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Chapter
5
Module
1




            1
Consumer behavior




                    2
Chapter
Objec4ves

1. Define consumer behavior and explain why consumers buy
  what they do.
2. Describe the prepurchase, purchase, and postpurchase activities
  in which consumers engage when they buy a product or service.
3. Explain how internal factors influence consumers’ decision-
  making processes.
4. Show how situational factors at the time and place of purchase
  influence consumer behavior.
5. Explain how consumers’ relationships with other people,
  including such trends as consumerism and environmentalism,
  influence their decision-making processes.


                                                         3
PURCHASE DECISION PROCESS
          Start with...PROBLEM RECOGNITION



Consumer Behavior - process
through which we select, purchase, use
and dispose of market offerings that
satisfy our wants and needs....



....includes actions a person takes in
purchasing and using products and
services, including the mental and
social processes that come before and
after these actions.


                                             5-3
The purchase decision process
consists of five stages (for
important purchases)
 Marketers frequently address these stages with
     advertising and marketing messages.




                                                  5-4
The purchase decision process
consists of five stages (for
important purchases)
 Marketers frequently address these stages with
     advertising and marketing messages.




                                                  5-4
A true story.




                6
Step
 1
       Problem: Mr and Mrs
       Nichols needed new
           furniture.

Step
 4




                         7
Step
 1
       Problem: Mr and Mrs
       Nichols needed new
           furniture.

Step
 4
       Solution: Mr and Mrs
       Nichols went to Ikea.



                           7
Step
 1
       Problem: Mr and Mrs
       Nichols needed new
           furniture.

Step
 4
       Solution: Mr and Mrs
       Nichols went to Ikea.



                           7
Step
 1
       Problem: Mr and Mrs
       Nichols needed new
           furniture.

Step
 4
       Solution: Mr and Mrs
       Nichols went to Ikea.



                           7
Problem solved?
 End of Story?




                  8
New Problem Recognized.
                      Step
Ideal
State:
Where
    1       Actual State:
 we
want
to
be               Where we are now
New Problem Recognized.
                      Step
Ideal
State:
Where
    1       Actual State:
 we
want
to
be               Where we are now




                             Old couch. Same behavior.
New Problem Recognized.
                      Step
Ideal
State:
Where
    1       Actual State:
 we
want
to
be               Where we are now

                                                 Well,
                                             Grandma lets
                                              me. Ruff!!




                             Old couch. Same behavior.
New Problem Recognized.
                      Step
Ideal
State:
Where
    1       Actual State:
 we
want
to
be               Where we are now

                                                 Well,
                                             Grandma lets
                                              me. Ruff!!




                             Old couch. Same behavior.
Step
 2
       Information search




                            10
Step
 2
       Information search
        What Kinds of information is recalled
        from internal search?




                                           10
Step
 2
       Information search
        What Kinds of information is recalled
        from internal search?
        - Brands




                                           10
Step
 2
       Information search
        What Kinds of information is recalled
        from internal search?
        - Brands
        - Attributes




                                           10
Step
 2
       Information search
        What Kinds of information is recalled
        from internal search?
        - Brands
        - Attributes
        - Evaluations/Attitudes




                                           10
Step
 2
       Information search
        What Kinds of information is recalled
        from internal search?
        - Brands
        - Attributes
        - Evaluations/Attitudes
        - Experiences




                                           10
Step
 2
       Information search




                            10
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




                          11
Step
 3     Evaluate alternatives




         What’s the risk?




                            11
Step
   3     Evaluate alternatives


Evaluative Criteria
         Price
      Ease of use
     Effectiveness
      Side-effects
    Return policy
Health risks/behavioral
          risk
         Etc...

                            11
Step
  4           Make a decision.

And Here’s
  why.

  Look up
 “scat mat”
on youtube!




                                 12
Step
  4           Make a decision.

And Here’s
  why.

  Look up
 “scat mat”
on youtube!




                                 12
Not all decisions are made
         this way.


    Price = quality
   Familiarity: name
        brand
  Perceived quality -
        China?
     Brand loyalty


    Heuristics
                        13
The involvement
  continuum.




                  14
The involvement
  continuum.
         Cognitive




                     14
The involvement
  continuum.
         Cognitive        Behavioral




                     14
Think About it...
1. What was something you recently purchased?
2. How was the problem recognized?
3. How did you search for information to solve the
problem? What sources did you use?
4. On what criteria did you evaluate alternatives?
5. What choice did you make? How long did it take
before a purchase was made?
6. What is your post-purchase evaluation?
7. Overall, where do you place this process on the
involvement continuum?


                                              15
Step
 5     Post-purchase Evaluation

              on?
       sf acti           on?
 S ati
               tisf acti
       D issa




       Overall attitude or feeling about a
        purchase after we have made it.
                                         16
Step
 5     Post-purchase Evaluation

              on?
       sf acti           on?
 S ati
               tisf acti        Dissonance...

       D issa




       Overall attitude or feeling about a
        purchase after we have made it.
                                            16
17
Did I purchase the
   right thing?




              17
Did I purchase the
   right thing?




      How can I feel
     better about it?




               17
Was there a better
      deal?



                     Did I purchase the
                        right thing?




                           How can I feel
                          better about it?




                                    17
Was there a better
      deal?          What will people
                         think?


                                    Did I purchase the
                                       right thing?




                                          How can I feel
                                         better about it?




                                                   17
ing .
     uc ce
R ed an
      on
D iss




                18
ing .
     uc ce
                   The company will
                reinforce my decision.

R ed an
      on
D iss




                             18
ing .
     uc ce
                                          The company will
                                       reinforce my decision.

R ed an
      on
D iss
                I’ll ask my friends.




                                                    18
ing .         I’ll look and
     uc ce
                                            The company will
                  see what the experts   reinforce my decision.

R ed an                     say.
      on
D iss
                I’ll ask my friends.




                                                      18
Scat Mat Postpurchase
     Evaluation.




                   19
Scat Mat Postpurchase
     Evaluation.




                   19
Scat Mat Postpurchase
     Evaluation.




                   19
End
Module
1




               20
Chapter
5

Module
2




             21
Internal Influences on
  consumer Behavior
        Motivation.
         Learning.
       Perceptions.
         Attitudes.
     Personal Factors.
      Psychographics
       Demographics




                         22
Motivation.

 An internal
  state that
 drives us to
satisfy needs.




                         23
Motivation.

 An internal
  state that
 drives us to
satisfy needs.




                         23
Motivation.

 An internal
  state that
 drives us to
satisfy needs.




                         23
Motivation.

 An internal
  state that
 drives us to
satisfy needs.




                         23
Motivation.

 An internal
  state that
 drives us to
satisfy needs.




                         23
Motivation.

 An internal
  state that
 drives us to
satisfy needs.




                         23
Motivation.

 An internal
  state that
 drives us to
satisfy needs.




                         23
Learning.
Behavioral Learning: people associate a
drive or perception (hunger) with a behavior
(eating)


Classical Conditioning: we learn via
stimuli: a stimulus (burger smell) causes a
response (feeling hungry).

Operant Conditioning: actions (eating
burgers) leads to a reward (satisfy hunger) or
punishment (heartburn).

                                                 24
Perceptions.
Your meaningful interpretation of         Green package =
information: brands, slogans, events,         healthy
messages, etc..
                                          Big car = durable
The process of selecting, organizing, &
interpreting information.                  Mercedes = $$




                                                    25
Perceptions.
Your meaningful interpretation of         Green package =
information: brands, slogans, events,         healthy
messages, etc..
                                          Big car = durable
The process of selecting, organizing, &
interpreting information.                  Mercedes = $$




                                                    25
Attitudes.
Attitudes: a lasting evaluation of a person, object,
issue... Can be positively or negatively valenced.

...A learned predisposition to respond favorably or
unfavorably to a stimuli.


Marketers often try to CHANGE our attitudes about
products and brands by...




                                                       26
Attitudes.
Attitudes: a lasting evaluation of a person, object,
issue... Can be positively or negatively valenced.

...A learned predisposition to respond favorably or
unfavorably to a stimuli.


Marketers often try to CHANGE our attitudes about
products and brands by...




                                                       26
Attitudes.
Attitudes: a lasting evaluation of a person, object,
issue... Can be positively or negatively valenced.

...A learned predisposition to respond favorably or
unfavorably to a stimuli.


Marketers often try to CHANGE our attitudes about
products and brands by...




                                                       26
Attitudes.
Attitudes: a lasting evaluation of a person, object,
issue... Can be positively or negatively valenced.

...A learned predisposition to respond favorably or
unfavorably to a stimuli.


Marketers often try to CHANGE our attitudes about
products and brands by...




                                                       26
Attitudes.
Attitudes: a lasting evaluation of a person, object,
issue... Can be positively or negatively valenced.

...A learned predisposition to respond favorably or
unfavorably to a stimuli.

• Changing Beliefs About a Brand’s Attributes

• Marketers often try toImportance our attitudes about
    Changing Perceived CHANGE
  products and brands by...
    of Attributes
• Add New Product Attributes




                                                       26
Colgate and Bayer
How did the ads change attitudes for these products?




                                                       5-25
Personal factors.
Personality: affects a person’s consistent behaviors or
responses to recurring situations. Personality traits: i.e.
introvert, extrovert, competitive, cooperative, self-monitor,
materialistic...

Demographics: Observable, measurable
characteristics: male/female, age, ethnicity, married/single,
occupation.

Psychographics: lifestyle characteristics or patterns of
living: outdoorsy, athletic, family-oriented, pet-friendly, car
enthusiasts, etc...

                                                           28
Personal factors.
Personality: affects a person’s consistent behaviors or
responses to recurring situations. Personality traits: i.e.
          Self Concept:
introvert, extrovert, competitive, cooperative, self-monitor,
materialistic...
      “You are what you buy”
Demographics: Observable, measurable
characteristics: male/female, age, ethnicity, married/single,
occupation.
                          Agree?
Psychographics: lifestyle characteristics or patterns of
living: outdoorsy, athletic, family-oriented, pet-friendly, car
enthusiasts, etc...

                                                           28
Personal factors.
Personality: affects a person’s consistent behaviors or
responses to recurring situations. Personality traits: i.e.
          Self Concept:
introvert, extrovert, competitive, cooperative, self-monitor,
materialistic...
      “You are what you buy”
Demographics: Observable, measurable
characteristics: male/female, age, ethnicity, married/single,
occupation.
                          Agree?
Psychographics: lifestyle characteristics or patterns of
living: outdoorsy, athletic, family-oriented, pet-friendly, car
enthusiasts, etc...
  Do you buy things and seek experiences that add
  richness, satisfaction and substance to your life?
                                                  28
From Bridget Brennan’s
“European don’t eat or      “Why She Buys”
 drink in their cars.”




                                      29
From Bridget Brennan’s
“European don’t eat or        “Why She Buys”
 drink in their cars.”


           “Just stick it between
                your legs”




                                        29
From Bridget Brennan’s
“European don’t eat or        “Why She Buys”
 drink in their cars.”


           “Just stick it between
                your legs”




                                        29
How
do
women
shop?
• They
check
prices
• They
ask
for
help
and
informa4on
• They
spend
less
4me
in
a
store

  when
a
man
is
with
them:

1/2
as

  long
as
when
with
a
female
friend
• They
try
on
clothing,
and
don’t

  always
buy
it
• They
buy
the
inside
of
cars,
not

  the
outside.
• Women
care
about
aesthe4cs
and

  func4onality                        30
Gender
&
Market
Trends
•   Women
with
high
power
jobs
•   ShiIs
in
breadwinning
in
the
home
•   Delayed
marriages
•   High
divorce
rate
(household
trends)
•   “life
stage”
not
age




                                           31
How
do
men
shop?
• Men
do
not
ask
for
help
• Men
do
not
try
things
on
• Men
spend
liPle
4me
in
the

  store,
compared
to
women.
• Men
do
not
check
price
tags

  as
oIen
as
women.
• In
a
woman’s
company,
men

  usually
pay.
• Men
care
about
power
of

  products.                      32
Think
about
this....
• How
long
do
you
spend
decided
what
pair
of

  jeans
to
buy
when
you
are
out
shopping?
• On
your
last
trip,
what
brands
did
you

  consider?
• At
the
grocery
store,
do
you
bring
a
list?
• Do
you
use
a
frequent
shopper
card?

 Do
you
think
your
behavior
was
gender‐
 related?                                 33
End
Module
2




               34
Chapter
5

Module
3




             35
Situational Influences on
    consumer Behavior
      physical environment
          Social Groups
             Culture
       Rituals and values
         opinion leaders




                             36
PURCHASE DECISION PROCESS
                  SITUATIONAL INFLUENCES


• Purchase Task - what is the reason for engaging in the
  decision? My kids have been begging to go to Disney World.
• Physical Environment - in-store music, smell, crowds, layout
  of the store, etc... Influences moods and behaviors and overall
  shopping experience.
• Antecedent states - includes consumer moods or amount of
  money one has to spend. Things a consumer brings into the
  purchase decision.

• Temporal effects - How much
  time is available to make the
  decision, seasonality, “time poverty”
                                                               5-14
PURCHASE DECISION PROCESS
                  SITUATIONAL INFLUENCES


• Purchase Task - what is the reason for engaging in the
  decision? My kids have been begging to go to Disney World.
• Physical Environment - in-store music, smell, crowds, layout
  of the store, etc... Influences moods and behaviors and overall
  shopping experience.
• Antecedent states - includes consumer moods or amount of
  money one has to spend. Things a consumer brings into the
  purchase decision.

• Temporal effects - How much
  time is available to make the
  decision, seasonality, “time poverty”
                                                               5-14
PURCHASE DECISION PROCESS
                  SITUATIONAL INFLUENCES


• Purchase Task - what is the reason for engaging in the
  decision? My kids have been begging to go to Disney World.
• Physical Environment - in-store music, smell, crowds, layout
  of the store, etc... Influences moods and behaviors and overall
  shopping experience.
• Antecedent states - includes consumer moods or amount of
  money one has to spend. Things a consumer brings into the
  purchase decision.

• Temporal effects - How much
  time is available to make the
  decision, seasonality, “time poverty”
                                                               5-14
SOCIOCULTURAL INFLUENCES
             ON CONSUMER BEHAVIOR

Opinion Leaders
Can be friends, celebrities, experts in the
field, or just people you look up to. Those
who exert direct or indirect influence.

Word of Mouth
People influencing each other. WOM is
the powerful source of social influence on
consumers. Why??




                                              5-27
SOCIOCULTURAL INFLUENCES
             ON CONSUMER BEHAVIOR

Opinion Leaders
Can be friends, celebrities, experts in the
field, or just people you look up to. Those
who exert direct or indirect influence.

Word of Mouth
People influencing each other. WOM is
the powerful source of social influence on
consumers. Why??

                            67% of consumer
                             purchases are
                            credited to WOM   5-27
SOCIOCULTURAL INFLUENCES
             ON CONSUMER BEHAVIOR

Opinion Leaders
Can be friends, celebrities, experts in the
field, or just people you look up to. Those
who exert direct or indirect influence.

Word of Mouth
People influencing each other. WOM is
the powerful source of social influence on
consumers. Why??

Is WOM good or              67% of consumer
bad? Is it always            purchases are
    reliable?               credited to WOM   5-27
SOCIOCULTURAL INFLUENCES
             ON CONSUMER BEHAVIOR

Opinion Leaders
Can be friends, celebrities, experts in the
field, or just people you look up to. Those
who exert direct or indirect influence.

Word of Mouth
People influencing each other. WOM is
the powerful source of social influence on
consumers. Why??

Is WOM good or              Online WOM is becoming
                            67% of consumer
bad? Is it always            purchases are with
                               synonymous
    reliable?               credited to WOM
                                traditional WOM      5-27
SOCIOCULTURAL INFLUENCES
              ON CONSUMER BEHAVIOR


Culture is society’s personality. It is values, beliefs, customs,
and tastes, produced or practiced by a group of people. A
consumer’s culture influences his buying decisions.


Rituals and Values- Cultures have their own rituals, such as
weddings and funerals that have specific activities and products
associated with them.




                                                                    5-29
SOCIOCULTURAL INFLUENCES
          ON CONSUMER BEHAVIOR
             REFERENCE GROUPS


   Reference Groups

• Membership Group


• Aspiration Group


• Dissociative Group

                                   5-28
SOCIOCULTURAL INFLUENCES
            ON CONSUMER BEHAVIOR
                       SOCIAL CLASS

Social Class - divisions of a society where people share values,
interests, and behaviors.




                                              What is the best
                                             indicator of social
                                                   class?
                                                                   5-30
SOCIOCULTURAL INFLUENCES
            ON CONSUMER BEHAVIOR
                       SOCIAL CLASS

Social Class - divisions of a society where people share values,
interests, and behaviors.

 Determined by: Occupation, Source of Income, Education




                                              What is the best
                                             indicator of social
                                                   class?
                                                                   5-30
SOCIOCULTURAL INFLUENCES
            ON CONSUMER BEHAVIOR
                       SOCIAL CLASS

Social Class - divisions of a society where people share values,
interests, and behaviors.

 Determined by: Occupation, Source of Income, Education


Education is the key to upward mobility of social class in the US.




                                               What is the best
                                              indicator of social
                                                    class?
                                                                     5-30
SOCIOCULTURAL INFLUENCES
            ON CONSUMER BEHAVIOR
                       SOCIAL CLASS

Social Class - divisions of a society where people share values,
interests, and behaviors.

 Determined by: Occupation, Source of Income, Education


Education is the key to upward mobility of social class in the US.




                                               What is the best
                                              indicator of social
                                                    class?
                                                                     5-30
SOCIOCULTURAL INFLUENCES
            ON CONSUMER BEHAVIOR
                       SOCIAL CLASS

Social Class - divisions of a society where people share values,
interests, and behaviors.

 Determined by: Occupation,peopleof Income, Education
  Status symbols allow Source to show their class.
 But - the importance of symbols will change over
                            time...
Education is the key to upward mobility of social class in the US.




                                               What is the best
                                              indicator of social
                                                    class?
                                                                     5-30
SOCIOCULTURAL INFLUENCES
          ON CONSUMER BEHAVIOR
       Gender Roles & Sex Typed Goods

Gender Roles are society’s expectations regarding the
appropriate attitudes, behaviors, and appearance for men and
women




                                                      42
SOCIOCULTURAL INFLUENCES
          ON CONSUMER BEHAVIOR
       Gender Roles & Sex Typed Goods

Gender Roles are society’s expectations regarding the
appropriate attitudes, behaviors, and appearance for men and
women




                                                      42
Influences on purchase decision process
from both internal and external sources




                                          5-15
End
Module
3




               44
Consumer Behavior


Consumer behavior consists of
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


The purchase decision process
consists of the five stages a buyer
passes through in making choices
about which products and services
to buy: (1) problem recognition,
(2) information search, (3) alternative
evaluation, (4) purchase decision,
and (5) postpurchase behavior.
Evaluative Criteria


Evaluative criteria consist of
Factors that represent both the
objective attributes of a brand
and the subjective ones a
consumer uses to compare
different products and brands.
Consideration Set


A consideration set is the group
of brands that a consumer would
consider acceptable from among
all the brands in the product class
of which he or she is aware.
Cognitive Dissonance


Cognitive dissonance is the
feeling of postpurchase
psychological tension or anxiety
consumers may experience when
faced with two or more highly
attractive alternatives.
Involvement


Involvement is the personal,
social, and economic significance
of the purchase to the consumer.
Situational Influences

Situational influences consist of the five
aspects of the purchase situation that
impacts the consumer’s purchase decision
process:
(1) the purchase task,
(2) social surroundings,
(3) physical surroundings,
(4) temporal effects, and
(5) antecedent states.
Motivation


Motivation is the energizing force
that stimulates behavior to satisfy
a need.




                                      5-39
Personality


Personality is a person’s
consistent behaviors or responses
to recurring situations.




                                    5-40
Self-Concept


Self-concept is the way people
see themselves and the way they
believe others see them.




                                  5-41
Perception


Perception is the process by
which an individual selects,
organizes, and interprets
information to create a
meaningful picture of the world.



                                   5-42
Subliminal Perception


Subliminal perception involves
seeing or hearing messages
without being aware of them.




                                 5-43
Perceived Risk


Perceived risk is the anxieties
felt because the consumer cannot
anticipate the outcomes of a
purchase but believes that there
may be negative consequences.



                                   5-44
Learning


Learning consists of those
behaviors that result from
(1) repeated experience and
(2) reasoning.




                              5-45
Brand Loyalty


Brand loyalty is a favorable
attitude toward and consistent
purchase of a single brand over
time.




                                  5-46
Attitude


An attitude is a learned
predisposition to respond to an
object or class of objects in a
consistently favorable or
unfavorable way.



                                  5-47
Beliefs


Beliefs are a consumer’s
subjective perception of how a
product or brand performs on
different attributes based on
personal experience, advertising,
and discussions with other people.


                                     5-48
Lifestyle


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.

                                     5-49
Opinion Leaders


Opinion leaders are individuals
who exert direct or indirect social
influence over others.




                                      5-50
Word of Mouth


Word of mouth involves the
influencing of people during
conversations.




                               5-51
Reference Groups


Reference groups consists of
people to whom an individual
looks as a basis for self-appraisal
or as a source of personal
standards.



                                      5-52
Consumer Socialization


Consumer socialization is the
process by which people acquire
the skills, knowledge, and
attitudes necessary to function as
consumers.



                                     5-53
Family Life Cycle


A family life cycle consists of
the distinct phases that a family
progresses through from
formation to retirement, each
phase bringing with it identifiable
purchasing behaviors.


                                      5-54
Social Class


Social class consists of the
relatively permanent,
homogeneous divisions in a
society into which people sharing
similar values, interests, and
behavior can be grouped.


                                    5-55
Subcultures


Subcultures are the subgroups
within the larger, or national,
culture with unique values, ideas,
and attitudes.




                                     5-56

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Chapter 5

  • 3. Chapter
Objec4ves 1. Define consumer behavior and explain why consumers buy what they do. 2. Describe the prepurchase, purchase, and postpurchase activities in which consumers engage when they buy a product or service. 3. Explain how internal factors influence consumers’ decision- making processes. 4. Show how situational factors at the time and place of purchase influence consumer behavior. 5. Explain how consumers’ relationships with other people, including such trends as consumerism and environmentalism, influence their decision-making processes. 3
  • 4. PURCHASE DECISION PROCESS Start with...PROBLEM RECOGNITION Consumer Behavior - process through which we select, purchase, use and dispose of market offerings that satisfy our wants and needs.... ....includes actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. 5-3
  • 5. The purchase decision process consists of five stages (for important purchases) Marketers frequently address these stages with advertising and marketing messages. 5-4
  • 6. The purchase decision process consists of five stages (for important purchases) Marketers frequently address these stages with advertising and marketing messages. 5-4
  • 8. Step 1 Problem: Mr and Mrs Nichols needed new furniture. Step 4 7
  • 9. Step 1 Problem: Mr and Mrs Nichols needed new furniture. Step 4 Solution: Mr and Mrs Nichols went to Ikea. 7
  • 10. Step 1 Problem: Mr and Mrs Nichols needed new furniture. Step 4 Solution: Mr and Mrs Nichols went to Ikea. 7
  • 11. Step 1 Problem: Mr and Mrs Nichols needed new furniture. Step 4 Solution: Mr and Mrs Nichols went to Ikea. 7
  • 12. Problem solved? End of Story? 8
  • 13. New Problem Recognized. Step Ideal
State:
Where
 1 Actual State: we
want
to
be Where we are now
  • 14. New Problem Recognized. Step Ideal
State:
Where
 1 Actual State: we
want
to
be Where we are now Old couch. Same behavior.
  • 15. New Problem Recognized. Step Ideal
State:
Where
 1 Actual State: we
want
to
be Where we are now Well, Grandma lets me. Ruff!! Old couch. Same behavior.
  • 16. New Problem Recognized. Step Ideal
State:
Where
 1 Actual State: we
want
to
be Where we are now Well, Grandma lets me. Ruff!! Old couch. Same behavior.
  • 17. Step 2 Information search 10
  • 18. Step 2 Information search  What Kinds of information is recalled from internal search? 10
  • 19. Step 2 Information search  What Kinds of information is recalled from internal search? - Brands 10
  • 20. Step 2 Information search  What Kinds of information is recalled from internal search? - Brands - Attributes 10
  • 21. Step 2 Information search  What Kinds of information is recalled from internal search? - Brands - Attributes - Evaluations/Attitudes 10
  • 22. Step 2 Information search  What Kinds of information is recalled from internal search? - Brands - Attributes - Evaluations/Attitudes - Experiences 10
  • 23. Step 2 Information search 10
  • 24. Step 3 Evaluate alternatives 11
  • 25. Step 3 Evaluate alternatives 11
  • 26. Step 3 Evaluate alternatives 11
  • 27. Step 3 Evaluate alternatives 11
  • 28. Step 3 Evaluate alternatives 11
  • 29. Step 3 Evaluate alternatives 11
  • 30. Step 3 Evaluate alternatives 11
  • 31. Step 3 Evaluate alternatives 11
  • 32. Step 3 Evaluate alternatives What’s the risk? 11
  • 33. Step 3 Evaluate alternatives Evaluative Criteria Price Ease of use Effectiveness Side-effects Return policy Health risks/behavioral risk Etc... 11
  • 34. Step 4 Make a decision. And Here’s why. Look up “scat mat” on youtube! 12
  • 35. Step 4 Make a decision. And Here’s why. Look up “scat mat” on youtube! 12
  • 36. Not all decisions are made this way. Price = quality Familiarity: name brand Perceived quality - China? Brand loyalty Heuristics 13
  • 37. The involvement continuum. 14
  • 38. The involvement continuum. Cognitive 14
  • 39. The involvement continuum. Cognitive Behavioral 14
  • 40. Think About it... 1. What was something you recently purchased? 2. How was the problem recognized? 3. How did you search for information to solve the problem? What sources did you use? 4. On what criteria did you evaluate alternatives? 5. What choice did you make? How long did it take before a purchase was made? 6. What is your post-purchase evaluation? 7. Overall, where do you place this process on the involvement continuum? 15
  • 41. Step 5 Post-purchase Evaluation on? sf acti on? S ati tisf acti D issa Overall attitude or feeling about a purchase after we have made it. 16
  • 42. Step 5 Post-purchase Evaluation on? sf acti on? S ati tisf acti Dissonance... D issa Overall attitude or feeling about a purchase after we have made it. 16
  • 43. 17
  • 44. Did I purchase the right thing? 17
  • 45. Did I purchase the right thing? How can I feel better about it? 17
  • 46. Was there a better deal? Did I purchase the right thing? How can I feel better about it? 17
  • 47. Was there a better deal? What will people think? Did I purchase the right thing? How can I feel better about it? 17
  • 48. ing . uc ce R ed an on D iss 18
  • 49. ing . uc ce The company will reinforce my decision. R ed an on D iss 18
  • 50. ing . uc ce The company will reinforce my decision. R ed an on D iss I’ll ask my friends. 18
  • 51. ing . I’ll look and uc ce The company will see what the experts reinforce my decision. R ed an say. on D iss I’ll ask my friends. 18
  • 52. Scat Mat Postpurchase Evaluation. 19
  • 53. Scat Mat Postpurchase Evaluation. 19
  • 54. Scat Mat Postpurchase Evaluation. 19
  • 57. Internal Influences on consumer Behavior Motivation. Learning. Perceptions. Attitudes. Personal Factors. Psychographics Demographics 22
  • 58. Motivation. An internal state that drives us to satisfy needs. 23
  • 59. Motivation. An internal state that drives us to satisfy needs. 23
  • 60. Motivation. An internal state that drives us to satisfy needs. 23
  • 61. Motivation. An internal state that drives us to satisfy needs. 23
  • 62. Motivation. An internal state that drives us to satisfy needs. 23
  • 63. Motivation. An internal state that drives us to satisfy needs. 23
  • 64. Motivation. An internal state that drives us to satisfy needs. 23
  • 65. Learning. Behavioral Learning: people associate a drive or perception (hunger) with a behavior (eating) Classical Conditioning: we learn via stimuli: a stimulus (burger smell) causes a response (feeling hungry). Operant Conditioning: actions (eating burgers) leads to a reward (satisfy hunger) or punishment (heartburn). 24
  • 66. Perceptions. Your meaningful interpretation of Green package = information: brands, slogans, events, healthy messages, etc.. Big car = durable The process of selecting, organizing, & interpreting information. Mercedes = $$ 25
  • 67. Perceptions. Your meaningful interpretation of Green package = information: brands, slogans, events, healthy messages, etc.. Big car = durable The process of selecting, organizing, & interpreting information. Mercedes = $$ 25
  • 68. Attitudes. Attitudes: a lasting evaluation of a person, object, issue... Can be positively or negatively valenced. ...A learned predisposition to respond favorably or unfavorably to a stimuli. Marketers often try to CHANGE our attitudes about products and brands by... 26
  • 69. Attitudes. Attitudes: a lasting evaluation of a person, object, issue... Can be positively or negatively valenced. ...A learned predisposition to respond favorably or unfavorably to a stimuli. Marketers often try to CHANGE our attitudes about products and brands by... 26
  • 70. Attitudes. Attitudes: a lasting evaluation of a person, object, issue... Can be positively or negatively valenced. ...A learned predisposition to respond favorably or unfavorably to a stimuli. Marketers often try to CHANGE our attitudes about products and brands by... 26
  • 71. Attitudes. Attitudes: a lasting evaluation of a person, object, issue... Can be positively or negatively valenced. ...A learned predisposition to respond favorably or unfavorably to a stimuli. Marketers often try to CHANGE our attitudes about products and brands by... 26
  • 72. Attitudes. Attitudes: a lasting evaluation of a person, object, issue... Can be positively or negatively valenced. ...A learned predisposition to respond favorably or unfavorably to a stimuli. • Changing Beliefs About a Brand’s Attributes • Marketers often try toImportance our attitudes about Changing Perceived CHANGE products and brands by... of Attributes • Add New Product Attributes 26
  • 73. Colgate and Bayer How did the ads change attitudes for these products? 5-25
  • 74. Personal factors. Personality: affects a person’s consistent behaviors or responses to recurring situations. Personality traits: i.e. introvert, extrovert, competitive, cooperative, self-monitor, materialistic... Demographics: Observable, measurable characteristics: male/female, age, ethnicity, married/single, occupation. Psychographics: lifestyle characteristics or patterns of living: outdoorsy, athletic, family-oriented, pet-friendly, car enthusiasts, etc... 28
  • 75. Personal factors. Personality: affects a person’s consistent behaviors or responses to recurring situations. Personality traits: i.e. Self Concept: introvert, extrovert, competitive, cooperative, self-monitor, materialistic... “You are what you buy” Demographics: Observable, measurable characteristics: male/female, age, ethnicity, married/single, occupation. Agree? Psychographics: lifestyle characteristics or patterns of living: outdoorsy, athletic, family-oriented, pet-friendly, car enthusiasts, etc... 28
  • 76. Personal factors. Personality: affects a person’s consistent behaviors or responses to recurring situations. Personality traits: i.e. Self Concept: introvert, extrovert, competitive, cooperative, self-monitor, materialistic... “You are what you buy” Demographics: Observable, measurable characteristics: male/female, age, ethnicity, married/single, occupation. Agree? Psychographics: lifestyle characteristics or patterns of living: outdoorsy, athletic, family-oriented, pet-friendly, car enthusiasts, etc... Do you buy things and seek experiences that add richness, satisfaction and substance to your life? 28
  • 77. From Bridget Brennan’s “European don’t eat or “Why She Buys” drink in their cars.” 29
  • 78. From Bridget Brennan’s “European don’t eat or “Why She Buys” drink in their cars.” “Just stick it between your legs” 29
  • 79. From Bridget Brennan’s “European don’t eat or “Why She Buys” drink in their cars.” “Just stick it between your legs” 29
  • 80. How
do
women
shop? • They
check
prices • They
ask
for
help
and
informa4on • They
spend
less
4me
in
a
store
 when
a
man
is
with
them:

1/2
as
 long
as
when
with
a
female
friend • They
try
on
clothing,
and
don’t
 always
buy
it • They
buy
the
inside
of
cars,
not
 the
outside. • Women
care
about
aesthe4cs
and
 func4onality 30
  • 81. Gender
&
Market
Trends • Women
with
high
power
jobs • ShiIs
in
breadwinning
in
the
home • Delayed
marriages • High
divorce
rate
(household
trends) • “life
stage”
not
age 31
  • 82. How
do
men
shop? • Men
do
not
ask
for
help • Men
do
not
try
things
on • Men
spend
liPle
4me
in
the
 store,
compared
to
women. • Men
do
not
check
price
tags
 as
oIen
as
women. • In
a
woman’s
company,
men
 usually
pay. • Men
care
about
power
of
 products. 32
  • 83. Think
about
this.... • How
long
do
you
spend
decided
what
pair
of
 jeans
to
buy
when
you
are
out
shopping? • On
your
last
trip,
what
brands
did
you
 consider? • At
the
grocery
store,
do
you
bring
a
list? • Do
you
use
a
frequent
shopper
card? Do
you
think
your
behavior
was
gender‐ related? 33
  • 86. Situational Influences on consumer Behavior physical environment Social Groups Culture Rituals and values opinion leaders 36
  • 87. PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES • Purchase Task - what is the reason for engaging in the decision? My kids have been begging to go to Disney World. • Physical Environment - in-store music, smell, crowds, layout of the store, etc... Influences moods and behaviors and overall shopping experience. • Antecedent states - includes consumer moods or amount of money one has to spend. Things a consumer brings into the purchase decision. • Temporal effects - How much time is available to make the decision, seasonality, “time poverty” 5-14
  • 88. PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES • Purchase Task - what is the reason for engaging in the decision? My kids have been begging to go to Disney World. • Physical Environment - in-store music, smell, crowds, layout of the store, etc... Influences moods and behaviors and overall shopping experience. • Antecedent states - includes consumer moods or amount of money one has to spend. Things a consumer brings into the purchase decision. • Temporal effects - How much time is available to make the decision, seasonality, “time poverty” 5-14
  • 89. PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES • Purchase Task - what is the reason for engaging in the decision? My kids have been begging to go to Disney World. • Physical Environment - in-store music, smell, crowds, layout of the store, etc... Influences moods and behaviors and overall shopping experience. • Antecedent states - includes consumer moods or amount of money one has to spend. Things a consumer brings into the purchase decision. • Temporal effects - How much time is available to make the decision, seasonality, “time poverty” 5-14
  • 90. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Opinion Leaders Can be friends, celebrities, experts in the field, or just people you look up to. Those who exert direct or indirect influence. Word of Mouth People influencing each other. WOM is the powerful source of social influence on consumers. Why?? 5-27
  • 91. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Opinion Leaders Can be friends, celebrities, experts in the field, or just people you look up to. Those who exert direct or indirect influence. Word of Mouth People influencing each other. WOM is the powerful source of social influence on consumers. Why?? 67% of consumer purchases are credited to WOM 5-27
  • 92. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Opinion Leaders Can be friends, celebrities, experts in the field, or just people you look up to. Those who exert direct or indirect influence. Word of Mouth People influencing each other. WOM is the powerful source of social influence on consumers. Why?? Is WOM good or 67% of consumer bad? Is it always purchases are reliable? credited to WOM 5-27
  • 93. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Opinion Leaders Can be friends, celebrities, experts in the field, or just people you look up to. Those who exert direct or indirect influence. Word of Mouth People influencing each other. WOM is the powerful source of social influence on consumers. Why?? Is WOM good or Online WOM is becoming 67% of consumer bad? Is it always purchases are with synonymous reliable? credited to WOM traditional WOM 5-27
  • 94. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Culture is society’s personality. It is values, beliefs, customs, and tastes, produced or practiced by a group of people. A consumer’s culture influences his buying decisions. Rituals and Values- Cultures have their own rituals, such as weddings and funerals that have specific activities and products associated with them. 5-29
  • 95. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR REFERENCE GROUPS  Reference Groups • Membership Group • Aspiration Group • Dissociative Group 5-28
  • 96. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS Social Class - divisions of a society where people share values, interests, and behaviors. What is the best indicator of social class? 5-30
  • 97. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS Social Class - divisions of a society where people share values, interests, and behaviors. Determined by: Occupation, Source of Income, Education What is the best indicator of social class? 5-30
  • 98. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS Social Class - divisions of a society where people share values, interests, and behaviors. Determined by: Occupation, Source of Income, Education Education is the key to upward mobility of social class in the US. What is the best indicator of social class? 5-30
  • 99. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS Social Class - divisions of a society where people share values, interests, and behaviors. Determined by: Occupation, Source of Income, Education Education is the key to upward mobility of social class in the US. What is the best indicator of social class? 5-30
  • 100. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS Social Class - divisions of a society where people share values, interests, and behaviors. Determined by: Occupation,peopleof Income, Education Status symbols allow Source to show their class. But - the importance of symbols will change over time... Education is the key to upward mobility of social class in the US. What is the best indicator of social class? 5-30
  • 101. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Gender Roles & Sex Typed Goods Gender Roles are society’s expectations regarding the appropriate attitudes, behaviors, and appearance for men and women 42
  • 102. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Gender Roles & Sex Typed Goods Gender Roles are society’s expectations regarding the appropriate attitudes, behaviors, and appearance for men and women 42
  • 103. Influences on purchase decision process from both internal and external sources 5-15
  • 105. Consumer Behavior Consumer behavior consists of 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.
  • 106. Purchase Decision Process The purchase decision process consists of the five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior.
  • 107. Evaluative Criteria Evaluative criteria consist of Factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands.
  • 108. Consideration Set A consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.
  • 109. Cognitive Dissonance Cognitive dissonance is the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.
  • 110. Involvement Involvement is the personal, social, and economic significance of the purchase to the consumer.
  • 111. Situational Influences Situational influences consist of the five aspects of the purchase situation that impacts the consumer’s purchase decision process: (1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states.
  • 112. Motivation Motivation is the energizing force that stimulates behavior to satisfy a need. 5-39
  • 113. Personality Personality is a person’s consistent behaviors or responses to recurring situations. 5-40
  • 114. Self-Concept Self-concept is the way people see themselves and the way they believe others see them. 5-41
  • 115. Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. 5-42
  • 116. Subliminal Perception Subliminal perception involves seeing or hearing messages without being aware of them. 5-43
  • 117. Perceived Risk Perceived risk is the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. 5-44
  • 118. Learning Learning consists of those behaviors that result from (1) repeated experience and (2) reasoning. 5-45
  • 119. Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. 5-46
  • 120. Attitude An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. 5-47
  • 121. Beliefs Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people. 5-48
  • 122. Lifestyle 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. 5-49
  • 123. Opinion Leaders Opinion leaders are individuals who exert direct or indirect social influence over others. 5-50
  • 124. Word of Mouth Word of mouth involves the influencing of people during conversations. 5-51
  • 125. Reference Groups Reference groups consists of people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. 5-52
  • 126. Consumer Socialization Consumer socialization is the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. 5-53
  • 127. Family Life Cycle A family life cycle consists of the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. 5-54
  • 128. Social Class Social class consists of the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. 5-55
  • 129. Subcultures Subcultures are the subgroups within the larger, or national, culture with unique values, ideas, and attitudes. 5-56

Notes de l'éditeur

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  4. Consumer behavior is the process individuals or groups go through to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. Consumer decision making is an ongoing process—it’s more than what happens at the moment a consumer pays for a product.\n\nMarketers need to understand the many factors that influence each step in the consumer-behavior process—internal factors unique to each of us, situational factors at the time of purchase, and the social influences of people around us.\n
  5. Steps in the Consumer Decision Process\nResearchers realize that decision makers possess a set of approaches ranging from painstaking analysis to pure whim, depending on the importance of what is being bought and how much effort the person is willing to put into the decision.\nExtended Problem Solving versus Habitual Decision Making\nMarketers describe an “effort” continuum that is anchored on one end by habitual decision making and at the other end by extended problem solving. \n\nWhen consumers make important decisions, they go through the five steps of extended problem solving: \n\n•Problem recognition\n•Information search\n•Evaluation of alternatives\n•Product choice\n•Postpurchase behavior\n\nWith habitual decision making, consumers make little or no conscious effort. \n\nMany decisions fall somewhere in the middle and are characterized by limited problem solving. This means that consumers do some work to make a decision but not a great deal\n
  6. Steps in the Consumer Decision Process\nResearchers realize that decision makers possess a set of approaches ranging from painstaking analysis to pure whim, depending on the importance of what is being bought and how much effort the person is willing to put into the decision.\nExtended Problem Solving versus Habitual Decision Making\nMarketers describe an “effort” continuum that is anchored on one end by habitual decision making and at the other end by extended problem solving. \n\nWhen consumers make important decisions, they go through the five steps of extended problem solving: \n\n•Problem recognition\n•Information search\n•Evaluation of alternatives\n•Product choice\n•Postpurchase behavior\n\nWith habitual decision making, consumers make little or no conscious effort. \n\nMany decisions fall somewhere in the middle and are characterized by limited problem solving. This means that consumers do some work to make a decision but not a great deal\n
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  12. Step 1: Problem Recognition\nProblem recognition occurs whenever a consumer sees a significant difference between her current state of affairs and some desired or ideal state. \n\nMost problem recognition occurs spontaneously. However, marketers can develop creative advertising messages that stimulate consumers to recognize that their current state just doesn’t equal their desired state. \n
  13. Step 1: Problem Recognition\nProblem recognition occurs whenever a consumer sees a significant difference between her current state of affairs and some desired or ideal state. \n\nMost problem recognition occurs spontaneously. However, marketers can develop creative advertising messages that stimulate consumers to recognize that their current state just doesn’t equal their desired state. \n
  14. Step 1: Problem Recognition\nProblem recognition occurs whenever a consumer sees a significant difference between her current state of affairs and some desired or ideal state. \n\nMost problem recognition occurs spontaneously. However, marketers can develop creative advertising messages that stimulate consumers to recognize that their current state just doesn’t equal their desired state. \n
  15. Step 1: Problem Recognition\nProblem recognition occurs whenever a consumer sees a significant difference between her current state of affairs and some desired or ideal state. \n\nMost problem recognition occurs spontaneously. However, marketers can develop creative advertising messages that stimulate consumers to recognize that their current state just doesn’t equal their desired state. \n
  16. Step 1: Problem Recognition\nProblem recognition occurs whenever a consumer sees a significant difference between her current state of affairs and some desired or ideal state. \n\nMost problem recognition occurs spontaneously. However, marketers can develop creative advertising messages that stimulate consumers to recognize that their current state just doesn’t equal their desired state. \n
  17. Step 2: Information Search\nInformation search is the step of the decision-making process in which the consumer checks his memory and surveys the environment to identify what options are out there that might solve his problem. \nThe Internet as a Search Tool\nIncreasingly, consumers are using Internet search engines, portals, or “shopping robots” to find information. \n\nThe role of marketers during the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible\n
  18. Step 2: Information Search\nInformation search is the step of the decision-making process in which the consumer checks his memory and surveys the environment to identify what options are out there that might solve his problem. \nThe Internet as a Search Tool\nIncreasingly, consumers are using Internet search engines, portals, or “shopping robots” to find information. \n\nThe role of marketers during the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible\n
  19. Step 2: Information Search\nInformation search is the step of the decision-making process in which the consumer checks his memory and surveys the environment to identify what options are out there that might solve his problem. \nThe Internet as a Search Tool\nIncreasingly, consumers are using Internet search engines, portals, or “shopping robots” to find information. \n\nThe role of marketers during the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible\n
  20. Step 2: Information Search\nInformation search is the step of the decision-making process in which the consumer checks his memory and surveys the environment to identify what options are out there that might solve his problem. \nThe Internet as a Search Tool\nIncreasingly, consumers are using Internet search engines, portals, or “shopping robots” to find information. \n\nThe role of marketers during the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible\n
  21. Step 2: Information Search\nInformation search is the step of the decision-making process in which the consumer checks his memory and surveys the environment to identify what options are out there that might solve his problem. \nThe Internet as a Search Tool\nIncreasingly, consumers are using Internet search engines, portals, or “shopping robots” to find information. \n\nThe role of marketers during the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible\n
  22. Step 2: Information Search\nInformation search is the step of the decision-making process in which the consumer checks his memory and surveys the environment to identify what options are out there that might solve his problem. \nThe Internet as a Search Tool\nIncreasingly, consumers are using Internet search engines, portals, or “shopping robots” to find information. \n\nThe role of marketers during the information search step of the consumer decision-making process is to make the information consumers want and need about their product easily accessible\n
  23. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  24. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  25. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  26. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  27. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  28. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  29. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  30. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  31. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  32. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  33. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  34. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  35. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  36. Step 3: Evaluation of Alternatives\nThere are two components to this stage of the decision-making process. First, a consumer armed with information identifies a small number of products in which he is interested. Then he narrows down his choices by deciding which of all the possibilities are feasible and by comparing the pros and cons of each remaining option.\n\nAs a buyer begins to look systematically at different possibilities he/she will also identify important characteristics or evaluative criteria. \n
  37. Consumers make a product choice when they decide on one alternative or product and act on this choice.\n\n
  38. Heuristics\nConsumers often rely on decision guidelines when weighing the claims that companies make. These heuristics, or rules, help simplify the decision-making process. One such heuristic is “price = quality.” Many people willingly buy the more expensive brand because they assume that if it costs more, it must be better.\n\nThe most common heuristic may be brand loyalty. Brand loyalty assumes that people buy from the same company over and over because they believe that the company makes superior products. Consumers who have brand loyalties feel that it’s not worth the effort to consider competing options. The creation of brand loyalty is a prized goal for marketers.\n\nAnother heuristic is based on country of origin. We assume that a product has certain characteristics if it comes from a certain country. Sometimes a marketer wants to encourage a country association even when none exists. \n
  39. With habitual decision making, consumers make little or no conscious effort. \n\nMany decisions fall somewhere in the middle and are characterized by limited problem solving. This means that consumers do some work to make a decision but not a great deal\n\nNot All Decisions are the Same\nThe effort we put into decisions depends on our level of involvement. Involvement is the importance of the perceived consequences of the purchase to the person. We tend to be more involved in the decision-making process for products that we think are risky in some way. Perceived risk exists when there is uncertainty about a product, the product is complex or hard to understand, the buyer will be embarrassed if he/she chose the wrong product, etc. \n\n
  40. With habitual decision making, consumers make little or no conscious effort. \n\nMany decisions fall somewhere in the middle and are characterized by limited problem solving. This means that consumers do some work to make a decision but not a great deal\n\nNot All Decisions are the Same\nThe effort we put into decisions depends on our level of involvement. Involvement is the importance of the perceived consequences of the purchase to the person. We tend to be more involved in the decision-making process for products that we think are risky in some way. Perceived risk exists when there is uncertainty about a product, the product is complex or hard to understand, the buyer will be embarrassed if he/she chose the wrong product, etc. \n\n
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  42. Step 5: Postpurchase Evaluation\nIn the last step of the decision-making process, the consumer evaluates just how good a choice it was. The evaluation of the product results in a level of consumer satisfaction/dissatisfaction, which is determined by the overall feelings, or attitude, a person, has about a product after purchasing it.\n\nHow well a product meets or exceeds expectations determines customer satisfaction. Consumers assess product quality by comparing what they have bought to a performance standard created by a mixture of information from marketing communications, informal information sources such as friends and family, and their own experience with the product category. This is why it is very important that marketers create accurate expectations of their product in advertising and other communications.\nMarketers also try to ascertain what influences in consumers’ lives affect the decision-making process. There are three main categories: internal, situational, and social influences. A discussion of each follows.\n\n
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  50. My dog was able to chew up the scat mat without getting the buzz!\n
  51. My dog was able to chew up the scat mat without getting the buzz!\n
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  54. Internal Influences on Consumers’ Decisions\nInternal influences are those things that cause each of us to interpret information about the outside world, including what is best or different from another. The following is a discussion of some of those factors.\n
  55. Motivation\nMotivation is an internal state that drives us to satisfy needs. Once we activate a need, a state of tension exists that drives the consumer toward some goal that will reduce this tension by eliminating the need.\n\nThe theory, hierarchy of needs, categorizes motives according to the five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top. The hierarchy suggests that before a person can meet needs in a given level, she must first meet the lower level’s needs. Figure 5.5 shows the category of needs.\n
  56. Motivation\nMotivation is an internal state that drives us to satisfy needs. Once we activate a need, a state of tension exists that drives the consumer toward some goal that will reduce this tension by eliminating the need.\n\nThe theory, hierarchy of needs, categorizes motives according to the five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top. The hierarchy suggests that before a person can meet needs in a given level, she must first meet the lower level’s needs. Figure 5.5 shows the category of needs.\n
  57. Motivation\nMotivation is an internal state that drives us to satisfy needs. Once we activate a need, a state of tension exists that drives the consumer toward some goal that will reduce this tension by eliminating the need.\n\nThe theory, hierarchy of needs, categorizes motives according to the five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top. The hierarchy suggests that before a person can meet needs in a given level, she must first meet the lower level’s needs. Figure 5.5 shows the category of needs.\n
  58. Motivation\nMotivation is an internal state that drives us to satisfy needs. Once we activate a need, a state of tension exists that drives the consumer toward some goal that will reduce this tension by eliminating the need.\n\nThe theory, hierarchy of needs, categorizes motives according to the five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top. The hierarchy suggests that before a person can meet needs in a given level, she must first meet the lower level’s needs. Figure 5.5 shows the category of needs.\n
  59. Motivation\nMotivation is an internal state that drives us to satisfy needs. Once we activate a need, a state of tension exists that drives the consumer toward some goal that will reduce this tension by eliminating the need.\n\nThe theory, hierarchy of needs, categorizes motives according to the five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top. The hierarchy suggests that before a person can meet needs in a given level, she must first meet the lower level’s needs. Figure 5.5 shows the category of needs.\n
  60. Motivation\nMotivation is an internal state that drives us to satisfy needs. Once we activate a need, a state of tension exists that drives the consumer toward some goal that will reduce this tension by eliminating the need.\n\nThe theory, hierarchy of needs, categorizes motives according to the five levels of importance, the more basic needs being on the bottom of the hierarchy and the higher needs at the top. The hierarchy suggests that before a person can meet needs in a given level, she must first meet the lower level’s needs. Figure 5.5 shows the category of needs.\n
  61. Behavioral Learning: Behavioral learning theories assume that learning takes place as the result of connections that form between events that we perceive. In one type of behavioral learning, classical conditioning, a person perceives two stimuli at about the same time. After a while, the person transfers his response from one stimulus to the other. \n\nAnother common form of behavioral learning is called operant conditioning, which occurs when people learn that their actions result in rewards or punishments. This feedback influences how they will respond in similar situations in the future.\nLearning\nLearning is a change in behavior caused by information or experience. Learning can occur deliberately or when we are not trying. Psychologies have many theories explaining the learning process. The following is a discussion of some of those theories.\n\n
  62. Perception\nPerception is the process by which people select, organize, and interpret information from the outside world. We receive information in the form of sensations, the immediate response of our sensory receptors—eyes, ears, nose, mouth, and fingers—to such basic stimuli as light, color, and sound. Our impressions about products often are based on their physical qualities. We try to make sense of the sensations we receive by interpreting them in light of our past experiences.\n\nThe perception process has implications for marketers because, as consumers absorb and make sense of the vast quantities of information competing for their attention, the odds are that any single message will get lost in the clutter. To help understand this process, marketers need to understand exposure, attention, and interpretation.\n\nThe stimulus must be within range of people’s sensory receptors to be noticed (exposure). Many people believe that even messages they can’t see will persuade them to buy advertised products. Claims about subliminal advertising of messages surface frequently. However, there is little evidence to support this technique and it is generally believed that it has no effect on our perception of products.\n\nAttention is the extent to which mental processing activity is devoted to a particular stimulus. Consumers are more likely to pay attention to messages that speak to their current needs.\n\nConsumers assign meaning to the stimulus (interpretation). This meaning is influenced by prior associations they have learned and assumptions they make.\n
  63. 4.4Attitudes\nAn attitude is a lasting evaluation of a person, object, or issue. Consumers have attitudes about brands.\n\nA person’s attitude has three components: affect, cognition, and behavior. \n\nAffect is the feeling component of attitudes. Affect refers to the overall emotional response a person has to a product. Affect is usually dominant for expressive products.\n\nCognition, the knowing component, is the belief or knowledge a person has about a product and its important characteristic.\n\nBehavior, the doing component, involves a consumer’s intention to do something, such as the intention to purchase or use a certain product.\n\nDepending on the nature of the product, one of these three components—feeling, knowing, or doing—will be the dominant influence in creating an attitude toward a product. Marketers often need to decide which part of an attitude is the most important driver of consumers’ preferences.\n\n
  64. 4.4Attitudes\nAn attitude is a lasting evaluation of a person, object, or issue. Consumers have attitudes about brands.\n\nA person’s attitude has three components: affect, cognition, and behavior. \n\nAffect is the feeling component of attitudes. Affect refers to the overall emotional response a person has to a product. Affect is usually dominant for expressive products.\n\nCognition, the knowing component, is the belief or knowledge a person has about a product and its important characteristic.\n\nBehavior, the doing component, involves a consumer’s intention to do something, such as the intention to purchase or use a certain product.\n\nDepending on the nature of the product, one of these three components—feeling, knowing, or doing—will be the dominant influence in creating an attitude toward a product. Marketers often need to decide which part of an attitude is the most important driver of consumers’ preferences.\n\n
  65. 4.4Attitudes\nAn attitude is a lasting evaluation of a person, object, or issue. Consumers have attitudes about brands.\n\nA person’s attitude has three components: affect, cognition, and behavior. \n\nAffect is the feeling component of attitudes. Affect refers to the overall emotional response a person has to a product. Affect is usually dominant for expressive products.\n\nCognition, the knowing component, is the belief or knowledge a person has about a product and its important characteristic.\n\nBehavior, the doing component, involves a consumer’s intention to do something, such as the intention to purchase or use a certain product.\n\nDepending on the nature of the product, one of these three components—feeling, knowing, or doing—will be the dominant influence in creating an attitude toward a product. Marketers often need to decide which part of an attitude is the most important driver of consumers’ preferences.\n\n
  66. 4.4Attitudes\nAn attitude is a lasting evaluation of a person, object, or issue. Consumers have attitudes about brands.\n\nA person’s attitude has three components: affect, cognition, and behavior. \n\nAffect is the feeling component of attitudes. Affect refers to the overall emotional response a person has to a product. Affect is usually dominant for expressive products.\n\nCognition, the knowing component, is the belief or knowledge a person has about a product and its important characteristic.\n\nBehavior, the doing component, involves a consumer’s intention to do something, such as the intention to purchase or use a certain product.\n\nDepending on the nature of the product, one of these three components—feeling, knowing, or doing—will be the dominant influence in creating an attitude toward a product. Marketers often need to decide which part of an attitude is the most important driver of consumers’ preferences.\n\n
  67. 4.4Attitudes\nAn attitude is a lasting evaluation of a person, object, or issue. Consumers have attitudes about brands.\n\nA person’s attitude has three components: affect, cognition, and behavior. \n\nAffect is the feeling component of attitudes. Affect refers to the overall emotional response a person has to a product. Affect is usually dominant for expressive products.\n\nCognition, the knowing component, is the belief or knowledge a person has about a product and its important characteristic.\n\nBehavior, the doing component, involves a consumer’s intention to do something, such as the intention to purchase or use a certain product.\n\nDepending on the nature of the product, one of these three components—feeling, knowing, or doing—will be the dominant influence in creating an attitude toward a product. Marketers often need to decide which part of an attitude is the most important driver of consumers’ preferences.\n\n
  68. 4.4Attitudes\nAn attitude is a lasting evaluation of a person, object, or issue. Consumers have attitudes about brands.\n\nA person’s attitude has three components: affect, cognition, and behavior. \n\nAffect is the feeling component of attitudes. Affect refers to the overall emotional response a person has to a product. Affect is usually dominant for expressive products.\n\nCognition, the knowing component, is the belief or knowledge a person has about a product and its important characteristic.\n\nBehavior, the doing component, involves a consumer’s intention to do something, such as the intention to purchase or use a certain product.\n\nDepending on the nature of the product, one of these three components—feeling, knowing, or doing—will be the dominant influence in creating an attitude toward a product. Marketers often need to decide which part of an attitude is the most important driver of consumers’ preferences.\n\n
  69. 4.4Attitudes\nAn attitude is a lasting evaluation of a person, object, or issue. Consumers have attitudes about brands.\n\nA person’s attitude has three components: affect, cognition, and behavior. \n\nAffect is the feeling component of attitudes. Affect refers to the overall emotional response a person has to a product. Affect is usually dominant for expressive products.\n\nCognition, the knowing component, is the belief or knowledge a person has about a product and its important characteristic.\n\nBehavior, the doing component, involves a consumer’s intention to do something, such as the intention to purchase or use a certain product.\n\nDepending on the nature of the product, one of these three components—feeling, knowing, or doing—will be the dominant influence in creating an attitude toward a product. Marketers often need to decide which part of an attitude is the most important driver of consumers’ preferences.\n\n
  70. \n
  71. Personality\nPersonality is the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment\nPersonality Traits\nFor marketers, differences in personality traits such as thrill seeking underscore the potential value of considering personality when they are crafting their marketing strategies. The following are some specific personality traits relevant to marketing strategies:\n\n•Innovativeness is the degree to which a person likes to try new things.\n•Materialism is the amount of emphasis placed on owning products.\n•Self-confidence is the degree to which a person has a positive evaluation of her abilities, including the ability to make a good decision.\n•Sociability is the degree to which a person enjoys social interaction.\n-- Need for cognition is the degree to which a person likes to think about things and expend the necessary effort to process brand information.\n\n-http://www.colorquiz.com ‘personality’ assessment based on color preferences\n\nThe Self: Are You What You Buy?\nConsumers buy products that are extensions of their personalities. Marketers try to create brand personalities that will appeal to different types of people. \nAge \nA person’s age is another internal influence on purchasing behavior. Many of us feel we have more in common with those of our own age because we share a common set of experiences and memories about cultural events.\nThe Family Life Cycle\nMarketers know that the process of change continues throughout consumers’ lives. The purchase of goods and services may depend more on consumers’ current position in the family life cycle—the stages through which family members pass as they grow older—than on chronological age.\nLifestyle\nA lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences. Consumers often choose goods, services, and activities that are associated with a certain lifestyle.\n\nMarketers often develop marketing strategies that recognize that people can be grouped into market segments based on similarities in lifestyle preferences.\n\nPsychographics\nPsychographic analysis groups consumers according to psychological and behavioral similarities. By describing people in terms of their activities, interests, and opinions (AIO) marketers create profiles of customers who resemble each other in terms of their activities and patterns of product use.\nIt is important to profile consumers in terms of their lifestyle because this helps tell marketers why people act. Demographic characteristics tell marketers what products people buy.\n\n\n
  72. Personality\nPersonality is the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment\nPersonality Traits\nFor marketers, differences in personality traits such as thrill seeking underscore the potential value of considering personality when they are crafting their marketing strategies. The following are some specific personality traits relevant to marketing strategies:\n\n•Innovativeness is the degree to which a person likes to try new things.\n•Materialism is the amount of emphasis placed on owning products.\n•Self-confidence is the degree to which a person has a positive evaluation of her abilities, including the ability to make a good decision.\n•Sociability is the degree to which a person enjoys social interaction.\n-- Need for cognition is the degree to which a person likes to think about things and expend the necessary effort to process brand information.\n\n-http://www.colorquiz.com ‘personality’ assessment based on color preferences\n\nThe Self: Are You What You Buy?\nConsumers buy products that are extensions of their personalities. Marketers try to create brand personalities that will appeal to different types of people. \nAge \nA person’s age is another internal influence on purchasing behavior. Many of us feel we have more in common with those of our own age because we share a common set of experiences and memories about cultural events.\nThe Family Life Cycle\nMarketers know that the process of change continues throughout consumers’ lives. The purchase of goods and services may depend more on consumers’ current position in the family life cycle—the stages through which family members pass as they grow older—than on chronological age.\nLifestyle\nA lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences. Consumers often choose goods, services, and activities that are associated with a certain lifestyle.\n\nMarketers often develop marketing strategies that recognize that people can be grouped into market segments based on similarities in lifestyle preferences.\n\nPsychographics\nPsychographic analysis groups consumers according to psychological and behavioral similarities. By describing people in terms of their activities, interests, and opinions (AIO) marketers create profiles of customers who resemble each other in terms of their activities and patterns of product use.\nIt is important to profile consumers in terms of their lifestyle because this helps tell marketers why people act. Demographic characteristics tell marketers what products people buy.\n\n\n
  73. Personality\nPersonality is the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment\nPersonality Traits\nFor marketers, differences in personality traits such as thrill seeking underscore the potential value of considering personality when they are crafting their marketing strategies. The following are some specific personality traits relevant to marketing strategies:\n\n•Innovativeness is the degree to which a person likes to try new things.\n•Materialism is the amount of emphasis placed on owning products.\n•Self-confidence is the degree to which a person has a positive evaluation of her abilities, including the ability to make a good decision.\n•Sociability is the degree to which a person enjoys social interaction.\n-- Need for cognition is the degree to which a person likes to think about things and expend the necessary effort to process brand information.\n\n-http://www.colorquiz.com ‘personality’ assessment based on color preferences\n\nThe Self: Are You What You Buy?\nConsumers buy products that are extensions of their personalities. Marketers try to create brand personalities that will appeal to different types of people. \nAge \nA person’s age is another internal influence on purchasing behavior. Many of us feel we have more in common with those of our own age because we share a common set of experiences and memories about cultural events.\nThe Family Life Cycle\nMarketers know that the process of change continues throughout consumers’ lives. The purchase of goods and services may depend more on consumers’ current position in the family life cycle—the stages through which family members pass as they grow older—than on chronological age.\nLifestyle\nA lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences. Consumers often choose goods, services, and activities that are associated with a certain lifestyle.\n\nMarketers often develop marketing strategies that recognize that people can be grouped into market segments based on similarities in lifestyle preferences.\n\nPsychographics\nPsychographic analysis groups consumers according to psychological and behavioral similarities. By describing people in terms of their activities, interests, and opinions (AIO) marketers create profiles of customers who resemble each other in terms of their activities and patterns of product use.\nIt is important to profile consumers in terms of their lifestyle because this helps tell marketers why people act. Demographic characteristics tell marketers what products people buy.\n\n\n
  74. Personality\nPersonality is the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment\nPersonality Traits\nFor marketers, differences in personality traits such as thrill seeking underscore the potential value of considering personality when they are crafting their marketing strategies. The following are some specific personality traits relevant to marketing strategies:\n\n•Innovativeness is the degree to which a person likes to try new things.\n•Materialism is the amount of emphasis placed on owning products.\n•Self-confidence is the degree to which a person has a positive evaluation of her abilities, including the ability to make a good decision.\n•Sociability is the degree to which a person enjoys social interaction.\n-- Need for cognition is the degree to which a person likes to think about things and expend the necessary effort to process brand information.\n\n-http://www.colorquiz.com ‘personality’ assessment based on color preferences\n\nThe Self: Are You What You Buy?\nConsumers buy products that are extensions of their personalities. Marketers try to create brand personalities that will appeal to different types of people. \nAge \nA person’s age is another internal influence on purchasing behavior. Many of us feel we have more in common with those of our own age because we share a common set of experiences and memories about cultural events.\nThe Family Life Cycle\nMarketers know that the process of change continues throughout consumers’ lives. The purchase of goods and services may depend more on consumers’ current position in the family life cycle—the stages through which family members pass as they grow older—than on chronological age.\nLifestyle\nA lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences. Consumers often choose goods, services, and activities that are associated with a certain lifestyle.\n\nMarketers often develop marketing strategies that recognize that people can be grouped into market segments based on similarities in lifestyle preferences.\n\nPsychographics\nPsychographic analysis groups consumers according to psychological and behavioral similarities. By describing people in terms of their activities, interests, and opinions (AIO) marketers create profiles of customers who resemble each other in terms of their activities and patterns of product use.\nIt is important to profile consumers in terms of their lifestyle because this helps tell marketers why people act. Demographic characteristics tell marketers what products people buy.\n\n\n
  75. Personality\nPersonality is the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment\nPersonality Traits\nFor marketers, differences in personality traits such as thrill seeking underscore the potential value of considering personality when they are crafting their marketing strategies. The following are some specific personality traits relevant to marketing strategies:\n\n•Innovativeness is the degree to which a person likes to try new things.\n•Materialism is the amount of emphasis placed on owning products.\n•Self-confidence is the degree to which a person has a positive evaluation of her abilities, including the ability to make a good decision.\n•Sociability is the degree to which a person enjoys social interaction.\n-- Need for cognition is the degree to which a person likes to think about things and expend the necessary effort to process brand information.\n\n-http://www.colorquiz.com ‘personality’ assessment based on color preferences\n\nThe Self: Are You What You Buy?\nConsumers buy products that are extensions of their personalities. Marketers try to create brand personalities that will appeal to different types of people. \nAge \nA person’s age is another internal influence on purchasing behavior. Many of us feel we have more in common with those of our own age because we share a common set of experiences and memories about cultural events.\nThe Family Life Cycle\nMarketers know that the process of change continues throughout consumers’ lives. The purchase of goods and services may depend more on consumers’ current position in the family life cycle—the stages through which family members pass as they grow older—than on chronological age.\nLifestyle\nA lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences. Consumers often choose goods, services, and activities that are associated with a certain lifestyle.\n\nMarketers often develop marketing strategies that recognize that people can be grouped into market segments based on similarities in lifestyle preferences.\n\nPsychographics\nPsychographic analysis groups consumers according to psychological and behavioral similarities. By describing people in terms of their activities, interests, and opinions (AIO) marketers create profiles of customers who resemble each other in terms of their activities and patterns of product use.\nIt is important to profile consumers in terms of their lifestyle because this helps tell marketers why people act. Demographic characteristics tell marketers what products people buy.\n\n\n
  76. Personality\nPersonality is the set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment\nPersonality Traits\nFor marketers, differences in personality traits such as thrill seeking underscore the potential value of considering personality when they are crafting their marketing strategies. The following are some specific personality traits relevant to marketing strategies:\n\n•Innovativeness is the degree to which a person likes to try new things.\n•Materialism is the amount of emphasis placed on owning products.\n•Self-confidence is the degree to which a person has a positive evaluation of her abilities, including the ability to make a good decision.\n•Sociability is the degree to which a person enjoys social interaction.\n-- Need for cognition is the degree to which a person likes to think about things and expend the necessary effort to process brand information.\n\n-http://www.colorquiz.com ‘personality’ assessment based on color preferences\n\nThe Self: Are You What You Buy?\nConsumers buy products that are extensions of their personalities. Marketers try to create brand personalities that will appeal to different types of people. \nAge \nA person’s age is another internal influence on purchasing behavior. Many of us feel we have more in common with those of our own age because we share a common set of experiences and memories about cultural events.\nThe Family Life Cycle\nMarketers know that the process of change continues throughout consumers’ lives. The purchase of goods and services may depend more on consumers’ current position in the family life cycle—the stages through which family members pass as they grow older—than on chronological age.\nLifestyle\nA lifestyle is a pattern of living that determines how people choose to spend their time, money, and energy and that reflects their values, tastes, and preferences. Consumers often choose goods, services, and activities that are associated with a certain lifestyle.\n\nMarketers often develop marketing strategies that recognize that people can be grouped into market segments based on similarities in lifestyle preferences.\n\nPsychographics\nPsychographic analysis groups consumers according to psychological and behavioral similarities. By describing people in terms of their activities, interests, and opinions (AIO) marketers create profiles of customers who resemble each other in terms of their activities and patterns of product use.\nIt is important to profile consumers in terms of their lifestyle because this helps tell marketers why people act. Demographic characteristics tell marketers what products people buy.\n\n\n
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  85. When, where, and how consumers shop are called situational influences and shape purchase choices. The following is a discussion of specific situational factors:\n\n
  86. The Physical Environment\nPeople’s moods and behaviors are strongly influenced by their physical surroundings. The store environment influences many purchases.\nArousal and pleasure determine whether a shopper will react positively or negatively to a store environment. \n2 Time\nMarketers know that the time of day, the season of the year, and how much time one has to make a purchase affects decision making. Time is one of consumers’ most limited resources. \n\nMany consumers believe that they are more pressed for time than ever before. This sense of time poverty makes consumers responsive to marketing innovations that allow them to save time, including such services as one-hour photo processing, drive-through lanes at fast-food restaurants, and ordering products on the Web.\n
  87. The Physical Environment\nPeople’s moods and behaviors are strongly influenced by their physical surroundings. The store environment influences many purchases.\nArousal and pleasure determine whether a shopper will react positively or negatively to a store environment. \n2 Time\nMarketers know that the time of day, the season of the year, and how much time one has to make a purchase affects decision making. Time is one of consumers’ most limited resources. \n\nMany consumers believe that they are more pressed for time than ever before. This sense of time poverty makes consumers responsive to marketing innovations that allow them to save time, including such services as one-hour photo processing, drive-through lanes at fast-food restaurants, and ordering products on the Web.\n
  88. Opinion Leaders\nAn opinion leader is a person that influences other’s attitudes or behaviors because others perceive her as possessing expertise about the product. Opinion leaders usually exhibit high levels of interest in the product category and may continuously update their knowledge by reading, talking with salespeople, and so on. Because of this involvement, opinion leaders are valuable information sources, and, unlike commercial endorsers who are paid to represent the interest of just one company, they have no ax to grind and can impart both positive and negative information about the product. \n\n\n
  89. Opinion Leaders\nAn opinion leader is a person that influences other’s attitudes or behaviors because others perceive her as possessing expertise about the product. Opinion leaders usually exhibit high levels of interest in the product category and may continuously update their knowledge by reading, talking with salespeople, and so on. Because of this involvement, opinion leaders are valuable information sources, and, unlike commercial endorsers who are paid to represent the interest of just one company, they have no ax to grind and can impart both positive and negative information about the product. \n\n\n
  90. Opinion Leaders\nAn opinion leader is a person that influences other’s attitudes or behaviors because others perceive her as possessing expertise about the product. Opinion leaders usually exhibit high levels of interest in the product category and may continuously update their knowledge by reading, talking with salespeople, and so on. Because of this involvement, opinion leaders are valuable information sources, and, unlike commercial endorsers who are paid to represent the interest of just one company, they have no ax to grind and can impart both positive and negative information about the product. \n\n\n
  91. \nFamilies, friends, and classmates often influence our decisions, as do larger groups with which we identify, such as ethnic groups and political parties.\n\nCultural values are deeply held beliefs about right and wrong ways to live. \n\nMarketers who understand a culture’s values can tailor their product offerings accordingly.\n
  92. Group Membership\nPeople act differently in groups than they do on their own. With more people in a group, it becomes less likely that any one member will be singled out for attention, and normal restraints on behavior may be reduced. In many cases, group members show a greater willingness to consider riskier alternatives than they would if each member made the decision alone.\n\nBecause many of the things we buy are consumed in the presence of others, group behaviors are important to marketers.\n\nReference Groups\nA reference group is a set of people a consumer wants to please or imitate. Consumers “refer to” these groups in evaluating their behavior—what they wear, where they go, what brands they buy, and so on. \nConformity\nConsumers often change their behavior to gain acceptance into a particular reference group. Conformity is at work when a person changes as a reaction to real or imagined group pressure.\n\n
  93. Social Class\nSocial class is the overall rank of people in a society. People who are within the same class work in similar occupations, have similar income levels, and usually share taste in clothing, decorating styles, and leisure activities. These people also share many political and religious beliefs, as well as ideas regarding valued activities and goals. Luxury goods often serve as status symbols.\n\n
  94. Social Class\nSocial class is the overall rank of people in a society. People who are within the same class work in similar occupations, have similar income levels, and usually share taste in clothing, decorating styles, and leisure activities. These people also share many political and religious beliefs, as well as ideas regarding valued activities and goals. Luxury goods often serve as status symbols.\n\n
  95. Social Class\nSocial class is the overall rank of people in a society. People who are within the same class work in similar occupations, have similar income levels, and usually share taste in clothing, decorating styles, and leisure activities. These people also share many political and religious beliefs, as well as ideas regarding valued activities and goals. Luxury goods often serve as status symbols.\n\n
  96. Social Class\nSocial class is the overall rank of people in a society. People who are within the same class work in similar occupations, have similar income levels, and usually share taste in clothing, decorating styles, and leisure activities. These people also share many political and religious beliefs, as well as ideas regarding valued activities and goals. Luxury goods often serve as status symbols.\n\n
  97. Social Class\nSocial class is the overall rank of people in a society. People who are within the same class work in similar occupations, have similar income levels, and usually share taste in clothing, decorating styles, and leisure activities. These people also share many political and religious beliefs, as well as ideas regarding valued activities and goals. Luxury goods often serve as status symbols.\n\n
  98. Social Class\nSocial class is the overall rank of people in a society. People who are within the same class work in similar occupations, have similar income levels, and usually share taste in clothing, decorating styles, and leisure activities. These people also share many political and religious beliefs, as well as ideas regarding valued activities and goals. Luxury goods often serve as status symbols.\n\n
  99. Gender Roles\nSome of the strongest pressures to conform come from our sex roles, society’s expectations regarding the appropriate attitudes, behaviors, and appearance for men and women. These assumptions about the proper roles of men and women, flattering or not, are deeply ingrained in marketing communications.\n\n“Sex-Typed Products”\nMany products take on masculine or feminine attributes, and consumers often associate them with one gender or another. Marketers play a part in teaching us how society expects us to act as men and women. As consumers, we see women and men portrayed differently in marketing communications and in products promoted to the two groups. \n\n\n
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