MOS 1021 Chapter 3 - Consumer Behaviour

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Western University
Management and Organizational Studies
Management and Organizational Studies 1021A/B
James O' Brien

Consumer behaviour  actions a person takes when purchasing and using products and services L1 - Consumer Purchase Decisions Process Purchase decision process  stages that a buyer passes through when making choices about which products and services to buy  Five stages: Problem Recognition - Perceiving a Need:  Occurs when a person realizes that the difference between what they have and what they want is big enough to do something about it  Marketers  activate consumer decisions process by showing the shortcomings of competing products Information Search - Seeking Value:  Internal research  scan their memory for knowledge of or previous experiences with products or brands  External research o Primary sources = personal sources o Also includes: public sources, consumer reports and marketer-dominated sources Alternative Evaluation – Assessing Value:  Evaluative criteria  all factors you may consider when evaluation products o Represents both objective (sound quality) and subjective (prestige) attributes of brand  Evoked set  group of brands that a consumer would consider acceptable Purchase Decision – Buying Value:  3 decisions: o choose a brand?  Qv last section o which seller?  Depends on: sellers location, past experiences with seller and return policy o when to buy?  Depends on : sales, rebates, atmosphere, shopping experience, time pressure and financial circumstances Post- Purchase Behaviour – Value in Consumption or Use:  Satisfied buyers tell three other people about their experience o Tend to have repeat purchases  Dissatisfied buyers complain to 9 people o Cognitive dissonance  feeling of post-purchase psychological tension or anxiety  Alleviated by: applauding oneself for making the right purchasing choice L2 – Involvement and Problem-Solving Variations: Involvement  the personal, social and economic consequences of a purchase to a consumer  High-involvement characteristics: o Item being purchased is expensive o Can have serious personal consequences o Reflect one’s social image Routine Problem Solving: (low – involvement)  Typically the case for low-priced, frequently purchased goods Limited: (Mid-involvement)  Consumers typically seek some information or rely on a friend to help them evaluate a problem Extended: (high-involvement)  Each of the 5 stages of consumer purchasing decision is used in the purchase  Considerable time and effort on external research  High-involvement L3 – situational Influences: 5 situational influences:  purchase task – reason for engaging in decision in first place  social surroundings – other people present at time of decision o also affect what is being purchased  physical surroundings – décor, music and crowding in retail stores  temporal effects – time of day or amount of time available  antecedent state – consumer mood or amount of cash on hand L4 – Psychological Influences on Consumer Behaviour  helps us understand why and how consumer behave as they do Motivation and personality: Motivation  energizing force that stimulates behaviour to satisfy a need  5 need classes: o physiological needs  basic to survival and must be satisfied first o safety needs  self-preservation and physical well- being o social needs  concerned with love and friendship o personal needs  Represented by the need for achievement, status, prestige, self-respect o self-actualization  personal fulfillment Personality  a persons consistent behaviors or responses to recurring situations  Often revealed in a persons self-concept o the way people see themselves and the way they believe others see them o actual self  how people actually see themselves o ideal self  how people would like to see themselves Perception: Perception  process by which an individual selects, organizes and interprets information to create a meaningful picture of the world Selective Perception: Selective perception  filters the info so that only some of it is understood or remembered by the conscious mind Selective exposure  occurs when people pay attention to messages that are consistent with their attitudes and beliefs  Ignores messages that are inconsistent  Occurs in the post-purchase stage  OR when a need exists Selective Comprehension  involves interpreting information so that it is consistent with your attitudes and beliefs Selective retention  consumers do no remember all the info they see, read or hear even minutes after being exposed to it Perceived Risk: Perceived risk  represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences  Affects information search stage – greater perceived risk = more extensive research must be done  Firm strategies to reduce perceived risk: o Obtain seal of approval o Securing endorsements from influential people o Providing free trials of product o Giving extensive usage instructions o Providing warranties and guarantees Learning: Learning  refers to those behaviors that result from repeated experiences and reasoning Behavioral Learning: Behavioural learning  process of developing automatic response to a type of situation built up through repeated exposure to it  4 variables about how one learns: o Drive = need o Cue = a stimulus or symbol that one perceives o Responses = the action taken to satisfy drive o Reinforcement = the reward Stimulus generalization  occurs when a response br
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