Marketing: Chapter 5 Understanding Consumer Behavior

Consumer Behavior
Are 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
Are the stages a buyer passes through in making choices about which products and services to buy. there are 5 stages. 1) Problem recognition. 2) Information search. 3) Alternative evaluation. 4) Purchase decision. 5) Post-purchase behavior.
1st step in Purchase Decision Process: Problem Recognition
Perceiving a difference between a person’s ideal and actual situations big enough to trigger a decision.
2nd step in Purchase Decision Process: Information Search
Preform an internal search though memories, or external searches through 1) friends and family 2) public sources 3) marketer-dominated sources.
3rd step in Purchase Decision Process: Alternative Evaluation
In this step you asses the value of the product or service compared to competitors and alternatives
4th step in the Purchase Decision Process: Buying Value
Who do you buy from and when to buy are large aspects in the purchase. The value and terms from the company are evaluated in this portion of the process.
5th step in the Purchase Decision Process: Postpurchase behavior
After purchasing a product the consumer compares it with his and her expectations and is either satisfied or dissatisfied.
Consumers Evaluative Criteria
Represents both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands
Consideration Set
The group of brands that you would consider among all the brands of which you are aware in the product class.
Cognitive Dissonance
The feeling of postpurchase psychological tension or anxiety
Involvement
Is the personal, social and economic significance of the purchase to the consumer
Extended Problem Solving
Each of the 5 stages of the consumer purchase decision process is used and considerable time and effort are devoted to search for the external information and the identification and evaluation of alternatives.
Limited Problem Solving
Consumers typically seek some information or rely on a friend to help them evaluate alternatives.
Routine Problem Solving
For problems consumers recognize, they make a decision, and spend little effort seeking external information and evaluating alternatives.
High and Low Involvement
High involvement is when a consumer needs to do a lot of research, extended problem solving to make a decision. (Cars) Low Involvement is when it is for a small purchase with very little consumer involvement. (toothpaste)
Situational Influences
Have an impact on the purchase decision process
1. Purchase task
2. Social surroundings
3. Physical surroundings
4. Temporal effects
5. Antecedent states
Motivation
The energizing force that stimulates behavior to satisfy a need
Personality
Refers to a person’s consistent behaviors or respsonses to recurring situations
Self-Concept
Is the way people see themselves and the way they believe others see them
Perception
The proces by which an individual selects, organized, and interprets information to create a meaningful picture of the world
Subliminal Perception
Means that you see or hear messages without being aware of them
Perceived Risk
Represents the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but belives there may be negative consequences
Discourage Perceived Risk
1) Obtaining seals of approval.
2) Securing endorsements from influential people.
3) Providing free trials of the product.
4) Giving extensive usage instructions.
5) Providing warranties and guarantees.
Learning
Refers to those behaviors that results from 1. repeated experience and 2. reasoning
Brand Loyalty
A favorable attitude toward and consistent purchase of a single brand over time.
Attitude
A “learned predisposition to respond to an object or class of object in a consistenly favorable or unfavorable way”
Beliefs
A consumer’s subjective perception of how a product or brand perfroms on different attributes
Lifestyle
Is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them
Opinion Leaders
Are individuals who exert direct or indirect social influence over others
Word of Mouth
Is the influencing of people during conversations
Reference Groups
Are people to whom an invididual looks as a basis for self-appraisal or as a source of personal standards
Consumer Specialization
The process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers
Family Life Cycle Concept
Describes the distinct phases that a family progresses through from formation to retierement, each phase bringing with it identifiable purchasing behaviors
Social Class
Relatively permanent, homogeneous divisioins in a society into which people sharing similar values, interests, and behavior can be grouped
Subcultures
Subgroups within the larger, or national, culture with unique values, ideas, and attitudes