The document outlines the consumer decision-making process, which includes: 1) Need recognition, where consumers recognize a problem and seek to fulfill needs; 2) Information search, both internally from memory and externally from sources like friends; 3) Evaluation of alternatives, where consumers evaluate options based on attributes; 4) Purchase, which can be influenced by in-store factors; and 5) Consumption and post-consumption evaluation, where satisfaction is determined by expectations.

1. January 19, 2010 Consumer Buying Behavior

2. Lecture Goals Factors used to explain consumer behavior Consumers decision-making process Influences affecting consumers’ decisions

3. What Is Consumer Behavior? Activities people undertake when obtaining, consuming, and disposing of products and services

4. Consumer Influences Organizational Influences Consuming Disposing Obtaining Consumer Behavior

5. Consumer Influences Organizational Influences Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Feelings Motivations Past Experiences Peer Groups Knowledge

7. How you store the product in your home

8. Who uses the product

9. How much you consume

10. How product compares with expectations

11. How you decide you want to buy

12. Other products you consider buying

13. Where you buy

14. How you pay for product

15. How you transport product home

16. How you get rid of remaining product

17. How much you throw away after use

18. If you resell items yourself or through a consignment store

20. Consumption Analysis Why and how people use products in addition to why and how they buy

21. Consumer Decision Process Stages

22. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment

23. Consumer Decision Process Model Need Recognition

24. Need Recognition An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs

25. Need Recognition Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively

26. Need Recognition Environmental Influences - Culture - Social Class - Personal Influence - Family - Situation MEMORY Need Recognition Individual Differences - Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle

27. Consumer Decision Process Model Need Recognition Search for Information

28. Search for Information Internal search: retrieving know-ledge from memory External search: collecting informa- tion from peers, family, and the marketplace

29. Need Recognition CDP Model Internal Search Search Environ- mental Influences Exposure Attention MEMORY Stimuli Individual Differences Comprehension Acceptance Retention

30. Search for Information Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior Search refers to a receptivity of information that solves problems or needs rather than a search for specific products

31. Search for Information Need Recognition Environmental Influences Internal Search Search Individual Differences MEMORY External Search

32. Search: Sources of Information Marketer Dominated Non-Marketer Dominated Stimuli

33. Search: Sources of Information Marketer Dominated - Advertising - Salespeople - Infomercials - Websites - Point-of-sales materials

34. Search: Sources of Information Non-Marketer Dominated Stimuli - Friends - Family - Opinion leaders - Media

38. Information Processing As consumers are exposed to information from external search, they begin to process the stimuli

39. Information Processing Exposure M EMORY Stimuli: - Marketer Dominated - Non-marketer Dominated Attention Comprehension Acceptance Retention

40. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

41. Need Recognition CDP Model Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Individual Differences Comprehension Acceptance Retention

42. Pre-purchase Evaluation of Alternatives The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer

43. Pre-purchase Evaluation of Alternatives Can use new or preexisting evaluations stored in memory Evaluative criteria: standards and specifications used to compare different products and brands Alternative can be considered on attributes that are salientor determinant

44. Pre-purchase Evaluation of Alternatives Salient attributes such as price and reliability are important to the consumer Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose

45. Pre-purchase Evaluation of Alternatives

46. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase

47. Need Recognition CDP Model Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Individual Differences Purchase Comprehension Acceptance Retention

48. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices

49. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices Purchase intention can change during the purchase stage—it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

50. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption

51. Need Recognition CDP Model Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Individual Differences Purchase Comprehension Consumption Acceptance Retention

52. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed

53. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed How consumers use a product affects satisfaction with product How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

54. An Emotional Appeal in Product Consumption

56. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation

57. Need Recognition CDP Model Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Individual Differences Purchase Comprehension Consumption Acceptance Retention Post-consumption Evaluation External Search Satisfaction Dissatisfaction

58. Post-consumption Evaluation Consumption is an important determinant of satisfaction Satisfaction: when consumers’ expectations are matched by perceived performance Dissatisfaction: when experiences and performance fall short of expectations

59. Post-Consumption Evaluation Cognitive dissonance: questioning the purchase decision (post-purchase regret) Usually, the higher the price, the higher the level of cognitive dissonance Emotion strongly affects the evaluation of a product or transaction

60. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment

61. Need Recognition CDP Model Internal Search Search Environ- mental Influences Pre-purchase Evaluation of Alternatives Exposure Attention MEMORY Stimuli Individual Differences Purchase Comprehension Consumption Acceptance Retention Post-consumption Evaluation External Search Satisfaction Dissatisfaction Divestment

62. Divestment How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling

63. How Customers Dispose of Products