M301_Ch6.pptx - CHAPTER 6: CONSUMER BEHAVIOR Part 1 1...

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CHAPTER 6:CONSUMERBEHAVIORPart 11
Learning objectives: Part 1Articulate the steps in the consumer buying process.Describe the difference between functional and psychologicalneeds.Describe factors that affect information search.Discuss postpurchase outcomes.2
Consumer buying processPostpurchasePurchaseAlternativeevaluationInformationsearchNeedrecognition3
Need RecognitionTwo types of needs:Functional needsNeeds that pertain to the performance of a product or servicePsychological needsNeeds that pertain to the personal gratification a consumerneedsEx: buying a watch4
Need Recognitionvs.5
Information search: Internal vs.ExternalWhere do consumers search for information?Internalsearch for informationLow involvement or routine decisions/purchasesFamiliar with productExample: where you do your weekly grocery shoppingExternalsearch for informationHigh involvement, often big purchasesNot familiar with productExample: buying a stove6
Information search: 3 Factors3 factors that affect the search process:1. Perceived benefits vs. perceived costs2. Locus of control3. Actual or perceived risk7
Information search: Benefits vs. Costs1stfactor affecting the search process:Perceived benefits vs. perceived costsIs it worth the time and effort to search forinformation about a product or service?Example: Buying a car vs. buying a bag of chips8
Information search: Locus of Control2ndfactor affecting the search process:Locus of control—one’s perceptions about the underlyingmain causes of events in his/her lifeInternal – individuals believe they have more controlover the outcomes of their actions and engage in moresearch activitiesExample: Merida from Brave, most entrepreneursExternal – individuals believe that external factors orfate determine the outcome of events and don’t placean emphasis on gathering informationExample: Students who believe their grades are due to luckor circumstance9
Information search: Risk3rdfactor affecting the search process:Actual or perceived risk, 5 types:Performance risk—one is concerned that aproduct will not perform wellExample: Magic Bullet Blender10
Information search: RiskFinancial risk—one is concerned that a productcosts too much initially and/or down the roadExamples: trendy purses and dry clean onlyclothingSocial risk—one is concerned that others might notregard their purchases positivelyExamples: purchasing feminine products, drivinga minivan11
Information search: RiskPhysiological/safety risk—fear that a product mightcause bodily harm if it does not perform properlyExample: Takata airbagsPsychological risk—has to do with the way aproduct/service will make you feel if it does not conveythe right imageLeads to “bigger is better” thinkingExample: Cake mixWhat’s the difference between social risk andpsychological risk?

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Term
Spring
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Dr Pepper, Capri Sun, MIT Radiation Lab

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