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CHP 14

consumer behavior

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Marium Raza
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47 views

CHP 14

consumer behavior

Uploaded by

Marium Raza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Consumer Behavior

Chapter 14
Consumer Decision-Making and Diffusion of Innovations
Consumer Decision Making
Consumer Journey
Defined
The consumer journey is the newest way of describing the
stages consumers pass through as they develop
relationships with brands before, during, and after
purchase.
Input: External Influences
• Marketing mix
• Sociocultural influences
– Family
– Peers
– Social class
– Reference groups
– Culture/subculture
• Communications
Process: Need Recognition
• Actual state need recognition
• Desired state need recognition
Decision Spectrum
• Extensive Problem Solving

• Limited Problem Solving

• Routinized Response Behavior


Consumer Involvement
Defined
The degree of personal relevance that the product or
purchase holds for the consumer.
Pre-Purchase Search
• Personal experience and external information
• Memory Search
• Shopping provides external information
– Men and women are different
– Seek opinions of friends (e.g. shopping selfies)
• Search greatest when product category knowledge is low
Information Search: Contextual Factors
• Task complexity
• Time constraints

Consumers have limited information-processing capacity


Factors That Increase Search (1 of 2)
Product Factors
–Long periods of time between successive purchases
–Frequent changes in product styling
–Frequent price changes
–Volume purchasing (large number of units)
–High price
–Many alternative brands
–Much variation in features
Factors That Increase Search (2 of 2)
Situational Factors
–Experience: First-time purchase; no past experience because the product is new;
unsatisfactory past experience within the product category
–Social Acceptability: The purchase is for a gift; the product is socially visible
–Value-Related Considerations: The purchase is discretionary rather than necessary; all
alternatives have both desirable and undesirable consequences; family members disagree
on product requirements or evaluation of alternatives; product usage deviates from
important reference groups; the purchase involves ecological considerations; many sources
of conflicting information.
Consumer Factors
–Demographics: Education, income, occupation, age, wealth, and marital status
–Personality Traits: One’s degree of dogmatism, willingness to accept risk, product
involvement, and novelty seeking
Evaluation of Alternatives:
Brand-Sets
• Evoked set
(consideration set)
• Inept set
• Inert set
Excluded Products Include
• Unknown brands or models
• Unacceptable brands of poor quality or inappropriate
positioning
• Brands that are perceived as not having special benefits
• Overlooked brands that have not been clearly positioned
• Brands that do not satisfy perceived needs
Evaluation of Alternatives: Attributes
• Product attribute • Price less important when
examples products are “right”
– Size • Brand credibility is
– Weight affected by
– Sweetness – Perceived quality
– Color – Information costs
– Packaging saved
– Perceived risk
• Criteria to assess product
may be advertised
Decision Rules
Compensatory decision rules
• Each relevant attribute weighted
• Summated score for each brand

Noncompensatory decision rules


• Conjunctive
• Lexicographic

Affect Referral – no assessment of individual attributes


Recognition Heuristic
Defined
Consumers choose the most familiar product or brand
Application of Decision Rules
Table 14.1 Applying the Decision Rules to Downloading Smartphone Apps

Decision Rule Rationale

Compensatory “I selected the smartphone app that came out as the best when I balanced
the good ratings against the bad ratings.”

Conjunctive “I selected the smartphone app that had no bad features.”

Disjunctive “I picked the smartphone app that excelled in at least one attribute.”

Lexicographic “I chose the smartphone app that scored the best on the attribute that I
consider to be the most important.”

Affect referral “I bought the smartphone app with the highest overall rating.”

Recognition “I downloaded the smartphone app that seemed familiar.”

Majority Vote “I downloaded the smartphone app that had the most downloads.”
Segmentation by Shopping Strategy
• Practical Loyalists
• Bottom-Line Price Shoppers
• Opportunistic Switchers
• Deal Hunters
Coping with Incomplete
Information
• Delay the decision until information is obtained
• Ignore missing information
• Change the decision strategy to accommodate missing
information
• “Construct” the missing information
Decision Making: Output
Three types of outputs:
• Trial
• Repeat purchase/brand loyalty
• Post-purchase evaluation
– Positive/negative disconfirmation of expectations
– Cognitive dissonance
• Discussion Question: How do consumers cope with
cognitive dissonance?
Gifting Behavior
Defined
A gift exchange that takes place between a giver and a
recipient. The definition is broad in nature and embraces
gifts given voluntarily, gifts that are an obligation, gifts given
to (and received from) others and gifts to oneself
(“self-gifts”).
Types of Gifting
• Intergroup Gifting
• Intercategory Gifting
• Intragroup Gifting
• Intrapersonal Gifting
Discussion Question:
• What questions might one ask during the gifting
process?
Diffusion of Innovations (1 of 2)
Defined
The framework for exploring the evolution of consumers’
acceptance of new products throughout the social system.
Diffusion of Innovations (2 of 2)
The process includes four elements:
• The innovation
• The channels of communication
• The social system
• Time
Innovation Adoption Process
Defined
Focuses on the stages through which an individual
consumer passes when deciding to accept or reject a new
product.
Types of Innovations
• Continuous innovation
• Dynamically continuous innovation
• Discontinuous innovation
Product Features That Affect
Adoption
• Relative Advantage
• Compatibility
• Complexity
– Technical fear most widespread concern of innovators
– Rapid obsolescence, social rejection and physical
harm are other fears
• Trial-ability
• Observability (communicability)
Encourages Trial

Source: Tempur Sealy International, Inc.


The Adoption Process
• Awareness
• Interest
• Evaluation
• Trial
• Adoption
• Discussion Question: What is missing from the model
of Consumer Adoption?
Thank you

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