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Chapter 5

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York University
MKTG 2030
Neil Smith

Chapter 5: Consumer Buying Behaviour Understanding Customers  The first step in building long-term relationships is understanding your customer  Marketers work to understand why and how people buy products  Consumer behavior is the process individuals or groups go through to select, purchase, and use goods and services; marketers recognize that consumer behavior is an ongoing process See Figure 5.1 For example, how and why do you buy your cereal? The following are the types of questions you may ask yourself before buying cereal: Do I like high-fat or low calorie cereal? Do I like flavoured cereal or a plain taste?  Researchers have recognized two spectrums when it comes to consumer behavior: habitual decision making (buying a pop) versus extended problem solving (buying a computer)  Most decisions fall somewhere in the middle, called limited problem solving  Involvement is the importance of the perceived consequences of the purchase to the person; we are more involved in purchases that we perceive as being relatively more important or pleasurable  Perceived risk may be present if the product is expensive, complex, or causes social embarrassment For example, clothing purchases may be risky because a wrong choice may lead to negative social consequences  High involvement = buying a car; low involvement = buying a pack of gum Problem Recognition  Occurs whenever the consumer sees a significant difference between their current state of affairs and some desired state See Figure 5.2 Information Search  Consumers check their memory and survey the environment to identify what options exist to solve the problem  Marketing communications (advertisements) are used to convey information to consumers  When they understand the stages of consumer decision process, marketers can develop strategies to lead consumers to a choice that pleases both the consumer and the marketer  Consumers use search agents (Google, Yahoo etc.)  Marketers ensure that their products‟ info is available across search agents when consumers look Evaluation of Alternatives  Evaluating the alternatives available to consumers based on price, preference etc.  Marketers play a role in educating consumers about which product characteristics should be used as evaluative criteria Product Choice  Consumers use heuristics to simplify the process – mental short-cuts  they can take advice of someone else, buy the cheapest or most expensive brand, or buy the one that “feels” right  most consumers will buy because of brand loyalty For example, the success of the iPod is a testament to brand loyalty. Although it is not the best mp3, it continues to dominate the market.  Some consumers may also use country of origin as a heuristic; German cars are associated with quality engineering, while Swedish are perceived as the safest Post-Purchase Evaluation  Consumers evaluate the decision after the purchase  Marketers try to eliminate cognitive dissonance, or buyer‟s remorse in order to reduce future marketing costs and produce brand loyalty  Consumers asses product quality by comparing the product with what they have bought to a performance standard created by a mixture of information from markcomms Other Decision Processes  Many consumers make impulse or emotional decisions Mazda has recently tried to exploit emotional decision making with its tagline “Zoom Zoom” See Figure 5.4 What Influences Consumer Decisions?  Three main categories: Internal, Situational, and Social Influences See Figure 5.5 Internal Influences Perception: the process by which people select, organize, and interpret info from the outside world  Our impressions about products are often based on their physical qualities Exposure: don‟t think I need to say much about this... Some crap that the textbook talks about is so useless. This ain‟t kindergarten Perceptual Selection: consumers are more likely to be aware of messages that speak to their current needs Interpretation: meaning is assigned to the ad. This meaning is influenced by propr associations the person has learned. Motivation: an internal state that drives us to satisfy needs.  Maslow‟s hierarchy of needs is a pyramid which places the most basic needs at the bottom and the luxuries at the top See Figure 5.6 Learning: a change in behavior after gaining info or experience.  Consumers recognize many brand names and can hum many product jingles even if they don‟t use them NOTE: I HAVE SKIPPED PAGES 179-181 BECAUSE THEY‟RE FULL OF DEFINITIONS OF WORDS LIKE „ ATTITUDE‟ AND „LIFESTLYE.‟ FEEL FREE TO READ THEM AT YOUR LEISURE Situational Influences  The physical environment can greatly
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