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Consumer Behavior An Overview

The document provides an overview of consumer behavior including: 1. It defines consumer behavior as the activities people undertake when obtaining, consuming, and disposing of products and services. 2. It discusses how consumer behavior is influenced by individual factors like attitudes and personality, as well as group factors like culture and family, and organizational factors like advertising and price. 3. It explains that studying consumer behavior is important for developing effective marketing strategies and understanding economic trends. Marketers study consumer behavior using methods like observation, surveys, and experimentation.
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0% found this document useful (0 votes)
534 views75 pages

Consumer Behavior An Overview

The document provides an overview of consumer behavior including: 1. It defines consumer behavior as the activities people undertake when obtaining, consuming, and disposing of products and services. 2. It discusses how consumer behavior is influenced by individual factors like attitudes and personality, as well as group factors like culture and family, and organizational factors like advertising and price. 3. It explains that studying consumer behavior is important for developing effective marketing strategies and understanding economic trends. Marketers study consumer behavior using methods like observation, surveys, and experimentation.
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Consumer Behavior

An Overview
Brief Overview of topics

1. Introduction, nature scope of Consumer Behavior (CB),


Marketing Strategy.
2. The Consumer decision Process.
3. Pre Purchase Processes and Purchase.
4. Post purchase processes.
5. Individual determinants of CB: Consumer Motivation.
6. Individual determinants of CB: Personality and CB
7. Individual determinants of CB: Consumer Perception.
8. Individual determinants of CB: Consumer Learning.
9. Individual determinants of CB: Consumer attitudes, attitude
change and values.
10. Environmental influences on CB: Reference Groups and Family &
Household influences.
11. Environmental influences on CB: Culture, Ethnicity and Social
class.
12. Consumer influence and diffusion of innovations.
Introduction to
Consumer Behavior
Introduction to Consumer Behavior

Learning Objectives:

• Overview.
• Defining Consumer Behavior.
• Applications of Consumer Behavior.
• Evolution of Consumer Behavior.
• How to study Consumer behavior.
• What influences consumer behavior.
• Underlying Principles of Consumer behavior.
• Consumer behavior and Marketing Strategy.
• Stimulus – Response model of Consumer behavior.
Introduction to Consumer Behavior

What is consumer behavior?

• “Consumer behavior is defined as activities people undertake


when obtaining, consuming and disposing of products and
services.”

• Activities included in the definition are:

 Obtaining – refers to the activities up to & including the

purchase or receipt of a product.


 Consuming – refers to how, where, when and under
what circumstances consumers use product.
 Disposing – includes how consumers get rid of products
and packaging.
Introduction to Consumer Behavior
Consumer influences Consumer Behavior
Organizational influences
Culture Ethnicity
Brand Product features
Personality Family
Life stage Values Advertising Promotions
Price Quality
Income Available
Service Packaging
resources
Attitudes Opinions Convenience Loyalty Program
Motivations Past - Product Store Ambience
Availability WOM
experience CONSUMER
Knowledge Peer groups
Feelings

Obtaining Consuming Disposing


• How you decide • How product used • How you get rid
you want to buy • How product stored of product
• Other products • Who uses the product • How much thrown
• How much is it away after use
you consider buying
• Where you buy consumed • Is product resold
• where you pay • How product compares • how product is
• How product with expectations recycled
transported
Introduction to Consumer Behavior

Some more definitions:

• “Consumer behavior can also be defined as a field of study,


focusing on consumer activities.”

• “The field of consumer behavior studies how individuals,


groups and organizations select, buy, use, and dispose off
goods, services, ideas , or experiences to satisfy their needs
and desires.”

• "The study of individuals, groups, or organizations and the


processes they use to select, secure, use, and dispose off
products, services, experiences, or ideas to satisfy needs and
the impacts that these processes have on the consumer and
society."
Introduction to Consumer Behavior

Rationale for studying Consumer Behavior

• Consumer behavior determines success of Marketing


programs.
• Consumer behavior determines economic health of a nation.

• It determines economic health of the consumers.


• Consumer behavior helps formulate public policy.

• It affects consumers’ personal policy.


Introduction to Consumer Behavior

Applications of consumer behavior

Marketing Strategy Public Policy

Makes us
Social Marketing
better consumers
Introduction to Consumer Behavior

Evolution of Consumer Behavior

COMPREHENSIVE
MANUFACTURING SELLING MARKETING
CONSUMER
ORIENTATION ORIENTATION ORIENTATION
ORIENTATION
Introduction to Consumer Behavior

Manufacturing Orientation:

• The belief that customers prefer products that are widely


available and inexpensive.

Selling Orientation:

• The belief that companies must sell and promote their


offerings aggressively because consumers will not buy enough
of the offerings on their own.
Introduction to Consumer Behavior

Marketing Orientation:

• The belief that the key to achieving organizational goals


consists of the company being more effective than competitors
in creating, delivering and communicating customer value to its
chosen target markets.

Comprehensive Consumer orientation:

• It extends the focus of marketing orientation as to how all


organizations in demand chain adapt to changing consumer
lifestyles and behaviors.
Introduction to Consumer Behavior

How to study CB or get into the minds of Consumer ?

• Consumer behavior is an applied science drawing from


Economics, Psychology, Sociology, Anthropology and
Statistics.
• Methods of study include observation, interviews & surveys
and experimentation.
• By exploring peoples homes, cars, closets, offices,
lifestyles, circles etc.
• By observing consumers’ behavior in different situations
such as when using products or eating foods.
Introduction to Consumer Behavior

• By interviewing in person, asking questions in surveys and


recording responses on video cameras.

• Focus groups.

• Repeated studies over a period of time to determine


changes in consumers’ opinions, buying and consumption.

• Experimentation - a research methodology. Cause and


effect relationships.
Introduction to Consumer Behavior

What influences Consumer behavior?

• Attitude, Personality, Age, Income, Motivation, Feelings, learning,


Knowledge, Past Experiences. …….Individual factors
• Values, Culture, Ethnicity, Family, Opinions, Past experiences.
……. Group factors
• Brand, Advertising, Promotions, Price, Service, Convenience,
Packaging, Product features, Word of Mouth, Retail Displays,
Quality, Store Ambiance, Loyalty Programs, Product Availability.
…….Organizational factors
Introduction to Consumer Behavior
Underlying Principles of Consumer Behavior

Consumer is
sovereign
Consumer is
Consumers are
global
alike

Consumers are
Consumers have
different
rights
Introduction to Consumer Behavior

Consumer behavior and Marketing Strategy

Purpose of any business is to……..

• To create a consumer.
• To develop consumer based corporate strategy.
• To understand consumer.
• To create product and services that meet the consumers’
needs and expectations.
• To communicate with consumer.
• To retain consumer.
• To modify and improve products and services.
Introduction to Consumer Behavior

Strategy, Marketing Strategy and Customer Centricity

• Strategy can be viewed as a decisive allocation of resources


(Capital, technology and people) in a particular direction.
• At the operational level, Marketing strategy is a long range,
time phased plan designed to achieve, usually at a high return
on investment, a market leadership position that competitors
can challenge only at prohibitively high costs.
• Customer Centricity is a strategic commitment to focus every
resource of the firm on serving and delighting profitable
customers.
• It involves producing new or improved products with evolving
marketing methods focused on core, but changing market
trends.
Introduction to Consumer Behavior
Characteristics of Customer centric organizations

Shared vision and values

Cross-functional integration

System-wide simultaneous training

Customer-based metrics
Introduction to Consumer Behavior
Consumer behavior and Marketing Strategy – Consumer driven
Market Strategy Process:

Market Analysis

Market Segmentation

Marketing Strategy

Implementation
Introduction to Consumer Behavior
Marker Analysis
Consumer Centric
Consumer
Company Marketing Strategy
Environmental
Political-legal

Market segmentation
CONSUMER
Implementation Demographic
in marketplace Situational
Psychographic
Behavioral
Marketing Mix
Strategies
Product
Price
Promotion
Brand
Place
7 Rs
Introduction to Consumer Behavior

Market analysis:
• It is the process of analyzing changing consumer trends, current
and potential competitors, company strengths & resources and
technological, legal and economic environments. Process of …….
 Analyzing changing consumer trends involves gaining
consumer insight.
 Consumer insight refers to understanding consumers’
expressed and unspoken needs and realities that affect how

they make life, brand and product choices.


 Current and potential trends – demographic trends,
personal and group influences.
Introduction to Consumer Behavior

 Company strengths and resources- manpower, assets,


financial stability, production capability, research &
marketing abilities, competitor (current & potential).
 Business environment- Political, Economical, Social,
Technological, Environmental and Legal.

Market Segmentation

• It is the process of identifying homogeneity in the market place


based on characteristics such as demographic, situational,
psychographic and behavioral.
Introduction to Consumer Behavior

 Consumer Characteristics :

 Demographics: Age, Gender, Ethnicity, Income,


Education, Family Size, Nationality, Life Stage, Marital
Status, Occupation, Religion, Living arrangements.

 Psychographics: Activities, Interests, Opinions.

 Purchase and consumption behavior: Shopping location

preferences, frequency, price sensitivity of purchase,


media used, brand loyalty, benefits sought, how used
and usage rate.
Introduction to Consumer Behavior

Marketing – Mix Strategy:

• It involves a plan to meet the needs and wants of the target


markets by providing value to the target market better than the
competitors.

• Marketing strategy must also include brand strategy. Brand can


be viewed as a promise – a promise to consumers that the
attributes they desire the most will be obtained if they buy the
preferred brand.

• It must involve essential components of the marketing mix that is


the four Ps and seven Rs.
Introduction to Consumer Behavior

Organization Consumer

Research Formulate methodology, Conduct Participate in research.


research.

Rate Speed to market. Speed through shopping process,


Usage rates of products. The 7 Rs of the
Resources Commitments to project, effect on Payment for product. Scarcity of Marketing Mix
pricing. resources.

Retailing Which outlets to sell products, Where they expect to buy product.
Location in store and shelf position.

Reliability Dependency on Supply chain Product quality and consistency,


partners. Reliability of retailer.

Reward Program to increase purchases and Reward from using product,


loyalty. Reward programs.

Relationship Relationships within supply chain Loyalty to brand and store.


and CRM.
Introduction to Consumer Behavior
Marker Analysis
Consumer Centric
Consumer
Company Marketing Strategy:
Environmental
Political-legal
Marketing Mix and
Implementation
Consumer Analysis
Individual Market segmentation
Outcomes CONSUMER Consumer
Implementation Research Demographic
in marketplace Situational
Societal
Psychographic
Outcomes Consumer Decision Process Behavioral
Marketing Mix
Strategies
Product
Price
Promotion
Brand
Place
7 Rs
Introduction to Consumer Behavior
Model of Consumer behavior (Stimulus response model):

Buyer’s Buyer’s
Marketing Other
Characteristics decision process Buyer’s decisions
Stimuli Stimuli
Problem recognition Product choice
Cultural Information search Brand choice
Product Economic
Social Evaluation of Dealer choice
Price Technological
Personal Alternatives Purchase timing
Place Political
Psychological Purchase decision Purchase amount
Promotion Cultural
Post purchase evaluation
The Consumer Decision Process
The Consumer Decision Process

Learning objectives:

 Introduction.
 Four views of consumer decision making.
 Models of consumer behavior.
 Input, Process and Output model.
 Engel-Blackwell-Kollat model.
 Consumer Decision Process (CDP) Model.
 Types of decision processes.
 Decision Process continuum.
 Initial purchase and Repeat purchase.
 Factors affecting the extent of problem solving.
 Degree of involvement.
The Consumer Decision Process

Introduction

• Consumer decision making comes about as an attempt


to solve consumer problems.
• Four schools of thought that depict consumer decision
making in distinctly different ways are:

 Economic view,
 Passive view,
 Cognitive view and
 Emotional view.
The Consumer Decision Process

• The economic view portrays a world of perfect competition,


characterizing consumer as making rational decisions.
• The economic model of an all rational consumer is unrealistic for
following reasons:

 Consumers are restricted by their knowledge, skills, habits and


reflexes.
 They are limited by their existing values and goals.

• Consumers operate in imperfect world and do not maximize their


decisions in terms of economic considerations.
The Consumer Decision Process

• The passive view depicts the consumer as submissive to the self-


serving interests and promotional efforts of marketers.

• Consumers are perceived to be impulsive and irrational.

• The Limitation of the view is that it fails to recognize that the


consumer plays an equal role in buying situations.

• The consumer seeks information about alternatives and selects


products that appear to offer greatest satisfaction or satisfy emotion
of the moment.
The Consumer Decision Process

• Cognitive view portrays the consumer as thinking problem solver. It


focuses on the processes by which consumers seek and evaluate
information about products.

• The cognitive or problem solving view describes a consumer who falls


somewhere between extremes of the economic and passive views.

• The consumer does not have full knowledge about the product and
hence can not make perfect decisions but seeks information about
available alternatives to make satisfactory decisions.
The Consumer Decision Process

• As per Emotional view the consumer is likely to associate deep


feelings or emotions such as joy, fear, love, hope or fantasy with
certain purchases or possessions.

• Consumers make many purchases based on whims or impulse rather


than searching for and evaluating alternatives.

Models of Consumer behavior

• A number of models have been proposed including those based on


any or combinations of from amongst four views from time to time.
The Consumer Decision Process

• Some of the Models are:

1. Economic model.
2. Psychological model.
3. Pavlovian model.
4. Input, Process, Output model- Gandhi, Kotler.
5. Sociological model.
6. Howrath Sheth model.
7. Engel-Blackwell-Kollat model.
8. Model of family decision making.
9. Nicosia model.
10. A model of Industrial buying behavior.
The Consumer Decision Process

Input, Process and Output model

• It is a simple model where input for the consumer is the


firm’s marketing effort and social environment.

• The elements of the process of decision making consist of


need recognition, Product awareness, Evaluation and
intention.

• The output comprises of Purchase and Post purchase


behavior. If the purchase and use of product is a satisfying
experience, it leads to repeat purchase otherwise
discontinuation.
The Consumer Decision Process

Input, Process and Output model

PersonalIty

M Intention P Purchase
Need
o e
Firm’s Recognition
t r
Marketing i c
Effort v Product e Post-purchase
Interest Evaluation
a Awareness p Behavior
t t
Social i i
Environment o o Repeat
Interest Breakdown purchase
n n

Attitudes Discontinuation
The Consumer Decision Process

Engel-Blackwell-Kollat Model

Information Central
Processing Control unit

Decision Environmental
Process Influences
The Consumer Decision Process

Engel-Blackwell-Kollat model
The Consumer Decision Process

Consumer Decision Process (CDP) Model


• Consumer decision making comes about as an attempt
to solve consumer problems.
• No one buys a product unless one has a problem, a need or
want.
• The CDP Model represents a roadmap of consumers’ minds
that we as marketers can use to help us guide Product mix,
communication and Marketing Strategies.
• It captures activities that occur when decisions are made
and depicts how internal and external forces interact to affect how
consumers think, evaluate and act.
The Consumer Decision Process

The Consumer Decision Process (CDP) Model


Need
NeedRecognition
Recognition

Search
Searchfor
forInformation
Information

Pre-Purchase
Pre-PurchaseEvaluation
Evaluation

Purchase
Purchase

Consumption
Consumption

Post-Consumption
Post-ConsumptionEvaluation
Evaluation

Divestment
Divestment
The Consumer Decision Process

Need Recognition: Need or problem recognition occurs when the


consumer senses a difference between what he or she perceives to
be ideal versus the actual state of affairs.
Environmental
Influences

• Culture
• Social Class
• Family
• Personal influences
Need • Situation
Memory
  Recognition
Individual
Differences

• Consumer Resources
• Motivation
• Knowledge
• Attitudes
• Personality, values
and Lifestyle
The Consumer Decision Process

Search for Information:


• Environmental influences and Individual differences are sources for
search for information.
 Internal Search
 External Search

 Internal; retrieving from the memory or genetic tendencies.


 External; influenced by Marketer and Non-Marketer dominated
stimuli.
 It involves collecting information from peers, family and the
marketplace.
The Consumer Decision Process
Search for information

Environmental
Need Influences
Recognition
• Culture
• Social Class
• Family
Internal • Personal influences
Search Search • Situation

Individual
Differences

External • Consumer Resources


Memory
Search • Motivation
• Knowledge
• Attitudes
• Personality, values
and Lifestyle
The Consumer Decision Process

Information Processing

Exposure

Attention
Stimuli

• Marketer
Dominated Comprehension
Memory
• Non Marketer
Dominated

Acceptance

Retention
The Consumer Decision Process

Pre-Purchase Evaluation of alternatives:

• Consumers compare, contrast and select from various products or


services.
• Different Consumers employ different criteria.
• Evaluation of choices is influenced by both Individual and Environmental
influences.
• Attributes on which evaluations are based may be salient or
determinant.
Both affect advertising and marketing strategies.
The Consumer Decision Process

• Salient attributes include price, quality, reliability and factors that vary
little between similar products. Consumers think about these as
potentially the most important.
• Determinant attributes (Such as style and finish) usually determine
which
brand or store consumers choose especially when salient attributes are
same.
• Consumers often monitor attributes such as size, quality and price .
Changes in these affect their brand and product choices.
The Consumer Decision Process
Pre-Purchase Evaluation of alternatives: Environmental
Influences
Need
Exposure Recognition • Culture
• Social Class
• Family
• Personal infl.
Internal Search
Attention • Situation
Stimuli Search

• Marketer Individual
Dominated Comprehension Memory Differences
• Non Marketer
Dominated • Consumer
Resources,
Acceptance • Motivation,
Pre-Purchase
Evaluation of • Knowledge,
Alternatives • Attitudes and
Retention
• Personality,
values and
Lifestyle
External
Search
The Consumer Decision Process

Purchase:

 After deciding whether to purchase or not, the consumers


move through two stages.
 In the first phase they choose the form of retailing and choice
of retailers. For example, Electronic sale, Internet based
marketing or direct marketing.
 During the second phase, consumers make in store choices.
Best retailers manage the overall attributes and image of
the store to ensure satisfying experience for the consumer.
The Consumer Decision Process
Purchase: Environmental
Need Influences
Exposure Recognition
• Culture
• Social Class
• Family
• Personal infl.
Internal Search
Attention • Situation
Stimuli Search

Individual
• Marketer
Memory Differences
Dominated Comprehension
• Non Marketer
• Consumer
Dominated
Resources,
Acceptance • Motivation,
Pre-Purchase
Evaluation of • Knowledge,
Alternatives • Attitudes and
Retention • Personality,
values and
Lifestyle
External Purchase
Search
The Consumer Decision Process

Consumption and Post consumption Evaluation:

 Consumption may be immediate or delayed.


 How consumers use the products affects how satisfied they are
with the purchases and determines whether they will make
repurchase.
 How carefully consumers use or maintain the product
determines how long the product will last and when will the
repurchase be made.
 During post consumption evaluation stage, consumers
experience satisfaction or dissatisfaction.
The Consumer Decision Process

 Satisfaction occurs when consumers’ expectations are


matched by perceived performance.
 Even if the product works well, consumers second guess their
purchase decisions. This phenomenon is called post purchase
regret or cognitive dissonance.
 Higher is the price, higher is the level of cognitive dissonance.
 Emotions also play a role when consumer evaluates a product
or service. It is a reaction to a cognitive appraisal of events
and is normally expressed physically through gestures, posture
or facial expressions etc.
The Consumer Decision Process

Consumption & Post-Consumption Evaluation: Need Environmental


Recognition Influences
Exposure • Culture
• Social Class
Internal Search • Family
Search
• Personal infl.
Attention • Situation
Stimuli

• Marketer Pre-Purchase Individual


Dominated Comprehension Memory Evaluation of Differences
• Non Marketer Alternatives
Dominated • Consumer
Acceptance Resources,
• Motivation,
Purchase • Knowledge,
Retention • Attitudes and
• Personality,
Consumption values and
Lifestyle
External Post-Consumption
Search Evaluation

Dissatisfaction Satisfaction
The Consumer Decision Process
Divestment: Environmental
Need
Influences
Recognition
Exposure • Culture
• Social Class
Internal Search • Family
Search
• Personal infl.
Attention • Situation
Stimuli Pre-Purchase
Evaluation of
• Marketer Alternatives Individual
Dominated Comprehension Memory Differences
• Non Marketer Purchase
Dominated • Consumer
Acceptance Resources,
• Motivation,
Consumption
• Knowledge,
Retention • Attitudes and
Post-Consumption
• Personality,
Evaluation
values and
Lifestyle
External Dissatisfaction Satisfaction
Search

Divestment
Introduction to Consumer Behavior

What influences Consumer decision making?

Individual
Differences

Environmental
Influences

Psychological
processes
Introduction to Consumer Behavior

Individual Differences

Demographics,
Psychographics, Consumer
Values and Resources
Personality

Motivation Attitudes
Introduction to Consumer Behavior

Environmental Influences

Culture Social Class

Personal
Family
Influence

Situation
Introduction to Consumer Behavior

Psychological Processes

Information
Perception
Processing

Attitude and
Learning
Behavior change
The Consumer Decision Process

Types of Decision Processes

 The extent to which each of the seven stages is followed precisely


can vary from one situation to another.
 Sometimes consumers undertake a complex decision process
investing substantial time and effort.
 In most situations consumers follow more simplistic processes.

Decision Process continuum

 When consumers make decisions for the first time, their actions are
based on some form of problem solving.
The Consumer Decision Process

 When the process is very complex, it is called ‘Extended Problem


Solving’ (EPS).
 ‘Limited Problem Solving’ (LPS) represents a lower degree of
complexity.
 ‘Midrange Problem Solving’ (MPS) falls somewhere between the
two.
 Most purchases are made on a repeat basis when the consumer
may
engage in problem solving again or may simplify the process by
choosing the same brand purchased previously. This represents
‘Habitual decision making’, the least complex of the processes.
The Consumer Decision Process

Consumer Decision Process Continuum

Decision Making processes for initial purchases


Extended Problem Mid-range Problem Limited Problem Solving
Solving (EPS) Solving LPS
MPS

High Degree of complexity Low

Decision Making processes for initial purchases


Extended Problem Mid-range problem Limited problem Habitual decision
Solving (EPS) solving MPS solving LPS making

High Degree of complexity Low


The Consumer Decision Process

Initial Purchase

 Extended Problem Solving: EPS occurs when decision process is


detailed and vigorous. It is commonly used by consumers purchasing
automobiles, expensive clothing and consumer durable goods.
 In EPS, all stages of CDP are followed, may not be in exact order.
 Limited Problem Solving: In most situations consumers have neither
time, resources nor the motivation to engage in EPS.
 In LPS, there is little information search or pre-purchase evaluation,
need recognition leads to buying action.
The Consumer Decision Process

Repeat Purchases

 When repeat purchases occur, there are two possibilities:

 Repeated Problem Solving


 Habitual Decision making

 Repeat purchase requires continued problem solving especially


when dissatisfaction with previous purchase or stock-outs occur.
 Habitual Decision making: In many situations, purchases are made
on the basis of habits or routines that ‘simplify’ life for the
consumers.
The Consumer Decision Process

 Habitual behavior can take different forms depending on the


decision process followed in the initial purchase. It may be:

 Brand or company loyalty and


 Inertia

 If the consumer expectations are met resulting in satisfaction, they


often reward the companies with continued repurchase over time
resulting in brand or company loyalty.
 In case of products where there is limited brand loyalty, buying
habits are based on inertia. Although there may not be any incentive
to switch, it may occur when the brand is promoted as offering
something new.
The Consumer Decision Process

Impulse buying

 It refers to unplanned or spur of the moment action triggered by


product display or point of sale promotion.

 It is the least complex form of LPS. Its characteristics are:

 A sudden and spontaneous desire to act accompanied by urgency.


 A state of psychological disequilibrium in which a person can feel
temporarily out of control.
 Onset of conflict and struggle that is resolved by an immediate
action.
The Consumer Decision Process

 Minimal objective evaluation exists – emotional considerations


dominate.
 A lack of regard for consequences.
 A high sense of emotional involvement short circuits the reasoning
process and motivates immediate action.
Variety seeking
 When consumers express satisfaction with their present brand and
yet engage in brand switching – the motive is variety seeking.
 It occurs most often when there are similar alternatives and high
purchase frequency.
The Consumer Decision Process

Factors affecting the Extent of Problem Solving

Degree of
Involvement

Degree of
Differentiation

Availability of
Time
The Consumer Decision Process

Degree of Involvement:

 It is the level of perceived personal importance and/or interest


evoked by a stimulus with in a specific situation.
 The consumer acts to minimize the risk and maximize the
benefits gained from purchase and use.

 It ranges from low to high and depends on how important the


consumer perceives the product or service to be.

 Involvement becomes activated and felt when intrinsic


personal characteristics (needs, values and self concept) are
confronted by appropriate marketing stimuli.
The Consumer Decision Process

 Degree of involvement is determined by:

 Personal factors,
 Product factors,
 Situational factors and
 Consumer's mood state.

 The degree of involvement tends to be higher when the outcome of


decision affects the person directly.

 Personal factors include self image, health, beauty or physical


condition.
The Consumer Decision Process

 Involvement will be the strongest when the product or service is


perceived as enhancing self image.

 Products and brands also become involving if there is some perceived


risk in purchasing and using them. Some of the perceived risks are:

 Physical (Risk of bodily harm),


 Psychological ( Especially negative effect on self image),
 Performance related (Fear that the product will not perform as
expected) and
 Financial (Risk that outcome will lead to loss of earnings).
The Consumer Decision Process

 The greater the perceived risk, the greater is the likelihood of high
involvement.

 When perceived risk becomes unacceptably high, there is motivation


to avoid the purchase and use altogether or minimize the risk
through search and pre-purchase evaluation stages.

 Situational involvement includes factors such as whether product is


purchased for personal use or as a gift and whether it is consumed
alone or with others.
The Consumer Decision Process

 Situational involvement changes over time; it may be strong on a


temporary basis and recede once purchasing outcomes are resolved.

 Involvement can increase when social pressures are felt.

Degree of differentiation between alternatives

 EPS is more probable when choice alternatives are differentiated.

Time availability

 Extended Problem solving (Higher degree of involvement) is


followed when time pressures are low.
The Consumer Decision Process

Recap:
 Introduction.
 Four views of consumer decision making.
 Models of consumer behavior.
 Input, Process and Output model.
 Engel-Blackwell-Kollat model.
 Consumer Decision Process (CDP) Model.
 Types of decision processes.
 Decision Process continuum.
 Initial purchase and Repeat purchase.
 Factors affecting the extent of problem solving.
 Degree of involvement.

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