MKT 305 Module 7 Consumer Behavior

Consumer Behavior

Process by which individuals or groups select, use, or dispose of goods services, ideas, or experiences to satisfy needs or wants

Users (3 Roles of Consumers)

Concerned about product features or how the product is used

Payers (3 Roles of Consumers)

Concerned with price and financial considerations

Buyers (3 Roles of Consumers)

Concerned with logistics of purchasing the product

5 Stage Process of Buying Decisions (Consumer decision buying process)

Whether to purchase

What to purchase

When to purchase

From whom to purchase

How to pay for it

Step 1 Problem Recognition

Occurs when consumers realize that they need to do something to get to a normal state of comfort (Needs and Wants)

Needs (Step 1 Problem Recognition)

Shortages/Functional

Wants (Step 1 Problem Recognition)

Desires/Psychological

Stimulus (Step 1 Problem Recognition)

Problem recognition occurs due to stimulus

Internal Stimulus (Step 1 Problem Recognition)

Biological Cues (Hunger, Thirst)

External Stimulus (Step 1 Problem Recognition)

Commercial, Social Cues

Awareness Set (Step 2 Information Search)

Consists of brands consumers are aware of

Evoked Set (Step 2 Information Search)

Consists of brands in a product category that the consumer remembers at the time of decision making

Consideration Set (Step 2 Information Search)

Of the evoked set brands considered unfit are removed whats left is considered the consideration set

Marketer Source (Step 2 Information Search)

Website, Ads

Non-Marketer Source (Step 2 Information Search)

Friends, Referrals

Types of Risk (Step 2 Information Search)

Economic - Price

Performance - Does it work?

Safety

Social - What others think

Psychological - Self Esteem (What I think)

Multi Attribute Model (Compensatory Model) (Step 3 Alternative Evaluation)

Model Choice is dependant on risk and importance

Step 4 Purchase

Store Choice

Non-Store Choice

Online

Catalog

Garage Sale

Step 5 Post Purchase Evaluation

Customer Satisfaction

Compare perception to expectation (Step 5 Post Purchase Evaluation)

If P=E Satisfied

if P>E Happy

if P<E Not Happy

Cognitive dissonance - Buyers remorse

Types of decision (Factors influencing consumer buying process)

Routine - Everyday Purchases

Limited - Some past experience

Extended - First time purchase (High Involvement)

Perception (Psychological Factors influencing consumer buying process)

Sense, organizes, and interprets the ijformation he or she receives from the environment

Selective attention (Psychological Factors influencing consumer buying process)

Notice when important

Selective distortion (Psychological Factors influencing consumer buying process)

Twist info to match previous beliefs

Perceptual threshold (JND)

Shrinkflation

Classical Conditioning (Psychological Factors influencing consumer buying process)

Pairings (Celebrity Endorsement)

Instrumental Conditioning (Psychological Factors influencing consumer buying process)

Reward for behavior

Modeling (Psychological Factors influencing consumer buying process)

Reference groups (Outside social context)

Motivation (Psychological Factors influencing consumer buying process)

State of drive or arrousal

Attitudes (Psychological Factors influencing consumer buying process)

Are learned

Are predisposition

Can consistent response

Psychographics (Psychological Factors influencing consumer buying process)

Demographics and lifestyle

Values

Self concept

Lifestyle

Social Factors (Psychological Factors influencing consumer buying process)

Reference Groups (within social context)

Membership groups - groups to which the consumer belongs

Aspirational Groups - Groups to which the consumer wants to belong to

Dissociative groups - Groups that consumers do not want to associate with

Family and household (Psychological Factors influencing consumer buying process)

Children have buying power

Gen Z $44 billion of their own money

Children act as influencers

Influence spending of $600 billion

Some estimates are $1.2 trillion

Technological Factors (Psychological Factors influencing consumer buying process)

Web access = more needs/wants

Enhance Search capabilities (Expanded)

Expanded evaluation capabilities

Alternative purchase options (Increased)

Enriched post purchase options (Increased)

Situational Factors (Psychological Factors influencing consumer buying process)

Physical Surrounding - A consumer who is comfortable is likely to take more time to shop or spend more

Time - Quick/Slow

Consumer moods - emotions (less intense than attitude)