Consumer BehaviorDr. Keith Niedermeier

MKTG 101

** No Laptops in Class or Electronic devices allowed in class**

Consumer Decision Making Making Process

Need Recognition

• Need: discrepancy between actual state and ideal state

• Needs can be both Utilitarian and Psychological

• Delivering value – solving problems

• Marketing can influence need recognition

Basic needs

• Esteem

• Control

• Belonging

• Meaningfulness

Example: Need for Control

Information Search

• Internal Search• Consideration (Evoked) Set

• External search• Interpersonal and Word of Mouth

• Influenced by Motivation

Evaluation of Alternatives

• Influenced by motivation

• High effort vs. Low effort

Multi-Attribute Model

LG Sony Sharp

Size 7 0 2 2

Picture 4 2 2 1

Price 6 -1 2 3

Sound 2 3 0 2

Ab = Σ (bi X Ii)

-Rate importance of each attribute from 1 to 7: Ii

-Rate each attribute from –3 to +3: bi

Multi-Attribute Model

LG Sony Sharp

Size 7 0 (0) 2 (14) 2 (14)

Picture 4 2 (8) 2 (8) 1 (4)

Price 6 -1 (-6) 2 (12) 3 (18)

Sound 2 3 (6) 0 (0) 2 (4)_________________

8 34 40

Ab = Σ (bi X Ii)

Low Effort Decision Making

• Automatic

• Resource saving

Heuristics

• Choice tactics or “rules of thumb”• Price

• Habit

• Normative

• More is better

Post Purchase Processes

• Satisfaction/Dissatisfaction• Foundation of successful business• Repeat business is profit center

• Factors that influences satisfaction• Performance/quality • Value• Equity

• Expectations

Disconfirmation

• Satisfaction (or dissatisfaction) occurs when there is a discrepancy, either positive or negative, between our expectations and the product’s actual performance.

• Satisfaction (or dissatisfaction) occurs when our expectations are disconfirmed.

• Sat = f (perceived performance – exp.)

Consumer Decision Making Making Process

Looking Forward

• Careers: Brand/Product Management, Marketing Research, Consulting/Analyst, Advertising, Sales

• MKTG 211: Consumer Behavior

• Consumer Psychology Minor • http://marketing.wharton.upenn.edu/programs/

undergrad_program.cfm

• Starbucks Case