Consumer Behavior

Salvatore Rizzo

September 9th, 2007

Consumer Behavior-Calvert

Research Assignment #1

Relevant Definitions

• Complex Decision Making- Decisions made by actively aquiring information about the product. Competing products are evaluated.

• Psychological Set- How the consumer perceives the product based on his or her needs , attitudes, and comparison of that product with competing products.

• Motives- The drive that moves a consumer towards fulfilling his or her needs.

• Benefit Criteria- The factors that a consumer deems important in deciding between competing brands.

• Benefit Segments- Consumers grouped by similar needs from their product.

• Stimuli- Verbal, visual, and physical ques that trigger a consumers response.

• Perception- The forumulated view a consumer has, consisting of his or her exposure to marketing and environmental influences.

• Memory- The information that a consumer remembers and stores that paints an indivudal picture of how they view something.

•

Complex Decision Making

Need Arousal пÑ" Consumer Info. Processing пÑ" Brand Evaluation пÑ" Purchase пÑ" Postpurchase Evaluation

1. Need Arousal- begins the decision making process. The difference between the consumers current situation and desired goal creates need.

2. Consumer Information Processing- Informs the consumer of the product from various sources (Web, Television, Printed, Radio)

3. Brand Evaluation- The consumer breaks down the characteristics of competing brands and develops an expected level of satisfaction for each of the brands.

4. Purchase- The consumer decides which brand will deliver the benefits that satisfy their needs. Factors such as financing the products purchase and location of purchase come into play.

5. Post purchase Evaluation- Once the purchase has been made, the consumer evaluates the product and determines whether the product has met their desired needs. The products ability to deliver the consumers needs and fulfill satisfaction typically becomes the factor as to whether the consumer will continue to purchase products under that brand name.

Hierarchy of Needs (Maslow)

1) Physiological (food, water, shelter, sex)

2) Safety (protection, security, stability)

3) Social (affection, friendship, acceptance)

4) Ego (prestige, success, self-esteem)

5) Self-actualization (self-fulfillment)

Utilitarian versus Hedonic Needs

 Utilitarian- seek to achieve some practical benefit. Defined by product performace.

 Hedonic- seek to achieve pleasure from a product. Defined by ability to achieve a certain emotion or fantasy.

Hierarchy of Effects

1) Thinking (beliefs)

2) Feelings (evaluations)

3) Actions (intentions to buy the brand)

Purchasing vs. Consuming

Satsifcation vs. Dissatisfaction

Focus Group Research

Introduction

The Microsoft Xbox 360 was the product selected for the focus group panel. The Xbox 360 was launched in North America on November 22nd, 2005 and came in two models: Xbox360 Pro ($399) and Xbox360 Core ($299). The differentiating factors between the Pro and Core models consisted of the Pro model shipping with the optional 20gb Hard Drive and a wireless controller. The actual gaming performance between both models was identical. The Xbox360 Pro Model was used for research.

The panel consists of 5 consumers with varying exposure to the Xbox 360 game console: Sal, a student and an Xbox360 enthusiast who