The document discusses factors that influence online consumer behavior and the consumer decision-making process online. It describes types of online shoppers and models of consumer behavior and decision-making online. The key differences between online and traditional consumers are that online consumers have more alternatives to consider, place less importance on price over time, and loyalty is easier to lose online due to lower switching costs.

1. CHAPTER 7 ONLINE CONSUMER BEHAVIOR DIPLOMA IN INTERNATIONAL BUSINESS (BUS2513)

4. Consumer Market Purchasers and household members who intend to consume or benefit from the purchased products and do not buy products to make products.

5. The nature of customer complaints Source: Neill Denny, “Why complaining is our new hobby,” from Marketing Magazine, 26 November 1998, p. 16. Reprinted with permission.

6. Buying Behavior The decision processes and acts of people involved in buying and using products.

7. Consumer Buying Behavior The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes.

8. Consumer Behavior Model

9. Level Of Involvement An individual’s intensity of interest in a product and the importance of the product for that person.

11. Consumer Problem Solving

12. Slide 6-7 Characteristics of Three Types of Consumer Decision Making Table 6.1 Types of Decision Routine Consumer Involvement In Purchase Limited Extensive One of a few brands, sellers and product characteristics evaluated Characteristics of Consideration Set Information Sources Consulted Consumer Involvement In Purchase Several brands, sellers and product characteristics evaluated Many brands, sellers and product characteristics evaluated Low Moderate High Internal sources used Internal and some external sources Internal and many external sources As little as possible Some time invested Much time invested

13. Routinized Response Behavior The consumer problem-solving process used when purchasing frequently purchased, low-cost items needing very little search-and-decision effort.

14. Limited Problem Solving The consumer problem-solving process employed when buying occasionally or when they need to obtain information about an unfamiliar brand in a familiar product category.

15. Extended Problem Solving A consumer problem-solving process employed when purchasing unfamiliar, expensive, or infrequently bought products.

16. Impulse Buying An unplanned buying behavior resulting from a powerful urge to buy something immediately.

17. Consumer Buying Decision Process A five-stage purchase decision process that includes problem recognition, information search, evaluation of alternatives, purchase, and postpurchase evaluation.

18. A Model of Consumer Buying Process Figure 6.1 Slide 6-1 Situational Influences Social Influences Marketing Influences Postpurchase Evaluation Need Recognition Information Search Alternative Evaluation Purchase Decision Consumer Buying Process

19. Slide 6-8 Influences on Consumer Behavior: Figure 6.5 Social Influences • Culture • Subculture • Social Class • Reference Groups • Family Marketing Influences • Product • Price • Placement • Promotion Situational Influences • Physical Surroundings • Social Surrounding • Time • Task • Momentary Conditions Consumer Buying Process

20. Consumer Buying Decision Process/Possible Influences on the Process

23. Slide 6-3 Information Search Internal Information Sources Group Marketing Public Experiential

24. Internal Search An information search in which buyers search their memories for information about their products that might solve their problem.

25. External Search An information search in which buyers seek information from sources other than memory.

27. Slide 6-4 Alternative Evaluation Attitudes Alternative Evaluation Subjective Criteria Objective Criteria “ Four Wheel Drive” “Ability to Tow 10,000 lbs” “Compact Disc Player” “Seats Seven” “ Sporty Image” “Popular” “Great Stereo” “Rugged Image”

28. Cognitive Dissonance A buyer’s doubts shortly after a purchase about whether the decision was the right one. Sample ads of cognitive dissonance

29. Situational Influences Influences resulting from circumstances, time, and location that affect the consumer buying decision process.

31. Psychological Influences Factors that in part determine people’s general behavior, thus influencing their behavior as consumers.

33. Motives An internal energizing force that directs a person’s behavior toward satisfying needs or achieving goals. Motive for buying organic foods

34. Maslow’s Hierarchy of Needs Vacations, College Courses Charitable Organizations Auxiliary Needs: Friendship and Belonging Esteem Needs: Status, Respect, Self-esteem Prestige Brands Club Memberships Greeting Cards Locks, Insurance Flour, Green Beans, Water Supply Safety Needs: Physical and Financial Security Physiological Needs: Food, Water, Rest, Sex, Air Self-Actualization Needs: Self-Fulfillment Needs Products

39. Lifestyle An individual’s pattern of living expressed through activities, interests, and opinions.

41. Role Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons.

42. Consumer Socialization The process through which a person acquires the knowledge and skills to function as a consumer.

43. Types Of Family Decisionmaking

44. Reference Group A group that a person identifies with so strongly that he or she adopts the values, attitudes, and behavior of group members.

46. Opinion Leader A member of an informal group who provides information about a specific topic to other group members.

47. Examples Of Opinion Leaders And Topics

48. Social Class An open group of individuals with similar social rank.

50. Culture The accumulation of values, knowledge, beliefs, customs, objects, and concepts of a society.

51. Subcultures A group of individuals whose characteristic values ( religion , etc.) and behavior patterns are similar and different from those of the surrounding culture.

53. Slide 6-6 Postpurchase Evaluation Figure 6.4 Dissatisfaction Low Value Need Recognition Information Search, etc. Satisfaction High Value Loyalty Long Term Relationship How Value Perceptions Can Influence Postpurchase Behavior

68. Online Buyer Decision Support Model