Prelim: Lesson 1 and 2 Introduction to Consumer Behavior

• it is the sum total of consumer's attitudes, preferences, intentions, and decisions regarding the consumer's behavior in the marketplace when purchasing a product or service

  consumer buying behavior
• is the study of individuals and organizations and how they select and use products and services.

  consumer behavior
• true or false: Studying consumer behavior is important because this way marketers can understand what influences consumers’ buying decisions.

  true
• it is the process by which consumers become aware of and identify their needs; collect information on how to best solve these needs; evaluate alternative available options; make a purchasing decision; and evaluate their purchase.

  consumer decision making process
• 5 Steps in Consumer Decision Making Process

  1. Problem Recognition
  2. Information Search
  3. Evaluation
  4. Purchase
  5. Post-Purchase Evaluation
• During this step, the consumer realizes that she has an unfulfilled need or want.

  problem recognition
• it is the first and most important stage of the buying process, because every sale begins when a customer becomes aware that they have a need for a product or service.

  problem recognition
• this step is to gather information relevant to what you need to solve the problem.

  information search
• During this stage, customers want to find out their options.

  information search
• in this stage it is evaluated against a consumer's needs, wants, preferences, and financial resources available for purchase

  evaluation
• This is the stage when a customer is comparing options to make the best choice.

  evaluation
• During this stage, buying behavior turns into action – it’s time for the consumer to buy!

  purchase
• At this stage, the consumer will decide whether the purchase actually satisfies her needs and wants.

  post- purchase evaluation
• the needs come about because of 2 reasons:

  1. internal stimuli
  2. external stimuli
• Types of Buying Behavior

  1. Complex Buying Behavior
  2. Habitual Buying Behavior
  3. Dissonance-reducing Buying Behavior
  4. Variety Seeking Buying Behavior
• This type of behavior involves a high degree of consumer involvement in the buying process with the consumer seeing a great difference among brand choices.

  Complex buying behavior
• A typical consumer's involvement in the buying process is low because the consumer doesn't see much difference between available brands

  habitual buying behavior
• 3 Factors that affect Consumer Behavior

  1. Psychological Factors
  2. Personal Factors
  3. Social Factors
• this factor can include the perception of a need or situation, the person's ability to learn or understand information, and an individual's attitude.

  psychological factor
• This factor also includes social class, income, and education level.

  social factors
• consumer behavior models

  1. black-box model
  2. personal-variable model
  3. complex model
• this model shows the interaction of stimuli, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal stimuli (within people).

  black box model
• this model is based on external stimulus-response, meaning something triggers the consumer to make buying decisions that are influenced by many factors, including marketing messages, sampling, product availability, promotions, and price.

  black box model
• this model explains that consumers make decisions based on internal factors. These internal factors may include personal opinions, belief systems, values, traditions, goals, or any other internal motivator.

  personal-variable model
• this model considers both internal and external variables.

  complex model
• There are many ways to study consumer behavior but the three most common ways include:

  1. Focus Groups
  2. Surveys
  3. Track Sales History
• External Influences and Buying Decisions

  1. Culture and Values
  2. Social Class
  3. Reference Group and Opinion Leaders
• these are s are individuals or organizations that are able to influence people by their opinion.

  opinion leaders
• this refers to two or more individuals who share a set of norms, values, or beliefs and have certain implicitly or explicitly defined relationships to one another such that their behavior is interdependent.

  groups
• this buying behavior involves consumer involvement in the buying process with the consumer seeing differences among brands

  complex
• low involvement because the consumer doesn't see much difference between available brands

  habitual
• In this type of consumer behavior, there is a low degree of consumer involvement in the purchasing process but a high degree of differences between brands.

  variety seeking behavior
• the consumer will have a high level of involvement in the purchase but perceive very few differences among product choices.

  dissonance-reducing buying behavior
• DECISION-MAKING USING GOALS

  1. Evoked Sets
  2. Considerations Sets
• these are the group of brands a consumer can remember spontaneously

  evoked sets
• the group of brands that a consumer believes will meet his or her need and that are therefore seriously being considered for purchase

  consideration set
• Causes if shift of the actual state might be taken from the following list:

  1. Assortment Depletion
  2. Income Change
• it is the tendency of people to make their lives more complex and therefore more interesting

  psychology of complication
• it is the tendency for people to make their lives less complex and therefore less stressful

  psychology of simplification
• it is the process of substituting some possession for others in order to improve one’s overall position.

  assortment adjustment