unit 7: consumer buying behavior model

why do we need a consumer’s information processing model?

• to understand consumer behavior

  • bc they make numerous buying decisions everyday

what questions does consumer information processing model answer?

• what consumers buy

• why they buy

• where they buy

• how they buy

• how much they buy

• when they buy

what are different types of buying behavior?

1. complex buying behavior

2. variety-seeking buying behavior

3. dissonance-reducing buying behavior

4. habitual buying behavior

what is complex buying behavior?

• high involvement + significant differences between brands

• usually deeply invested in purchase (expensive, risky)

what is variety-seeking buying behavior?

• low involvement + significant differences between brands

• consumers buy different brands out of boredom or desire for change in taste/experience

what is dissonance-reducing buying behavior?

• high involvement + few differences between brands

• consumer highly involved in expensive/rare purchase, sees little/no different between brands

what is habitual buying behavior? (low involvement process)

• low involvement + few differences between brands

• everyday low-cost purchases

• no thoughts, brand doesn’t matter

consumer decision-making process for complex buying behavior

1. needs recognition

2. information search

3. evaluation of alternatives

4. purchase

5. post purchase behavior

6. back to step 1,2, or 3

define needs recognition

sensing a difference between actual and desired state; can be triggered by either internal or external stimuli 

define information search

• searching for information about alternative products/brands

• internally, externally, both

• more information → increase brand knowledge and awareness

define evaluation of alternatives

• key attributes important to buying decision

• minimum requirements

• weigh internal & external information against purchase decision criteria 

• internal/external information for purchase decision

• consumer preferences vary by person

• brand image is developed !!!

what are the sources of information?

• evoked set

  • internal search

  • external search

• consideration set

what is internal search?

• memory

• all past experiences

• values, attitudes, beliefs

what is external search?

• marketing-controlled sources

• non-marketing controlled sources

what is consideration set?

top brands/products a consumer actually considers purchasing before gathering external & internal information

what is purchase decision?

• deciding to buy/use a product or service

  • ability to buy

  • willingness to buy

  • authority to buy

what influences a purchase decision?

• attitude of others

• unexpected situations (situational factors) - ex. too expensive

• social norms/trends

what is post-purchase behavior?

dis/satisfaction that a consumer feels about the purchase

what is the main determinant of customer satisfaction?

perceived quality: how good the customer thinks the product is

what 2 things determine customer satisfaciton?

match between customer’s expectations & product’s perceived performance

what is a positive match post-purchase behavior?

• product meets/exceeds expectations; consumer is satisfied

• customer is confident with purchase + likely to buy again

what is a negative match post-purchase behavior?

• customers dissatisfied; bigger the gap, greater the dissatisfaction

• brand switching, negative word of mouth,

• exit behavior: stop buying from brand completely

how does customer satisfaction affect retention?

satisfied customers are more likely to stay loyal & make repeat purchases

what is cognitive dissonance?

• discomfort/doubt after post-purchase conflict

• strong: unlikely to repurchase/ “mistake”

what is adoption process?

steps a consumer goes through from not knowing about a product to becoming a regular user

what are the stages of the adoption process?

1. awareness: first hearing/learning about it

2. interest: want to learn more; curious

3. evaluation: deciding if it’s worth buying

4. trial: trying it out before buying it

5. adoption: buys it; uses it regularly

what is the buyer readiness model?

stages a customer goes through before they’re ready to purchase a product

what are the stages of the buyer readiness model?

1. awareness: customer aware product exists

2. knowledge: customer learns about product

3. liking: develops positive feelings toward product

4. preference: customer prefers this product competitors

5. conviction: customer convinced they want to buy product

6. purchase: customer actually buys product

what is difference between adoption process & buyer readiness model?

• customers adopt new products

• buyer readiness model focuses on getting customers to purchase

what are the levels of consumer problem solving?

how much time, effort, people put into making buying decisions

• routinized response behavior (low involvement)

• limited problem solving (moderate involvement)

• extensive problem solving (high involvement)

what is routinized response behavior?

• quick, automatic decision-making, no effort/research

• low involvement, frequently purchase items, inexpensive, low financial/personal risk, no information needed

what is a real-world example of routinized response behavior?

buying a pack of gum, milk, bottle of water; usually grab a brand you know without thinking twice

what is limited problem solving?

• need moderate amount of information before choosing

• products buy occasionally, moderate price, or when usual brand out of stock, need to compare alternatives

what is a real-world example of limited problem solving?

buying a jacket, choosing a restaurant for dinner, new pair of sneakers

what is extensive problem solving?

• complex, decision making, needs a lot of research, time, evaluation

• high involvement, infrequently purchased items, high financial/social risk, need a lot of detailed information

what is a real-world example of extensive problem solving?

buying a car, picking a university, buying a home, buying a laptop

what are the steps of high involvement decisions

• belief (awareness) → attitude (preference) → behavior (purchase)

• research before buying

what are the steps to low-involvement buying behavior?

• belief (awareness) → behavior (purchase) → attitude (preference)

• buy without much thought

what are the steps to dissoance-reducing buying behavior?

• behavior (purchase) → belief (awareness) → attitude (preference)

• buy first, regret/question later