6 Consumer Buying Behavior 7 Business Markets and Buying Behavior 8 Reaching Global Markets 9 Digital Marketing and Social Networking Chapter 6 Consumer Buying Behavior Professor Jason ID: 740230
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Part 3CUSTOMER BEHAVIOR AND E-MARKETING.Slide2
6: Consumer Buying Behavior7: Business Markets and Buying Behavior
8:
Reaching Global Markets
9: Digital Marketing and Social NetworkingSlide3
Chapter 6Consumer Buying Behavior
Professor Jason
C. H. Chen, Ph.D.
School of Business AdministrationGonzaga UniversitySpokane, WA 99258chen@jepson.gonzaga.eduSlide4
To recognize the stages of the consumer buying decision processTo understand the types of consumer decision making and the level of involvementTo explore how situational influences may affect the consumer buying decision processTo understand the psychological influences that may affect the consumer buying decision processTo examine the social influences that may affect the consumer buying decision processTo examine consumer misbehaviorLearning ObjectivesSlide5
Buying behaviorIt is the decision _________ and _______ of people involved in buying and using productsConsumer buying behavior: It refers to the buying behavior of ultimate consumers.Products are purchased for personal or household use and not for business
purposesBuying Behavior
processes
actionsSlide6
Understanding Buying BehaviorCustomers’ overall opinions and attitudes toward a firm’s products have a great impact on the firm’s success
To find out what satisfies buyers, marketers must examine the main
influences
on what, where, when, and how consumers buy.By gaining a deeper understanding of the factors that affect buying behavior, marketers are in a better position to predict how consumers will respond to marketing strategies7-
6
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
.Slide7
Affected by the following influences:____________ Surroundings, time, purchase reason, and buyer’s mood and condition____________ perception, motives, learning, attitudes, personality and lifestyles________ Roles, family, reference groups and opinion leaders, culture and subcultureNot all decision processes lead to a purchaseNot all consumer decisions include all five stages
Consumer Buying Decision Process
Situational
Psychological
SocialSlide8
Figure 6.1 - Consumer Buying Decision Process and Possible Influences on the Process
[1]
[2]
[3][4]
[5]Slide9
1. Problem Recognition StageOccurs when a buyer becomes aware of a _________ between a desired state and an actual condition.
Speed of consumer problem recognition can be rapid or slow
Some consumers are unaware of their problems or needs
Marketers use sales personnel, advertising, and packaging to help trigger recognition of such needs or problems 7-9
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
.
differenceSlide10
1. Problem Recognition StageOccurs when a buyer becomes aware of a _________ between a desired state and an actual condition.
Speed of consumer problem recognition can be rapid or slow
Some consumers are unaware of their problems or needs
Marketers use sales personnel, advertising, and packaging to help trigger recognition of such needs or problems 7-10
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
.
differenceSlide11
2. Information Search
Buyers search their memories for information about products that might solve their problem
_________ search
Buyers seek information from sources other than their memories
_________ search
Internal
ExternalSlide12
Consideration set: Group of _______ within a product category that a buyer views as possible alternativesEvaluative criteria: To assess the products in a consideration set, the buyer use evaluation criteria: objective (e.g., size) and subjective (style) product characteristics that are important to a buyerMarketers influence consumers’ evaluations by framing the alternatives by:Describing the alternatives and their attributes in a certain manner
3. Evaluation of Alternatives
brandsSlide13
4. Purchase StageThe buyer:
Chooses the product or brand to be bought
Product __________ may influence the decision
Chooses the sellerNegotiates the terms of the transaction
Makes the actual purchase or terminates the process
7-
13
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.
availabilitySlide14
Cognitive dissonance: ________ in buyer’s mind about whether decision to buy certain product was right CausePurchase of _________ , high-involvement product lacking desirable features of competing brandsLessened by contacting recent customers regarding the purchaseMarketers sometimes attempt to reduce cognitive dissonance by having salespeople call or e-mail recent customers to make sure they are satisfied with their new purchase.
5. Post-purchase Evaluation
Doubts
expensiveSlide15
Degree of interest in a product and the importance the individual places on that productHigh-involvement products - Visible to others and are expensiveLow-involvement products - Less expensive and have less associated social riskLevel of InvolvementSlide16
Level of Involvement
Long-term and ongoing
interest in a product or product category
Enduring
involvement
Temporary and dynamic and results from a particular set of circumstances
Situational
involvement Slide17
Loyalty to a specific brand
Factors Influencing Level
of Involvement
Product categories
sports
Interest in a specific advertisement
f
unny commercial
Medium
TV show
Certain decisions and behaviors
a love of shoppingSlide18
Table 6.1 - Consumer Decision Making
Routinized response: when buying frequently purchased, low-cost item that require very little search-and-decision effort.
Limited
: when they purchase products occasionally or from unfamiliar brands in a familiar product category – need more time.Extended: occurs with high-involvement, unfamiliar, expensive, or infrequently purchased items – e.g., car, homeSlide19
Consumer Decision Making Strategies7-19
Consumer
Buying
BehaviorsRoutinizedResponse
Limited
Problem
Solving
Extended
Problem
Solving
Impulse
Buying
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
.
Impulse buying –
An unplanned buying behavior resulting from a powerful urge to buy something immediately
When have you made a purchase solely on impulse?
Were you satisfied or dissatisfied with the purchase?
Most students probably will indicate they have purchased a product
on impulse
.
Typical
impulse products include candy, a compact disc, or a pair of jeans.Slide20
Consumer Decision Making
Buying frequently purchased, low-cost items that require very little search-and-decision effort
Routinized response behavior
Purchasing products occasionally or from unfamiliar brands in a familiar product category
Limited decision making
Occurs with high-involvement, unfamiliar, expensive, or infrequently-purchased items
Extended decision making
No conscious planning and stems from a powerful urge to buy something immediately
Impulse buyingSlide21
Situational Influences on the Buying Decision Process
7-
21
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
.Slide22
Possible Influences on the Decision Process
7-
22
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED.Slide23
Situational InfluencesInfluences that result from circumstances, time, and location that affect the consumer buying decision process
Can influence the decision making process (buyers) at ____ stage
Cause the individual to shorten, lengthen, or terminate the
processFive categories of situational influences:Physical surroundings
Social surroundings
Time perspective
Reason for purchase
Buyer’s momentary mood and condition
7-
23
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
.
any Slide24
Psychological Influences on the Buying Decision Process7-24
Psychological Influences
Perception
Motives
Lifestyle
Personality and Self-Concept
Learning
Attitudes
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
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Factors that in part determine people’s general behavior, thus influencing their behavior as consumers
Operate on buyers internally, but are acted on by outside forces :Slide25
Partly determine people’s general behavior and influence their behavior as consumersStrongly affected by external social forcesConsumer behavior based psychological influences Perception MotivesLearning Attitudes and personality Self-concept and lifestylesPsychological InfluencesSlide26
The Perception Process
7-
26
1
3
2
Selective Exposure
Selective Distortion
Selective
Retention
Copyright © 2014 South-Western, Cengage Learning. ALL RIGHTS RESERVED
.
[1]
[2]
[3]Slide27
Perception is the process of selecting, organizing, and interpreting information inputs to produce meaningInformation inputs: Sensations received through sight, taste, hearing, smell, and touchPerception process1) Selective _________ : Selecting some sensory inputs and ignore others2) Perceptual ____________: Organizing and integrating new information with what is stored in memory3) Interpretation: Assigning meaning to what has been organized
Perception
exposure
organizationSlide28
Selective Exposure
Changing or twisting of information that is inconsistent with personal feelings or
beliefs
It occurs when a person receives information inconsistent with personal feeling or beliefs.
Selective _________
Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not
Selective _________
distortion
retention
The selective nature of perception may also result in two other conditions.Slide29
Probability that seller’s information never ________ the targetBuyer receives information but perceives it differently than was intendedBuyers who perceive information inputs to be inconsistent with prior beliefs will forget the information quicklyProblems in Perception
reachesSlide30
Internal energizing force that directs a person’s activities toward satisfying needs or achieving goalsBuyers are affected by a set of motives rather than by just one.Physical feelings, states of mind, or emotionsMaslow’s hierarchy of needs: Humans seek to satisfy five levels of needs from most to least basic to survivalPatronage motives: Influence which establishments a customer frequents
MotiveSlide31
Figure 6.2 - Maslow’s Hierarchy of NeedsPhysiological needs
Safety needs Social
needs
Esteem needsSelf-actualization needs
Basic level
R
equirements for survival such as food, water, clothing etc.
Life insurance
Social acceptance (love and affection)
Respect, recognition
People’s needs to grow and developSlide32
Changes in a person’s thought processes and behavior caused by information and experienceConsequences of behavior influences learning behaviorCustomers learn about products through __________Indirect experience - Salespeople, advertisements, websites, friends, and relativesHowever, marketers may encounter problems in attracting and holding consumers’ attention, providing them with information for making purchase decisions, and convincing them to try the product.
Learning
experienceSlide33
Enduring evaluation of feelings about and behavioral tendencies toward an object or ideaDevelops toward something that is:Tangible or intangible Living or nonlivingAcquired through:Experience Interaction with other peopleAttitudeSlide34
Components of Attitude
Knowledge and information
about the object or idea
Cognitive
Feelings and emotions toward the object or idea
Affective
Actions regarding the object or idea
BehavioralSlide35
Attitude - Academic Models
Used to understand and predict consumer’s attitude
Consists of elements that combine to form the overall attitude
Beliefs about product attributesStrength and evaluation of beliefs
Attitude Toward the Object Model (
Fishbein
model)
Focuses on intentions to act or purchase
Considers consumer perceptions of what other people believe is the best choice among a set of alternatives
Behavioral Intentions Model (Theory of Reasoned Action)Slide36
Attitude scales usually consists of a series of adjectives, phrases, or sentences about an objectUsed to indicate the intensity of individual feelings toward the object by reacting to the adjectives, phrases, or sentencesE.g., measuring people’s attitudes toward shopping might ask respondents to indicate the extent to which they agree or disagree with a number of statements, such as “shopping is more fun than watching TV.”
Attitude ScalesSlide37
Internal traits and behavioral tendencies resulting in consistent patterns of behavior in certain situationsInfluences types and brands of products purchasedMarketers aim advertising for specific personality typesSelf concept (image): Perception or view of oneselfBuyers purchase products that reflect and enhance their self-conceptsPurchase decisions are important to the development and maintenance of a stable self-concept
PersonalitySlide38
A lifestyle is an individual’s pattern of living expressed through:ActivitiesInterests OpinionsInfluences:Consumers’ product needsBrand preferencesChoice of mediaHow and where individual shop
LifestyleSlide39
Types of Social Influences
Social influences: Forces other people exert on one’s buying behavior
Actions and activities performed based on expectations of the individual and surrounding persons
Roles
Directly impact consumer buying decision process
Consumer socialization
:
Process through which a person acquires
the knowledge and skills to function as a consumer
Family influences
A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members
Reference groupsSlide40
Types of Social Influences
Member of an informal group who provides information about a specific topic to other group members seeking information
Opinion leader
An open group of individuals with similar social rank
Social class
Accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations
Culture
Group of individuals whose characteristics, values, and behavioral patterns are:
Similar within the group
Different from other group
SubcultureSlide41
Table 6.2 - Types of Family Decision MakingSlide42
Table 6.3 - Examples of Opinion Leaders and TopicsSlide43
Criteria for Grouping People in to Classes
Occupation and education
Income and wealth
Race and ethnicity
Group
PossessionsSlide44
Table 6.4 - Social Class Behavioral Traits and Purchasing Characteristics for Upper AmericansClass (Percent of Population)
Behavioral Traits
Buying Characteristics
Upper-upper (0.5)Social elite
Of aristocratic, prominent families
Inherited their position in society
Spend money on private clubs, various causes, and the arts
Lower-upper (3.8)
Newer social elite
Successful professionals earning very high incomes
Earned their position in society
Purchase material symbols of their status
Provide a substantial market for luxury product offerings
Upper-middle (13.8)
Career-oriented, professional degree holders
Demand educational attainment of their children
Provide a substantial market for quality product offerings
(28.1%)Slide45
Table 6.4 - Social Class Behavioral Traits and Purchasing Characteristics for Middle Americans
Class (Percent of Population)
Behavioral Traits
Buying Characteristics
Middle class (32.8)
Work conscientiously and adhere to culturally defined standards
Average-pay white-collar workers
Price sensitive
Spend on family-oriented, physical activities
Working class
(32.3)
Average-pay blue-collar workers
Hold jobs that entail manual labor and moderate skills
Some are union members
Reside in small houses or apartments in depressed areas
Impulsive as consumers yet display high loyalty to national brands
Seek best bargains
(65.1%)Slide46
Table 6.4 - Social Class Behavioral Traits and Purchasing Characteristics for Lower AmericansClass (Percent of Population)
Behavioral Traits
Buying Characteristics
Upper-lower (9.5)Low-income individuals who generally fail to rise above this class
Reject middle-class morality
Living standard is just above poverty
Frequently purchase on credit
Lower-lower (7.3)
Poverty stricken
Some are unemployed
In spite of their problems, often good-hearted toward others
May be forced to live in less desirable neighborhoods
Spend on products needed for survival
Able to convert discarded goods into usable items
(16.8%)Slide47
Behavior that violates generally accepted norms of a particular societyShopliftingConsumer fraudPiracyAbusive consumersConsumer MisbehaviorSlide48
Table 6.5 - Motivations for Unethical or Illegal MisbehaviorSlide49
Video Case 6.1Starbucks Refines the Customer ExperienceSlide50
Summary Starbucks is popular in the United States thanks to its focus on the customer experience. While the company continues to improve its American stores through innovations such as mobile pay, Starbucks is also expanding globally, especially in Asian markets. It is also diversifying; Starbucks recently purchased premium-juice company Evolution Fresh and is adding the company’s nutritious blended drinks to the traditional Starbucks menu. Starbucks plans to open more Evolution Fresh stores as the demand for healthy foods increases. The company is also competing with energy drink companies after releasing its all-natural Starbucks Refreshers. Starbucks is also promoting its focus on social responsibility.Slide51
1. In terms of situational influences and level of involvement, what are the benefits of mobile pay? Starbucks is working to keep customers involved by creating routinized response behavior. Mobile pay reduces search-and-decision effort, and the ease of payment and accumulation of Starbucks rewards makes it easy for their customers to prefer Starbucks as a brand. Starbucks is also taking advantage of customers’ momentary conditions to make sure they have an easy and fast way to pay.Slide52
2. With Evolution Fresh, which psychological influences on consumer buying decisions does Starbucks seem to be addressing? Motives, attitudes, personalities, and lifestyles are all important to Starbucks. With Evolution Fresh, Starbucks is primarily addressing consumers’ attitudes, especially perceptions and interpretations of the company. By providing products such as smoothies, juices, salads, and wraps, Starbucks is creating the impression that it cares about consumers’ health and is working to fit into their healthy lifestyles.Slide53
3. Why would Starbucks want customers to know that it believes in social responsibility? Starbucks wants to improve consumers’ perceptions and interpretations of the company and its actions. If consumers believe the company values ethical and socially responsible behavior, they will be more involved with the brand and more willing to purchase the company’s products.