Consumer Behavior and Decision Making (4)

Consumer Behavior
Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchase goods and services

Includes factors that influence decisions and the use of products

Consumer Decision Making Process
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase
5. Post-purchase behavior
1. Need recognition
Occurs when consumer is faced with imbalance btwn actual and desired state
Internal and external stimuli
Typical triggers of needing recognition
Out of stock
New products
Dissatisfaction
Related purchase
Market-induced recognition
New needs or wants
2. Information Search
Search for information internally or externally
Non-marketing controlled sources (ex: friends of friends) vs. marketing controlled sources (ex: public sources)
Creation of evoked set (consideration set)

ex: market sources, personal experiences

3. Evaluation of alternatives
Multi-attribute model
-evaluate and rank attributes on factor (media, endorsers, ads, quality/prices, brand, retailers, performance, endorsers[help persuade our evaluation-tiger woods, brittnay spears] )
-cut offs: maximum and minimum levels of acceptance
4. Purchase
Buy or not to buy
Where, how paid, etc.
5. Post purchase behavior
Cognitive dissonance (inner tension that a consumer experiences after recognizing inconsistency between behavior and values or opinions
Types of consumer buying decisions and involvement
Routine response behavior (low involvement)
Limited decision making
Extensive decision making (high involvement)
Decision involvement levels
Influenced by:
-Time: short, moderate, long
-Cost: low, moderate, high
-Information search: internal, external
-Number of alternatives: one, few, many
Factors determining level of consumer involvement
Previous experience
Interest
Perceived risk of negative consequences
Situation
Social visibility
Factors influencing buying decisions
Cultural, social, individual, and psychological factors
Cultural Factors
Values
Language
Myths
Customs
Rituals
Laws
Values
Sub-cultures
Social class

Impacts: what we wear, what we eat, how we feel, how we behave

Individual Factors
Gender
Age
Race
Life stage
Socio-economic (income, education, occupation)
Birth era
Household size
Marital status
Residence tenure
Personality traits (aggressiveness, autonomy, dominance, emotionalism, orderliness, sociability, stability, self confidence)
Social Factors
Occupation
Income
Education
Wealth
Psychological Influences
Perception
Motivation
Learning
Beliefs and attitudes