Ch 6 Consumer Behavior PDF

MKT2182 Marketing for the Hospitality Industry CH6 Consumer Behavior Ekaterina Vlad Question Think of a last time you had an important purchase (e.g. involving large amount of money, choosing between two or more valid options). What helped you to make decision towards the c...

MKT2182 Marketing for the Hospitality Industry CH6 Consumer Behavior Ekaterina Vlad Question Think of a last time you had an important purchase (e.g. involving large amount of money, choosing between two or more valid options). What helped you to make decision towards the company you bought from? 2 INTERNAL Consumer Behavior Model 3 INTERNAL Buyer Decision Process The Buyer Decision Process Need Information Evaluation of Recognition Search Alternatives Purchase Post-purchase Decision Behavior 5 INTERNAL The Buyer Decision Process 1. Need Recognition The buying process starts when the buyer recognizes a problem or need. What triggers consumers to recognize the need? Internal Stimuli: previous experience, memories External Stimuli: coming from the outside environment Triggers: Product out of stock, Dissatisfaction with previous purchase, New needs or wants, Related product purchase, Advertising and promotions, New products 6 INTERNAL The Buyer Decision Process 2. Information Search The buyer starts to look for the information about the product. This step may or may not be completed by the buyer. Sources: ‒ Personal sources: Family, friends, neighbors, acquaintances ‒ Commercial sources: Advertising, salespeople, dealers, packaging, displays ‒ Public Sources: restaurant reviews done by critics, consumer-rating organizations ‒ The Internet: the company’s Web site and comments from previous guests 7 INTERNAL The Buyer Decision Process 3. Evaluation of Alternatives The buyer compares the options using different approaches. One of them - Multi-attribute approach: ‒ Product is a bundle of product attributes ‒ Different degrees of importance of each attribute ‒ Set of beliefs about where each brand stands on each attribute 8 INTERNAL The Buyer Decision Process Product Attributes Memory Computer Price Style Weight storage Car Price Style Safety Space Sunglasses Price Style UV protection Durability 9 INTERNAL The Buyer Decision Process 4. Purchase Decision In the evaluation stage, the consumer ranks brands in the choice set and forms purchase intentions. Usually the buyer proceeds with the purchase. ‒ Purchase intention is also influenced by unexpected situations: family influence, unexpected events, etc. 10 INTERNAL The Buyer Decision Process 5. Post-purchase Behavior The buyer uses the product and decides whether the purchase was satisfactory or not. It might affect future purchases and customer loyalty. ‒ If the product matches expectations, the consumer will be satisfied. ‒ This is the time the consumer might or might not voice their dis/satisfaction through feedback and reviews. ‒ Almost all major purchases result in cognitive dissonance, or discomfort caused by post-purchase conflict (buyer’s remorse). 11 INTERNAL Discussion 1. What triggers your need recognition for purchasing: a bottle of water; a piece of jewelry; a visit to a hairdresser? 2. Whether and where do you search for information for the purchase of the above products? 3. Give examples of products for which purchase you used the multi-attribute approach? 4. Describe a situation when you planned a purchase, and it did not go through. 5. For which purchases you felt cognitive dissonance? 12 INTERNAL