Lecture 1 Flashcards
Why do we need consumer behavior
Misconception 1: consumer sales figures
Misconception 2: we should trust our intuition
How should we think of consumers
Stimulous (S)
Organism (O)
Response (R)
What is consumer behavior model
Stimulus (S) –> input –> Organism (O) –> output–> Response (R)
Organism (O)
COnsumer behavior theories
What is consumer behavior (key insights)
1) individuals react on the basis of perception - not on the basis of objective reality
2) Objective product features dont equal customer benefit
–> We need to understand consumers to better satisfy their needs
–> Out intuitions about what consumers perceive think and will do are often wrong
Consumer decision process model
Need recognition
Search for information
Pre-purchase evaluation of alternatives
purchase
Consumption
Post-consumption evaluation
Disposal
What is a need
Discrepency between actual and desired state
Internal information search
Retrieval from memmory
External information search
Market sources: advertinsing, company websites, stores, salespeople etc.
non market source: other consumers (inc. family), consumer organization, government, media
The more effort and time spent on a decision
The more information gathered
More processing of information (time,effort)
More altenratives considered
More attributes considered
Consumer decision process - continuum Low effort/heuristics
Ad-hoc
Convenience-based
Relies on rules of thumb
Consumer decision process -continuum (high effort/systematic:
Organized
Comprehensive
Effortful
