2.1

Chapter 5:Chapter 5:UNDERSTANDINGUNDERSTANDING

thetheBUYER BEHAVIORBUYER BEHAVIOR

andandCOMMUNICATION PROCESSCOMMUNICATION PROCESS

5.1

Household Consumer BehaviorHousehold Consumer Behavior

Complex Process through which Individuals Acquire, Use and Complex Process through which Individuals Acquire, Use and Dispose of Products or Services to Satisfy Their Needs and DesiresDispose of Products or Services to Satisfy Their Needs and Desires

THE CONSUMER AS A DECISION MAKER - 4 STAGESTHE CONSUMER AS A DECISION MAKER - 4 STAGES Need Recognition: Functional or Emotional BenefitsNeed Recognition: Functional or Emotional Benefits Information Search & Alternative EvaluationInformation Search & Alternative Evaluation

Internal Information SearchInternal Information Search External Information SearchExternal Information Search Consideration SetConsideration Set Evaluation CriteriaEvaluation Criteria

5.25.2

Is this a Functional or Is this a Functional or Emotional Appeal for Emotional Appeal for Foster Grant Sunglasses?Foster Grant Sunglasses?

5.3

Household Consumer Behavior (con’t)Household Consumer Behavior (con’t)

THE CONSUMER AS A DECISION MAKER - 4 STAGES (con’t)THE CONSUMER AS A DECISION MAKER - 4 STAGES (con’t) Purchase -Consumer Commits to a Brand with Purchase Purchase -Consumer Commits to a Brand with Purchase

DecisionDecision

Post Purchase Use & EvaluationPost Purchase Use & Evaluation

Consumer SatisfactionConsumer Satisfaction

Cognitive DissonanceCognitive Dissonance

5.45.4

Household Consumer Behavior (con’t)Household Consumer Behavior (con’t)

FOUR MODES OF CONSUMER DECISION MAKINGFOUR MODES OF CONSUMER DECISION MAKING

EMERGING FROM:EMERGING FROM: Sources of Involvement & Prior Experience Create:Sources of Involvement & Prior Experience Create:

Extended Problem SolvingExtended Problem Solving Limited Problem SolvingLimited Problem Solving Habit or Variety SeekingHabit or Variety Seeking Brand LoyaltyBrand Loyalty

5.55.5

How Does This Ad Comply How Does This Ad Comply with the Conditions ofwith the Conditions ofExtended Problem Solving? Extended Problem Solving?

5.65.6

Household Consumer Behavior (con’t)Household Consumer Behavior (con’t)

THE CONSUMER AS A DECISION MAKER: Key THE CONSUMER AS A DECISION MAKER: Key Psychological Processes Psychological Processes Attitudes and BeliefsAttitudes and Beliefs

Brand AttitudesBrand Attitudes BeliefsBeliefs Salient BeliefsSalient Beliefs

Multiattribute Attitude ModelsMultiattribute Attitude Models Evaluative CriteriaEvaluative Criteria Importance WeightImportance Weight The ConsiderationThe Consideration BeliefsBeliefs

5.75.7

Household Consumer Behavior (con’t) Household Consumer Behavior (con’t)

THE CONSUMER AS A DECISION MAKER :Key THE CONSUMER AS A DECISION MAKER :Key Psychological Processes (con’t)Psychological Processes (con’t) PerceptionPerception

We Use it to Create a RealityWe Use it to Create a Reality Creates an Orientation to the WorldCreates an Orientation to the World Has Specific Implications for Each ConsumerHas Specific Implications for Each Consumer

Experimental-Hedonic InfluencesExperimental-Hedonic Influences Emphasis on Pleasure & Personal EnhancementEmphasis on Pleasure & Personal Enhancement Consumers Buy & Consume to Feel GoodConsumers Buy & Consume to Feel Good In Contrast to Rigorous Cognitive EvaluationIn Contrast to Rigorous Cognitive Evaluation

of Other Factorsof Other Factors5.85.8

This Ad Would Seem to Be This Ad Would Seem to Be Appealing to Experiential-Appealing to Experiential-Hedonic MotivesHedonic Motives

5.9

The Consumer in a Sociocultural The Consumer in a Sociocultural Consumption ContextConsumption ContextCULTURECULTURE Total Life Ways of a PeopleTotal Life Ways of a People The Way People Eat, Groom, Celebrate & Mark Their Space/PositionThe Way People Eat, Groom, Celebrate & Mark Their Space/Position Cultures are SmallCultures are SmallVALUESVALUES Express in Words & DeedsExpress in Words & Deeds Examples - Individual Freedom, Propriety & Restrained, Examples - Individual Freedom, Propriety & Restrained, Behavior, etc.Behavior, etc.

RITUALSRITUALS Cultures Affirm, Express & Maintain ValuesCultures Affirm, Express & Maintain Values Ritual-laden Holidays Perpetuate American CultureRitual-laden Holidays Perpetuate American Culture

5.105.10

Culture is the “Total LifeCulture is the “Total LifeWays of People.” How isWays of People.” How isLife in Singapore DifferentLife in Singapore DifferentFrom the U.S.?From the U.S.?

5.11

The Consumer in a Sociocultural The Consumer in a Sociocultural Consumption Context (con’t)Consumption Context (con’t)

SOCIETYSOCIETY Social ClassSocial Class FamilyFamily Reference GroupsReference Groups Race & EthnicityRace & Ethnicity GenderGender CommunityCommunity

5.125.12

Is this Ad Using a Is this Ad Using a Reference Group Appeal?Reference Group Appeal?

5.13

Business Buyer BehaviorBusiness Buyer Behavior

STAGES IN BUYING PROCESSSTAGES IN BUYING PROCESS

Need RecognitionNeed Recognition

Product & Scheduling SpecificationsProduct & Scheduling Specifications

Evaluation of ProductsEvaluation of Products

Product & Supplier ChoiceProduct & Supplier Choice

Product & Supplier EvaluationProduct & Supplier Evaluation

5.145.14

Business Buyer BehaviorBusiness Buyer Behavior

NATURE OF DECISION MAKING IN BUSINESS MARKETNATURE OF DECISION MAKING IN BUSINESS MARKET StylesStyles

RationalRational ConservativeConservative

Type of DecisionType of Decision Straight RebuyStraight Rebuy Modified RebuyModified Rebuy New Task BuyingNew Task Buying

5.155.15

What Type of Decision is a Zip Drive?What Type of Decision is a Zip Drive?

Business Buyer Behavior (con’t)Business Buyer Behavior (con’t)

NATURE OF DECISION MAKING IN BUSINESS MARKET NATURE OF DECISION MAKING IN BUSINESS MARKET (con’t)(con’t)

Buying CenterBuying Center Several Different People Involved in a Single DecisionSeveral Different People Involved in a Single Decision May Require Different Promotional ToolsMay Require Different Promotional Tools

Business Buyer Behavior on the InternetBusiness Buyer Behavior on the Internet Internet Buying is EfficientInternet Buying is Efficient Sites Offer Product & Pricing Information from Many Sources Sites Offer Product & Pricing Information from Many Sources

SimultaneouslySimultaneously

5.175.17

Evaluation Criteria Used in Business Evaluation Criteria Used in Business Decision MakingDecision Making

Efficiency of Product SuppliedEfficiency of Product Supplied Certainty of SupplyCertainty of Supply Dependability in Meeting SchedulesDependability in Meeting Schedules Technical Assistance From the SellerTechnical Assistance From the Seller Product FeaturesProduct Features Supplier Loyalty/PatronageSupplier Loyalty/Patronage

5.18

The Communication ProcessThe Communication Process

COMPONENTS IN A MODEL OF COMMUNICATIONSCOMPONENTS IN A MODEL OF COMMUNICATIONS IntentionsIntentions SourceSource MessageMessage MediumMedium ReceiversReceivers EffectsEffects Noise & FeedbackNoise & Feedback

5.195.19

Issues in Communication Issues in Communication and Information Processingand Information Processing

INFORMATION PROCESSING & PERPETUAL DEFENSESINFORMATION PROCESSING & PERPETUAL DEFENSES

Two Major Obstacles to Overcome for a Message Two Major Obstacles to Overcome for a Message to Have an Effect: to Have an Effect: Cognitive Consistency Impetus and Cognitive Consistency Impetus and Information OverloadInformation Overload

Cognitive Consistency ImpetusCognitive Consistency Impetus Mental StateMental State New InformationNew Information Cognitive ConsistencyCognitive Consistency

5.205.20

Issues in Communication Issues in Communication and Information Processing (con’t)and Information Processing (con’t)

INFORMATION PROCESSING & PERPETUAL DEFENSE INFORMATION PROCESSING & PERPETUAL DEFENSE (con’t)(con’t) Information OverloadInformation Overload

Consumers Employ Perceptual Defenses to Simplify & Consumers Employ Perceptual Defenses to Simplify & Control Information ProcessingControl Information Processing Selective ExposureSelective Exposure Selective AttentionSelective Attention Selective ComprehensionSelective Comprehension Selective RetentionSelective Retention

5.215.21

Issues in Communication Issues in Communication and Information Processing (con’t)and Information Processing (con’t)

INFORMATION PROCESSING & PERPETUAL DEFENSE INFORMATION PROCESSING & PERPETUAL DEFENSE (con’t)(con’t)

Information Overload (con’t)Information Overload (con’t) Shaping Attitudes via Perceptual RouteShaping Attitudes via Perceptual Route

Low-Involvement ProductsLow-Involvement Products Attitude FormationAttitude Formation Peripheral CuesPeripheral Cues

– Any Feature of a Promotion that Prompts a Pleasant Any Feature of a Promotion that Prompts a Pleasant Emotional ResponseEmotional Response

5.225.22