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Consumer behavior: consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions.
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FIGURE 4-4FIGURE 4-4 Influences on the consumer purchase decision process from both internal and external sources
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Perception
Perception is the process by which an individual selects, organizes, and interprets information to create ameaningful picture of the world.
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In marketing:
“Perception is reality.”
In art:“Is all what we see or seem but a dream within a dream.”Edgar Allan Poe
SIS Filter
AttentionExpectationsMotivesAttitudes
Gestalt
OrganizationClosure Common FateProximity Figure-ground
Principles of Sensation1.Only change is recognized2.The ability to detect is based on the amount of the stimulus
Thresholds:AbsoluteJND (Just noticeable difference)
Other perceptual factors
Social factorsHalo effect
Being attractive is goodJane is attractive
Therefore Jane is good!
Strategies to Reduce Perceived Risk
• Secure Endorsements
• Provide Free Trials/Samples
• Give Extensive Instructions
• Provide Warranties/Guarantees
• Obtain Seals of Approval
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Learning
• Cue
• Response
• Reinforcement
Behavioral Learning
• Drive (Hunger)
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Classical conditioningOperant conditioning
A relatively permanent change in behavior due to prior experience.
• Stimulus Discrimination
• Stimulus Generalization
Cognitive Learning
Brand Loyalty
Behavioral Learning
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Attitudes and Attitude Change
Attitudes: Learned predispositions torespond to an object or class of objects
in a consistently favorable or unfavorable way.
Attitudes and Attitude Change1.They are learned2.They are predispositions
Long-lasting and important
Attitudes and Attitude Change1.They are learned2.They are predispositions3.They are consistent4.They are the link between perception and behavior Perception Attitudes Behavior
Attitudes and Attitude Change1.They are learned2.They are predispositions3.They are consistent4.They are the link between perception and behavior5. They are a “hypothetical construct”
Why do customers have them?1.Organize knowledge2.Ego-defense3.Value 4.Utilitarian (tools)
Changing attitudes1.Consistency2.Communications
Consistency
2. Cognitive DissonanceFestinger (grasshoppers)Pro-Obama article Post purchase dissonance
Attitude Change and Communication
2. Source physical attractivenessHalo Effect
Why?Gets attentionGives informationMinimizes cognitive
dissonanceWorks
Attitude Change and Communication
3. Source likeabilityFactors
Similarity (unless….)Speed of speakingErrorsKnown factors
(As seen on TV!)
Attitude Change and Communication
4. Message factors Repetition (two factor theory)Words vs PicturesVivid or Abstract
Attitude Change and Communication
4. Message factors ComparativeOne-sided vs. two-sidedDrawing conclusionsPrimacy or Recency Effects
Attitude Change and Communication
5. Receiver Emotions a. Feeling goodHumor (What is funny?)AttractivenessSex… food….MusicFlatteryGood news
Attitude Change and Communication
5. Receiver Emotions a. Feeling badWorks or doesn’t work?Protection Racket
Low Involvement
• Maintain Product Quality
• Avoid Stockouts
• Reduce CognitiveDissonance with Ads
High Involvement
• Use Comparative Ads
• Use Personal Selling4-60
Customer Decision Making
Involvement
Low High
ComplexityHigh
Low
ImpulseBuying
Inertia Brand Loyalty
Customer Decision Making
Involvement
Low High
ComplexityHigh
Low
ImpulseBuying
Inertia Brand Loyalty
ComplexDecision Making
FIGURE 4-AFIGURE 4-A Consumers use search, experience, and credence properties to evaluate services
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FIGURE 4-1FIGURE 4-1 The purchase decision process consists of five stages
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Ideal
ActualOpportunity
Need
2. Information Search
External SearchHow much: InvolvementPerceived RiskTime PressuresCustomer CharacteristicsFamiliarity and Expertise
Ignorance paradox
3. Alternatives Evaluation
Models:Compensatory
Non-compensatoryConjunctive Bottom upLexicographic Top downHeuristic Satisficing
4. Purchase5. Post-Purchase Experience
All products are evaluated!Expectancy Disconfirmation model
Equity Theory What is fair?Cognitive DissonanceContrast Effects
FIGURE 4-BFIGURE 4-B VALS™ identifies eight consumer segments
Copyright © 2010 by Strategic Business Insights. All rights reserved.
INNOVATORSSophisticated,
Change Leading,Active, Take Charge
THINKERSInformation Seeking,
Satisfied,Reflective
BELIEVERSConservative,Conventional,
Traditional
STRIVERSTrendy, Approval,
Seeking,Disenfranchised
ACHIEVERSSuccessful, Career &
Family Oriented,Moderate
EXPERIENCERSRisk Seeking,Enthusiastic,
Impulsive
MAKERSHomegrown, SelfSufficient, Macho,Family Oriented
SURVIVORSPassive,
Risk Averse,Constrained
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Take the VAL’s Test
http://www.strategicbusinessinsights.com/vals/presurvey.shtml
Take a personality test
http://personality-testing.info/tests/BIG5.php
Social Class
A social stratification of persons withshared values, attitudes, and behaviors.
PrivilegeIn U.S.
EducationOccupation
SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
PERSONAL INFLUENCE
Opinion Leaders
Word of Mouth
• Buzz
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SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
REFERENCE GROUPS
• Dissociative Group
Reference Groups
• Aspiration Group
• Membership Group
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SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIOR
FAMILY INFLUENCE
Consumer Socialization
Family Life Cycle
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SOCIOCULTURAL INFLUENCESON CONSUMER BEHAVIORCULTURE AND SUBCULTURE
Culture
• HispanicBuyingPatterns
Subcultures
• AfricanAmericanBuyingPatterns
• AsianAmericanBuyingPatterns
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Hofstrede
1.Individualism vs. collectivism 2.Large vs small power distance3.High vs low uncertainty avoidance4.Masculinity vs femininity5.Abstract vs associative
Kluckhohn
2. TimePast-present-future orientationMono vs poly timeBasic nature of time
LinearCircularProcedural
Brand Loyalty
Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
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Beliefs
Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people.
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Opinion Leaders
Opinion leaders are individuals who exert direct or indirect social influence over others.
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Reference Groups
Reference groups consists of people to whom an individual looks as a basis for self-appraisal or as a source of personal standards.
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Family Life Cycle
A family life cycle consists ofthe distinct phases that a family progresses through fromformation to retirement, each phase bringing with it identifiable purchasing behaviors.
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