CHAPTER 6 CONSUMER BEHAVIOR 6 1 Consumer Behavior

CHAPTER 6 CONSUMER BEHAVIOR 6 -1

Consumer Behavior LEARNING OBJECTIVES LO 1 Articulate the steps in the consumer buying process. LO 2 Describe the difference between functional and psychological needs. LO 3 Describe factors that affect information search. LO 4 Discuss postpurchase outcomes. LO 5 List the factors that affect the consumer decision process. LO 6 Describe how involvement influences the consumer decision process. 6 -2

The Consumer Decision Process Need recognition Information search Alternative evaluation Purchase Post purchase 6 -3

Need Recognition Psychological needs ©Digital Vision/Punch. Stock Royalty-Free/CORBIS Functional needs 6 -4

Search for Information Internal Search for Information External Search for Information Courtesy of Refinery 29. com. 6 -5

Factors Affecting Consumers’ Search Process Perceived Benefits Perceived Costs 6 -6

The Locus of Control Internal Locus of Control = more search activities Royalty-Free/CORBIS External Locus of Control = Fate, external factors ©Comstock/Jupiter. Images 6 -7

Actual or Perceived Risk Performance risk Psychological risks Physiological risk Financial risk Social risk 6 -8

Evaluation of Alternatives: Attribute Sets Universal Retrieval Evoked 6 -9

Evaluation of Alternatives: Evaluate Criteria Evaluative Criteria Determinant Attributes Digital Vision/Getty Images What are some of the features of a vacation that would be in your evaluative criteria? 6 -10

Purchase and Consumption Increase Conversion rate Reduce real or virtual abandoned carts Merchandise in stock Handout/MCT/Newscom. Reduce the actual wait time 6 -11

Post-purchase: Customer Satisfaction Undesirable Consumer Behavior Dissonance Customer Loyalty 6 -12

CHECK YOURSELF 1. Name the five stages in the consumer decision process. 2. What is the difference between a need and a want? 3. Distinguish between functional and psychological needs. 4. What are the various types of perceived risk? 5. What are the differences between compensatory and noncompensatory decision rules? 6. How do firms enhance postpurchase satisfaction and reduce cognitive dissonance? 6 -13

Factors Influencing the Consumer Decision Process • • • Product Price Place Promotion Marketing mix Motives Attitudes Perceptions Learning Lifestyle Psychological factors Consumer Decision Process Social factors • Family • Reference groups • Culture Situational factors • Purchase situation • Shopping situation • Temporal state 6 -14

CHECK YOURSELF 1. What are the types of needs suggested by Maslow’s Hierarchy of Needs? 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? 3. List some of the tactics stores can use to influence consumers’ decision processes. 6 -15

Involvement and Consumer Buying Decisions Message (e. g. , Ad) High involvement • Greater attention • Deeper processing Develops strong attitudes and purchase intentions Low involvement • Less attention • Peripheral processing Generates weak attitudes and increased use of cues 6 -16

Types of Buying Decisions § Extended Problem Solving § Limited Problem Solving § Impulse Buying § Habitual Decision Making 6 -17

CHECK YOURSELF 1. How do low versus high involvement consumers process information in an advertisement? 2. What is the difference between extended versus limited problem solving? 6 -18