Professional Documents
Culture Documents
BUSINESS DECISION
MAKING
LOI Explain why marketing managers
should understand consumer
behavior
LO2
Analyze the components of the
consumer decision-making
process
Identify the types of consumer
LO3
buying decisions and discuss the
significance of consumer
involvement
Consumer
Behavior
LOI UNDERSTANDING CONSUMER
BEHAVIOR
consumers
consumers make
make
purchase
purchase decisions
decisions
Consumer
Consumer
behavior
behavior =
HOW
consumers
consumers useuse and
and
dispose
dispose of
of product
product
LO2
Consumer Decision-
Making Process
Consumer
Decision-Making
Process A five-step process used
by consumers when
buying goods or services.
LO2
Consumer Decision-
Making Process
Need
Need Recognition
Recognition
Information
Information Search
Search
Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological Evaluation
Evaluation
Psychological of
Factors of Alternatives
Alternatives
Factors
affect
affect
all
all steps
steps Purchase
Purchase
Postpurchase
Postpurchase
Behavior
Behavior
LO2
Need Recognition
Need
Recognition
LO2
Need Recognition
I
Mo nter
tiv nal
at
i on
Preferre
Preferre
Presen
Presen dd State
State
tt
n al n
er tio Status
Status
t
Ex tiva
o Marketing helps consumers
M
recognize
an imbalance between
present status and preferred
LO2
Recognition of
Unfulfilled Wants
When a current product isn’t
performing properly
Recall information in
memory
External Information search
Evoked Set
Evoked Set
Group of brands,
resulting from an
information search,
from which a buyer can
choose.
LO2
Evaluation of Alternatives
and Purchase
Evoked Set
Analyze
Analyze product
product attributes
attributes
Use
Use cutoff
cutoff criteria
criteria
Rank
Rank attributes
attributes by
by
importance
importance
Purchase!
Purchase
To buy
or not to buy...
Determines which
attributes
are most important
in influencing a
consumer’s choice
LO2
REVIEW LEARNING
LO2 OUTCOME
Consumer Decision-Making
Process
INDIVIDUAL
CULTURAL
SOCIAL
Need 1 Information2 Evaluate 3 4
Purchase
Recognition Search Alternatives
PSYCHOLOGICAL
LO3Consumer
Buying Decisions
and
Consumer Involvement
Routine
Routine Limited
Limited Extensive
Extensive
Response
Response Decision
Decision Decision
Decision
Behavior
Behavior Making
Making Making
Making
Less More
Involvement Involvement
LO3
Five Factors Influencing
Decisions
1.
1. Level
Level of
of consumer
consumer involvement
involvement
2.
2. Length
Length of
of time
time to
to make
make decision
decision
3.
3. Cost
Cost of
of good
good or
or service
service
4.
4. Degree
Degree of
of information
information search
search
5.
5. Number
Number of
of alternatives
alternatives considered
considered
LO3 Routine Response
Behavior
Little involvement in selection process
Quick decision
LO3 Limited Decision
Making
Low levels of involvement
22
Factors Determining
LO3
the Level of Consumer
Involvement
Previous
Previous Experience
Experience
Interest
Interest
Perceived
Perceived Risk
Risk of
of Negative
Negative Consequences
Consequences
Situation
Situation
Social
Social Visibility
Visibility
Marketing
LO3
Implications of
Involvement
High-involvement
High-involvement Extensive
Extensiveand
and informative
informative
purchases
purchases require:
require: promotion
promotion to
to target
target market
market
In-store
In-storepromotion,
promotion,
eye-catching
eye-catchingpackage
package
Low-involvement
Low-involvement design,
design,and
andgood
gooddisplays.
displays.
purchases
purchases require:
require: Coupons,
Coupons,cents-off,
cents-off,
2-for-1
2-for-1offers
offers
Factors Influencing Buying
Decisions
Cultural Social
Factors Factors
CONSUMER BUY /
DECISION-
MAKING DON’T BUY
PROCESS
Psycho-
Individual logical
Factors Factors
LO4
1) Cultural Factors
Set of values, norms,
Culture 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.
LO4
Components of Culture
Values
Values
Language
Language
Myths
Myths
Customs
Customs
Rituals
Rituals
Laws
Laws
Material
Material artifacts
artifacts
LO4
Culture is. . .
Pervasive
Pervasive
Functional
Functional
Learned
Learned
Dynamic
Dynamic
LO4
Value
Subculture
A homogeneous group
Subculture
of people who share elements
of the overall culture as well
as unique elements of their
own group.
LO4
Income
Income
Education
Education
Wealth
Wealth
Other
OtherVariables
Variables
LO5
2)Social Factors
Reference
ReferenceGroups
Groups
Opinion
OpinionLeaders
Leaders
Family
FamilyMembers
Members
LO5
Reference Group
Reference Groups
Primary
Direct
Secondary
Reference
Groups
Aspirational
Indirect
Nonaspirational
LO5
Influences of Reference
Groups
They serve as information sources
and influence perceptions.
Opinion Leaders
Opinion Leaders
An individual who influences
the opinion of others.
LO5
Relationships among
Purchasers and
Consumers in the Family
LO6
3) Individual Factors
Personality
Personality
Age
Age
Gender
Gender Self-Concept
Self-Concept
Life
Life Cycle
Cycle Lifestyle
Lifestyle
4) Psychological
Factors
Perception
Perception
Motivation
Motivation
Learning
Learning
Beliefs
Beliefs &
& Attitudes
Attitudes
LO7
LO7
Perception
Perception
Selective
Selective Consumer
Consumer notices
notices certain
certain stimuli
stimuli
Exposure
Exposure and
and ignores
ignores others
others
Consumer
Consumer changes
changes oror distorts
distorts
Selective
Selective information
information that
that conflicts
conflicts
Distortion
Distortion with
with feelings
feelings or
or beliefs
beliefs
Consumer
Consumer remembers
remembers only
only
Selective
Selective that
that information
information that
that
Retention
Retention supports
supports personal
personal beliefs
beliefs
LO7
Motivation
Maslow’s
Hierarchy A method of classifying
of Needs
human needs and motivations
into five categories in
ascending order of
importance.
LO7 Maslow’s Hierarchy of
Needs
LO7
Types of Learning
An
An experience
experience changes
changes
Experiential
Experiential behavior
behavior
Not
Not learned
learned through
through direct
direct
Conceptual
Conceptual experience
experience
LO7
A learned tendency to
Attitude respond consistently toward a
given object.
LO7
Changing Attitudes
Change beliefs about the
brand’s attributes
Needs
Motivation
Psychological Safety Social Esteem Esteem
Stimulus Stimulus
Learning
Generalization Discrimination
Changing Changing
Beliefs & Adding
Beliefs about Importance of
Attitudes New Beliefs
Attributes Beliefs
LO8
DEFINITION OF BUSINESS
BUYER BEHAVIOR
The buying behavior of the
organizations that buy goods and
services for use in the production of
other products and services or for the
purpose of reselling or renting them to
others at a profit. (Lamb, Hair 2008)
STAGES OF THE BUSINESS BUYING
PROCESS:
LO8
THANK
YOU…