int to mktng ch6

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

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

Consumer behavior

consumers make purchase decisionsconsumers make

purchase decisions

consumers use anddispose of product

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

Process

ConsumerDecision-Making

Process

A five-step process used

by consumers when

buying goods or services.


Consumer Decision-Making Process

10

LO2

Postpurchase Behavior


PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

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

Factors Factors affect affect

all stepsall steps

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

Factors Factors affect affect

all stepsall steps


Need Recognition

11

LO2

NeedRecognition

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

Present Status

Preferred State

Preferred State

InternalStimuli

External

Stimuli


Stimulus

13

LO2

StimulusStimulus 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 SetEvoked 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 attributesAnalyze product attributes

Rank attributes byimportance

Rank attributes byimportance

Use cutoff criteriaUse 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

UL

TU

RA

L SO

CIA

L

PSYCHOLOGICAL

INDIVIDUAL

Need Recognition

1 InformationSearch

2 EvaluateAlternatives

3 Purchase 4



21

Explain the consumer’s postpurchase evaluation

process

LO3


Cognitive Dissonance

22

LO3

CognitiveDissonance

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

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking


Five Factors Influencing Decisions

27

LO4

1. Level of consumer involvement1. Level of consumer involvement

2. Length of time to make decision2. Length of time to make decision

3. Cost of good or service3. Cost of good or service

4. Degree of information search4. Degree of information search

5. Number of alternatives considered5. 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

SituationSituation

Social VisibilitySocial Visibility

InterestInterest

Perceived Risk of Negative Consequences

Perceived Risk of Negative Consequences

Previous ExperiencePrevious Experience


Marketing Implications of Involvement

33

LO4

High-involvement purchases require:High-involvement purchases require:

Extensive and informative promotion to target market

Extensive and informative promotion to target market

Low-involvement purchases require:Low-involvement

purchases require:

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

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

RoutineRoutine

LimitedLimited

ExtensiveExtensive

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

CONSUMERDECISION-

MAKINGPROCESS

BUY /

DON’T BUY


Culture

37

LO5

CultureCulture

Set 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

MythsMyths

LanguageLanguage

ValuesValues

CustomsCustoms

RitualsRituals

LawsLaws

Material artifactsMaterial artifacts


Culture is. . .

39

LO5

LearnedLearned

FunctionalFunctional

PervasivePervasive

DynamicDynamic


Value

40

LO5

ValueValue Enduring belief that a specific

mode of conduct is personally

or socially preferable to

another

mode of conduct.


Core American Values

41

LO5

SuccessSuccess

MaterialismMaterialism

FreedomFreedom

ProgressProgress

YouthYouth

CapitalismCapitalism


Subculture

42

LO5

SubcultureSubculture 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 ClassSocial Class

A 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

WealthWealth

Other VariablesOther Variables

IncomeIncome

EducationEducation

OccupationOccupation


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

Reference Groups

Opinion LeadersOpinion Leaders

Family MembersFamily

Members


Reference Group

50

LO6

Reference GroupReference 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 LeadersOpinion 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 Process

Family

Celebrities

Initiators Decision Makers Consumers

Influencers Purchasers


Individual Influences onConsumer Buying Decisions

58

Identify and understand the individual factors


LO7


Individual Influences

59

LO7

GenderGender Age Life Cycle

Age Life Cycle

PersonalitySelf-Concept

Lifestyle

PersonalitySelf-Concept

Lifestyle


Psychological Influences onConsumer Buying Decisions

60

Identify and understand the psychological factors


LO8


LO8

Psychological Influences

PerceptionPerception

MotivationMotivation

LearningLearning

Beliefs & AttitudesBeliefs & Attitudes


Perception

62

LO8

PerceptionPerception Process by which people

select, organize, and interpret

stimuli into a meaningful and

coherent picture.


LO8

Perception

SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure

SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion

SelectiveSelectiveRetentionRetention SelectiveSelective

RetentionRetention


Perception

64

LO8

Selective ExposureSelective Exposure

SelectiveDistortionSelectiveDistortion

Selective RetentionSelective Retention

Consumer notices certain stimuli and ignores others

Consumer notices certain stimuli and ignores others

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer remembers only that information that

supports personal 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

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

ExperientialExperiential

ConceptualConceptual

An experience changes behavior

An experience changes behavior

Not learned through direct experience

Not learned through direct experience

http://www.cspinet.org

Online


Stimulus Generation and Discrimination

69

LO8

Stimulus Generalization

Stimulus Generalization

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

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

StimulusDiscrimination

StimulusDiscrimination

A learned ability to differentiate among similar products.

A learned ability to differentiate among similar products.


Beliefs and Attitudes

70

LO8

BeliefBelief

AttitudeAttitude

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

LearningStimulus

GeneralizationStimulus

Discrimination

Selective ExposurePerception

Selective Retention Selective Exposure

NeedsMotivation

Psychological EsteemSafety Social Esteem

Beliefs &Attitudes

ChangingBeliefs about

Attributes

ChangingImportance of

Beliefs

AddingNew Beliefs

int to mktng ch6

Self Improvement

consumer behavior consumers

consumer experiences

consumer isrunning

continuum of consumer

level of consumer involvement

purchase decisions consumers

degree of information

product use