Consumer Online Shopping Behavior Stats - EBriks Infotech

1. Consumer Behavior– you are
what you buy…
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•
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•
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Did you know?
Paper
Marketing news
Consumer behavior (web)
• Consumer behavior (ppt)
• Innovation diffusion (ppt)
NLP
Next week: Market research

2. • Think of a recent important purchase– briefly draw a
flowchart of the steps you recall moving through from
the awareness of need to post purchase
• What influenced you at each step?

3. Consumer Decision-Making
Process
Need Recognition
Information Search
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
Evaluation
of Alternatives
Purchase
Postpurchase
Behavior

4. Complete model of consumer behavior
Start
Need
recognition
Internal
search
Search
Exposure
Stimuli
(marketer
dominated,
other)
Attention
Comprehension
Alternative
evaluation
Influences
• culture
• social class
• family
• situation
Memory
Acceptance
Purchase
Retention
Outcomes
External
search
Dissatisfaction
Satisfaction
Individual
differences
• resources
• motivation &
involvement
• knowledge
• attitudes
• personality,
values, lifestyle

5. • How do you know when to shop? What are the
triggers that initiate an awareness & search?
• What are the internal & external sources of these
triggers?

7. Need Recognition
Marketing helps
consumers recognize
(or create) an imbalance
between present status
and preferred state
•
When a current product isn’t
performing properly
•
When the consumer is running
out of an product
•
When another product seems State
Preferred
superior to the one currently used

8. The information search stage
An internal search involves the
scanning of one's memory to recall previous
experiences or knowledge concerning
solutions to the problem-- often sufficient for
frequently purchased products.
An external search may be necessary
when past experience or knowledge is
insufficient, the risk of making a wrong
purchase decision is high, and/or the cost of
gathering information is low.
Personal sources
(friends and family)
Public sources (rating
services like Consumer
Reports)
Marketer-dominated
sources (advertising
or sales people)
The evoked
set: a group of
brands from which the buyer can
choose

9. • go back to your past purchase– what were the
specific internal and external sources of
information that influenced your decision?
• how do you determine (and rate) the credibility of
these sources?
• what specific information influenced you?

10. Determinants of External Search

11. Buyer Behavior
Other people often influence a consumers purchase decision.
The marketer needs to know which people are involved in the
buying decision and what role each person plays, so that
marketing strategies can also be aimed at these people.
(Kotler et al, 1994).
• Initiator: the person who first suggests or thinks of the idea of buying a
particular product or service.
• Influencer: a person whose views or advice carry weight in making the
final buying decision
• Decider: the person who ultimately makes the final buying decision or
any part of it
• Buyer: the person who makes the actual purchase
• User: the person who consumes the product or service
Note: teens are increasingly assuming more of these roles
Think about your past purchase– who was in which role?

12. Wife
Dominant
Relative influence of husbands & wives
Child clothing
Information
search
Final
decision
groceries
Women’s
clothing
Pots & pans
NonRx
lamps
Toys/games
furniture
luggage
carpet
refrigerator
Paint wallpaper
vacations
Men’s leisure clothing
Joint
Men’s business clothing
TV sets
stereo
camera
Financial planning
Family car
Sport equipment
hardware
Lawn mower
Husband
Dominant
Extent of role specialization
100
75
50
25
0

13. Consumer decision making
varies with the level of involvement in
the purchasing decision
• Extensive: problem solving occurs when
buyers purchase more expensive, less
frequently purchased products in an
unfamiliar product category requiring
information search & evaluation; may
experience cognitive dissonance.
• Limited: problem solving occurs when buyers are
confronted with an unfamiliar brand in a familiar product
category
• Routine: response behavior occurs
when buyers purchase low cost, low risk, brand loyal,
frequently purchased, low personal identification or
relevance, items with which they are familiar.
Increase in
Consumer
evaluation
processes

14. • quickly list 10 items you have purchased in the past
month
• reexamine how long it took you to make a decision
on each
• why did such a difference in decision occur?

16. Factors affecting
Consumer involvement
• Previous
experience: low level involvement
• Interest: high involvement
• Perceived
risk of negative consequences: high involvement
• Situation: low to high due to risk
• Social
visibility: involvement increases with product visibility
So…
• Offer extensive information on high involvement products
• In-store promotion & placement is important for low involvement products
• Linking low-involvement product to high-involvement issue can increase sales

17. Types of consumer involvement
and decision making
Routine
Limited
Extensive
Involvement
Short
Low to
moderate
High
Time
Low
Short to
moderate
Long
Cost
Short
Low to
moderate
High
Information
Search
Internal only
Mostly
internal
Internal &
external
Number of
alternatives
one
few
many

18. Compensatory Decision: Using product characteristics to guide decision
•
Select the best overall brand-- evaluates brand options in terms of each
relevant attribute and computes a weighted or summated score for each brand. The
consumer chooses the brand with the highest score.
•
Compensatory model because a positive score on one attribute can outweigh a
negative score on another attribute.
•
Conjunctive Decision Rule (cutoff criteria)-- Consumer sets a minimum
standard for each attribute and if a brand fails to pass any standard, it is dropped from
consideration.
•
•
Reduces a large consideration set to a manageable size.
Often used in conjunction with another decision rule.
•
Disjunctive Decision Rule (rank by importance)-- sets a minimum
acceptable standard as the cutoff point for each attribute--any brand that exceeds the
cutoff point is accepted.
•
•
•
Reduces large consideration set to a more manageable number of
alternatives.
Consumer may settle for the first satisfactory brand as final choice or may
use another decision rule.
Synthesized decision rule-- Consumers maintain overall evaluations of
brands in their long term memories. Brands on not evaluated on individual attributes
but on the highest perceived overall rating.

19. • think of an important purchasing decision
you have made
• what are some of the thoughts you have had
following your purchase? Any regrets?
• what has influenced those thoughts?
• how have you dealt with the discomfort?
• how has the company anticipated or dealt with
your discomfort?

20. Postpurchase Behavior
Cognitive Dissonance
?
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
Can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Underpromise &
overdeliver

21. Sour Grapes–
a story of
cognitive
dissonance
…after being unable to reach the grapes the fox said, “these
grapes are probably sour, and if I had them I would not eat
them.”
--Aesop

22. Cognitive Dissonance
• psychological discomfort caused by inconsistencies
among a person’s beliefs, attitudes, and actions
• varies in intensity based on importance of issue and
degree of inconsistency
• induces a “drive state” to avoid or reduce dissonance
by changing beliefs, attitudes, or behaviors and
thereby restore consistency
Applications:
Tendency to avoid information can be countered by eliciting interest,
norm of fairness, or perceive usefulness of information
Post-decision “buyer’s remorse” may be increased by importance or
difficulty or irreversibility of decision
Counter-attitudinal action, freely chosen with little incentive or
justification, leads to attitude change (e.g., new product at special low
price)

23. • think of an innovation in your field
• describe different groups of employees in your
organization who would respond early and
favorably, as well as later and unfavorably
• what are the differences between these groups?
• how could you use this information to market the
innovation to them more effectively?

26. • Identify an innovation in your organization or an
organization you are familiar with
• Identify the subgroups who responded to the
innovation using the Rogers & Shoemaker
stakeholder model
• What could have been done to facilitate
acceptance by each of these groups?

27. Decision Processing

29. Elaboration Likelihood Method (ELM) of persuasion
Persuasive Communication
Motivated to Process?
• personal relevance
• dissonance arousal
• personal importance
• need for cognition
• personal responsibility • repetition
Ability to Process?
• cognitive complexity
• critical thinking
• distraction free
• low arousal
• appropriate schema
• message pace
• repetition
• issue familiarity
Nature of Active Cognitive Processing: (initial
attitude, argument quality, etc.)
Favorable
Thoughts
Predominate
Unfavorable
Thoughts
Predominate
Neither or
Neutral
Predominate
Cognitive Structure Change: Are new cognitions
adopted and stored in memory? Are different
responses made salient than previously?
Enduring positive
attitude change
(persuasion)
Enduring negative
attitude change
(boomerang)
Attitude Shift:
• short-lived
• susceptible to influence
• unpredictable
Peripheral Cues Present?
• reciprocity (obligated, did a favor)
• consistency (way it’s done, similar to before)
• social proof (peer pressure, conformity)
• liking (attractiveness, friendliness)
• celebrity (identification, prestige)
• authority (expertise, experience, credibility)
• rapid speech, forceful presentation, charismatic style
• scarcity (limited time offer)
• tangible rewards
• appealing visuals & music (emotional arousal)
• fear appeal
• weak counter-arguments
Retain or Regain
Initial Attitude
• greater persistence
• resistant to counterattacks & fading
• predictive of behavior
• > brand memory
• > elaboration
• >usage intention
• > attitude accessibility
• > attitude confidence
• > attitude-behavior consistency

30. Items 3, 4, 5, 7, 8, 9, 12, 16, and 17 are reverse scored
Write in the number that best fits your view:
Need for
1
2
3
4
completely
mostly
mostly
completely
Cognition Scale
false
false
true
true
_____1. I would prefer complex to simple problems.
_____2. I like to have the responsibility of handling a situation that requires a lot of thinking.
_____3. Thinking is not my idea of fun. *
_____4. I would rather do something that requires little thought than something that is sure to
challenge my thinking abilities. *
_____5. I try to anticipate and avoid situations where there is likely chance I will have to think
in depth about something. *
_____6. I find satisfaction in deliberating hard and for long hours.
_____7. I only think as hard as I have to. *
_____8. I prefer to think about small, daily projects to long-term ones. *
_____9. I like tasks that require little thought once I’ve learned them. *
_____10. The idea of relying on thought to make my way to the top appeals to me.
_____11. I really enjoy a task that involves coming up with new solutions to problems.
_____12. Learning new ways to think doesn’t excite me very much. *
_____13. I prefer my life to be filled with puzzles that I must solve.
_____14. The notion of thinking abstractly is appealing to me.
_____15. I would prefer a task that is intellectual, difficult, and important to one that is somewhat
important but does not require much thought.
_____16. I feel relief rather than satisfaction after completing a task that required a lot of mental
effort. *
_____17. It’s enough for me that something gets the job done; I don’t care how or why it works. *
_____18. I usually end up deliberating about issues even when they do not affect me personally.

31. Sleeper Effect:
• when secondary source becomes more credible than primary source
over time
• persuasion may increase over time with a weak source
• forget the source but remember the message
• not if source is learned prior to the message (will ignore or bias
processing)
Example: Attack ads during political campaigns

32. Next week: Survey & questionnaire design
• Think of our graduate program in
management
• Formulate 5 questions that you think would
get at customer (student) satisfaction with the
program
• Term paper
• Bring 1 page with title, 1 paragraph on
purpose & overview
• Citation for 1 journal and one book