Mkt 300: Ch. 6 Consumer Behavior

hedonic value and Utilitarian value

The value received from a purchase can be broken down into two categories: They're not mutually exclusive.

nonmarketing-controlled and marketing-controlled external forces

There are two basic types of external information sources:

routine response behavior

These goods and services can also be called low-involvement products because consumers spend little time on search and decision before making the purchase

Social visibility

These products that make a statement about the user may include cars, jewelry, furniture, and clothing.

Marketing-oriented

This company type perceives the contact center as an opportunity to engage customers and reinforce the brand promise.

satisfaction

This type of performance is likely to lead to loyalty

What you get minus what you give up (item - costs= value)

Value Equation

credence product

Want to experience before determination. You are unable to experience the full power of the item, but can't even after purchase ( like is Splenda healthy )

Sustaining, Economizing, Rewarding, Treating (SERT)

Wants can be viewed in terms of four goals:

Psychological ownership

important to marketers because when consumers feel a sense of ownership of a product, they are willing to pay more for it and are more likely to tell other consumers about it

primary membership group

includes all groups with which people interact regularly in an informal manner, such as family, friends, members of social media, such as Facebook and coworkers.

reference group

includes all groups with which people interact regularly in an informal manner, such as family, friends, members of social media, such as Facebook and coworkers.

aspirational reference group

is a group a person would like to join.

social class

is a group of people who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.

subculture

is a homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group.

Value

is a personal assessment of the net worth one obtains from making a purchase

nonmarketing-controlled information source

is a product information source that is not associated with marketers promoting a product like friends review, experience with product.,etc.

marketing-controlled information source

is biased toward a specific product because it originates with marketers promoting that product.

Search good example

For instance, if you buying a set of nails. If you require 3/8 inch nails and a 1 inch length all you would require a price and the attributes of width and length and your evaluation would be complete.

external information search

seeks information in the outside environment.

1.) Consumer come up with consideration step [3-8] 2.) From that consideration step, pick a final choice.

2 Step Model of Decision Making

heuristics

"rule of thumb" strategy that often allows us to make judgments and solve problems efficiently, usually faster, but is less rational to the outside observer

Previous experience, Interest, Perceived risk of negative consequences, & Social visibility

Factors Determining the Level of Consumer Involvement

cultural factors

Of all the factors that affect consumer decision making, _____exert the broadest and deepest influence.

Need

Perceived difference between ideal and actual state

Environmental Influence

Physical surroundings and time can influence buying behavior.

need

Products can satisfy a variety of different ____s. It's how creatively a marketer strategizes and builds a brand / product to satisfy a specific ___ that a customer has.

-When -Where -Why -What -Who -How

Questions of consumption :

piecemeal process

That is, the evaluation is made by examining alternative advantages and disadvantages along important product attributes. A different way consumers can evaluate a product is according to a categorization pro- cess.

want-got gap

The imbalance between actual and desired states

hedonic value

The purchase tends to give us good feelings, happiness, and satis- faction. The value is provided entirely through the experience and emotions associated with consumption, not because another end is accomplished.

cognitive dissonance

When people recognize inconsistency between their values or opinions and their behavior, they tend to feel an inner tension

self concept and personality

__ & __ influence buyer behavior

Social media

_____can play a large role in purchasing decisions.

Motivation

a driving force that initiates and directs behavior

secondary membership group

a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group

self-concept

all our thoughts and feelings about ourselves, in answer to the question, "Who am I?"

Experience attributes

are character attributes like fast and comfortable

Cutoffs

are either minimum or maximum levels of an attribute that an alternative must pass to be con- sidered

External stimuli

are influences from an outside source.

Internal stimuli

are occurrences you experience, such as hunger or thirst.

Expectancy Disconfirmation

consumers compare perceptions of a brand's performance with their expectations

New Journey

compresses the consider step and shortens or entirely eliminates the evaluate step, delivering customers directly into the loyalty loop and locking them within it.

norm

consists of the values and attitudes deemed acceptable by the group.

1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) postpurchase behavior. (niepp)

consumer decision-making process

Extended Problem solving

consumer decision-making process application during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk

Classic Journey

consumers engagein an extended consideration and evaluationphase before either entering into the loyaltyloop or proceeding into a new round ofconsideration and evaluation that may lead tothe subsequent purchase of a different brand.

Limited availability

creates a "get it now or never" mentality.

Divestment

customer gets rid of a product, stop using it, etc.

Consumer behavior

describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services

showrooming

examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item

Journey Innovation

extends customer interactions to new sources of value, such as related products or partnered businesses.

Utilitarian value

is derived from a product or service that helps the consumer solve problems and accomplish tasks. It is a means to an end.Value is provided because the purchase allows some-thing good to happen.

Involvement

is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

want

is the recognition of an unfulfilled need and a product that will satisfy it. Can do without it.

Need recognition

is the result of an imbalance between actual and desired states. The imbalance activates the consumer decision- making process.

Culture

is the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

Business incubator

local programs designed to provide low-cost shared business facilities to small start-up ventures

Product Involvement

means that a product category has high personal relevance.

Situational involvement

means that the circumstances of a purchase may temporarily transform a low- involvement decision into a high-involvement one

limited problem solving

occurs during a purchase decision that calls for, at most, a moderate amount of effort and time

Nonaspirational reference groups

or dissociative groups, influence our behavior when we try to maintain distance from them.

Decision rules

product may achieve a high score in our mind if it has certain attributes that we combine together

search good

product that we can evaluate based on listed attributes (e.g. standard pasteurized milk 1% , $3, 1 gallon = attributes

Enduring involvement

represents an ongoing interest in some product, such as kitchen gadgets, or activity, such as fishing.

Emotional involvement

represents how emotional a consumer gets during some specific consumption activity.

Shopping involvement

represents the personal relevance of the process of shopping.

treating goal example

she might buy a cup of coffee at Starbucks.

rewarding goal example

she might opt to order a latte while reading her favorite book at a trendy new cafe.

economizing goal example

she might purchase one of three brands she uses frequently because it is the one that is currently on sale.

sustaining goal example

she would be more likely to purchase her favorite brand because she pre- fers the taste over the other two brands she sometimes buys.

Complaint Behavior

strategically important. It gives customers an outlet to complain. Can convert to dissatisfied customers to satisfied customers

involvement

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior

Word of Mouth

the influencing of people during conversations

internal information search

the person recalls in- formation stored in the memory. (e.g. You may remember staying at Marriot Hotel)

Routine Response Behavior

the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time

perceived value

the value a consumer expects to obtain from a purchase

Limited decision making

typically occurs when a consumer has previous product experience but is unfamiliar with the current brands available.

Proactive personalization

uses information—either based on past interactions or collected through external sources—to instantaneously customize the customer experience

Contextual interaction

uses knowledge about where a customer is in the journey to deliver them to the next set of interactions.

Trait and Factor Theory

we have set of traits at different levels, so our personality type can influence our buyer behavior.

extensive decision making

when buying an unfamiliar, expensive product or an infrequently bought item. This pro- cess is the most complex type of consumer buying decision and is associated with high involvement on the part of the consumer.

partially planned purchase

when they know the product category they want to buy (shirts, pants, reading lamp, car floor mats) but wait until they get to the store or go online to choose a specific style or brand. Finally, there is the unplanned purchase,

evoked set

which are the con- sumer's most preferred alternatives

stimulus

which is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and hearing.