cunsumer behavior

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© The McGraw-Hill Companies, Inc., 2000MARKETING, 6/eMARKETING, 6/e BERKOWITZ KERIN HARTLEY RUDELIUS

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C H A P T E R S I X

CONSUMER BEHAVIOR

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AFTER READING THIS CHAPTER YOU SHOULD AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:BE ABLE TO:

• Outline the stages in the consumer decision process.

• Distinguish among three variations of the consumer decision process: routine, limited, and extended problem solving.

• Explain how psychological influences affect consumer behavior, particularly purchase decision processes.

• Identify major sociocultural influences on consumer behavior and their effects on purchase decisions.

• Recognize how marketers can use knowledge of consumer behavior to better understand and influence individual and family purchases.

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PP6-AA The Female Automobile CustomerPP6-AA The Female Automobile Customer

Females:

• will buy 60% of all new cars in 2001

• spend $81 billion+ on new & used cars

• prefer inexpensive sporty vehicles

• buy American 75% of the time

• often utilize internet-based information

• place a higher value on low price & safety than men

• 2/3 of whom dislike the car-buying process

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PP6-1 Purchase Decision ProcessPP6-1 Purchase Decision Process

Post-purchase behavior: Value in consumption of user

Post-purchase behavior: Value in consumption of user

Purchase decision: Buying value

Purchase decision: Buying value

Alternative evaluation:Assessing value

Alternative evaluation:Assessing value

Information search:Seeking value

Information search:Seeking value

Problem recognition:Perceiving need

Problem recognition:Perceiving need

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PP6-BB The Evoked SetPP6-BB The Evoked Set

The evoked set is the group of brands, based on

one’s evaluative criteria, that a consumer would

consider acceptable from all the brands in the

product class which he or she is aware of.

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PP6-2 Consumer Reports’ Evaluation of Portable Compact Disk PP6-2 Consumer Reports’ Evaluation of Portable Compact Disk PlayersPlayers

Panasonic

Phillips

Phillips

Sony

Aiwa

Sony

Panasonic

JVC

Sony

Panasonic

Aiwa

SL-SX500

AZ7383

AZ7583

D-E409CK

XP-SP1200

D-E401

SL-SW505

XL-P34

D-ES55

SL-S230

XP-570

$ 150

100

120

140

145

100

150

80

200

80

75

Rating:(A CR best buy)

Good

Fair

Poor

VeryGood

Excellent

Error LocateBrand Model Price Headphones Correction Bumps Speed

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PP6-A What New Car Buyers Consider Most Important inPP6-A What New Car Buyers Consider Most Important in Deciding What New Car To BuyDeciding What New Car To Buy

Factor Percent Saying Factor is Most Important

Warranty/guarantee 64%

Ease of maintenance/repair 61%

Quality compared to other brands 61%

Price compared to other brands 58%

High-quality brand 54%

Style/look of brand 46%

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PP6-CC Computer-Mediated BuyingPP6-CC Computer-Mediated Buying

Consumer computer-mediated buying, or online

buying, is the use of Internet technology to:

a. Seek information

b. Evaluate alternatives &

c. Make purchase decisions

This technology also allows marketers to customize

their offering to the specific needs of individuals,

thereby increasing customer value and satisfaction.

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PP6-DD Cognitive DissonancePP6-DD Cognitive Dissonance

Cognitive Dissonance is a

feeling of post-purchase

psychological tension or

anxiety. To alleviate

cognitive dissonance,

consumers often search for information to

reinforce their purchase decision.

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PP6-EEa High versus Low InvolvementPP6-EEa High versus Low Involvement

High Involvement purchase occasions can be

expensive, have serious personal consequences,

and/or reflect one’s social image. These

occasions typically involve extensive information

search, consideration of several product

attributes and brands, the formation of

attitudes, and word-of-mouth communication.

An example would be the purchase of an

automobile or stereo system.

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PP6-EEb High versus Low Involvement PP6-EEb High versus Low Involvement

Low Involvement purchase occasions

typically involve little information search

or consideration of various brands, except

on the basis of price. They usually don’t

involve any personal consequences. They

tend to be privately consumed. An

example would be the purchase of soap or

toothpaste.

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High Low

Characteristics of Extended Limited Routine purchase decision problem problem problem process solving solving solving

High Low

Characteristics of Extended Limited Routine purchase decision problem problem problem process solving solving solving

Number of brands Many Several One examined

Number of brands Many Several One examined

Number of sellers Many Several Few concerned

Number of sellers Many Several Few concerned

Number of product Many Moderate One attributes evaluated

Number of product Many Moderate One attributes evaluated

Number of external Many Few None information sources used

Number of external Many Few None information sources used

Time spent searching Considerable Little Minimal Time spent searching Considerable Little Minimal

Consumer Involvement

PP6-3 Comparison of problem-solving variationsPP6-3 Comparison of problem-solving variations

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PP6-B Consumer involvement, knowledge, and problem-solving PP6-B Consumer involvement, knowledge, and problem-solving variations variations

Routine problem solving(e.g., milk and bread)

Routine problem solving(e.g., milk and bread)

Limited problem solving(e.g., small appliances)

Limited problem solving(e.g., small appliances)

Extended problem solving(e.g., stocks and bonds)

Extended problem solving(e.g., stocks and bonds)

Con

sum

er in

volv

emen

t

Consumer knowledge

High

High Low

Low

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PP6-4 Influences on the consumer purchase decision processPP6-4 Influences on the consumer purchase decision process

Marketing mix influencesMarketing mix influences• ProductProduct• PricePrice• PromotionPromotion• PlacePlace

Promotion InfluencesPromotion Influences• Purchase taskPurchase task• Social surroundingsSocial surroundings• Physical surroundingsPhysical surroundings• Temporal effectsTemporal effects• Antecedent statesAntecedent states

Problem recognition

Information search

Alternative evaluation

Purchase decision

Postpurchase behavior

Consumer Decision ProcessConsumer Decision ProcessPsychologicalPsychological

InfluencesInfluences• MotivationMotivation• PersonalityPersonality• PerceptionPerception• LearningLearning• Values, beliefsValues, beliefs

and attitudeand attitude• LifestyleLifestyle

SocioculturalSocioculturalInfluencesInfluences

• PersonalPersonalinfluenceinfluence

• Reference groupsReference groups• FamilyFamily• Social classSocial class• CultureCulture• SubcultureSubculture

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PP6-FF Concept CheckPP6-FF Concept Check

1. What is the first step in the consumer

decision process?

2. The brands a consumer considers

buying out of the set of brands in a

product class of the consumer is aware is called the ____________.

3. What is the term for post-purchase anxiety?

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PP6-5 Hierarchy of NeedsPP6-5 Hierarchy of Needs Self-Actualization Needs

Self-Fulfillment

Personal Needs

Status, respect, prestige

Social Needs Friendship, belonging, love

Safety Needs Freedom from harm, financial security

Physiological Needs Food, water, sex, oxygen

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PP6-GG Psychological Influences on Consumer BehaviorPP6-GG Psychological Influences on Consumer Behavior

• motivation and personality

• perception

• learning

• values, beliefs, and attitudes

• lifestyle

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PP6-C Selective perception filtersPP6-C Selective perception filters

Messages

Selective exposureSelective exposure

Selective comprehensionSelective comprehension

Selective retentionSelective retention

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PP6-HH Subliminal PerceptionPP6-HH Subliminal Perception

Subliminal perception means that you see or hear

messages without being aware of them. The presence

and effect of subliminal perception on behavior is a

hotly debated issue, with more popular appeal than

scientific support.

Evidence suggests that subliminal messages have some

effect on behavior. If so, is their use an ethical

practice? See the accompanying Ethics and

Responsibility Alert.

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PP6-II Perceived RiskPP6-II Perceived RiskPerceived Risk represents anxieties felt because the

consumer cannot anticipate the outcomes of a purchase

but believes that there may be negative consequences.

Perceptions of greater perceived risk are usually

accompanied by a more extensive external information

search concerning a purchase.

Types of Perceived Risk:• financial• physical• psychosocial

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PP6-JJ LearningPP6-JJ Learning

Learning refers to those behaviors that result from:

1. repeated experience

2. thinking

Behavioral Learning is the process of developing

automatic responses to a situation built up through

repeated exposure to it.

Cognitive Learning is learning via thinking, reasoning,

and mental problem solving without direct experience.

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PP6-KK Brand LoyaltyPP6-KK Brand Loyalty

Brand Loyalty is a favorable attitude toward and consistent

purchase of a single brand over time. • It results from positive reinforcement of previous

actions. • There is evidence of brand loyalty in many commonly

purchased products in the U.S. and the global marketplace.

• However, the incidence of brand loyalty appears to be declining in North American, Mexico, European Union nations, and Japan.

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PP6-D Brand loyalty tendency by product categoryPP6-D Brand loyalty tendency by product category (Percent of U.S. consumers with strong brand preference)

0 10 20 30 40 50 60 70 80

MayonnaiseSoft drinks

Bar soapCanned soup

CigarettesBaked macaroni & cheese

Dry cerealsSpaghetti sauce

Pain relieversToilet paperFacial tissue

Cold remediesDog foodCake mix

Paper towelsFrozen vegetables

Frozen entriesCat food

7067

6662

6059

5757

5654

5351

4945

4343

4141

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PP6-LL Attitudes, Values and BeliefsPP6-LL Attitudes, Values and BeliefsAn attitude is a learned predisposition to respond to an

object or class of objects in a consistently favorable or

unfavorable way. Attitudes are shaped by our values and

beliefs.

Beliefs are a consumer’s subjective perception of how well

a product or brand performs on different attributes.

Beliefs are based on personal experience, advertising, and

discussions with other people.

Values are deeply held attitudes and beliefs, which are

resistant to change, but which may change over time.

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PP6-MM Lifestyle & VALSPP6-MM Lifestyle & VALS

Lifestyle is a mode of living that is identified by how

people spend their time and resources (activities), what

they consider important in their environment

(interests), and what they think of themselves and the

world around them (opinions).

Lifestyle analysis focuses on identifying consumer

profiles. The most prominent example of this type of

analysis is the Values and Lifestyles (VALS) Program

developed by SRI International.

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PP6-6 VALS2 Psychographic SegmentsPP6-6 VALS2 Psychographic Segments

Least resources

Most resources

OrientedPrinciple OrientedStatus OrientedAction

ACTUALIZERS

ACHIEVERS

STRIVERSBELIEVERS

FULFILLEDS

MAKERS

EXPERIENCERS

STRUGGLERS

Enjoy the "finer things."Receptive to new products,technologies, distribution. Skeptical of advertising.

Frequent readers of wide variety of publications

Light TV viewers.

Attracted to premium products

Prime target for variety of productsAverage TV watchers, read

business, news, and self-help

publications

Image conscious.Limited discretionary incomes, but

carry credit balances.Spend on clothing and personal care products.

Prefer TV to reading.

Little interest in imageor prestige

Above-average consumers ofproducts for the home

Like educational and publicaffairs programming

Read widelyand often

Buy American.Slow to change habits.

Look for bargains.Watch TV more than average.Read retirement, home and

garden, and generalinterest magazines.

Follow fashion and fads.Spend much of disposable

income on socializing.Buy on impulse.

Attend to advertising.Listen to rock music.

Shop for comfort,durability, value.

Unimpressed by luxuries.Buy the basics, listen to radio.Read auto, home mechanics,

fishing, outdoormagazines.

Brand loyal.Use coupons and watch for sales.

Trust advertising.Watch TV often.

Read tabloids and women’s magazines.

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PP6-NN Concept Check PP6-NN Concept Check

1.1. The problem with Toro Snow Pup was The problem with Toro Snow Pup was an example of an example of selective selective ____________.____________.

2.2. What three What three attitude changeattitude change approaches approachesare most common?are most common?

3.3. What does What does lifestylelifestyle mean? mean?

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PP6-OO Sociocultural InfluencesPP6-OO Sociocultural Influences

Sociocultural influences, which evolve from a

consumer’s formal and informal relationships with

other people, can exert significant impact on consumer

behavior. Sociocultural influences include:

1. Personal influence

2. Reference groups

3. The Family

4. Social Class

5. Culture

6. Subculture

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PP6-PP Personal InfluencePP6-PP Personal Influence

Personal Influence includes two aspects

that are very important to marketers:

1. Opinion Leadership

2. Word of Mouth

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PP6-E Word of mouth influencePP6-E Word of mouth influence

(Percent of men and women who seek advice regarding selected products and services)

Men

50%

40%

30%

20%

10% M

en

Wom

en

Men

Wom

en

Men

Wom

en

Wom

en

Men

Wom

en

Carmechanic

Where toeat out

What moviesto see

What carto buy

Where to gethair cut

40%

49%

39% 38%

26%28%

15%

22%

10%

24%

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PP6-QQ Reference GroupsPP6-QQ Reference Groups

Reference groups are people to whom an individual

looks as a basis for self-appraisal or as a source of

personal standards. Three kinds of reference groups

that have clear marketing implications are:

1. Membership group

2. Aspiration group

3. Dissociative group

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PP6-F Where children between the ages of 4 and 12 spend PP6-F Where children between the ages of 4 and 12 spend spend their money spend their money

27%Play items

33%Food andbeverages

15%Clothes

6%Video

arcades

8%Movies

&sports

11%Other

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PP6-RR The Family Life CyclePP6-RR The Family Life Cycle

The family life cycle concept describes

the distinct phases that a family

progresses through from formation to

retirement, each phase bringing with

it identifiable purchasing behaviors.

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Youngsingle

Middle-aged divorced without childrenMiddle-aged

married without children

Young divorced

withchildren

Young marriedwithout children Young

marriedwith

children

Middle-aged divorced

withchildren Middle-aged

divorced without

dependent children

Young divorced without children

Usual flow

Recycled flow

Traditional family flow

Middle-aged married

withchildren Middle-aged

married without

dependent children Older

married

Olderunmarried

PP6-7 Modern family life cyclePP6-7 Modern family life cycle

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PP6-SS Social ClassPP6-SS Social Class

Social Class may be defined as the relatively

permanent, homogeneous divisions in a society

into which people sharing similar values,

interests, and behavior can be grouped. Social

class is determined by:

1. Occupation

2. Source of income (not level)

3. Educational attainment

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PP6-TT Culture & SubculturePP6-TT Culture & Subculture

Culture refers to the set of values, ideas,

and attitudes that are accepted by a

homogeneous group of people and

transmitted to the next generation.

Subcultures are subgroups within a larger,

or national culture with unique values,

ideas, and attitudes.

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PP6-G Ownership of consumer electronics among African- PP6-G Ownership of consumer electronics among African- Americans, Hispanics, and Asian-Americans Americans, Hispanics, and Asian-Americans

Percent owning among . . . .Percent owning among . . . .

ProductProduct

VCR

Answering machine

Compact disk player

Personal computer

Camcorder

Cellular telephone

VCR

Answering machine

Compact disk player

Personal computer

Camcorder

Cellular telephone

African-AmericansAfrican-

Americans

73.5%

47.2

31.9

19.8

15.0

10.3

73.5%

47.2

31.9

19.8

15.0

10.3

HispanicsHispanics

73.1%

27.5

26.7

9.6

17.1

6.7

73.1%

27.5

26.7

9.6

17.1

6.7

Asian-Americans

Asian-Americans

89.4%

50.0

45.5

30.5

35.6

24.4

89.4%

50.0

45.5

30.5

35.6

24.4

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PP6-UU Concept Check PP6-UU Concept Check

1. What are the two primary forms of personal influence?

2. Marketers are concerned with which types of reference groups?

3. What two challenges must marketers overcome when marketing to Hispanics?

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cunsumer behavior