$ledgeA Consumer’s >no$ledge

,tructure "or the )a:da )iata,tructure "or the )a:da )iata

-$o6,eater

Convertile

un to drive

apanese

Well6)ade A""ordale

,mall

,ports car

)a:da)iata

&ittle luggage

space

2conomical

+ostalgic

,e7y

British racinggreen Women


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&earning and &-)&earning and &-)

• &earning represents changes in the

content or organi:ation o" in"ormation in

consumers’ long6term memories• )arketing communicators attempt to alter

consumers’ long6term memories3

kno$ledge structures3 y "acilitating

learning o" in"ormation that is compatile$ith the marketer’s interest


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*etention and ,earch%*etrieval o"*etention and ,earch%*etrieval o"

,tored /n"ormation,tored /n"ormation

acilitating

consumer’s

learning



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• /n"ormation that is learned and stored inmemory only impacts consumer choice

ehavior $hen it is searched and retrieved

• *etrieval is "acilitated $hen ne$in"ormation is linked $ith another conceptthat is $ell kno$n and easily accessed

,earch and *etrieval o" /n"ormation,earch and *etrieval o" /n"ormation


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.se o" Concreti:ing and /magery.se o" Concreti:ing and /magery

Concreti:ing

/t is easier "or people to rememer and

retrieve tangile rather than astract

in"ormation3 so claims aout a rand are

more concrete $hen they are made

perceptile3 palpale3 real3 evident3 and vivid


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/magery

*epresentation o" sensory e7periences

in short6term memory including visual3

auditory3 and other sensory3 e7periences


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#earturn veral"raming



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&(aluation of +lternati(es&(aluation of +lternati(es

• Consideration set• +nal%ze $roduct attributes

• ,se cut off criteria -$ros/cons.

• Multiattribute models


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Consumer Decision )aking! ,tage @Consumer Decision )aking! ,tage @

Decision heuristics "or decision making

• A""ect re"erral

• Compensatory heuristic

• Conjunctive heuristic

• Phased strategies


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A""ect *e"erralA""ect *e"erral

,elects the alternative"or $hich the a""ect is

most positive

*ecalls attitude3 or

a""ect3 to$ard relevant

alternatives


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Compensatory #euristicCompensatory #euristic

Chooses the

alternative $ithcriteria that est

compensates "or

in"erior criteria

2valuates alternatives

in terms o" criteria

trade6o""


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Conjunctive #euristicConjunctive #euristic

,elects the alternative$ith criteria that

meets all minimum

cuto""s

2valuates

alternatives in

terms o" criteria

minimum cuto""s


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Phased ,trategiesPhased ,trategies

Chooses using acomination o"

heuristics

2valuates alternatives

using oth

compensatory and

noncompensatoryheuristics


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0: Purc"ase0: Purc"ase

•

o bu% or not to bu%• Marketing determines w"ic"attributes are most im$ortant ininfluencing a consumers3 c"oice)differentiationlater*


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Action! ,tage 8Action! ,tage 8

Action on the asis o" the decision

• People do not al$ays ehave in a manner

consistent $ith their pre"erences due to the

presence o" events3 or situational "actors

• ,ituational "actors are especially prevalent in

lo$6involvement consumer ehavior

Some Issues 'hat Arise &uring Stages inSome Issues 'hat Arise &uring Stages in


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Some Issues 'hat Arise &uring Stages inSome Issues 'hat Arise &uring Stages in

the #onsumtion Processthe #onsumtion Process

igure 55


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4: Post Purc"ase 5e"a(ior4: Post Purc"ase 5e"a(ior

• Cogniti(e dissonance:» Did make a good decision?

»

Did bu% t"e rig"t one? 6et a good (alue?• Marketing minimizes t"roug":

» &ffecti(e communication

» 7ollow u$

» 6uarantees

» 8arranties

7 t nfl n in7actors nfluencing


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7actors nfluencing7actors nfluencing5u%ing Decisions5u%ing Decisions

,ocialactors

/ndividualactors

Psycho6logicalactors

Culturalactors

C1+,.)2*D2C/,/1+6)A>/+9

P*1C2,,

B. %

D1+’- B.

Consumer Behavior Summer 05

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