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    Consumer Behavior - Slides

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    Maria Christina Paredes Concepcion
    Consumer behavior and decision making is influenced by various cultural, social, personal, and psychological factors. The consumer decision making process involves 5 steps - need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior. Marketers must understand the different types of buying behaviors and roles consumers may play based on their level of involvement in the purchase. The level of involvement and complexity of the purchase will determine if consumers engage in routine response, limited decision making, or extensive decision making.

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    Consumer Behavior - Slides

    Uploaded by

    Maria Christina Paredes Concepcion
    3K views46 pages
    Consumer behavior and decision making is influenced by various cultural, social, personal, and psychological factors. The consumer decision making process involves 5 steps - need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior. Marketers must understand the different types of buying behaviors and roles consumers may play based on their level of involvement in the purchase. The level of involvement and complexity of the purchase will determine if consumers engage in routine response, limited decision making, or extensive decision making.

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    Consumer behavior and decision making is influenced by various cultural, social, personal, and psychological factors. The consumer decision making process involves 5 steps - need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior. Marketers must understand the different types of buying behaviors and roles consumers may play based on their level of involvement in the purchase. The level of involvement and complexity of the purchase will determine if consumers engage in routine response, limited decision making, or extensive decision making.

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    Download as ppt, pdf, or txt
    3K views46 pages

    Consumer Behavior - Slides

    Uploaded by

    Maria Christina Paredes Concepcion
    Consumer behavior and decision making is influenced by various cultural, social, personal, and psychological factors. The consumer decision making process involves 5 steps - need recognition, information search, evaluation of alternatives, purchase, and post-purchase behavior. Marketers must understand the different types of buying behaviors and roles consumers may play based on their level of involvement in the purchase. The level of involvement and complexity of the purchase will determine if consumers engage in routine response, limited decision making, or extensive decision making.

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    CONSUMER BEHAVIOR AND DECISION MAKING

    Reported by:

    MARIA CHRISTINA M. PAREDES


    THANAWAN

    CONSUMER BEHAVIOR

    Consumer
    The end buyer of a product In general buys for his ownself or for his familys benefit For organizational purchases the word customer is used

    Consumer behavior

    The action that a person takes in:


    Purchasing & using products & services - The mental & social processes that proceed and follow these actions
    -

    We are concerned with


    Why consumers make the purchases that they make What factors influence consumer purchases? Who buys? What are their choice criteria? When do they buy? How do they buy? Where do they buy? Likely buyers reaction to a marketing strategy

    Model of buyer behavior


    Marketing & other stimuli Marketing
    Product Price

    Buyers blackbox

    Buyer responses

    Others
    Economic Technolo-

    Buyer Characteristics

    Buyer decision process

    Product choice Brand choice Dealer choice Purchase timing Purchase amount

    gical
    Place Promotion Political Cultural

    Characteristics affecting consumer behavior


    Cultural Social

    Personal
    Culture Reference groups Age & life cycle stage Occupation Psychological Motivation Perception B U

    Subculture

    Family

    Economic situation
    Lifestyle

    Learning
    Beliefs & attitudes

    Y
    E R

    Social class

    Roles & status

    Personality & self concept

    ANALYZING CONSUMER BEHAVIOR

    ANALYZING CONSUMER BEHAVIOR

    FACTORS INFLUENCING CONSUMER BEHAVIOR BUYING ROLES TYPES OF BUYING BEHAVIOR THE BUYING DECISION PROCESS

    FACTORS INFLUENCING CONSUMER BEHAVIOR

    CULTURAL FACTORS:

    Culture

    Sub-culture Social Class

    SOCIAL FACTORS:

    Reference groups

    Family Roles & statuses

    Characteristics affecting consumer behavior Culture: Set of basic values, perceptions, wants & behaviors learned by a member of society from family & other institutions - Cultural shift. Subculture: Group of people with shared value systems based on common life experiences & situations Social class: Measured by occupation, income, education & wealth

    Characteristics affecting consumer behavior


    Social factors:

    influencers Family e.g. purchase of a car Roles & Status e.g. Director Marketing

    Reference groups Aspiration groups /

    Social influences
    Culture Behavior is learned so the traditions, values, attitudes of society all influence it Has a major influence on consumers behavior Formal or informal groups to which we belong.

    Social class Reference groups

    Family
    Personal influences

    Key group in terms of attitudes, beliefs & learned behavior


    Personal characteristics such as age, occupation, family lifestyle, lifestyle

    FACTORS INFLUENCING CONSUMER BEHAVIOR(2)


    PERSONAL FACTORS Age and Life-Cycle Stage Occupation Economic Circumstances Lifestyle Personality & Self-concept

    Personal factors:

    Characteristics affecting consumer behavior


    Age & life cycle stage Tastes in food,
    clothes, furniture, recreation change with age Occupation e.g. purchase of rugged clothes by a laborer

    Economic situation Life style Lifestyle of a celebrity Personality & self-concept

    FACTORS INFLUENCING CONSUMER BEHAVIOR (3)

    PSYCHOLOGICAL FACTORS

    Motivation Learning Perception

    Beliefs

    & Attitudes

    Maslows hierarchy of needs


    Maslows theory applies to all aspects of human motivation The needs change with different levels i.e. a person moves up once his need at the bottom level is satisfied

    Maslows hierarchy of needs

    Learning attitudes & beliefs

    Learning relates to any changes in the long term & is associated with how the information is processed - Conditional learning: reinforcement is
    -

    necessary to develop attitudes & beliefs Social learning: learning from others behavior Cognitive learning: use of positive powers of

    reasoning to develop attitudes & beliefs about a product (Particularly important for high involvement products)

    Roles in the buying process

    A no. of different individuals might contribute in the consumer market in the buying decision. Marketers need to be aware of the order inorder to exert influence: Initiator suggests the purchase Influencer has knowledge & personal authority influences the outcome Decider decides what, where & how to buy. Buyer makes the purchase End user

    Types of buyers
    Opportunist a switcher Dealer seeks the best deal Creative asks for a customized product Trader asks for extras Negotiator seeks discounts

    TYPES OF BUYING BEHAVIOR


    DEGREE OF INVOLVEMENT HIGH LOW

    HIGH

    DEGREE OF DIFFERENCES IN BRANDS

    COMPLEX BUYING BEHAVIOR DISSONANCEREDUCING BUYING BEHAVIOR

    VARIETYSEEKING BUYING BEHAVIOR HABITUAL BUYING BEHAVIOR

    LOW

    TYPES OF BUYING BEHAVIOR

    COMPLEX BUYING BEHAVIOR: High

    involvement, very expensive, infrequently purchased,very risky, selfexpressive products (designer jewelry, custom-designed sports cars, housing).

    DISSONANCE REDUCING BUYING BEHAVIOR: High involvement,

    expensive, infrequently purchased, selfexpressive products (furniture, white goods, PCs).

    TYPES OF BUYING BEHAVIOR (CONTD)


    VARIETY

    frequently purchased, inexpensive products (pastries, biscuits, snacks). HABITUAL BUYING BEHAVIOR: Low involvement, frequently purchased, inexpensive products (sugar, salt, flour, commodities).

    SEEKING BUYING BEHAVIOR: Low involvement,

    CONSUMER DECISION MAKING

    Consumer Decision-Making Process

    Consumer Decision-Making Process


    A five-step process used by consumers when buying goods or services.

    Consumer Decision-Making Process


    Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior

    PROBLEM/NEED RECOGNITION

    From Internal Stimuli:

    Hunger Thirst Fear


    From External Stimuli:

    Neighbors Purchases Advertisements Window Shopping Newspapers & Magazines

    Consumer Decision-Making Process


    Need Recognition - Result of an imbalance between actual and
    desired states.

    Marketing helps consumers recognize an imbalance between present status and preferred state

    Internal Stimuli and External Stimuli


    Preferred State

    Present Status

    Consumer Decision-Making Process


    Information Searches

    Internal

    Process of recalling past information stored


    in the memory.

    External

    Process of seeking information in the outside environment.

    INFORMATION SEARCH
    From

    Personal Sources:

    From

    Family Friends Neighbors Acquaintances

    Commercial Sources:

    Advertisements

    Dealers
    Salespersons Packaging Displays

    INFORMATION SEARCH (CONTD)


    From

    Commercial Sources:

    Advertisements Dealers

    Salespersons
    Packaging

    Displays

    INFORMATION SEARCH (CONTD)


    From Mass

    Public Sources:

    From

    Media Chambers of Commerce Consumer Rating Magazines

    Experiential Sources:

    Handling

    Product Examining the Product Using the Product

    the

    Consumer Decision-Making Process


    Evoked Set
    Analyze product attributes

    Use cutoff criteria

    Rank attributes by importance

    Purchase!

    Consumer Decision-Making Process


    Purchase

    To buy or not to buy...


    Determines which attributes are most important in influencing a consumers choice

    PURCHASE DECISION
    Interfering

    Factors: Attitudes of Others: Opposing and intense opinions of family members, close friends and acquaintances Unanticipated situational factors: Changes in income, job transfer, loss of employment, change of priority e.g. sudden payment of educational fees etc.

    Consumer Decision-Making Process


    Postpurchase Behavior

    Cognitive Dissonance

    Did I make a good decision? Did I buy the right product? Did I get a good value?

    Can minimize through: Effective Communication Follow-up Guarantees Warranties

    POSTPURCHASE BEHAVIOR
    Post

    purchase Satisfaction:

    Keep

    the Product Store the Product Convert to a Second Use


    Post Try

    purchase Dissatisfaction:

    to return the product/take legal recourse Rent it Get rid of it/Throw it

    Five Factors Influencing Decisions


    1. Level of consumer involvement 2. Length of time to make decision 3. Cost of good or service 4. Degree of information search 5. Number of alternatives considered

    Types of Consumer Buying Decisions


    Routine Response Behavior Limited Decision Making Extensive Decision Making

    Less Involvement

    More Involvement

    Routine Response Behavior


    Little involvement in selection process Frequently purchased low cost goods

    May stick with one brand


    Buy first/evaluate later Quick decision

    Limited Decision Making

    Low levels of involvement


    Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide

    Extensive Decision Making


    High levels of involvement High cost goods Evaluation of many brands

    Long time to decide


    May experience cognitive dissonance

    Factors Influencing Buying Decisions

    Cultural Factors

    Social Factors

    Individual Factors

    Psychological Factors

    CONSUMER DECISIONMAKING PROCESS

    BUY / DONT BUY

    Video for Consumer decision making

    Reference from youtube

    Ads that illustrate the concepts in slides

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