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CHAPTER 3CHAPTER 3

CONSUMER BEHAVIOR

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Consumer Decision MakingConsumer 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 Consumer Decision Making ProcessProcess

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 RecognitionNeed Recognition

Psychological Factors: Maslow’s Hierarchy of Needs

Physiological Safety Love Esteem Self-actualization

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Alternative SearchAlternative 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 AlternativesEvaluation 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 DecisionPurchase 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 BehaviorsPost 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 Factors Influencing Purchasing Decision 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 PrincipleVALS 2 Principle

Copyright 1999 Prentice Hall

5-85-8VALS 2VALS 2

Principle Oriented Status Oriented Action Oriented

AchieversAchievers

ActualizersActualizers

StrugglersStrugglers

StriversStrivers

FulfilledsFulfilleds

BelieversBelievers

ExperiencersExperiencers

MakersMakers

Abundant ResourcesAbundant Resources

Minimal ResourcesMinimal Resources

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Situational InfluencesSituational 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 Factors Influencing Purchasing Decision (Cont.)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 InnovationAdoption of Innovation

Copyright 1999 Prentice Hall

5-195-19Adoption of InnovationsAdoption of InnovationsP

erce

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Ad

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Time of AdoptionEarly Late

Inn

ovat

ors

Early Adopters

Early Majority

2.5%

13.5%

34% 34%

16%

Laggards

Late Majority

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Usage and LoyaltyUsage 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 TurkeyConsumers in Turkey