5. Online Consumer Behavior Flashcards
Defining Consumer Behaviour
= the totality of decisions (whether, what, why, when..)
= about the consumption ( Acquisition, Usage, Disposition)
= of an offering (products, services, activities, experiences..)
= by decision-making units (Info gatherer, Influencer, Decider, Purchaser)
= over time (hours, days, weeks, months, years)
Consumer Behaviour Models
= attempt to explain how buyer decisions are formed
- A general model of consumer behaviour that takes into account a wide range of factors that influence a consumers marketplace decisions:
Cultural, Social, Psychological → Brand/ Marketing/ Firm capabilities → Buyer Decisions
Drivers of consumer motivation
values
needs
goal
emotions
- values: Abstract, enduring beliefs about what is right/wrong, important or good/bad
- needs: an internal state of tension caused by disequilibrium (ungleichgewicht) from an ideal/desired physical or psychological state, Maslow’s theory on hierarchy of needs
- goal: Outcome that we would like to achieve
- emotion: Aprraisal Theory: a theory of emotion that proposes that emotions are based on an individual’s assessment of a situation or an outcome and its relevance to his or her goals
Drivers of consumer motivation
self-control
personal relevance
Perceived risk
Inconsistency with attitudes
- Self-Control: Process consumers use to regulate feelings, thoughts and behaviour in line with long term goals
- Personal relevance: sth that has direct bearing on the self and has potentially significant consequences or implicaions for our lives → consistency wih self-concept is important factor
- Perceived risk (empfundenes Risiko): consumer products and services are often touted (werben) as ways to avoid risky outcomes
- Inconsistency with attitudes
A model of online consumer behaviour
- decision process is similiar for online and offline behavior
- general online behavior
- Consumer Skills
- product characteristics
- Attitudes toward online purchasing
- Perceptions about control over web environment
- Webseite features: latency, usability, security
- Advantage of online consumer behavior: clickstream behavior is observable
- Clickstream behavior: the transaction log that consumers establich as they move about the web (useful for web activity analysis, market research and software testin)
A model of online consumer behavior
- Clickstream factors include
- number of days since last visit, speed of clickstream behavior, number of pages viewed, supplying personal information
- Clickstream marketing: developed dynamically as customers use internet
Cunsomer click behavior at a search enginge:
- Keyword popularity is a key determinant of consumer click b.
Online Consumers shopping strategies
-
Goal-directed
- specific purchase in mind
- search aims at providing relevant information for the purchase
- search patterns are very focues
-
Exploratory
- less focused
- Stimulus driven (nach lust und laune)
- search patterns are less focused
- shopping experience itself
Four Categories of shopping strategies
- Directed Buying (Goal-directed)
- Search and deliberation (Goal-directed)
- Hedonic browsing (Exploratory)
- Knowledge building (Exploratory)
What makes online consumers different from offline consumers
- Low transportation costs
- Information overload (more information)
- Multitasking (e.g. while watching TV)
- Home and work (whenever, whatever)
- “I want what I Want when I want it”: Convenience is more critical for them
- Connectivity: are more connected to other shoppers
- Self-Service: are more empowered
- Privacy and data security: more aware of data confidentially
Process of making decision
- Problem recognition and informations search
Problem recognition → Internal Information search → External information search
- Problem recognition: Consumer identifies a consumption problem
- Internal Search: the process of recalling stored information from memory ( recall of brands, attributes, evaluations, experiences)
- External search: The process of collecting informtion from outside sources
- Judgement and decision making
Judgement process / Contextual effects → Decision-making
- Judgement: Evaluation of an object or estimate of likelihood of an outcome or event
- Likelihood: judging how likely it is that sth will occur
- Goodness/badness: evaluating the desirability of sth
- mental/emotional/ accouning: categorizing spending and saving decisions
- Context: decisions depend on the consumer and the nature of the decision as well
Summary
- Consumer Behavior is about the totality of decision about the consumption of an offerin g by decision making units
- Consumer behavior models attempt to explain questions regarding consumers purchase
- The decision making process of consumers requires problem recognition, information search as well as a judgment process and is affected by contextual effects
