Chapter 5 – Marketing by Kerin, Hartley, and Rudelius

Consumer Behavior
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
Purchase Decision Process
the stages a buyer passes through in making choices about which products and services to buy
Five Stages of Purchase Decision Process
1. Problem Recognition – Perceiving a need
2. Information Search – Seeking Value
3. Alternative Education – Assessing Value
4. Purchase Decision – Buying Value
5. Post Purchase Behavior – Value in consumption or use
Problem Recognition
the initial step in the purchase decision, perceiving a difference between a person’s ideal and actual situation big enough to trigger a decision Ex: Finding the milk carton empty
Internal Search
scanning your memory for previous experiences with products or brands (often applies to frequently purchased products)
External Search
needed when past experience or knowledge is insufficient, the risk of making the wrong purchase decision is high, and the cost of father information is low
Three Primary Sources of External Searches
1. Personal Sources – friend and family
2. Public sources – ex. consumer reports
3. Marketer Dominated sources – information from sellers including advertising and company websites.
Alternative Evaluation clarifies the problem for the consumer by…
1. Suggesting criteria to use for the purchase
2. yielding brand names that may meet the criteria
3. Developing Consumer Value Perceptions
Evaluative Criteria
represent both the objective attributes of a brand (such as display of a smart phone) and the subjective ones (such as prestige) you use to compare different products and brands
Consideration Set
group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware in the product class
Evaluative criteria is what ____ _____ in a product and consideration set is what you __________ __________ ______ the product
you want , use to evaluate
Cognitive Dissonance
post purchase psychological tension or anxiety (wondering if you bought the right phone)
personal, social, and economic significance of the purchase to the consumer
High involvement purchase occasions typically have these characteristics…
1. Expensive
2. Potential Personal Consequences
3. Reflection on social image
Extended Problem Solving
Each of the 5 stages of consumer purchase decision is used (car or home purchase)
Limited Problem Solving
Seek some information or rely on a friend to help evaluate alternatives (where to go for lunch)
Routine Problem Solving
-Little to no effort for external info.
– Usually a habit, low involvement decision
– low priced, frequently purchased products
Marketing Strategy of a market leader
1. Maintain quality
2. Avoid buyers substituting a competing brand
3. Repetitive messages “you made the right choice”
Marketing Strategy of a market challenger
1. Break buying habits
2. Use free samples, coupons, etc.
3. Goal is to get into consideration set
Situational Influences (5)
1. Purchase Task – reason for engaging in the decision
2. Social Surroundings – Other people present when decision is made
3. Physical Surroundings – Decor, music, crowd
4. Temporal Effects – Time of day / amount of time to shop
5. Antecedent States – Consumer’s Mood, Cash on hand
energizing force that stimulates behavior to satisfy a need
Physiological needs
basic to survival and must be satisfied first (red lobster trying to activate need for food)
Safety needs
self-preservation as well as physical and financial well-being (smoke detectors)
Social Needs
Love and friendship ( tries to arouse these)
Personal needs
needs for achievement, status, prestige, and self-respect
Self-Actualization needs
personal fulfillment (be all you can be)
person’s consistent behaviors or responses to recurring situations
way people see themselves and the way they believe others see them
process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world
Perception Process
1. Exposure – sense organ encounters a stimulus
2. Attention – consumer allocates effort to process stimulus
3. Interpretation – consumer assigns meaning to a stimulus
Selective perception
filtering of:
1. exposure – paying attention to messages consistent with your attitudes and belief
2. comprehension – interpreting info that is consistent with your attitudes and beliefs
3. retention – you don’t remember everything you see
subliminal perception
see or hear messages without being away of them
Perceived Risk
anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
Ways to mitigate perceived risk
-obtaining seals of approval
-endorsements from influential people
-providing free trials
-giving extensive usage instructions
-warranties and guarantees
those behaviors that result from REPEATED EXPERIENCE and REASONING
Behavioral Learning
process of developing automatic responses to a situation built up through repeated exposure to it
Cognitive Learning
making connections between two or more ideas or simply observing the outcomes of others’ behaviors and adjusting your own accordingly
Brand Loyalty
favorable attitude toward and consistent purchase of a single brand over time
learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way
consumers’ subjective perception of how a product or brand performs on different attributes
How to change attitudes about a product
1. change beliefs about the extent to which a brand has certain attributes
2. changing the perceived importance of attributes
3. Adding new attributes to the product
mode of living that is identified by how people spend their time and resources, what they consider important to their environment, and what they think of themselves and the world around them
practice of combining psychology, lifestyle, and demographics, which is often used to uncover consumer motivations for buying and using products and services (example: VALS)
opinion leaders
exert direct or indirect social influence over others (ex. models and celebrities)
word of mouth
influencing of people during conversations
-most powerful and authentic info source because it typically involves trusted friends
Reference Groups
people to whom an individual looks to as a basis for self-appraisal or as a source of personal standards
consumer socialization
the process by which people acquire skills, knowledge, and attitudes necessary to function as consumers
Family life cycle
describes the distinct phases that a family progresses through from formation to retirement, each phases bring with it identifiable purchasing behaviors
social class
relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped
subgroups within the larger, or national, culture with unique values, ideas, and attitudes
3 Largest Subcultures
1. Hispanics
2. African Americans
3. Asians