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Copyright ©2009 by Cengage Learning Inc. All rights reserved 1

Designed by Eric Brengle B-books, Ltd.

CHAPTER

6

Consumer Decision Making

Prepared byAmit Shah

Frostburg State University

MarketingLamb, Hair, McDaniel

10

Copyright ©2009 by Cengage Learning Inc. All rights reserved

Learning Outcomes

2

Explain why marketing managers should understand consumer behavior

Analyze the components of the consumer decision-making process

Explain the consumer’s postpurchase evaluation process

LOI

LO2

LO3


Learning Outcomes

3

Identify the types of consumer buying decisions and discuss the significance of consumer involvement

Identify and understand the cultural factors that affect consumer buying decisions

Identify and understand the social factors that affect consumer buying decisions

LO5

LO6

LO4


Learning Outcomes

4

Identify and understand the individual factors that affect consumer buying decisions

Identify and understand the psychological factors that affect consumer buying decisions

LO8

LO7


The Importance of UnderstandingConsumer Behavior

5

Explain why marketing managers should understand

consumer behavior

LOI


Consumer Behavior

6

LOI

ConsumerBehavior

Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.


REVIEW LEARNING OUTCOMEUnderstanding Consumer Behavior

7

LOI

Consumer behavior

consumers make purchase decisions

consumers use anddispose of product

= HOW


The Consumer Decision-Making Process

8

Analyze the components of the

consumer decision-making process

LO2


Consumer Decision-Making Process

9

LO2

ConsumerDecision-Making

ProcessA five-step process used by consumers when buying goods or services.


Consumer Decision-Making Process

10

LO2

Postpurchase Behavior

Purchase

Evaluation of Alternatives

Information Search

Need Recognition

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps


Need Recognition

11

LO2

NeedRecognition

Result of an imbalance between actual and desired states.


Need Recognition

12

LO2

Marketing helps consumers recognize an imbalance between

present status and preferred state.

Present Status

Preferred State

InternalStimuli

External

Stimuli


Stimulus

13

LO2

Stimulus Any unit of input affecting one or more of the five senses:

sightsmelltastetouch

hearing


Recognition of Unfulfilled Wants• When a current product isn’t performing

properly

• When the consumer is running out of a product

• When another product seems superior to the one currently used

14

LO2


Information Search

15

LO2

Internal Information Search

Recall information in memory

External Information search

Seek information in outside environment Nonmarketing controlled Marketing controlled


External Information Searches

16

LO2

Need MoreNeed More Information Information

More Risk Less knowledge

Less product experienceHigh level of interestLack of confidence

Less Risk More knowledge

More product experienceLow level of interest

Confidence in decision

Need LessNeed Less Information Information


Evoked Set

17

LO2

Evoked Set Group of brands, resulting from an information search, from which a buyer can choose.


Evaluation of Alternativesand Purchase

18

LO2

Evoked SetEvoked Set

Purchase!Purchase!

Analyze product attributes

Rank attributes byimportance

Use cutoff criteria


Purchase

19

LO2

To buy To buy or not to buy...or not to buy...

Determines which attributes Determines which attributes are most important are most important

in influencing a in influencing a consumer’s choiceconsumer’s choice


REVIEW LEARNING OUTCOMEConsumer Decision-Making Process

20

LO2C

ULT

UR

AL SO

CIA

L

PSYCHOLOGICAL

INDIVIDUAL

Need Recognition

1 InformationSearch

2 EvaluateAlternatives

3 Purchase 4


Postpurchase Behavior

21

Explain the consumer’s postpurchase evaluation

process

LO3


Cognitive Dissonance

22

LO3

CognitiveDissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.


Postpurchase BehaviorConsumers can reduce dissonance by:

• Seeking information that reinforces positive ideas about the purchase

• Avoiding information that contradicts the purchase decision

• Revoking the original decision by returning the product

23

LO3

Marketers can minimize through:Effective Communication

Follow-upGuaranteesWarranties


REVIEW LEARNING OUTCOMEConsumer postpurchase evaluation process

24

LO3


Consumer Buying Decisions andConsumer Involvement

25

Identify the types of consumer buying decisions and a

discuss the significance aof consumer involvement

LO4


Consumer Buying Decisions andConsumer Involvement

26

LO4

More Involvement

LessInvolvement

RoutineResponseBehavior

LimitedDecisionMaking

ExtensiveDecisionMaking


Five Factors Influencing Decisions

27

LO4

1. Level of consumer involvement

2. Length of time to make decision

3. Cost of good or service

4. Degree of information search

5. Number of alternatives considered


Continuum of Consumer Buying Decisions

28

LO4


Routine Response Behavior

• Little involvement in selection process

• Frequently purchased low cost goods

• May stick with one brand

• Buy first/evaluate later

• Quick decision

29

LO4


Limited Decision Making

• Low levels of involvement

• Low to moderate cost goods

• Evaluation of a few alternative brands

• Short to moderate time to decide

30

LO4


Extensive Decision Making

• High levels of involvement

• High cost goods

• Evaluation of many brands

• Long time to decide

• May experience cognitive dissonance

31

LO4


Factors Determining the Level of Consumer Involvement

32

LO4

Situation

Social Visibility

Interest

Perceived Risk of Negative Consequences

Previous Experience


Marketing Implications of Involvement

33

LO4

High-involvement purchases require:

Extensive and informative promotion to target market

Low-involvement purchases require:

In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers


REVIEW LEARNING OUTCOME Consumer Buying Decisions and Consumer Involvement

34

LO4

Routine

Limited

Extensive

Previous experienceInterestPerceived risk of negative consequencesSituationSocial visibility


Cultural Influences on Consumer Buying Decisions

35

Identify and understand the cultural factors

that affect consumer buying decisions

LO5


Factors Influencing Buying Decisions

36

LO5

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors CONSUMER

DECISION-MAKING

PROCESS

BUY /

DON’T BUY


Culture

37

LO5

CultureSet of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.


Components of Culture

38

LO5

Myths

Language

Values

Customs

Rituals

Laws

Material artifacts


Culture is. . .

39

LO5

Learned

Functional

Pervasive

Dynamic


Value

40

LO5

Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.


Core American Values

41

LO5

Success

Materialism

Freedom

Progress

Youth

Capitalism


Subculture

42

LO5

Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.


Social Class

43

LO5

Social ClassA group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.


Social Class Measurements

44

LO5

Wealth

Other Variables

Income

Education

Occupation


Social Class and Education

45

LO5


The Impact of Social Class on Marketing

1. Indicates which medium to use for advertising

2. Helps determine the best distribution for products

46

LO5


REVIEW LEARNING OUTCOME Cultural Factors

47

LO5


Social Influences on Consumer Buying Decisions

48

Identify and understand the social factors that affect consumer buying decisions

LO6


Social Influences

49

LO6

Reference Groups

Opinion Leaders

Family Members


Reference Group

50

LO6

Reference Group A group in society that influences an individual’s purchasing behavior.


Reference Groups

51

LO6

Reference Groups

Direct

Indirect

Primary

Secondary

Aspirational

Nonaspirational


Influences of Reference Groups

1. They serve as information sources and influence perceptions.

2. They affect an individual’s aspiration levels.

3. Their norms either constrain or stimulate consumer behavior.

52

LO6


Opinion Leaders

53

LO6

Opinion Leaders An individual who influences the opinion of others.


Opinion Leaders

54LO6

Teenagers Movie stars Sports figures Celebrities

Marketers are looking to Web logs,

or blogs, to find opinion leaders


Family

55LO6

Initiators

Influencers Decision Makers Purchasers Consumers

Purchase Process Roles in the Family


Relationships among Purchasers and Consumers in the Family

56

LO6


REVIEW LEARNING OUTCOME Social Factors

57

LO6

Direct IndirectReferenceGroups Primary Secondary Aspirational Nonaspirational

OpinionLeaders

Peopleyou know

Socialization ProcessFamily

Celebrities

Initiators Decision Makers ConsumersInfluencers Purchasers


Individual Influences onConsumer Buying Decisions

58

Identify and understand the individual factors


LO7


Individual Influences

59

LO7

Gender Age Life Cycle

PersonalitySelf-Concept

Lifestyle


Psychological Influences onConsumer Buying Decisions

60

Identify and understand the psychological factors


LO8


LO8

Psychological InfluencesPerception

Motivation

Learning

Beliefs & Attitudes


Perception

62

LO8

Perception Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.


LO8

Perception

SelectiveSelectiveExposureExposure

SelectiveSelectiveDistortionDistortion

SelectiveSelectiveRetentionRetention


Perception

64

LO8

Selective Exposure

SelectiveDistortion

Selective Retention

Consumer notices certain stimuli and ignores others

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer remembers only that information that

supports personal beliefs


Marketing Implications of Perception

• Important attributes

• Price

• Brand names

• Quality and reliability

• Threshold level of perception

• Product or repositioning changes

• Foreign consumer perception

• Subliminal perception

65LO8


Motivation

66

LO8

Maslow’s Hierarchyof Needs

A method of classifying human needs and motivations into five categories in ascending order of importance.


Maslow’s Hierarchy of Needs

67

LO8


Types of Learning

68

LO8

Experiential

Conceptual

An experience changes behavior

Not learned through direct experience

http://www.cspinet.org

Online

http://www.cspinet.org/

http://www.cspinet.org/


Stimulus Generation and Discrimination

69

LO8

Stimulus Generalization

A form of learning that occurs when one response is extended to a second stimulus similar to the first.

StimulusDiscrimination

A learned ability to differentiate among similar products.


Beliefs and Attitudes

70

LO8

Belief

Attitude

An organized pattern of knowledge that an individual holds as true about his or her world.

A learned tendency to respond consistently toward a given object.


Changing Attitudes

71

LO8

Change beliefs about the brand’s attributes

Change the relative importance of these beliefs

Add new beliefs


REVIEW LEARNING OUTCOME

72

LO8

Psychological Factors

Learning StimulusGeneralization

Stimulus Discrimination

Selective ExposurePerception Selective Retention Selective Exposure

NeedsMotivation

Psychological EsteemSafety Social Esteem

Beliefs &Attitudes

ChangingBeliefs about

Attributes

ChangingImportance of

Beliefs

AddingNew Beliefs

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