041523 1

By

Prof Amit Kumar

041523 2

Course Consumer Behavior

Unit-1 Consumer in the Marketplace

Unit-2 Models of Consumer Behavior

Unit-3 Cultural Influences on Consumer Decision making

Unit-4 Sociological Influences on Consumer Decision making

Unit-5 Personal Individual Influences on Decision making

Unit-6 Psychological Influences on Decision making

Unit-7 Consumer Decision Making Process

Unit-8 Consumer Influence amp Diffusion of Innovation

Consumer Behavior

IILM-Graduate School of Management

041523 3

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 4

bull Think of a recent important purchasendash briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase

bull What influenced you at each step

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 5

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 6

Complete model of consumer behavior

Stimuli (marketer dominated other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differencesbull resourcesbull motivation amp involvementbull knowledgebull attitudesbull personality values lifestyle

Influencesbull culturebull social classbull familybull situation

Start

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 7

bull How do you know when to shop What are the triggers that initiate an awareness amp search

bull What are the internal amp external sources of these triggers

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 2

Course Consumer Behavior

Unit-1 Consumer in the Marketplace

Unit-2 Models of Consumer Behavior

Unit-3 Cultural Influences on Consumer Decision making

Unit-4 Sociological Influences on Consumer Decision making

Unit-5 Personal Individual Influences on Decision making

Unit-6 Psychological Influences on Decision making

Unit-7 Consumer Decision Making Process

Unit-8 Consumer Influence amp Diffusion of Innovation

Consumer Behavior

IILM-Graduate School of Management

041523 3

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 4

bull Think of a recent important purchasendash briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase

bull What influenced you at each step

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 5

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 6

Complete model of consumer behavior

Stimuli (marketer dominated other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differencesbull resourcesbull motivation amp involvementbull knowledgebull attitudesbull personality values lifestyle

Influencesbull culturebull social classbull familybull situation

Start

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 7

bull How do you know when to shop What are the triggers that initiate an awareness amp search

bull What are the internal amp external sources of these triggers

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 3

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 4

bull Think of a recent important purchasendash briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase

bull What influenced you at each step

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 5

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 6

Complete model of consumer behavior

Stimuli (marketer dominated other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differencesbull resourcesbull motivation amp involvementbull knowledgebull attitudesbull personality values lifestyle

Influencesbull culturebull social classbull familybull situation

Start

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 7

bull How do you know when to shop What are the triggers that initiate an awareness amp search

bull What are the internal amp external sources of these triggers

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 4

bull Think of a recent important purchasendash briefly draw a flowchart of the steps you recall moving through from the awareness of need to post purchase

bull What influenced you at each step

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 5

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 6

Complete model of consumer behavior

Stimuli (marketer dominated other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differencesbull resourcesbull motivation amp involvementbull knowledgebull attitudesbull personality values lifestyle

Influencesbull culturebull social classbull familybull situation

Start

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 7

bull How do you know when to shop What are the triggers that initiate an awareness amp search

bull What are the internal amp external sources of these triggers

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 5

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 6

Complete model of consumer behavior

Stimuli (marketer dominated other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differencesbull resourcesbull motivation amp involvementbull knowledgebull attitudesbull personality values lifestyle

Influencesbull culturebull social classbull familybull situation

Start

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 7

bull How do you know when to shop What are the triggers that initiate an awareness amp search

bull What are the internal amp external sources of these triggers

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 6

Complete model of consumer behavior

Stimuli (marketer dominated other)

External search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognition

Alternative evaluation

Purchase

Outcomes

Dissatisfaction Satisfaction

Individual differencesbull resourcesbull motivation amp involvementbull knowledgebull attitudesbull personality values lifestyle

Influencesbull culturebull social classbull familybull situation

Start

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 7

bull How do you know when to shop What are the triggers that initiate an awareness amp search

bull What are the internal amp external sources of these triggers

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 7

bull How do you know when to shop What are the triggers that initiate an awareness amp search

bull What are the internal amp external sources of these triggers

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 8

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 9

Need Recognition

Preferred State

Marketing helps consumers recognize

(or create) an imbalance between present status

and preferred state

bull When a current product isnrsquot

performing properly

bull When the consumer is running out of an product

bull When another product seems

superior to the one currently used

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 10

Information Search

An internal search involves the scanning of ones memory to recall previous experiences or knowledge concerning solutions to the problem-- often sufficient for frequently purchased products

An external search may be necessary when past experience or knowledge is insufficient the risk of making a wrong purchase decision is high andor the cost of gathering information is low

Personal sources (friends and family)

Public sources (rating services like Consumer

Reports)

Marketer-dominated sources (advertising

or sales people)

The evoked set a group of brands from which the buyer can choose

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 11

Information Search

A successful information search leaves a buyer with possible alternatives the evoked set (A group of brands that a consumer is both aware of and willing to consider as a solution to a purchase)

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 12

bull go back to your past purchasendash what were the specific internal and external sources of information that influenced your decision

bull how do you determine (and rate) the credibility of these sources

bull what specific information influenced you

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 13

Determinants of External Search

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 14

Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural Social Cultural Social Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 15

What New Car Buyers Consider Important

Consumer Behavior Consumer in Marketplace

IILM-Graduate School of Management

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 16

Evaluation of alternatives

1 Consumer sees each product as a bundle of attributes with varying abilities for delivering the benefits 2 Rankweight attributes for each alternative Assign percentage of importance 3 Calculate Customer Values (CV) for each alternative 4 If not satisfied with your choice then return to the search phase

Evaluation of Alternatives--need to establish criteria for evaluation

Expectancy-value model

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 17

Purchase Decision

Purchase decision--Choose buying alternative includes product Brand Dealer Purchasing amount

Timing Method of Purchase etc

Product Choice

Brand Choice

Dealer Choice

Purchase Amount

Purchase Timing

PURCHASE DECISION

Payment Method

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 18

Consumer decision making varies with the level of involvement in the

purchasing decision

bull Extensive problem solving occurs when buyers purchase more expensive less frequently purchased products in an unfamiliar product category requiring information search amp evaluation may experience cognitive dissonance

bull Limited problem solving occurs when buyers are confronted with an unfamiliar brand in a familiar product category

bull Routine response behavior occurs when buyers purchase low cost low risk brand loyal frequently purchased low personal identification or relevance items with which they are familiar

Increase in Consumer evaluation processes

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 19

bull quickly list 10 items you have purchased in the past month

bull reexamine how long it took you to make a decision on each

bull why did such a difference in decision occur

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 20

Factors affecting Consumer involvement

bull Previous experience low level involvement

bull Interest high involvement

bull Perceived risk of negative consequences high involvement

bull Situation low to high due to risk

bull Social visibility involvement increases with product visibility

bull Offer extensive information on high involvement productsbull In-store promotion amp placement is important for low involvement productsbull Linking low-involvement product to high-involvement issue can increase sales

Sohellip

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 21

Types of consumer involvement and decision making

Routine Limited Extensive

Involvement Short Low to moderate

High

Time Low Short to moderate

Long

Cost Short Low to moderate

High

Information Search

Internal only Mostly internal

Internal amp external

Number of alternatives

one few many

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 22

bull think of an important purchasing decision you have made

bull what are some of the thoughts you have had following your purchase Any regrets

bull what has influenced those thoughts

bull how have you dealt with the discomfort

bull how has the company anticipated or dealt with your discomfort

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 23

Postpurchase Behavior

Can minimize throughEffective Communication

Follow-upGuaranteesWarranties

Underpromise amp overdeliver

Cognitive DissonanceCognitive Dissonance

Did I make a good decisionDid I make a good decision

Did I buy the right productDid I buy the right product

Did I get a good valueDid I get a good value

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 24

Post purchase BehaviorPost-Purchase Evaluation

Post purchase Satisfaction or Dissatisfaction

Post purchase Action CRM programs designed to build long-

term brand loyalty

Post purchase use amp disposal Marketer should also monitor how buyers

use and dispose of the product

Cognitive Dissonance Is the anxiety that occurs when a customer has second

thoughts immediately following a purchase

1048766 Can lead to customer complaints brand switching or discontinuing

1048766 Can reduced by Guarantees and trial Customer follow-ups

Confirming information from other users

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 25

Sour Grapesndash a story of cognitive dissonance

hellipafter being unable to reach the grapes the fox said ldquothese grapes are probably sour and if I had them I would not eat themrdquo --Aesop

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 26

Cognitive Dissonance

bull psychological discomfort caused by inconsistencies among a personrsquos beliefs attitudes and actions

bull varies in intensity based on importance of issue and degree of inconsistency

bull induces a ldquodrive staterdquo to avoid or reduce dissonance by changing beliefs attitudes or behaviors and thereby restore consistency

Tendency to avoid information can be countered by eliciting interest norm of fairness or perceive usefulness of information

Post-decision ldquobuyerrsquos remorserdquo may be increased by importance or difficulty or irreversibility of decision

Counter-attitudinal action freely chosen with little incentive or justification leads to attitude change (eg new product at special low price)

Applications

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27

041523 27

bull think of an innovation in your field

bull describe different groups of employees in your organization who would respond early and favorably as well as later and unfavorably

bull what are the differences between these groups

bull how could you use this information to market the innovation to them more effectively

Consumer Behavior Consumer Decision Making Process

IILM-Graduate School of Management

• Slide 1
• Course Consumer Behavior
• Slide 3
• Slide 4
• Slide 5
• Slide 6
• Slide 7
• Slide 8
• Slide 9
• Slide 10
• Slide 11
• Slide 12
• Slide 13
• Slide 14
• What New Car Buyers Consider Important
• Slide 16
• Slide 17
• Slide 18
• Slide 19
• Slide 20
• Slide 21
• Slide 22
• Slide 23
• Slide 24
• Slide 25
• Slide 26
• Slide 27