Perspective on Consumer Behavior

Perspective on Consumer Behavior.

Learning Objectives Discuss why an understanding of consumer behavior is valuable in developing advertising and promotional programs. Describe the steps in the consumer decision-making process. Explain the influence on consumer behavior of psychological processes like perception and motivation. Discuss behavioral learning theory and cognitive learning theory. Explain the influence of external factors like culture and subculture influences. Identify new ways to study consumer behavior..

Consumer Behavior. Consumer beha vior can be defined as the process and activities people engage in when searching for, selecting, purchasing, using, e valuating, and disposing of products and services to satisfy their n eeds and desires..

FIGURE 4–1 Basic Model of Consumer Decision Making.

Occurs when the consumer perceives a need and becomes motivated to solve the problem. The problem recognition stage initiates the subsequent decision processes. (Note that problem does not always imply a negative state. A goal exists for the consumer, and this goal may be the attainment of a more positive situation.) Sources of Problem Recognition The causes of problem recognition may be very simple or very complex and may result from changes in the consumer’s current and/or desired state. These causes may be influenced by both internal and external factors. Out of Stock Problem recognition occurs when consumers use their existing supply of a product and must replenish their stock..

Dissatisfaction Problem recognition is created by the consumer’s dissatisfaction with the current state of affairs and/or the product or service being used. New Needs/Wants Changes in consumers lives often in result in new needs and wants. Not all product purchases are based on needs. Some products or services sought by consumers are not essential but are nonetheless desired. A want is a desire for something one does not have. Many products sold to consumers satisfy their wants rather than their basic needs. Related Products/Purchases Problem recognition can also be stimulated by the purchase of a product. Marketer Induced Problem Recognition Another source of problem recognition is marketers’ actions that encourage consumers not to be content with their current state or situation. New Products O ccur when innovative products are introduced and brought to the attention of consumers..

Information Search. - Consumer decision-making process. The initial search effort often consists of an attempt to scan information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. This information retrieval is referred to as internal search, the consumer will seek additional information by engaging in external search . External sources of information include: Internet sources, such as organic and sponsored information available through companies’ websites, consumer postings, and organizations. Personal sources, such as friends, relatives, or co-workers. Marketer-controlled (commercial) sources, such as information from advertising, salespeople, or point-of-purchase displays and packaging. Public sources, including articles in magazines or newspapers and reports on TV and so on. Personal experience, such as actually handling, examining, or testing the product..

Alternative Evaluation The consumer compares the various brands or products and services he or she has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process. Evaluative Criteria and Consequences - Evaluative criteria are usually viewed as product or service attributes. Many marketers view their products or services as bundles of attributes, but consumers tend to think about products or services in terms of their consequences or outcomes instead. Purchase Decision - In buying process, the consumer must stop searching for and evaluating information about alternative brands in the evoked set and make a purchase decision. Post purchase Evaluation - The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied..

B. Relevant Internal Psychological Processes Motivation Perception Attitude formation Integration Learning.

Hierarchy of Needs - Most popular approaches to understanding consumer motivations is based on the classic theory of human motivation popularized many years ago by psychologist Abraham Maslow. Maslow's Heirarchy of Needs FIGURE 4-2.

According to Maslow’s theory, the lower level physiological and safety needs must be satisfied before the higher-order needs become meaningful. Once these basic needs are satisfied, the individual moves on to attempting to satisfy higher-order needs such as self-esteem. While Maslow’s needs hierarchy has flaws, it offers a framework for marketers to use in determining what needs they want their products and services to be shown satisfying. Advertising campaigns can then be designed to show how a brand can fulfill these needs. Perception The process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world. Perception is an individual process; it depends on internal factors such as a person’s beliefs, experiences, needs, moods, and expectations..

Sensation - is the immediate, direct response of the senses (taste, smell, sight, touch, and hearing) to a stimulus such as an ad, package, brand name, or point of purchase display. Selecting Information - Sensory inputs are important but are only one part of the perceptual process. Selectivity - occurs throughout the various stages of the consumer’s perceptual process. Perception may be viewed as a filtering process in which internal and external factors influence what is received and how it is processed and interpreted..

Attitudes perspectives view an attitude as a summary construct that represents an individual’s overall feelings toward or evaluation of an object. • M ulti attribute Attitude Model - views an attitude object, such as a product or brand, as possessing a number of attributes that provide the basis on which consumers form their attitudes. • Attitude Change Strategies - understanding the beliefs that underlie consumers’ evaluations of a brand and the importance of various attributes or consequences..

Integration Processes and Decision Rules - are the way product knowledge, meanings, and beliefs are combined to evaluate two or more alternatives. Analysis of the integration process focuses on the different types of decision rules or strategies consumers use to decide among purchase alternatives. Purchase Decision - In buying process, the consumer must stop searching for and evaluating information about alternative brands in the evoked set and make a purchase decision. Post-purchase Evaluation - The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Behavioral Learning Theory - Emphasize the role of external, environmental stimuli in causing behavior; they minimize the significance of internal psychological processes..