copyright 2000 prentice hall6-1 chapter 6 why people buy: consumer behavior

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Copyright 2000 Prentice Hall 6-1 Chapter 6 Why People Buy: Consumer Behavior

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Copyright 2000 Prentice Hall6-3 Involvement and Decision Making Extended Problem Solving (Car) Extended Problem Solving (Car) Limited Problem Solving (Clothing) Limited Problem Solving (Clothing) Habitual Decision Making (Soda) Habitual Decision Making (Soda) Low Involvement High Involvement

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Page 1: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-1

Chapter 6

Why People Buy: Consumer Behavior

Page 2: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-2

What is Consumer Behavior?

It is the process involved when It is the process involved when individuals or groups select, individuals or groups select,

purchase, use, and dispose of purchase, use, and dispose of goods, services, ideas, or goods, services, ideas, or

experiences, to satisfy needs and experiences, to satisfy needs and desires.desires.

Page 3: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-3

Involvement and Decision Making

Extended Problem Solving

(Car)

LimitedProblem Solving

(Clothing)

HabitualDecision Making

(Soda)LowInvolvement

High Involvement

Page 4: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-4

The Decision Making Process

Problem Recognition

Information Search

Evaluation of Alternatives

Product Choice

Postpurchase Evaluation

Page 5: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

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The Decision Making ProcessStep 1. Problem Recognition

Consumer's Desired

State

Consumer’s Current

State

Consumer Sees a Significant Difference Between His Current State of Affairs and Some Desired State of Affairs.

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Copyright 2000 Prentice Hall6-6

The Decision Making ProcessStep 2. Information Search

The Process Where a Consumer Searches for Appropriate Information to Make a Reasonable Decision.

Brandon Might Search for Information from:

His Memory

His Friends’ Recommendations

Brochures from Car Dealers

TV Commercials

Page 7: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-7

The Decision Making ProcessStep 3. Evaluation of Alternatives

Evaluative CriteriaPossible Cars

Chevrolet GeoChrysler NeonHonda Civic del Sol

PriceGas mileageRoominessColor & Design

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Copyright 2000 Prentice Hall6-8

The Buyer Decision ProcessStep 4. Product ChoiceStep 4. Product Choice

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Brand Loyalty

Heuristic

Country-of-

OriginHeuristic

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The Decision Making ProcessStep 5. Postpurchase Evaluation

Consumer’s Expectations of Product Quality and Performance

Dissatisfied CustomerSatisfied Customer!

Product’s Perceived Performance Standard

Page 10: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

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Internal Influences on Consumer Decisions

Factors Affecting Consumer Behavior:Factors Affecting Consumer Behavior:PersonalPersonal

Perception

Motivation

Attitudes

LearningPersonality

Lifestyles

Age Groups Internal Factors

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Copyright 2000 Prentice Hall6-11

How people select,organize, & interpretinformation from the

world.

Internal Influences on Consumer Decisions: Perception

ExposureHave you seen it?

Perceptual Selection Did you pay attention

to it?

Interpretation What does it mean to you?

Page 12: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-12

Maslow’s Hierarchy of Needs

Ego NeedsPrestige, status

BelongingnessLove, friendship, acceptance by others

SafetySecurity, shelter, protection

Physiological water, sleep, food

Self Actualization

Self-fulfillment

Lower-Level Needs

Upper-Level Needs

Page 13: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-13

A Relatively Permanent Change in Consumer Behavior Caused by Acquired Information or

Experience.

• Behavioral Learning– Classical conditioning– Operant conditioning

• Cognitive Learning

Internal Influences on Consumer Decisions: Learning

Page 14: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

Copyright 2000 Prentice Hall6-14

Internal Influences on Consumer Decisions: Attitudes

AffectOverall Feeling

About a Product

CognitionBeliefs &

Knowledge About the Product

BehaviorAction by

Buying or Using the Product

An Attitude is a Lasting Evaluation of a Person, Object, or Issue. Components of

Attitudes Include:

Page 15: Copyright 2000 Prentice Hall6-1 Chapter 6 Why People Buy: Consumer Behavior

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Other Internal Influences on Consumer Decisions

Personality Characteristics

Innovativeness Sociability

Self-Confidence

Lifestyle Identification - Psychographics

Activities Opinions

Interests

Self-Concept

Age Groups

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Situational Influences on Consumer Decisions

The Physical Environment includes such elements as:– arousal - dull or exciting,– pleasurable surroundings,– decor, smells, temperature,– in-store displays.

Time available to make a decision; may include a sense of time poverty.

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Copyright 2000 Prentice Hall6-17

SSocial Influences on Consumer Decisions

Subculture• Group within a society

whose members share a distinctive set of beliefs, characteristics, or experiences.

• Religious Groups• Racial/ Ethnic Groups• Regional Groups

Social Class• Refers to the overall rank of

people in a society.• Measured by: Occupation,

Income, Education, & Wealth.

• Common tastes in clothing, decorating styles, & leisure activities.

Culture is the Values, Beliefs, Customs, and Tastes Valued by a Group of People.

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Social Influences on Consumer Decisions: Groups

Reference Groups are people that have a significant effect on an individual’s evaluations, aspirations, or behavior.

Can cause conformity where a person changes as a reaction to real or imagined group pressure. – Some of the strongest pressures to conform

come from our sex roles.

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Copyright 2000 Prentice Hall6-19

Social Influences on Social Influences on Consumer Decisions: GroupsConsumer Decisions: Groups

An opinion leader is a person who influences others’ attitudes or behaviors.

They are valuable information sources because they are:– knowledgeable about a product category,– among the first to buy new products, and– likely to tell both positive and negative

information about product performance.

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Chapter Summary Explain why understanding consumer behavior is

important to organizations. Explain the prepurchase, purchase, and

postpurchase activities consumers engage in when making decisions.

Describe how internal factors influence consumers’ decision-making processes.

Understand how situational factors at the time and place of purchase may influence consumer behavior.

Describe how consumers’ relationships with other people influence their decision-making processes.