lecture 5 - consumer behaviour Flashcards
what is consumer buyer behaviour?
Kotler and Keller (2011) state that consumer buying behaviour is the study of the ways of buying and disposing of goods, services, ideas or experiences by the individuals, groups and organizations in order to satisfy their needs and wants.
From a marketers point of view, what are the specific aspects of consumer behaviour that need to be studied?
- reasons behind consumers making purchases
- specific factors factors influencing the patterns of consumer purchases
- analysis of changing factors within the society and others
what is consumer behaviour?
The dynamic interaction of affect, cognition and behaviour and the environment by which human being conduct the exchange aspects of lives. (American Marketing Association)
What is the environment?
includes situation and shopping context
micro, macro and competitive environment
what is the ABC model of attitudes?
Attitude (overall evaluation) towards composting
Affective (feelings & emotions) “composting is important to me”
behavioural (past & future activity) “I compost whenever I go”
Cognitive (thoughts & beliefs) “composting reduces CO2 emissions”
what are the types of consumer studies?
B2B (business-to-business) - study of the behaviour of organisational buyers
B2C (business-to-consumers) - study of the behaviour of end consumers
C2C (consumer-to-consumer) - study of the peer-to-peer marektplace (e.g. eBay, Etsy)
how do we understand consumer behaviour?
consumer behaviour =
HOW
-consumers make purchase decisions
-consumers use and dispose of product
why study consumer decision process?
understanding the consumer, or buyer decision process will enable marketers to set a marketingt plan that convinces them to purchase the product or service for fulfilling the buyer’s or consumer’s problem
what is the model of consumer decision making?
input
process
output
what is considered input in the model of consumer decision making?
firm’s marketing efforts
1. product
2. promotion
3. price
4. channels of distribution
sociocultural environment
1. family
2. informal sources
3. other noncommercial sources
4. social class
5. subculture and culture
what is considered process in the model of consumer decision making?
need recognition
prepurchase search
evaluation of alternative
experience
psychological field
1. motivation
2. perception
3. learning
4. personality
5. attitudes
what is considered output in the model of consumer decision making?
postdecision behaviour
purchase
1. trial
2. repeat purchase
postpurchase evaluation
what are the consumer decision-making strategies
cultural, social, individual and psychological factors affect all steps
- need recognition
- information search
- evaluation of alternatives
- purchase
- postpurchase behaviour
what is need recognition
results of the imbalance between the present state and preferred state
what is need recognition?
recognition of a need occurs when a customer is faced with a problem
what are the two different problem recognition styles among consumers
actual state types - consumers who perceive that they have a problem when a product fails to perform satisfactorily. Another product seems superior to the one currently used. When the consumer is running out of a product
desired state types - the desire for something new may trigger the decision process
what are the levels of consumer decision making
not all consumer decisions receive or require the same amount of effort
researchers have identified three specific levels of consumer decision making:
1. extensive problem solving
2. limited problem solving
3. routinized response behaviour
what is the level of involvement in the types of consumer buying decisions
extensive problem solving - more involvement
limited problem solving
routinized response behaviour - less involvement
what is routinized response behaviour
At this level, consumers have some experience with the product category and a well-established set of criteria with which to evaluate the brands they are considering.
They may search for a small amount of additional info
routinized response behaviour implies little need for additional info
example: regular day-to-day purchases
what is limited problem solving?
At this level, consumers have already established the basic criteria for evaluating the product category but haven’t established preferred categories
Their search for additional info is more like “fune-tuning”: they must gather additional brand info to discriminate among the various brands
Example - usually used when purchasing a new, updated version of something. Replacing something old with something new
what is extensive problem solving?
When consumers have no established criteria for evaluating a product, or have not narrowed their choices, then they are in extensive problem solving
At this level, the consumer needs a great deal of info to establish a set of criteria on which to judge specific brands and a correspondingly large amount of info concerning each of the brands to be considered.
Example - used while buying expensive, important or technically complicated product or services
what factors are likely to increase pre-purchase search?
product factors
situational factors:
- experience
- social acceptability
- value-related considerations
consumer factors:
- demographic characteristic
- personality
what is involved with the pre-purchase information search?
internal info search:
- recall information in memory
external info search:
- seek info outside environment
- non-marketing controlled
- marketing controlled
what are the market dominant sources of information
-advertising
-salespeople
-influencers
-infomericals websites
-point-of-sales materials
what are the non-market dominant sources of information?
-friends
-family
-opinion leaders
-social media
how do we evaluate alternatives?
- determine criteria to be used for evaluation of products
- assess the relative importance of each criteria
- evaluate each alternative based on the identified criteria
what is involved in the evaluation of alternatives?
evaluation of products
analyse product attributes
use cutoff criteria
rank attributes by importance
evoked set
->
purchase
what are the types of criteria/information used by consumers when evaluating potential alternatives?
the evoked set - refers to the specific brands the consumer considers in making a purchase in a particular product category
the inept set - consists of brands the consumer excludes from purchase consideration as unacceptable
the inert set - those brands to which the consumer is indifferent because they are perceived as having no advantage
what are the types of purchasing strategy?
9/10 shoppers who go to the shop for frequently purchased items have a specific shopping strategy for saving money
practical loyalists - look for ways to save on those brands and products they would buy anyway
bottom-line price shoppers - buy the lowest-priced item, with little or no regard for brand
opportunistic switchers - use coupons or sales to decide among brands and products that fall within their evoked set
deal hunters - look for the best “bargain” and are not brand-loyal
what is involved in post-purchase behaviour?
cognitive dissonance
-did I make a good decision?
-did I buy the right product?
- did I get a good value?
marketing can minimise through:
-effective communication
-follow-up
-guarantees
-warranties
what is involved with post-purchase evaluation?
as consumers use a product, they evaluate its performance considering their own expectations.
what are the 3 possible outcomes of customer evaluation post-purchase?
actual performance matches the standard, leading to a neutral feeling
positive disconfirmation when the performance exceeds the standard
negative disconfirmation when the performance is below the standard
