Chapter 5- slide 1 Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Assistant Professor, H. H. Shih TransWorld University, Taiwan Consumer Markets and Consumer Buyer Behavior What do we buy and why? Obtaining ConsumingDisposing ConsumerInfluencesOrganizationalInfluences Consumer Behavior OBTAINING How you decide you want to buy Products you consider buying Where you buy How you pay for product How you transport product home CONSUMING How you use product How you store the product in your home Who uses the product How much you consume How product compares with expectations DISPOSING How you get rid of remaining product How much you throw away after use If you resell items yourself or through a consignment store How you recycle products CONSUMER INFLUENCES Culture Ethnicity Personality Family Life-stage Values Income Available Resources Attitudes Opinions Motivation Past Experiences Feelings Peer Groups Knowledge ORGANIZATIONAL INFLUENCES Brand Product Features Advertising Word of Mouth Promotions Retail Displays Price Quality Service Store Ambiance Convenience Loyalty Programs Packaging Product Availability Consumer Behavior Why Study Consumer Behavior? Consumer Behavior Helps Analyze Consumers Increasing Influence Marketing: Process of transforming or changing an organization to have what people will buy The Customer is King Organization influenced by consumer needs and wants Why Study Consumer Behavior? Consumer Behavior Helps Analyze Consumers Increasing Influence Consumer Behavior Educates and Protects Consumers Consumer Behavior Affects Public Policy Consumer Behavior Affects Personal Policy Chapter 5- slide 7 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Consumer Markets and Consumer Buyer Behavior Model of Consumer Behavior Characteristics Affecting Consumer Behavior Types of Buying Decision Behavior The Buyer Decision Process The Buyer Decision Process for New Products Topic Outline Chapter 5- slide 8 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Consumers make many buying decisions everyday and buying decision is the focal point of the marketers effort. Marketers can study actual consumer purchases to find out what they buy, where and how much, but learning the whys of the consumer buying behavior is not easy- the answer is locked deep within the consumers mind Model of consumer behavior Chapter 5- slide 9 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Consumer buyer behavior refers to the buying behavior of final consumersindividuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers Model of Consumer Behavior Chapter 5- slide 10 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Model of Consumer Behavior Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall 6-10 Buyers Black Box Model of Consumer Behavior Chapter 5- slide 12 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Buyer characteristics and the buyer decision process are two parts of _______. 1.buyers black box 2.buyers white box 3.buyers red box 4.buyers shopping box Chapter 5- slide 13 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Buyer characteristics and the buyer decision process are two parts of _______. 1.buyers black box 2.buyers white box 3.buyers red box 4.buyers shopping box Chapter 5- slide 14 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior Chapter 5- slide 15 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics. 1.cost 2.social 3.health 4.profit Chapter 5- slide 16 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Consumer purchases are influenced by cultural, _______, personal, and psychological characteristics. 1.cost 2.social 3.health 4.profit Chapter 5- slide 17 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Culture is the learned values, perceptions, wants, and behavior from family and other important institutions Every group or society has a culture and cultural influences on buying behavior may vary greatly from one country to another Marketers are always trying to spot cultural shifts in order to discover new products that might be wanted Characteristics Affecting Consumer Behavior Chapter 5- slide 18 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Components of Culture Myths Language Values Customs Rituals Laws Material artifacts Chapter 5- slide 19 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Culture is... Learned Functional Pervasive Dynamic Chapter 5- slide 20 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Subculture are groups of people within a culture with shared value systems based on common life experiences and situations Hispanic African American Asian Mature consumers Chapter 5- slide 21 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Hispanic consumers: one third of the US population Hispanic consumers tend to buy more branded, higher quality products African-American consumers: they are motivated by quality and selection. Brands are important Characteristics Affecting Consumer Behavior Chapter 5- slide 22 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Asian American: they are the second fastest growing population sub segment after the Hispanics. More than 90% of the Asian American Go online regularly and are most comfortable with internet technology such as online banking Characteristics Affecting Consumer Behavior Chapter 5- slide 23 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Mature consumers: very attractive market. The entire U.S baby boom generation, the largest and the wealthiest demographic cohort in the country. Mature consumers are not stuck in their ways Characteristics Affecting Consumer Behavior Chapter 5- slide 24 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Four examples of subculture groups include Hispanic, African American, Asian American, and ________. 1.middle-class 2.mature consumers 3.RVers 4.echo boomers Chapter 5- slide 25 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Four examples of subculture groups include Hispanic, African American, Asian American, and ________. 1.middle-class 2.mature consumers 3.RVers 4.echo boomers Chapter 5- slide 26 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Groups of people with shared value systems based on common life experiences are called ________. 1.cohorts 2.generations 3.subcultures 4.affiliate groups Chapter 5- slide 27 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Groups of people with shared value systems based on common life experiences are called ________. 1.cohorts 2.generations 3.subcultures 4.affiliate groups Chapter 5- slide 28 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The fastest-growing and most affluent subculture in the United States is the _____ population. 1.Hispanic 2.African American 3.Asian American 4.mature Chapter 5- slide 29 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The fastest-growing and most affluent subculture in the United States is the _____ population. 1.Hispanic 2.African American 3.Asian American 4.mature Chapter 5- slide 30 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Social classes are societys relatively permanent and ordered divisions whose members share similar values, interests, and behaviors Measured by a combination of occupation, income, education, wealth, and other variables Characteristics Affecting Consumer Behavior Chapter 5- slide 31 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Social Class Measurements Wealth Other Variables Income Education Occupation Chapter 5- slide 32 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall In some social systems, members of different classes are reared for certain roles and cant change their social positions. In other country, however, the lines between social classes are not fixed and rigid, people can move to a higher social class or drop into a lower one. Characteristics Affecting Consumer Behavior Chapter 5- slide 33 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketers are interested in social class because within a given social class tend to exhibit similar buying behavior. Social classes show distinct product and brand preferences in areas such as clothing, home furnishings, and automobiles. Characteristics Affecting Consumer Behavior Chapter 5- slide 35 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ________. 1.subculture 2.families 3.social class 4.reference groups Chapter 5- slide 36 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors is referred to as ________. 1.subculture 2.families 3.social class 4.reference groups Chapter 5- slide 37 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the major American social classes? 1.Upper class 2.Working class 3.Lower-upper class 4.Lower-working class Chapter 5- slide 38 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the major American social classes? 1.Upper class 2.Working class 3.Lower-upper class 4.Lower-working class Chapter 5- slide 39 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Membership Groups Groups with direct influence and to which a person belongs Aspirational Groups Groups an individual wishes to belong to Reference Groups Groups that form a comparison or reference in forming attitudes or behavior Groups and Social Networks Chapter 5- slide 40 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Word-of-mouth influence and buzz marketing Opinion leaders are people within a reference group who exert social influence on others Also called influentials or leading adopters Marketers identify them to use as brand ambassadors Groups and Social Networks Chapter 5- slide 41 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ________. 1.opinion leader 2.mature consumer 3.marketer 4.upper class citizen Chapter 5- slide 42 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall A person within a reference group who, because of special skills, knowledge, or other characteristics, exerts social influence on others is called a(n) ________. 1.opinion leader 2.mature consumer 3.marketer 4.upper class citizen Chapter 5- slide 43 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Online Social Networks are online communities where people socialize or exchange information and opinions Include blogs, social networking sites (facebook), virtual worlds (second life) Groups and Social Networks Chapter 5- slide 44 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Family is the most important consumer- buying organization in society Marketers are interested in the roles and influence of the husband, wife and children on the purchase of different products and services The wife traditionally has been the main purchasing agent for the family. Social Factors ( family ) Chapter 5- slide 45 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Children may also have a strong influence on family buying decisions Studies found that kids influence family decisions about where they take vacations, what cars or cell phones they buy. As a result, marketers of cars, full service restaurants, cell phones are now placing ads on the children oriented TV networks Social Factors ( family ) Chapter 5- slide 46 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status A role consists of the activities that people expected to perform according to the persons around them Social Factors (roles and status) Chapter 5- slide 47 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Each role carries a status reflecting the general esteem given to it by society. People usually choose products appropriate to their roles and status. Consider the roles a working mother plays Social Factors (roles and status) Chapter 5- slide 48 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Age and life-cycle stage People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture and recreation are age related. Buying Is also shaped by the stage of the family life cycle the stages through which families might pass as they mature over time Personal Factors Chapter 5- slide 49 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Traditional family life cycle stages include young singles and married couples with children. The nontraditional stages such as unmarried couples, singles marrying later in life, single parents, extended parents ( those with young adult children returning home ) and others Personal Factors Chapter 5- slide 50 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior RBC Royal Bank stages Youth: younger than 18 Getting started: 1835 who are going through first experiences, first credit card, first car, first child Builders: 3550 in their peak earning years, as they build careers and family, they tend to borrow more than they invest Personal Factors Chapter 5- slide 51 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Accumulators: 5060 Worry about saving for retirement and invested wisely. Preservers: over 60 Want to maximize their retirement income to maintain a desired lifestyle. Personal Factors Chapter 5- slide 52 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Occupation affects the goods and services bought by consumers Blue workers tend to buy more rugged work clothes, whereas executives buy more business suits. A company can specialize in making products needed by a given occupational group. Personal Factors Chapter 5- slide 53 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Economic situation includes trends in: If economic indicators point to a recession, marketers can take steps to redesign, and reprice their products closely. Personal Factors Personal income Savings Interest rates Chapter 5- slide 54 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Lifestyle is a persons pattern of living as expressed in his or her psychographics Measures a consumers AIOs (activities, interests, opinions) to capture information about a persons pattern of acting and interacting in the environment Personal Factors Chapter 5- slide 55 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Personality and self-concept Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumers environment Personality is described in terms of traits. Personal Factors Characteristics Affecting Consumer Behavior Personal Factors Dominance Autonomy DefensivenessAdaptabilityAggressiveness Chapter 5- slide 57 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall A brand personality is the specific mix of the human traits that may be attributed to a particular brand. One researcher identified five brand personality traits: 1.Sincerity ( honest, wholesome, and cheerful) 2.Excitement ( imaginative and up-to date) Characteristics Affecting Consumer Behavior Chapter 5- slide 58 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 3. Competence ( reliable, intelligent and successful ) 4. Sophistication ( upper class and charming) 5. Ruggedness ( tough and outdoorsy) Characteristics Affecting Consumer Behavior Chapter 5- slide 59 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall A persons _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting. 1.self-esteem 2.self-concept 3.lifestyle 4.personality Chapter 5- slide 60 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall A persons _____ is his/her unique set of psychological characteristics that are relatively consistent and lasting. 1.self-esteem 2.self-concept 3.lifestyle 4.personality Chapter 5- slide 61 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the five brand personality traits? 1.Ruggedness 2.Sophistication 3.Self-concept 4.Sincerity Chapter 5- slide 62 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not one of the five brand personality traits? 1.Ruggedness 2.Sophistication 3.Self-concept 4.Sincerity Chapter 5- slide 63 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Psychological Factors Motivation Perception LearningBeliefs and attitudes Chapter 5- slide 64 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior A person has may needs at any given time. Some are biological, arising from the states of tension such as hunger, thirst or discomfort. Others are psychological arising from the need for recognition, esteem, or belonging. A need becomes a motive when its aroused to a sufficient level of intensity Psychological Factors Motivation Chapter 5- slide 65 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research refers to qualitative research designed to probe consumers hidden, subconscious motivations Psychological Factors Motivation Chapter 5- slide 66 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Psychologists have developed theories of human motivation, two of the most popular- the theories of psychologists Frued and Maslow. Frueds theory suggests that a persons buying decisions are affected by subconscious motives that even the buyer maynt fully understand. Characteristics Affecting Consumer Behavior Maslows Hierarchy of Needs Chapter 5- slide 68 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Maslows hierarchy of needs are psychological, safety, ________, esteem, and self- actualization. 1.social 2.economic 3.lifestyle 4.education Chapter 5- slide 69 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Maslows hierarchy of needs are psychological, safety, ________, esteem, and self- actualization. 1.social 2.economic 3.lifestyle 4.education Chapter 5- slide 70 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes Selective attention Selective distortion Selective retention Psychological Factors Chapter 5- slide 71 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The process by which people select, organize, and interpret information to form a meaningful picture of the world is ________. 1.sensation 2.learning 3.perception 4.motivation Chapter 5- slide 72 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The process by which people select, organize, and interpret information to form a meaningful picture of the world is ________. 1.sensation 2.learning 3.perception 4.motivation Chapter 5- slide 73 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Selective attention is the tendency for people to screen out most of the information to which they are exposed, marketers must work hard to attract the consumers attention Selective distortion is the tendency for people to interpret information in a way that will support what they already believe Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands Psychological Factors Chapter 5- slide 74 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Learning is the change in an individuals behavior arising from experience and occurs through interplay of: Psychological Factors DrivesStimuliCues Responses Reinforcement Chapter 5- slide 75 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior A drive : a strong internal stimulus that calls for action. A drive becomes a motive when its directed towards a particular stimulus object. Cues are minor stimuli that determine when, where and how the person responds The consumers response to his or her interest in buying the product Psychological Factors Chapter 5- slide 76 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Belief is a descriptive thought that a person has about something based on: Knowledge Opinion Faith Psychological Factors Beliefs and Attitudes Chapter 5- slide 77 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Marketers are interested in the beliefs that people formulate about specific products and services, because these beliefs make up product and brand images that affect buying behavior. If some of the beliefs are wrong and prevent purchase, the marketer will want to launch a campaign to correct them. Characteristics Affecting Consumer Behavior Chapter 5- slide 78 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Attitudes describe a persons relatively consistent evaluations, feelings, and tendencies toward an object or idea Psychological Factors Chapter 5- slide 79 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Characteristics Affecting Consumer Behavior Attitudes put people into a frame of mind of liking or disliking things, or moving toward or away from them Attitudes are difficult to change, a company should usually try to fit its products into existing attitudes rather than an attempt to change the attitudes. Psychological Factors Chapter 5- slide 80 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Purchase Situation by Gender Buying Decision Behavior Types of Buying Decision Behavior Complex buying behaviorDissonance-reducing buying behaviorHabitual buying behaviorVariety-seeking buying behavior Chapter 5- slide 82 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall When consumers are highly involved in a purchase and perceive significant differences among the brands. Consumers maybe highly involved when the product is expensive, risky and purchased infrequently Marketers need to help buyers learn about product-class attributes& their relative importance. They need to differentiate their brand features, by describing them using print media with long copy Complex buying behavior Chapter 5- slide 83 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Occurs when consumers are highly involved with an expensive, risky purchase but see little differences among brands Consumers might experience post purchase dissonance when they notice certain disadvantages of the purchased brand or hear favorable things about brands not purchased Dissonance-reducing buying behavior Chapter 5- slide 84 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Occurs under conditions of low consumer involvement and little significant brand difference Consumers appear to have low involvement with most low cost, frequently purchased products Ad repetition creates brand familiarity rather than brand conviction consumers dont form strong attitudes toward a brand, they select the brand because its familiar Habitual buying behavior Types of Buying Decision Behavior Four Types of Buying Behavior Chapter 5- slide 86 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall In situations characterized by low consumer involvement but significant perceived brand differences. In such cases consumers often do a lot of brand switching Brand switching occurs for the sake of variety rather than because of dissatisfaction. Variety-seeking buying behavior Chapter 5- slide 87 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall A consumer purchasing fine furniture (which is expensive and for which a brands name matters) would probably result in ________ buying behavior. 1.dissonance-reducing 2.variety-seeking 3.complex 4.habitual Chapter 5- slide 88 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall A consumer purchasing fine furniture (which is expensive and for which a brands name matters) would probably result in ________ buying behavior. 1.dissonance-reducing 2.variety-seeking 3.complex 4.habitual Chapter 5- slide 89 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ buying behavior is characterized by low consumer involvement but significant perceived brand differences. 1.Dissonance-reducing 2.Variety-seeking 3.Complex 4.Habitual Chapter 5- slide 90 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ buying behavior is characterized by low consumer involvement but significant perceived brand differences. 1.Dissonance-reducing 2.Variety-seeking 3.Complex 4.Habitual The Buyer Decision Process Buyer Decision Making Process Chapter 5- slide 92 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process Occurs when the buyer recognizes a problem or need triggered by: Internal stimuli External stimuli Need Recognition Chapter 5- slide 93 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process Personal sourcesfamily and friends Commercial sources advertising, Internet Public sourcesmass media, consumer organizations Experiential sourceshandling, examining, using the product Information Search Sources of Information Chapter 5- slide 94 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process How the consumer processes information to arrive at brand choices Evaluation of Alternatives Chapter 5- slide 95 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process The act by the consumer to buy the most preferred brand The purchase decision can be affected by: Attitudes of others Unexpected situational factors Purchase Decision Chapter 5- slide 96 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process The satisfaction or dissatisfaction that the consumer feels about the purchase Relationship between: Consumers expectations Products perceived performance The larger the gap between expectation and performance, the greater the consumers dissatisfaction Cognitive dissonance is the discomfort caused by a post-purchase conflict Post-Purchase Decision Chapter 5- slide 97 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process Customer satisfaction is a key to building profitable relationships with consumers to keeping and growing consumers and reaping their customer lifetime value Post-Purchase Decision Chapter 5- slide 98 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall The Buyer Decision Process for New Products Adoption process is the mental process an individual goes through from first learning about an innovation to final regular use. Stages in the process include: Awareness Interest Evaluation Trial Adoption Chapter 5- slide 99 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall What are the two largest statistical populations in the adoption process? 1.Innovators and early majority 2.Early adopters and early majority 3.Early majority and late majority 4.Innovators and laggards Chapter 5- slide 100 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall What are the two largest statistical populations in the adoption process? 1.Innovators and early majority 2.Early adopters and early majority 3.Early majority and late majority 4.Innovators and laggards The Buyer Decision Process for New Products Influence of Product Characteristics on Rate of Adoption Relative advantage CompatibilityComplexity DivisibilityCommunicability
