MASLOW’S HIERARCHY OF MASLOW’S HIERARCHY OF NEEDSNEEDS

Self-Actualization

Self-Esteem

Love-Belonging

Safety-Security

Physiological

Intense job challenge, full potential, full Intense job challenge, full potential, full expression, creative expansion.expression, creative expansion.

Achievement, respect, recognition, responsi-Achievement, respect, recognition, responsi-bility, prestige, independence, attention, bility, prestige, independence, attention,

importance, appreciation.importance, appreciation.

Belonging, acceptance, love, affection, familyBelonging, acceptance, love, affection, familyand group acceptance, friendships.and group acceptance, friendships.

Security, stability, dependency, protection, Security, stability, dependency, protection, need for structure, order, law, tenure, pension, need for structure, order, law, tenure, pension,

insurance.insurance.

Hunger, thirst, reproduction, shelter, clothing,Hunger, thirst, reproduction, shelter, clothing,air, rest.air, rest.

Motivation and Personality, Abraham Maslow, 1939

Self-actualizationin service to

society

Safety

Physiological

Affiliation (belonging)

Chinese Culture Hierarchy of NeedsChinese Culture Hierarchy of Needs

Model of Consumer BehaviorModel of Consumer Behavior

Marketing and OtherStimuli

Marketing and OtherStimuli

Product

Price

Place

Promotion

Environmental Factors

Buyer’s Decision Process

Buyer’s Decision Process

Factors Factors Affecting Affecting Consumer Consumer BehaviorBehavior

Buyer’s Buyer’s Decision Decision ProcessProcess

Buyer’s ResponseBuyer’s Response

Product Choice

Brand Choice

Store/Dealer Choice

Purchase Timing

Purchase Amount

Source: Adapted from Prentice Hall

Consumer Purchase Process

Awareness

Trial

Loyalty

The Buyer’s Decision ProcessThe Buyer’s Decision Process

Need RecognitionNeed Recognition

Information SearchInformation Search

Evaluation of AlternativesEvaluation of Alternatives

Purchase DecisionPurchase Decision

Post-Purchase BehaviorPost-Purchase Behavior

Source: Prentice Hall

Buyer’s Decision ProcessNEED RECOGNITION

External Stimuli

TV advertising

Magazine ad

Radio slogan

Other stimuli in the environment

External Stimuli

TV advertising

Magazine ad

Radio slogan

Other stimuli in the environment

Internal Stimuli

Hunger

Thirst

A person’s normal needs

Internal Stimuli

Hunger

Thirst

A person’s normal needs

Need RecognitionDifference between current state and desired state

Need RecognitionDifference between current state and desired state

Source: Adapted from Prentice Hall

Buyer’s Decision ProcessBuyer’s Decision ProcessINFORMATION SEARCHINFORMATION SEARCH

• Family, friends, neighbors• Most influential source of information

• Advertising, salespeople• Receives most information

from these sources

• Mass Media• Consumer-rating groups

• Handling the product• Examining the product• Using the product

Personal Sources Personal Sources

Commercial SourcesCommercial Sources

Public SourcesPublic Sources

Experiential SourcesExperiential Sources

Source: Adapted from Prentice Hall

Buyer’s Decision ProcessEVALUATION OF ALTERNATIVES

Product AttributesEvaluation of Quality, Price, & Features

Product AttributesEvaluation of Quality, Price, & Features

Degree of ImportanceWhich attributes matter most to me?

Degree of ImportanceWhich attributes matter most to me?

Brand BeliefsWhat do I believe about each available brand?

Brand BeliefsWhat do I believe about each available brand?

Project Total Product SatisfactionBased on what I’m looking for, how satisfied

would I be with each product?

Project Total Product SatisfactionBased on what I’m looking for, how satisfied

would I be with each product?

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.Source: Prentice Hall

Buyer’s Decision ProcessBuyer’s Decision ProcessPURCHASE DECISIONPURCHASE DECISION

Purchase IntentionDesire to buy the most preferred brand/product

Purchase IntentionDesire to buy the most preferred brand/product

Purchase DecisionChoice of the store/brand/product

Purchase DecisionChoice of the store/brand/product

Situational factors

Attitudes of others

Source: Adapted from Prentice Hall

Intention to purchase does not always result in an actual purchase

Intention to purchase does not always result in an actual purchase

Buyer’s Decision ProcessBuyer’s Decision ProcessPOST-PURCHASE POST-PURCHASE BEHAVIORBEHAVIOR

Consumer’s Expectations of

Product’s Performance

Dissatisfied Customer

Dissatisfied Customer

Satisfied Customer!

Satisfied Customer!

Product’s Perceived

Performance

Product’s Perceived

Performance

•Cognitive DissonanceSource: Prentice Hall

CognitionCognition

Attitudes,Beliefs

Attitudes,Beliefs

Important Psychological FactorsImportant Psychological Factors

MemoryMemory

THE HIERARCHY OF EFFECTSTHE HIERARCHY OF EFFECTS

AWARENESS: Consumers learn the brand name and product attributes.

INTEREST: Consumers relate the product benefits to their own needs.

EVALUATION: Consumers compare the goods with existing alternatives.

TRIAL: Consumers obtain direct or vicarious product experience.

ADOPTION: Consumers choose the innovation as a permanent solution

Selected Concepts in Selected Concepts in Consumer BehaviorConsumer Behavior

Involvement and Buying Decisions

Consideration Set

How Preferences are Formed

InvolvementInvolvement

The degree of importance the consumer accords to the product class or its purchase

The degree of importance the consumer accords to the product class or its purchase

InvolvementInvolvement

High

Usually purchase is infrequent, significant perceived risk

Customer actively seeks information

Customized decision process

High

Usually purchase is infrequent, significant perceived risk

Customer actively seeks information

Customized decision process

Low

Usually purchase is familiar and / or inexpensive

Highly selective attention to information

Quick decision

Routine behavior

Low

Usually purchase is familiar and / or inexpensive

Highly selective attention to information

Quick decision

Routine behavior

Types of Buying DecisionsTypes of Buying Decisions

ComplexBuying

Behavior

Dissonance-Reducing Buying

Behavior

Variety-SeekingBehavior

HabitualBuying

Behavior

HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

betweenbrands

LowInvolvement

Source: Prentice Hall

How the Consideration Set Is How the Consideration Set Is FormedFormed

All brands in Product Class

Brands foundaccidentally

Brands foundthrough search

Recalled brands

Unrecalledbrands

Unrecognized brands

Recognized brands

Consideration Set

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Factors Affecting Factors Affecting Inclusion in Consideration Inclusion in Consideration SetSet Top-of-mind awareness - recall

experience - trial, previous purchase, habitual use brand equity

Distribution Shelf space and location Shelf tags, displays and other attention-getting

devices

Nature of the set goal-driven Taxonomic (classification of options)

How Preferences are FormedHow Preferences are Formed

Preference for a product reflects the customer’s expectation of its ability to satisfy important wants and needs

Preference depends on …

the relative importance of each attribute (weight)

the evaluation of the product on each attribute (belief)