CONSUMER BEHAVIOR

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CHAPTER 3

• CONSUMER BEHAVIOR

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Consumer Decision Making

• Extensive Decision Making
• Highly complex and expensive products, such as
  car, house.
• Limited Decision Making
• Moderate time spend for purchasing, such as
  shirts, shoes.
• Routine Decision Making
• Simple and inexpensive products, such as candy
  bars, soft drinks.

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Consumer Decision Making Process

• Problem recognition
• Information search
• (1) written sources
• (2) Personal Sources
• (3)Electronic sources
• Evaluation of alternatives Product test
• Purchase Decision
• Post Purchase Behaviors
• Cognitive Dissonance

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Need Recognition

• Psychological Factors Maslows Hierarchy of
  Needs
• Physiological
• Safety
• Love
• Esteem
• Self-actualization

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Alternative Search

• Internal sources
• store information
• Group sources
• family, friend, neighbors
• Marketing sources
• advertising, dealers, sales person, displays
• Public sources
• consumer report
• Personal Experience

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Evaluation of Alternatives

• Information about number of brands
• Evoked set of alternatives
• Evaluations of Attributes
• Color,quality, size
• Consumers perception of attributes
• Greatest number of desired attributes that the
  consumer likes the best
• Selection the brand consumer likes the best

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Purchase Decision

• Perceived Risk
• Consumers reduce risk in their decision by
  reducing uncertainty
• They purchase small quantity
• Seek additional information

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Post Purchase Behaviors

• Cognitive Dissonance
• Dissatisfaction with the purchase
• If selected brand does not promise the expected
  performance
• If unselected brand becomes more favorable or
  exceed the expectations
• If expected risk of purchase becomes higher
• Reducing the Dissonance
• Full support by the manufacturer
• Advertising the product as a best buy
• Sending a congratulation letter
• Establishing consumer satisfaction unit

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Factors Influencing Purchasing Decision

• Economic Factors Income, price
• Age and life cycle
• Geography Regional factors
• Social class
• Culture and subculture
• Peer pressure Membership group, Aspiration
  group, family
• Life style VALS2

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VALS 2 Principle
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Situational Influences

• Physical surroundings
• Lighting, music
• Social surroundings
• Additional depth of a situation
• Temporal Perspectives
• Time since last purchase
• Task Definition
• Personal use or gift
• Antecedent States-cash/credit card payment

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Factors Influencing Purchasing Decision (Cont.)

• Diffusion of Innovation
• (1) Innovator (2.5)
• (2) Early Adopters (13.5)
• (3) Early Majority (34)
• (4) Late Majority (34)
• (5) Laggards (16)

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Adoption of Innovation
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Usage and Loyalty

• Usage status-experience of consumer(non-users,
  former users, potential users, first-time users,
  regular users)
• Loyalty status Hard-core, soft-core, switchers
• Customer franchise Long experience with the
  product/brand-Coca Cola

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Consumers in Turkey