Consumer

Consumer Behavior
Behavior

Professor
Chip Besio
Cox School of
Business
Southern Methodist
University
Model of Consumer Behavior
Product
Price Marketing
Marketing and
and Other
Other Environmental
Stimuli
Stimuli Factors
Place
Promotion

Buyer’s Buyer’s Factors

Buyer’s Decision
Decision
Decision Process Affecting
Process Consumer
Process
Behavior

Product
Choice Purchase
Timing
Brand Choice Buyer’s
Buyer’s Response
Response
Purchase
Store/Dealer Amount
Choice
Source: Adapted from Prentice Hall
The Buyer’s Decision
Process
Need
Need Recognition
Recognition

Information
Information Search
Search

Evaluation
Evaluation of
of Alternatives
Alternatives

Purchase
Purchase Decision
Decision

Post-Purchase
Post-Purchase Behavior
Behavior
Source: Prentice Hall
 Buyer’s Decision Process
NEED RECOGNITION
Need
Need Recognition
Recognition
Difference
Differencebetween
between current
currentstate
stateand
anddesired
desiredstate
state
Internal
Internal Stimuli
Stimuli External
External Stimuli
Stimuli
 Hunger
Hunger  TV
TVadvertising
advertising
 Thirst
Thirst  Magazine
Magazinead
ad
 AAperson’s
person’snormal
normal  Radio
needs Radioslogan
slogan
needs
 Other
Otherstimuli
stimuliin
inthe
the
environment
environment
Source: Adapted from Prentice Hall
Buyer’s Decision Process
INFORMATION SEARCH
Personal • Family, friends, neighbors
Personal Sources
Sources • Most influential source of
information

Commercial • Advertising, salespeople

Commercial Sources
Sources • Receives most information
from these sources

Public • Mass Media

Public Sources
Sources • Consumer-rating groups

• Handling the product

Experiential
Experiential Sources
Sources • Examining the product
• Using the product

Source: Adapted from Prentice Hall

 Buyer’s Decision Process
EVALUATION OF ALTERNATIVES
Product
ProductAttributes
Attributes
Evaluation
Evaluationof
ofQuality,
Quality,Price,
Price,&&Features
Features

Degree
Degreeof
ofImportance
Importance
Which
Whichattributes
attributesmatter
mattermost
mostto
tome?
me?

Brand
BrandBeliefs
Beliefs
What
Whatdo
doIIbelieve
believeabout
abouteach
eachavailable
availablebrand?
brand?

Project
ProjectTotal
TotalProduct
ProductSatisfaction
Satisfaction
Based
Basedon
onwhat
whatI’m
I’mlooking
lookingfor,
for,how
howsatisfied
satisfied
would
wouldIIbe
bewith
witheach
eachproduct?
product?
Evaluation
EvaluationProcedures
Procedures
Choosing
Choosingaaproduct
product(and
(andbrand)
brand)based
basedon
onone
one
Source: Prentice Hall or
ormore
moreattributes.
attributes.
Buyer’s Decision
Process
PURCHASE DECISION
Purchase
Purchase Intention
Intention
Desire
Desire to
to buy
buy the
the most
most preferred
preferred brand/product
brand/product
Situational Attitudes
factors of others

Purchase
Purchase Decision
Decision
Choice
Choice of
of the
the store/brand/product
store/brand/product

Intention to purchase does not always

result in an actual purchase
Source: Adapted from Prentice Hall
 Buyer’s Decision Process
POST-PURCHASE BEHAVIOR
Consumer’s Expectations of
Product’s Performance
Product’s Perceived
Performance

Satisfied
Satisfied Dissatisfied
Dissatisfied
Customer!
Customer! Customer
Customer
Source: Prentice Hall Cognitive Dissonance
Important Psychological Factors

Cognition
Cognition

Memory
Memory

Attitudes,
Attitudes,
Beliefs
Beliefs
 THE HIERARCHY OF
EFFECTS
 AWARENESS: Consumers learn the brand
name and product attributes.
 INTEREST: Consumers relate the product
benefits to their own needs.
 EVALUATION: Consumers compare the goods
with existing alternatives.
 TRIAL: Consumers obtain direct or vicarious
product experience.
 ADOPTION: Consumers choose the innovation
as a permanent solution
Selected Concepts in
Consumer Behavior
 Involvement and Buying Decisions

 Consideration Set

 How Preferences are Formed

Involvement

The
The degree
degree of of importance
importance the
the
consumer
consumer accords
accords to
to the
the product
product
class
class or
or its
its purchase
purchase
Involvement
High
High Low
Low

 Usually purchase is 
 Usually
Usually purchase
purchase is
is
Usually purchase is
infrequent, familiar and / or
familiar and / or
infrequent, inexpensive
significant inexpensive
significant
perceived
perceived risk
risk  Highly
Highly selective
selective
attention
attention to
to
 Customer
Customer actively
actively information
information
seeks
seeks information
information
 Quick
Quick decision
decision
 Customized
Customized
decision
decision process
process  Routine
Routine behavior
behavior
 Types of Buying Decisions
High Low
Involvement Involvement

Significant Complex Variety-

differences Buying
between
Seeking
brands Behavior Behavior

Few Dissonance- Habitual

differences Reducing Buying
between
Buying
brands Behavior Behavior

Source: Prentice Hall

 How the Consideration Set
Is Formed
All brands in Product Class

Unrecognized
Recognized brands
brands

Brands found Brands found Recalled Unrecalled

accidentally through search brands brands

? ? ?

?
Consideration Set
Factors Affecting Inclusion in
Consideration Set
 Top-of-mind awareness - recall
 experience - trial, previous purchase, habitual
use
 brand equity
 Distribution
 Shelf space and location
 Shelf tags, displays and other attention-getting
devices
 Nature of the set
 goal-driven
 Taxonomic (classification of options)
How Preferences are
Formed
 Preference for a product reflects the
customer’s expectation of its ability
to satisfy important wants and
needs
Preference depends on …
 the relative importance of each attribute
(weight)
 the evaluation of the product on each
attribute (belief)