Consumer Behavior

Topics: Coin, Life expectancy, Money Pages: 3 (563 words) Published: July 14, 2014

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Part II - A Simple Model of Consumer Behavior

The second set of factors that influence consumer behavior Individual Differences.

Individual Differences: pertain to characteristics of the consumer such as: How much money do they have
How much time do they have
What is their knowledge level
Is this someone relatively uninformed? a first time buyer? (Novice, a first time buyer, new to or inexperienced in a field) Is this an Expert? (someone who has made many prior purchase decisions in a product category. Has a considerable collection of knowledge that they can bring to bear in making their decisions). Differences in attitudes, what products they like, what products they dislike.

Last part of the Simple Model of Consumer Behavior Model is Psychological Processes

Psychological Processes: Deals with what goes inside the persons head, how they think, how they process information, how they learn.

ELM - persuasive communication

III. VALUE OF UNDERSTANDING CONSUMER BEHAVIOUR

A. Examples of Failing to Understand the Consumer

1. The Ford Edsel: at the time Most heavily researched new product in the automobile industry. Ford engaed in extensive consumer research prior to developing and mnufacturing this product. They test virtually everything you can think about, every single small peace of the car, from the grill, the steering wheel, the hood ornament, the hub caps, interior, and brand name (tested for acceptance, and what sort of images were evoked by the name). The basic problem was two-fold:

Chosed to ignore its research as was the case for the name of the automobile. Edsel was never tested. The one that was tested and emerged as the winner from various alternatives was discarded because they wanted to honor one of their ancestors Failing to appreciate that consumers when they are purchasing an automobile aren't buying a hub cap or steering wheel, they are buying all of these things together. They did not...
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