Consumer Behavior

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Consumer Behavior
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Consumer Market

• All individuals and households who buy or acquire
  goods and services for personal consumption

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Fundamental Question

• How do consumers respond to various marketing
  stimuli the organization might use?
• Stimuli Product, place, price, promotion
• A big, related question Why??

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Characteristics Affecting Consumer Behavior

• Biological Factors the most basic?
• Genetics
• Cultural Factors
• Culture
• Subcultures
• Social Class

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• Social Factors
• Reference groups primary, secondary,
  aspirational, disassociative, real vs. imaginary
• Family
• Roles and Status

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Reference Group Influence

• Means of Influence
• Exposure to facts, behaviors, experiences
• Peer pressure
• Influence on attitudes and self-concept

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• Personal Factors
• Age and Life-Cycle
• Occupation
• Economic Situation
• Lifestyle
• Psychographics and Activities, Interests, and
  Opinions (AIOs)
• Personality and Self-Concept

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• Motivation (Freud and motivation researchers)
• Perception
• Selective Exposure
• Selective Attention
• Selective Distortion
• Selective Retention
• Attitudes

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Fishbeins Behavioral Intentions Model

• Attitude is degree of like-dislike
• A(act) versus A(object)
• Behavior f(Behavioral Intention) f(A(act)
  Subjective Norm)
• A(act) f(beliefsevaluations of beliefs)
• Subjective Norm f(normative beliefs motivation
  to comply

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A(object) vs. A(act)

• Interested in measuring attitude towards a
  Mercedes --gt A(object) appropriate
• Interested in measuring attitude towards BUYING a
  Mercedes --gt A(act of buying) appropriate

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Types of Buying Behavior

• High Involvement vs. Low Involvement
• Text Complex Buying Behavior (high involvement,
  sig. Brand differences) Variety Seeking Behavior
  (low involvement, sig. Brand differences)
  Dissonance Reducing Behavior Habitual Buying
  Behavior (low inv., few differences)

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Hierarchy of Effects Models

• STANDARD
• Cognitions (beliefs)--gt Affect (attitudes)--gtConat
  ions (behavior/action)
• OTHER (e.g., low involvement)
• Behavior--gtbeliefs--gtattitudes

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Buyer Decision Process - High Involvement

• Problem (need) Recognition --gt
• Information Search--gt
• Evaluation of Alternatives--gt
• Purchase Decision--gt
• Postpurchase Behavior

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Some Decision Approaches

• Lexicographic Choose alternative best on single
  criteria (e.g., most expensive, easiest to buy)
• Conjunctive Choose alternative(s) that meets
  several criteria (e.g., 4 wheel drive AND less
  than 25,000 AND 4-door)

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Decision Approaches (Contd)

• Disjunctive Choose alternative(s) that meet AT
  LEAST one criterion (e.g., must cost less than
  25,000 OR get more than 30 mpg OR have warranty
  over 1 year)
• Expectancy Value Consumer makes an overall
  assessment weighing various attributes according
  to importance

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Postpurchase Behavior

• Satisfaction/dissatisfaction
• A function of the difference between PERCEIVED
  PERFORMANCE and (NORMATIVE) EXPECTATIONS
• Cognitive Dissonance
• Buyer discomfort caused by postpurchase conflict.
  Results from taking ACTIONS inconsistent with
  BELIEFS/DESIRES

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Cognitive Dissonance Ex.
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Family Decision Making

• Different family members may play different roles
  in specific decisions
• ROLES (1) Initiator, (2) User, (3) Purchaser,
  (4) Influencer, and (5) Decider
• EXAMPLES Where to vacation? Which house to buy?

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Adoption of Innovations

• Caveat Developed from research re adoption of
  new grains, medicine, etc.
• Opinion leaders Role of
• Two-Step flow of communication First to
  respected innovators/opinion leaders, then
  THROUGH them to others

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Product Characteristics and Rate of Adoption

• Relative advantage
• Compatibility
• Complexity
• Divisibility
• Communicability