Chapter 6: Consumer Behavior — Study Notes

Chapter focus: Consumer Behavior; Topics include the introduction to consumer behavior, the consumer decision process, and factors influencing the consumer decision process.
LO (Chapter Learning Objectives) for CH 6:
- LO 6-1: Articulate the steps in the consumer buying process.
- LO 6-2: Describe the difference between functional and psychological needs.
- LO 6-3: Describe factors that affect information search.
- LO 6-4: Discuss postpurchase outcomes.
- LO 6-5: List the factors that affect the consumer decision process.

Consumer Behavior: Definition and Scope

Consumer behavior: The study of consumers and the processes that govern their selection, consumption, and disposal of products and services, and the impacts that these processes have on the consumer and society.

The Consumer Decision Process (5-Stage Model)

The model comprises the following stages in order:
- Need recognition (recognize a problem/unsatisfied need)
- Information search (gather information to satisfy the need)
- Alternative evaluation (assess options)
- Purchase (decision on where/when to purchase and actually obtain/use the product)
- Post-purchase evaluation (assess satisfaction with the decision)
The model is often depicted as a 5-stage process with a post-purchase stage included in most charts.
Practical framing from slides:
- Page 4 shows: 5 Stage Consumer Decision Process Model – Need recognition → Information search → Alternative evaluation → Purchase → Post-purchase.
- Pages 5–6 emphasize need recognition as identifying an unsatisfied need and determining how to satisfy the problem.
- Page 11 emphasizes the purchase stage: where/when to purchase and the act of obtaining and using the product.
- Page 12 emphasizes post-purchase outcomes: satisfaction, dissatisfaction, and buyers remorse (cognitive dissonance).

Need Recognition (Problem Identification)

Consumer: What is the problem? Identify an unsatisfied need.
This stage triggers the rest of the decision process as the consumer acknowledges a gap between desired and actual state.
Related concept: Need vs. Want (progress checks ask to distinguish between needs and wants).
Functional vs. Psychological needs (see LO 6-2 and glossary entries):
- Functional needs pertain to the performance of a product or service.
- Psychological needs pertain to personal gratification consumers associate with a product or service.
Examples/metaphors: Recognizing that a current pair of shoes is worn out (functional) or purchasing a status item for social esteem (psychological).

Information Search

Decision phase: How do I satisfy this problem? Consumers search for information to reduce uncertainty.
Key factors affecting information search activity:
1) Perceived benefits and costs of the search: time and effort the consumer is willing to commit.
2) Actual and perceived risk of the purchase: types of risk include
- Performance risk
- Financial risk
- Psychological risk
- Physiological (safety) risk
- Social risk
  3) Internal locus of control: indicates how much control people think they have over outcomes.
Social & Mobile Marketing example:
- Snapchat-based risk reduction at Rent the Runway: consumers upload photos/videos to Snapchat; models with similar body types are matched to give an idea of how clothes will look on them. This is an example of using social platforms to reduce risk and aid decision making.

Assessment of Alternatives (Search Results and Evaluation)

After search, the consumer assesses available options and determines the best choice.
Concepts:
- Universal set: all possible choices for a product category.
- Retrieval set: brands/stores that can be readily brought forth from memory.
- Evoked set: the brands/stores the consumer states he/she would consider when making a purchase decision.
The consumer uses these sets to compare attributes and determine which option is the best fit.

Purchase

Consumer questions: When and where do I purchase?
This stage covers obtaining and using the product.

Post-Purchase Outcomes

Post-purchase evaluation centers on whether the consumer is satisfied or dissatisfied with the purchase.
Possible outcome: cognitive dissonance (buyers remorse) — the psychological discomfort from holding two or more contradictory beliefs, values, or attitudes after a purchase.
The firm’s goal is to manage expectations and post-purchase support to sustain satisfaction.

Consumer Involvement

Involvement measures the importance a consumer places on a product or service.
Involvement levels:
- Low involvement decisions (limited problem solving):
- Habitual purchase
- Impulse purchase
- High involvement decisions (extensive problem solving)

Exhibit 6.4: Factors Influencing the Consumer Decision Process

The exhibit encapsulates the various factors guiding consumer decisions, including the interplay between individual, situational, social, and marketing-mix elements.

Situational Factors Influencing the Consumer Decision Process

Psychological and situational drivers:
- Motives
- Attitudes
- Perceptions
- Learning
- Lifestyle
Psychological factors that affect how marketing messages are received include the Looking-glass self concept (the idea that self-image is shaped by how others perceive us).
Purchase situation factors include:
- Time of day
- Shopping setting
- Atmospherics: the process of manipulating the physical retail environment to create mood responses and influence judgments of retailer quality. Store atmosphere is the sum of all physical features (colors, aromas, music, displays, etc.).

Store Atmosphere and Atmospherics

Atmospherics influences shopper mood and judgments of quality.
Store atmosphere includes physical features such as colors, aromas, music, displays, lighting, and layout.
These factors can steer perception of quality and influence purchase decisions, especially in low-involvement contexts.

Social Factors Influencing the Consumer Decision Process

Family
Culture
Reference groups
Social factors shape how marketing messages are received and interpreted.

Marketing Mix Factors Influencing the Consumer Decision Process

The classic 4Ps: Product, Price, Place, Promotion.
Behavioral insight: “People tend to behave irrationally in a predictable fashion.” — Dan Ariely, Behavioral Economist.
Marketing mix factors influence the decision process by shaping needs, search costs, perceptions of risk, and post-purchase satisfaction.

Recap of Factors Influencing the Decision Process

A quick recapitulation of how situational, psychological, social, and marketing-mix factors come together to influence each stage of the consumer decision process.

Involvement Revisited

Reiteration of low vs high involvement: the level of consumer engagement dictates the amount of effort and time spent in problem solving and the depth of information search and evaluation.

Progress Check (Study Questions)

(Progress Check 1) Name the five stages in the consumer decision process.
(Progress Check 1) What is the difference between a need and a want?
(Progress Check 1) Distinguish between functional and psychological needs.
(Progress Check 1) What are the various types of perceived risk?
(Progress Check 1) What are the differences between compensatory and noncompensatory decision rules?
(Progress Check 1) How do firms enhance post-purchase satisfaction and reduce cognitive dissonance?
(Progress Check 2) What are some examples of specific needs suggested by Maslow’s hierarchy of needs?
(Progress Check 2) Which social factors likely have the most influence on (a) the purchase of a new outfit for a job interview and (b) the choice of a college to attend?
(Progress Check 2) What situational factors do firms use to influence consumer purchase behavior?

Maslow’s Hierarchy of Needs (Exhibit 6.5)

From bottom to top:
- Physiological
  eeds: ext{ Food, drink, rest, & shelter }
- Safety
  eeds: ext{ Protection & physical well-being }
- Love
  eeds: ext{ Interaction with others }
- Esteem
  eeds: ext{ Inner desires }
- Self- ext{actualization}: ext{ Personal growth & fulfilment }

Glossary (Key Terms and Definitions)

Attitude: An enduring evaluation of a person’s feelings about and behavioral tendencies toward an object or idea.
Consumer decision rules: The set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.
Evoked set: The alternative brands or stores that the consumer states he or she would consider when making a purchase decision.
Extended problem solving: Occurs during a purchase decision that calls for a lot of effort and time.
Functional needs: Pertain to the performance of a product or service.
Habitual decision making: Describes a purchase decision process in which consumers engage little conscious effort.
Impulse buying: A buying decision made by customers on the spot when they see the merchandise.
Involvement: The consumer's degree of interest in the product or service.
Limited problem solving: Occurs during a purchase decision that calls for, at most, a moderate amount of effort and time.
Perception: The process by which we select, organize, and interpret information to form a meaningful picture of the world.
Psychological needs: Pertain to the personal gratification consumers associate with a product and/or service.
Retrieval sets: The brands or stores that can be readily brought forth from memory.
Situational factors: Factors specific to the situation.
Universal sets: Include all possible choices for a product category.

Maslow and Final Notes

Maslow’s hierarchy is used to explain why consumers seek different types of benefits from products at different life stages and contexts.
The Looking-glass self and other social cues shape how consumers perceive brands and marketing messages in the decision process.

References to Course Content

This compilation reflects CH 6: Consumer Behavior from MKT 3100 (Principles of Marketing) as presented by Dr. Sharpe.
Includes: the 5-stage decision process, need types, information search factors, alternative assessment, post-purchase outcomes, involvement, situational and social factors, marketing-mix context, Maslow’s hierarchy, glossary terms, and study prompts.