Lecture Notes: Chapter 6 - Consumer Behavior

Overview

• Consumer Behavior: A complex field involving psychology, decision processes, habits, and impulse buying.
• Psychological Aspects: Includes concepts like Maslow's hierarchy of needs, cognitive dissonance, and more.
• Definitions: Expect a lot of key terms and definitions.

Key Topics and Definitions

Consumer Decision Process

1. Need Recognition

   • Consumers recognize unsatisfied need, from actual to desired state.
   • Example: Hunger (need) vs. craving for ice cream (want).

2. Search for Information

   • Internal Search: Based on memory and past experiences.
   • External Search: Gathering information outside personal knowledge.
   • Factors affecting search: Perceived benefits vs. costs, locus of control, perceived risks.

3. Evaluation of Alternatives

   • Attribute Sets: Universal, retrieval, and evoked sets.
   • Evaluative Criteria: Important product attributes.
   • Compensatory vs. Non-compensatory Decision Rules: Trade-offs vs. single characteristic decision.
   • Choice Architecture: Influences through design, includes nudges and defaults.

4. Purchase and Consumption

   • Conversion Rate: Measuring successful purchases from filled shopping carts.
   • Shopping Environment: Impact of physical and virtual store setups.

5. Post-Purchase Outcomes

   • Customer Satisfaction: Influenced by realistic expectations, correct usage, warranties, feedback channels.
   • Cognitive Dissonance: Conflict from mismatched expectations and reality.
   • Customer Loyalty: Importance of retaining and developing loyal customers.
   • Negative Consumer Behavior: Addressing complaints and negative word of mouth.

Factors Influencing the Consumer Decision Process

• Psychological Factors: Motives, attitudes, perceptions, memory, lifestyle.
• Social Factors: Family, reference groups, culture.
• Situational Factors: Purchase situation, sensory situation, temporal state.
• Marketing Mix: Product, price, place, promotion impacts.

Involvement and Consumer Buying Decisions

• High vs. Low Involvement: Depth of processing and scrutiny of information.
• Problem Solving Situations: Extended vs. limited problem solving.
• Impulse and Habitual Buying: Quick decisions vs. routine purchases.

Psychological Factors Detailed

1. Maslow’s Hierarchy of Needs: Physiological, safety, love, esteem, self-actualization.
2. Attitudes: Cognitive, affective, behavioral components.
3. Perception: Selection, organization, interpretation of information.
4. Memory: Encoding, storage, retrieval processes.
5. Lifestyle: Spending patterns and daily behaviors.

Social Factors Detailed

1. Family: Joint decision-making based on collective needs.
2. Reference Groups: Influence from peers, celebrities, colleagues.
3. Culture: Shared beliefs, values, customs that influence buying decisions.

Situational Factors Detailed

1. Purchase Situation: Specific events or goals influencing purchase.
2. Sensory Situation: Influence of senses (visual, auditory, olfactory, tactile, taste) in decision-making.
3. Temporal State: Influence of mood and time of day on buying behavior.

Features of Consumer Behavior in Marketing

• Treat triggers and rewards that influence habitual buying.
• Role of social media and digital interfaces in manipulating consumer behavior.
• Post-purchase strategies to maintain customer satisfaction and long-term loyalty.

Conclusion

• Understanding consumer behavior is imperative for effective marketing strategies.
• Multifaceted influences from psychology, social interactions, situational context, and marketing practices shape buying decisions.