CHAPTER

CONSUMER BEHAVIOR

05

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

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LEARNING OBJECTIVES

Consumer Behavior

LO1 Articulate the steps in the consumer buying process.

LO2 Describe the difference between functional and psychological needs.

LO3 Describe factors that affect information search.LO4 Discuss post-purchase outcomes.LO5 List the factors that affect the consumer

decision process.LO6 Describe how involvement influences the

consumer decision process.

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The Consumer Decision Process

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Need Recognition

Functional needsFunctional needs

Psychological needsPsychological needs

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Search for Information

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Factors Affecting Consumers’ Search Process

PerceivedBenefits

PerceivedCosts

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The Locus of Control

Internal Locus of Control = more search activities

Internal Locus of Control = more search activities

External Locus of Control = Fate, external factors

External Locus of Control = Fate, external factors

Royalty-Free/CORBIS

©Comstock/JupiterImages

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Actual or Perceived Risk

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Evaluation of Alternatives: Attribute Sets

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Evaluation of Alternatives: Evaluate Criteria

What are some of the features of a vacation that would be in your

evaluative criteria?

Digital Vision/Getty Images

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Evaluation of Alternatives:Consumer Decision Rules

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Evaluation of Alternatives: Decision Heuristics

Amos Morgan/Getty Images

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Check Yourself

1. What is the difference between a need and a want?

2. Distinguish between functional and psychological needs.

3. What are the various types of perceived risk?

4. What are the differences between compensatory and noncompensatory decision rules?

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Purchase and Consumption

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Post-purchase: Customer Satisfaction

Build realistic expectationsDemonstrate correct product use

Provide money back guaranteeEncourage feedback

Customer contact

Digital Vision/Getty Images

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Post-purchase: Dissonance

• Firm’s attempt to reduce dissonance by reinforcing the decision

• Thank you letters, congratulations letters, quality ratings

©Lars A Niki

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Post-purchase: Customer loyalty

• Marketers attempt to solidify a loyal relationship.

• Satisfied customers purchases and buy from the same company again.

©Lou Cypher/Corbis

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Check Yourself

1. Identify the five stages in the consumer decision process.

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Factors Influencing the Consumer Decision Process

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Psychological Factors: Motives

Courtesy Taco Bell

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Psychological Factors: Attitude

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Psychological Factors: PerceptionR

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Psychological Factors: Learning and Lifestyle

Royalty-Free/CORBIS

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Social Factors: Family

Digital Vision/Getty Images

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Social Factors: Reference Groups

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Social Factors: Reference Groups

GEICO Commercial

Photo by James Devaney/WireImage

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Social Factors: Culture

Royalty-FreeCORBISC Squared Studios/Getty Images

C Squared Studios/Getty ImagesGeoff Manasse/Getty Images

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Situational Factors

Courtesy Murphy O’Brien Public Relations/Santa Monica, CA

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Check Yourself

1. What are the types of needs suggested by Maslow’s Hierarchy of Needs?

2. Which social factors likely have the most influence on:

a. The purchase of a new outfit for going out dancing?

b. The choice of a college to attend?

3. List some of the tactics stores can use to influence consumers’ decision processes.

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Involvement and Consumer Buying Decisions

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Types of Buying Decisions

• Extended Problem Solving

• Limited Problem Solving– Impulse Buying– Habitual Decision Making

Courtesy Wendy’s International, Inc.

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Check Yourself

1. How do low versus high involvement consumers process information in an advertisement?

2. What is the difference between extended versus limited problem solving?