UNDERSTANDING OF RETAIL SHOPPER

BEHAVIOR
 Consumer Behavior
Consumer behavior - the actions a person takes
in purchasing and using products and services,
including the mental and social processes
that come before and after these actions.
 Needs vs. Wants
(Typical Textbook Def.)

Needs
Unsatisfactory conditions of the consumer
that lead him or her to actions that will make
the conditions better
Wants
Desires to obtain more satisfaction than is
absolutely necessary to improve
unsatisfactory conditions
Understanding Consumer Behavior

consumers make
purchase decisions

Consumer
behavior = HOW

consumers use and

dispose of product
 Purchase Decision Process

Need Recognition
Perceiving a value

Information Search
Seeking a value
Cultural, Social,
Individual and
Psychological Evaluation of Alternatives
Assessing value
Factors
affect
all steps Purchase
Buying value

Post-purchase Behavior
Assess value in consumption
 Need Recognition

Marketing helps
consumers
recognize an
Internal Stimuli
imbalance between and
present status and External Stimuli
preferred state
Preferred
State

Present
Status
 Preferred
Present State
Status

Marketing helps consumers recognize

an imbalance between
present status and preferred state.
 Stimulus
Stimulus

Any unit of input affecting

one or more of the five senses:
sight
smell
taste
touch
hearing
 Recognition of
Unfulfilled Wants

When a current product isnt performing

properly.

When the consumer is running out of a

product.

When another product seems superior to the

one currently used.
Information Search: Seeking Value

Internal Search-
Recall information from memory

External Search
information from outside environment

Non-marketing controlled
Marketing controlled
 INFORMATION SEARCHIS
INFLUENCED BY:

EVOKED SET:
Group of brands that come to mind around time of purchase
CONSIDERATION SET:
Group of brands a consumer will consider buying after search
is complete
 Evoked Set

Evoked Set

Group of brands, resulting from

an information search, from
which a buyer can choose
Consumer Reports evaluation of portable
MP3-capable CD players
 Alternative Evaluation

Consideration Set
Analyze product attributes

Use cutoff criteria

Rank attributes by
importance
Purchase!
 Purchase

To buy
or not to buy...

Determines which attributes

are most important
in influencing a
consumers choice
Cognitive Dissonance

Cognitive Inner tension that a consumer

Dissonance experiences after recognizing an
inconsistency between behavior
and values or opinions.
 Post-purchase Behavior-
Cognitive Dissonance
Inner tension that a consumer experiences after recognizing
an inconsistency between behavior and values or opinions.

Cognitive
Dissonance

?
Did I make a good decision?
Can minimize through:
Effective Communication
Follow-up
Guarantees
Did I buy the right product? Warranties

Did I get a good value?

 Factors Influencing
Buying Decisions

Cultural Social
Factors Factors CONSUMER
DECISION- BUY /
MAKING DONT BUY
PROCESS
Psycho-
Individual
logical
Factors
Factors
 Culture

Set of values, norms,

attitudes, and other
Culture
meaningful symbols that
shape human behavior and
the artifacts, or products, of
that behavior as they are
transmitted from one
generation to the next.
Components of Culture
Values

Language

Tradition

Customs

Rituals (religious ceremonies)

Laws

Material artifacts
 Culture is. . .

Pervasive

Functional

Learned

Dynamic
 Value

Enduring belief that a

Value
specific mode of conduct is
personally or socially
preferable to another mode
of conduct.
Core American Values
Success

Materialism

Freedom

Progress

Youth

Capitalism
 Subculture

A homogeneous group
Subculture
of people who share
elements of the overall
culture as well as unique
elements of their own
group.
 Social Class

A group of people in a
Social Class society who are considered
nearly equal in status or
community esteem, who
regularly socialize among
themselves both formally
and informally, and who
share behavioral norms.
 Social Influences on
Consumer Buying Decisions

Identify and
understand the
social factors that
affect consumer
buying decisions
Social Influences

Reference
Groups

Opinion
Leaders

Family
Members
Reference Group

Reference Group

A group in society that

influences an individuals
purchasing behavior.
 Influences of Reference Groups
They serve as information sources and influence
perceptions.

They affect an individuals aspiration levels.

Their norms either constrain or stimulate

consumer behavior.
 Opinion Leaders

Opinion Leaders
An individual who influences
the opinion of others.
 Reference Group Impact Example
Social Environment usually much more
influential
Opinion Leaders Important
Richs runners group example...
 Family

Purchase Process Roles in the Family

Initiators

Influencers

Decision Makers

Purchasers

Consumers
 Individual Influences on
Consumer Buying Decisions

Identify and
understand the
individual factors that
affect consumer
buying decisions
 Individual Influences

Personality
Age
Gender Self-Concept
Life Cycle
Lifestyle
Psychological Influences on
Consumer Buying Decisions

Identify and
understand the
psychological factors
that affect consumer
buying decisions
Psychological Influences

Perception

Motivation

Learning

Beliefs & Attitudes

 Perception

Perception

Process by which people select,

organize, and interpret stimuli into
a meaningful and coherent picture.
 Perception

Selective Selective
Exposure Distortion

Selective
Retention
 Perception

Selective Consumer notices certain stimuli

Exposure and ignores others

Consumer changes or distorts

Selective
information that conflicts
Distortion
with feelings or beliefs
Consumer remembers only
Selective
that information that
Retention
supports personal beliefs
Stimulus Discrimination vs.

Stimulus Generalization
 Interpretation: Meaning consumer attaches to a
stimulus

NAMES

NUMBERS

Apple I5
 Interpretation: Meaning consumer attaches to a
stimulus
COLOR
Signal Newness or Quality (Black Label)
Signal Product Contents (Sodas)
Involvement and Problem-Solving Variations

Routine Limited Extensive

Response Decision Decision
Behavior Making Making

Less More
Involvement Involvement
Comparison of problem-solving variations
When to use Routine Response Behavior

Little involvement in selection

process
Frequently purchased low cost
goods
May stick with one brand
Buy first/evaluate later
Quick decision
When to use Limited Decision Making

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide

When to use Extensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive

dissonance
 PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
Motivation what stimulates behavior to satisfy a need

Maslows Hierarchy
of Needs
Why use celebrity spokespersons?

Opinion Leaders
 SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR
Family Life Cycle
 SOCIOCULTURAL INFLUENCES
ON CONSUMER BEHAVIOR

Family Decision Making

Information Gatherer Purchaser Decision Maker
Influencer User

Members assume different roles for different products

Mens clothes?
Breakfast cereal?
Computer?
Purchase Decision Process

The purchase decision process is the

stages a buyer passes through in making
choices about which products and
services to buy.
 Involvement

Involvement consists of the personal,

social, and economic significance of the
purchase to the consumer.
 Motivation

Motivation is the energizing force that

stimulates behavior to satisfy a need.
 Learning

Learning refers to those behaviors that

result from (1) repeated experience and
(2) reasoning.
 Brand Loyalty

Brand loyalty is a favorable attitude

toward and consistent purchase of a single
brand over time.