ch 6

Explain why marketing managers should understand consumer behavior.
Analyze the components of the consumer decision-making process.
Explain the consumer’s postpurchase evaluation process.
Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
Describe how some marketers are reconceptualizing the consumer decision-making process.
Identify and understand the cultural factors that affect consumer buying decisions.
Identify and understand the social factors that affect consumer buying decisions.
Identify and understand the individual factors that affect consumer buying decisions.
Identify and understand the psychological factors that affect consumer buying decisions.

Consumer behavior reveals how consumers make purchase decisions and how they use and dispose of goods and services.
Marketing managers need to understand consumers' product and service preferences, which are constantly evolving.
Understanding consumer behavior enables the creation of a marketing mix tailored to the specific needs of the target market.
It includes analyzing factors influencing purchase decisions, which can guide product development and marketing strategies.

The consumer decision-making process typically follows five steps:
1. Need Recognition: A consumer becomes aware of a need or want.
2. Information Search: Consumers search for information to solve their need.
3. Evaluation of Alternatives: Consumers compare potential options.
4. Purchase: The consumer makes the decision to buy.
5. Postpurchase Behavior: Evaluation of the purchase's satisfaction.
The process can vary depending on the consumer's personal circumstances and the product type.

Triggered by an imbalance between the actual state and desired state.
Involves both internal stimuli (e.g., hunger) and external stimuli (e.g., advertising).
Consumers recognize unfulfilled needs and identify products that can satisfy those needs.

After recognizing a need, consumers search for information regarding alternatives.
Internal Information Search: Utilizing personal memory of past experiences.
External Information Search: Gathering information from non-marketing sources (friends, online reviews) or marketing-controlled sources (advertisements).
The scope can vary based on perceived risk and personal experience.

Consumers develop criteria for comparison based on information gathered and personal values.
Various factors, including price, features, and brand perception, influence evaluations.
Decision making may involve cutoffs and rank attributes to narrow choices.
The buyer’s evoked set represents the preferred brands considered during the selection process.

This stage assesses whether the purchase meets expectations, impacting consumer satisfaction.
Cognitive Dissonance: A psychological tension felt when an action conflicts with personal beliefs.
Strategies to mitigate dissonance include providing positive reinforcement and effective communication post-purchase.

Decisions fall into three categories based on consumer involvement:
1. Routine Response Behavior: Low involvement, habitual purchases.
2. Limited Decision Making: Moderate involvement for familiar but varied options.
3. Extensive Decision Making: High involvement for expensive or unfamiliar purchases.
Involvement leads to extensive or minimal information search and evaluation processes.

Digital technology has shifted power towards consumers, influencing their shopping behavior.
The Consumer Decision Journey reflects this shift, emphasizing ongoing engagement and feedback loops post-purchase.
Marketers must refine their processes through capabilities like automation and personalization to stay relevant in the digital marketplace.

Culture significantly shapes consumer behavior, including customs, values, and norms.
Subcultures: Groups within a culture that share specific interests or characteristics.
Social Class: Impacts product choice and buying habits, with distinctions affecting marketing strategies.

Reference groups, opinion leaders, and family members substantially influence a consumer's purchasing choices.
Marketing strategies often target these influences to enhance brand awareness and commitment.
- Reference groups affect purchasing through social validation and member norms.

Characteristics such as gender, age, lifestyle, personality, and self-concept shape consumer preferences and purchasing behavior.
Different demographics tend to have distinct consumption patterns based on lifestyle and social context.

Psychological factors like perception, motivation, and learning impact consumer choices.
Advertisers use understanding of these factors to design campaigns that resonate with target audiences, guiding their decisions.

Consumer Behavior: Study of how individuals make decisions to spend resources.
Value: Perceived benefits vs. perceived costs.
Perceived Value: Assessment of product benefits by a consumer.
Utilitarian Value: Practical benefits derived from product use.
Hedonic Value: Emotional or experiential benefits from a product.