Why People Buy: Consumer Behavior

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Why People Buy Consumer Behavior
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Consumer Behavior

• The process individuals and groups go through to
  select, purchase, or use goods, services, ideas,
  or experiences

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The Consumer Decision Process
Problem Recognition
Information Search
Alternative Evaluation
Product Choice
Post purchase Evaluation
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Problem Recognition

• Occurs whenever a consumer recognizes a
  difference between the current state and the
  ideal or desired state
• Internal cues - consumers recognize state of
  discomfort
• External cues - marketers may stimulate consumers
  to recognize problem

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Information Search

• Consumer checks memory and surveys environment to
  identify what options are available
• Sources might include personal experience and
  knowledge, friends, advertising, web sites, and
  magazines.

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Evaluation of Alternatives

• Identify consideration set
• Narrow list and compare pros and cons
• Use evaluative criteria to decide among remaining
  choices

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Product Choice

• People may ultimately make the choice based on
  heuristics
• Heuristics represent rules of thumb
• brand loyalty
• country of origin
• liking

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Post purchase Evaluation

• How good a choice was it?
• Customer satisfaction/dissatisfaction buyers
  remorse
• Ultimately affects future decisions and word of
  mouth communication

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Consumer Decision Making Influences
Internal Influences Perception Motivation Learnin
g Attitudes Personality Age groups Lifestyle
Situational Influences Physical Environment Time
Decision Process
Social Influences Culture, Social class Group
memberships
PURCHASE
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Internal Influences

• Perception
• Motivation
• Learning
• Attitudes
• Personality
• Age
• Lifestyle

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Perception

• Process by which people select, organize, and
  interpret information
• Exposure stimulus must be within sensory
  receptors to be noticed
• Perceptual Selection consumers will pay
  attention to some stimuli and not to others
• Interpretation consumers assign meaning to
  stimuli

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Motivation

• An internal state that drives us to satisfy needs
• Once we activate a need, a state of tension
  exists that drives the consumer to some goal that
  will reduce this tension and eliminate the need
• Consequently, only unmet needs motivate

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Maslows Hierarchy of Needs
Self- Actualization Ego Needs Belongingness Saf
ety Physiological
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Learning

• A change in behavior caused by information or
  experience
• Behavior learning theories assume learning takes
  place as the result of connections formed between
  events
• Cognitive learning occurs when consumers make a
  connection between ideas or by observing things
  in their environment

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Attitudes

• A lasting evaluation of a person, object, or
  issue
• 3 components of attitudes
• affect
• cognition
• behavior

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Personality

• The set of unique psychological characteristics
  that consistently influences the way a person
  responds to situations in the environment
• Innovativeness
• Self-confidence
• Sociability

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Family Life Cycle

• Related to age groups, our purchases also depend
  on our current position in the family life cycle
• stages through which family members pass as they
  grow older

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Lifestyles

• Pattern of living that determines how people
  choose to spend their time, money, energy and
  reflects their values, tastes, and preferences
• Expressed through preferences for sports
  activities, music interests, and political
  opinions
• Psychographics is the segmentation tool used to
  group consumers according to AIOs

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SRIs VALS Descriptions
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Situational Influences

• Physical Environment
• arousal
• pleasure
• Time
• time poverty

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Social Influences

• Culture and Subcultures
• Social Class
• Group Behavior and Reference Groups
• Opinion Leaders

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Cultures and Subcultures

• Culture is the values, beliefs, customs, and
  tastes produced and valued by a group of people
• A subculture is a group coexisting with other
  groups in a larger culture whose members share a
  distinctive set of beliefs or characteristics

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Social Class

• Social class is the overall rank of people in a
  society
• People in the same class tend to have similar
  occupations, similar income levels, share common
  tastes in clothes, decorating styles, and leisure
  activities. They may share political and
  religious beliefs.

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Reference Groups

• A reference group is a set of people a consumer
  wants to please or imitate
• The group can be composed of one person, a few
  people, or many people. They may be people you
  know or dont know
• Conformity is at work when people change as a
  reaction to real or imagined group pressure
• Sex roles are societys expectations regarding
  appropriate attitudes, behaviors, and appearances
  for men and women

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Opinion Leaders

• A person who influences others attitudes or
  behaviors because they are perceived as
  possessing expertise about the product