Consumer Behavior - Ch. 12

Behavioral influence decision making perspective

Assumes many consumer decisions are actually learned responses to environmental influences Ex: A product display leads consumer to buy a snack

decision making process

Both utilitarian value (function) and hedonic value (pleasure) influence the

choices linked to value

Consumer decision making involves...

1.) Need recognition 2.) Search for information 3.) Evaluation of alternatives 4.) Choice 5.) Post-choice evaluation

Consumer decision making process generally includes 5 activities

Limited Dicision Making

Consumers search very little for information and often reach decisions largely based on prior beliefs about products and their attributes Ex: consumer wants to find invisible tape will choose any brand that offers that feature

Attitude Toward Shopping

Consumers who value shopping generally spend more time searching for product information

Hedonic Value

Experiential decision making perspective often focus on

Information overload

Part of pre-purchase search when consumers are presented with so much information that they cannot assimilate the variety of information presented

Satisficing

Practice of using decision making shortcuts to arrive at satisfactory, rather than optimal, decisions

1. Actual State 2. Desired State 3. Need v. Want

Three parts of need recognition

Brand Interia

What occurs when a consumer simply buys a product repeatedly without any real attachment Ex: consumer always just goes to Wal-Mart because it's convenient but has no emotional attachment to the store

Rational

You have to assume consumers are always __________

Need v. Want

a want is the way in which a consumer goes about addressing a need

GPS-Based Technologies

allow consumers to find information about nearby points of interest

Visual Search

allows consumers to take a photo of an object and quickly receive information about it

Inert Set

alternatives in the awareness set about which consumers are indifferent

Inept Set

alternatives in the awareness set that are deemed to be unacceptable

Consideration (evoke) set

alternatives that are considered acceptable for further consideration in decision making

Consideration Set

alternatives that are considered acceptable for further consideration in decision making

Rational Decision Making Perspective

assumes consumers diligently gather information about purchases, carefully compare various brands of products on salient (important) attributes, and make informed decisions regarding what brand to buy. Ex: Consumer considers the various features of a new dishwasher and chooses based off that

Experiential decision making perspective

assumes consumers often make purchases and reach decisions based on the affect (feeling or emotion) attached to the product or behavior under consideration Ex: Consumer goes skydiving for the fun of it

Actual State

consumer's perceived current state

Habitual (routine) decision making

consumers generally do not seek information at all when a problem is recognized and select a product based on habit. Ex: consumer buys same type of soft drink every time they're thirsty

Extended Decision Making

consumers move diligently through various problem-solving activities in search of the best information that will help them reach a decision; Characterized by high perceived risk and high product involvement

Brand Loyalty

deeply held commitment to rebuy a product or service regardless of situational influences that could lead to switching behavior

External Search

gathering of information from sources external to the consumer such as friends, family, salespeople, advertising, and the internet

Price

information that signals the amount of potential value contained in a product

Previous experience with a product

moderately experienced consumers search for purchase-related information more than very experienced or inexperienced customers

Time Availability

more available time to spend searching more effort spent searching--> more effort

Need Recognition

need is recognized when a consumer perceives difference between actual and desired state

Search Regret

negative emotions that come from failed search processes

Quality

perceived overall goodness or badness of a product

Desire State

perceived state for which a consumer strives

Situational Influences

perceived urgency, financial pressure, and mood can all impact search behavior

Perceived Risk

perception of the negative consequences that are likely to result from a course of action and the uncertainty of which course of action is best to take; Usually happens with more expensive items such as cars,houses, computers, etc.

Evaluative Criteria

product attributes that consumers consider when reviewing possible solutions to a problem

Quick Response Codes

reader, consumer can easily gain access to all types of product-related information

Internal Search

retrieval of knowledge stored in memory about products, services, and experiences

Financial Risk

risk associated with cost of product

Social Risk

risk associated with how other consumers will view the purchase

Performance Risk

risk associated with the likelihood of product performing as expected

Physical Risk

risk associated with the safety of the product and the likelihood that physical harm will result from its consumption

Time Risk

risk associated with time required to search for the product and time necessary for product to be serviced or maintained

Pre-Purchase Search

search effort aimed at finding information to solve an immediate problem

Ongoing-Search

search effort that is not necessarily focused on an upcoming purchase or decision but rather on staying up to date on the topic

Personal Factors

search tends to increase as consumer's level of education and income increases

Awareness Set

set of alternatives of which a consumer is aware

Universal Set

total collection of all possible solutions to a consumer problem

1. Price 2. Quality

two types of Evaluative Criteria that are almost always used in consumer decision making

Augmented Reality

virtual reality that creates interactive experiences for consumer

Value of Search Effort

when searching costs are greater than the benefits of the search process, consumers no longer value the activity and the search stops

Consumer Search Behavior

• behaviors that consumers engage in as they seek information that can be used to satisfy needs