Consumer Behavior - Chapter 2 PDF

# Consumer Behavior - Chapter 2 ## Chapter Objectives * Define and discuss the following: * **The Purchase Decision Process** * **Problem Recognition** * **Consumer Information Processing** * **Evaluation of Alternatives** * **Purchase** * **Post-purchase Evaluation**...

# Consumer Behavior - Chapter 2 ## Chapter Objectives * Define and discuss the following: * **The Purchase Decision Process** * **Problem Recognition** * **Consumer Information Processing** * **Evaluation of Alternatives** * **Purchase** * **Post-purchase Evaluation** * **Factors Affecting Consumer Buying Behavior** * **The Consumer and Psychological Influences** * **Social Influences** * **The Purchase Situation ** ## The Purchase Decision Process The purchase decision process is made up of a series of steps that consumers go through when making a purchase. The steps can be broken down into the five following points: 1. **Problem Recognition:** The process starts when a consumer recognizes a need or problem for which they want to find a solution. It can be triggered by internal stimuli (such as hunger) or external stimuli (such as seeing an ad for a new product) 2. **Consumer Information Processing:** After a need has been recognized, the consumer starts gathering information about possible solutions. This can be done through internal search (using past experiences) or external search (reading reviews, talking to friends etc.) 3. **Evaluation of Alternatives:** The consumer weighs different alternatives based on their own criteria. Such criteria may include price, features, quality and convenience. 4. **Purchase:** The consumer decides to buy the product they feel will best suit their needs. This decision can be influenced by many factors like pricing, limited availability and the attitudes of others. 5. **Post-purchase Evaluation:** The consumer finally evaluates whether the purchase was a good decision. The satisfaction level is a result of comparing expected performance with actual perceived performance. ## Factors Affecting Consumer Buying Behavior There are many factors that can influence consumer buying behavior. These factors can be categorized as follows: * **Psychological Variables:** * **Motivation:** This is the internal drive that compels the consumer to seek out solutions to their problems. It can be influenced by needs (such as hunger, thirst, or safety) or desires (such as wanting to be accepted or successful). * **Perception:** The way in which the consumer perceives information about products can affect their decisions. The selective process of perception includes selective exposure (choosing what information to see), selective attention (focusing on specific information), selective comprehension (interpreting information in a way that aligns with their beliefs) and selective retention (remembering information that confirms their beliefs). * **Learning:** This refers to changes in consumer behavior that occur as a result of experiences. If a product consistently satisfies a consumer’s needs, they will be more likely to buy it again. * **Attitudes:** These are feelings or opinions that consumers have about particular products, brands, or companies. They’re developed over time through learning processes, family influence, peers, information, experiences and personality. * **Lifestyle:** This refers to consumers' values, interests, and activities. Lifestyle choices influence their shopping habits and their purchasing decisions. * **Social Influences:** * **Personal Influence:** Other people's personal views, opinions, and behaviour can influence a consumer's purchasing decisions. Such influences can be found in opinion leaders (such as experts or prominent celebrities) and word-of-mouth. * **Reference Groups:** These are groups of people that a consumer would identify with. They may include friends, family, co-workers, religious groups, or even celebrities. They can influence decisions by providing information and creating a sense of social pressure to conform. * **Family:** The family plays a strong role in the shopping decisions of consumers. Factors that influence buying decisions include: * Consumer Socialization: The process by which consumers learn to be consumers. * Family Life Cycle: The different stages that a family goes through, from young newlyweds to empty-nesters. * Family Decision-Making: How families make decisions about purchasing products. * **Social Class:** This refers to groups of people who share a similar income level, educational background, and occupation. Social class can influence consumers' choice of products and brands. * **Culture:** This is the set of beliefs, behaviors, and values that are shared by members of a society. Culture can influence consumer preferences, shopping habits, and buying patterns. * **Purchase Situation:** * **Purchase Task:** This refers to the reason why a consumer is making a purchase. The task influences the consumer's decisions about which products to buy and how much to spend. * **Social Surroundings:** This refers to the social environment in which a consumer makes a purchase. Factors include the presence of other people, the atmosphere, and the overall experience. * **Physical Surroundings:** This includes elements like the physical location of the store, the layout of the store, and the overall look and feel of the space. * **Temporal Effects:** These are factors related to time, such as the time of day, the time of year, and the amount of time available for shopping. * **Antecedent States:** These are factors that influence the consumer's mood and motivation prior to making a purchase. They can include things like the consumer's mood, their energy levels, their financial situation, and their overall attitude. ## Consumer's Buying Behavior The diagram below summarizes the factors that influence consumer buying behavior: | | | | | :-------------------------------------- | :------------------------------------------- | :------------------------------------- | | **Psychological Variables** | **Social Influences** | **Purchase Situation** | | **Motivation** | **Personal Influence** | **The Purchase Task** | | **Perception** | **Reference Groups** | **Social Surroundings** | | **Learning** | **The family** | **Physical Surroundings** | | **Attitudes** | **Social class** | **Temporal Effects** | | **Lifestyle** | **Culture** | **Antecedent States** | <start_of_image> Areas of interest for the consumer - motivation, perception and so on are impacted by different societal influences. Societal influences can range from the more personal: personal influence and friends/reference groups, to wider societal forces - culture, and social class. These influences can determine how the consumer feels about the purchase task and its surroundings (social and physical), the time of day and their mood before making the purchase. ## Chapter Exercise Here are some questions to think about as you read this chapter: 1. Why is knowledge of consumer behavior important to the marketer? 2. What stages does the buying decision process of the consumer consist of? 3. What happens when the consumer performs an internal search for information? 4. How is the consumer’s satisfaction level derived? 5. What is meant by "selective exposure"? 6. How are attitudes formed? 7. Why are opinion leaders expected to influence consumers? 8. What are the ways by which consumers learn to buy? 9. Why is social class an important factor in consumer buying behavior? 10. What are “reference groups"? Let me know if you need any further information about consumer behavior!