Understanding Customer BehaviorChapter 5

The Purchase decision Process5 Stages

The Purchase decision Process1.Problem Recognition: Perceiving a needo Perceiving a difference between a

person’s ideal and actual situations big enough to trigger a decision

o In marketing: activating a consumer’s decision by showing the shortcomings of comepeting or currently owned products

The Purchase decision Process2. Information Search: Seeking Valuei. Internal search consumer’s memory of pervious products or brands for frequently purchased products

ii. External search need when: insufficient past experience/knowledge

high risk of making a wrong purchase

low cost for gathering info.

primary sources of external info. Personal sources

Public sources

The Purchase decision Processiii. Marketer-dominated Sources Examples: advertising, company website, salespeople, etc.

The Purchase decision Process3. Alternative Evaluation: Assessing Value consumer's evaluation criteria objective attributes

subjective

attributes

The Purchase decision Process4. Purchase Decision: Buying Valuei. From whom to buy terms of sale, consumer’s past experience buying from the seller, and the return policy purchase decision; simultaneous of both product attributes and seller characteristics

ii. When to buy sales, store atmosphere, pleasantness or ease of shopping experience, time pressure, and financial circumstances

The Purchase decision Process5. Postpurchase behavior Customer dissatisfaction Product deficiency

Too high expectations

(dis)satisfaction affects consumer’s value perceptions (dis)satisfaction affects consumer communications and repeat-purchase behavior

Consumer Involvement and Problem-Solving VariationsThree general variation in the customer purchase decision process:1. Extended Problem Solving2. Limited Problem Solving3. Routine Problem Solving

Consumer Involvement and Problem-Solving Variations1. Extended Problem Solvingo Each of the 5 stages of the consumer

purchase decision process is usedo Considerable time & effort devoted to

search for external info. and identification/ evaluation of alternatives

o High-involvement purchase situations

Consumer Involvement and Problem-Solving Variations2. Limited Problem Solvingo Purchase situations in which the

consumer has little time or effort to spend

o Examples: choosing a toaster, a restaurant, etc.

Consumer Involvement and Problem-Solving Variations3. Routine Problem Solvingo The purchase process is virtually a

habito Low-involvement decision makingo Low-priced, frequently purchased

products

Psychological Influences on Consumer Behavior1. Motivation and Personality2. Perception3. Learning4. Values, Beliefs, and Attitudes5. Consumer Lifestyle

Psychological Influences on Consumer Behavior1. Motivation and Personality1-1. Motivation:o The energizing force that stimulates behavior to

satisfy a needo Hierarchical needs

1-2. Personality:o A person’s consistent behaviors or responses to

recurring situationso A consumer’s personality guides and directs

behavioro Key traitso Self-concept , actual and ideal

Psychological Influences on Consumer Behavior2. Perception2-1. Selective Perception:o A filtering of exposure, comprehension, and

retention• Selective exposure: people pay attention to the

messages that are consistent with their attitudes and beliefs and ignore the message that is not

• Selective comprehension: interpreting info so that is consistent with the consumer’s attitudes and beliefs

• Selective retention: consumers don’t remember all the info they see, read, or hear.

Psychological Influences on Consumer Behavior2. Perception2-2. Perceived Risk:o Represents the anxiety felt because the

consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences

o The greater the perceived risk, the more extensive the external search is likely to be

Psychological Influences on Consumer Behavior3. Learning3-1.Behavioral Learningo The process of developing automatic

responses to a situation built up through repeated exposure to it

o Drive, cue, response, and reinforcemento Use of two concepts of behavioral learning

theory in marketing Stimulus generalization

Stimulus discrimination

Psychological Influences on Consumer Behavior3. Learning3-2. Cognitive Learningo Making connections between two or more

ideas or simply observing the outcome of other’s behavior and adjusting your own accordingly

o Through message repetitiono Advil and pain relief

Psychological Influences on Consumer Behavior3. Learningo Brand Loyaltyo Learning relates to habit formationo Close link between habits and brand loyaltyo Reduces risk and saves timeo Brand loyalty for many commonly purchased

products

Psychological Influences on Consumer Behavior4. Values, Beliefs, and Attitudes4-1. Attitude Formationo Attitude: a learned predisposition to respond

to an object or a class of objects in a consistently (un)favorable way

o Shaped by our values and beliefs

Psychological Influences on Consumer Behavior4. Values, Beliefs, and Attitudes4-2. Attitude Changeo Using three approaches to change consumer

attitudes toward products and brands:i. Changing beliefs about the extent to which a

brand has certain attributes

ii. Changing the perceived importance of attributes

iii. Adding a new attribute to the product

Psychological Influences on Consumer Behavior5. Consumer Lifestyle o A mode of living that is identified by how

people spend their time and resources, what they consider important in their life, and what they think of themselves and the people around them

o The analysis of consumer lifestyle: Psychographics

o Psychographics: the practice of combining psychology, lifestyle, and demographic, is often used to uncover consumer motivation for buying and using products and services

Psychological Influences on Consumer Behavior5. Consumer Lifestyleo The VALS System • Ideals-motivated groups

• Achievement-motivated groups

• Self-expression-motivated groups

• High-and-low-resource groups

Sociocultural Influences on Consumer Behavior1. Personal Influence2. Reference Groups3. Family Influence4. Social Class5. Culture and Subculture

Sociocultural Influences on Consumer Behavior1. Personal Influence1-1. Opinion Leadershipo Individuals who exert (in)direct social

influence over otherso 10% of U.S. adultso Using celebrities as spokespersonso Promoting products in media believed to

reach opinion leaderso More direct approaches

Sociocultural Influences on Consumer Behavior1. Personal Influence1-2. Word of Moutho Influencing people during conversationso Most powerful and authentic information

source for consumerso 67% of U.S. consumer product saleso Teaser advertising campaigns, advertising

slogans music and humoro Negative rumorso Magnified by internet

Sociocultural Influences on Consumer Behavior2. Reference Groupso People to whom an individual looks as a basis for

self-appraisal or as a source of personal standard

o Influence the info, attitudes, and aspiration levels that help set a consumer’s standards

o Influence the purchase of luxury products but not the necessities

o Membership group, Aspiration group, Dissociative group

Sociocultural Influences on Consumer Behavior3. Family Influence3-1. Consumer Socializationo Children learn how to purchase interaction with adults in purchase situations their own purchasing and product usage

experience

o Brand preference at the age two

Sociocultural Influences on Consumer Behavior3. Family Influence3-2. Family Lifecycleo Each phase, unique identifiable purchasing

behaviors

Sociocultural Influences on Consumer Behavior3. Family Influence3-3. Family Decision Makingo Joint decision making: most decisions are made

by both spouseso Spouse-dominant decision making: either

husband or wife is mostly responsible for decisionso Roles of individual family members in

purchase process: 1. information gatherer 2. influencer

3. decision maker 4. purchaser

5. user

Sociocultural Influences on Consumer Behavior4. Social Classo The relatively permanent, homogenous divisions in

a society into which people sharing similar values, interests, and behavior can be grouped

o Social class determination: occupation, source of income(not level) and education

o Three major social class categories o People within a social class exhibit relatively

common values, attitudes, beliefs, lifestyles, and buying behaviors

o Using social class as a basis for identifying and reaching good prospects for their products and services

Sociocultural Influences on Consumer Behavior5. Culture and Subcultureo Subculture: Subgroups within the larger, or

national, culture with unique values, ideas and attitudes

o In American Society Hispanics African Americans Asian Americans

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