Introduction Consumer Behavior

Consumer Behavior

processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use

5 steps in buying process

1. Need (problem) awareness

2. Information search

3. external search

4. Purchase

5. Post-purchase

Why study consumer behavior

Marketers have to understand the wants and needs of different consumer segments.

Our choices as consumers relate in powerful ways to the rest of our lives.

Our motivations to consume are complex and varied.

Modern consumer behavior

Technology and culture create a new "always on" consumer.

Many types of specialists study consumer behavior.

internal search for information

occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences

external search for information

occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision

level of involvement

An individual's degree of interest in a product and the importance of the product for that person

multi-attribute model

A model of customer decision-making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues.

cognitive dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

Buyer's remorse

Feeling regret or concern after making a large purchase

situational influences

Influences that result from circumstances, time, and location that affect the consumer buying decision process

consumer trends

The habits or behaviors of consumers that determine the goods and services they buy

Perception

the process of organizing and interpreting sensory information, enabling us to recognize meaningful objects and events

senses

sight, taste, touch, smell, and hearing

selective attention

The phenomenon that people often pay the most attention to things they already agree with and interpret them according to their own predispositions.

selective distortion

a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs

perceptual vigilance

consumers are more likely to be aware of stimuli that relate to their current needs

motivation

the reason or reasons one has for acting or behaving in a particular way.

Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization

physiological needs

those relating to the basic biological necessities of life: food, drink, rest, and shelter

safety needs

need to feel that the world is organized and predictable; need to feel safe, secure, and stable

love and affection needs

strives for social acceptance, friendship and to be loved

Ego Needs (Maslow)

prestige, status, accomplishment

self-actualization needs

the pursuit of knowledge and beauty or whatever else is required for the realization of one's unique potential

Patronage buying motives

explains why sure customers buy specific brand items but not others, and always buy required things from a single retailer. Brand loyalty and retailer loyalty fall under this incentive. In this manner, consumers purchase goods or services for emotional, rational, prestige, or patronage reasons.

classical conditioning

a type of learning in which one learns to link two or more stimuli and anticipate events

operant conditioning

a type of learning in which behavior is strengthened if followed by a reinforcer or diminished if followed by a punisher

unconditioned stimulus

in classical conditioning, a stimulus that unconditionally—naturally and automatically—triggers a response.

conditioned stimulus

in classical conditioning, an originally irrelevant stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response

neutral stimulus

in classical conditioning, a stimulus that elicits no response before conditioning

operant conditioning

a type of learning in which behavior is strengthened if followed by a reinforcer or diminished if followed by a punisher

punishment

any event or object that, when following a response, makes that response less likely to happen again

reinforcement

in operant conditioning, any event that strengthens the behavior it follows

extinction

the diminishing of a conditioned response; occurs in classical conditioning when an unconditioned stimulus (US) does not follow a conditioned stimulus (CS); occurs in operant conditioning when a response is no longer reinforced.

attitude

A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea

Personality

an individual's characteristic pattern of thinking, feeling, and acting

lifestyle

A person's pattern of living as expressed in his or her activities, interests, and opinions

self-concept

our understanding and evaluation of who we are

ideal self-concept

the set of ideas about who you would like to be

actual self-concept

represents how consumers in fact perceive themselves

consumer socialization

the process through which a person acquires the knowledge and skills to function as a consumer

family decision making

the process by which decisions that directly or indirectly involve two or more family members are made

family life cycle

a series of stages determined by a combination of age, marital status, and the presence or absence of children

reference group

used as standard for evaluation of values, attitudes

membership reference group

the group to which a consumer actually belongs

aspirational reference group

a group that we admire and desire to be like

associative reference group

a group with which people want to identify, such as colleagues

opinion leaders

individuals who exert direct or indirect social influence over others

Influencers

help define specifications and provide information for evaluating alternatives

reference group

a social group that serves as a point of reference in making evaluations and decisions

social class

a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms

culture

Beliefs, customs, and traditions of a specific group of people.

Subculture

A group of people with shared value systems based on common life experiences and situations

grid layout

a store design, typically used by grocery stores, in which merchandise is displayed on long gondolas in aisles with a repetitive pattern

freeform layout

arranges fixtures and aisles in an asymmetric pattern

racetrack layout

A type of store layout that provides a major aisle to facilitate customer traffic that has access to the store's multiple entrances

spine layout

A type of store layout that features a center aisle that extends from the front of the store to the back.

atmospherics

the physical elements in a store's design that appeal to consumers' emotions and encourage buying

antecedent states

. . are the temporary physiological and mood states that a consumer brings to a consumption situation. They include time pressure, mood, usage context, and shopping orientation..

self-gift

Premeditated, indulgent. These are often used for rewarding an accomplishment, or therapy for disappointment.

queuing theory

the mathematical study of waiting lines

cognitive map

a mental representation of the layout of one's environment.

Image transference

the image of anchor stores affects that of smaller stores in the same shopping center

Servicecape

the environment in which a customer and service provider interact

lateral cycling

a process in which already purchased objects are sold to others or exchanged for other items

lateral cycling

occurs when already purchased goods are sold to others or exchanged. These are important alternate marketing systems that operate informally.

"cons" of loop layout

Customers don't get to browse "at will."

May waste customer's time who knows what they've come for; may avoid if in a hurry

Not appropriate for shops that require high traffic turnover, or items that require more time to purchase

advantages of a boutique layout

Often less space for display

Poorly done layouts can discourage people away from store or confuse customers.

These layouts don't follow a formula, so don't tend to draw consumers through the store as naturally. This means customer service is very important, in order to help people find what they are looking for.

Customer service also helps to prevent shoplifting, which is a necessity because there are often places for people to relax, where they may feel more comfortable stealing.

Mood

a temporary state of mind or feeling.mer

habitual decision making

a purchase decision process in which consumers engage with little conscious effort

extensive decision making

the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information

merchandise density

the quantity often merchandise a retailer places on the floor

grid layout advantages

The grid layout is very efficient, housing a great deal of merchandise. Best for stores with lots of merchandise, especially when products are varied.

With clearly labeled aisles, this layout makes finding merchandise easy for customers.

Lots of exposure to products, as the layout encourages customers to browse multiple aisles

Familiarity for shoppers

Traffic flow is predictable, retailers can place promotions or high-demand items where customers will see them. Predictable traffic flow means you can put promos where you know customers will see them

Fixtures are easy (and relatively inexpensive) to source, as this is a commonly used layout

Best practices within this layout are well researched

disadvantages of the grid layout

Least likely to create a retail experience because of overuse.

Customers may be frustrated they can't shortcut their way to what they need

Customers may not understand your product groupings, which can lead to frustration and even shopping cart abandonment

Few visual breaks and high merchandise density can overwhelm customers (some stores have switched to 1/2 aisles to avoid this and to allow customers to not have to "commit" to a whole aisle

Cramped aisles often lead to customers bumping into one another

Often does not encourage exploration.

decompression zone

the area a customer enters immediately after walking into your store

POP advantages

Catch the Customer's Eye - shoppers tend to skim the aisles looking or particular items. Packagin may not be enough to have an impact.

Supplement Packaging - can provide more information about your product or brand imaging than than packaging alone

Strategically Locate Your Products - provides opportunities, especially with free-standing displays, to locate products strategically and prominently

Help merchandise products - this may be especially important for products with unique needs, but provides guidance for how to display products.

Be More Cost Effective - can be provided and promote your products less expensively than advertising

Target impulse purchasers

POP materials

materials that can include special racks, displays, cartons, banners, signs, price cards, and mechanical product dispensers