Consumer Decision Making

1
 Learning Objectives

1. Explain why marketing managers should

understand consumer behavior

2. Analyze the components of the consumer

decision-making process

3. Explain the consumer’s postpurchase

evaluation process

2
 Learning Objectives

4. Identify the types of consumer buying

decisions and discuss the significance of
consumer involvement

5. Identify and understand the cultural factors

that affect consumer buying decisions

3
 Learning Objectives (continued)

6. Identify and understand the social factors

that affect consumer buying decisions

7. Identify and understand the individual factors

that affect consumer buying decisions

8. Identify and understand the psychological

factors that affect consumer buying
decisions

4
 Learning Objective

Explain why marketing managers

11 should understand
consumer behavior

1
5
 Consumer Behavior

Consumer Behavior
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.

1 6
 Consumer Behavior

consumers
consumers make
make
purchase
purchase decisions
decisions

Consumer
Consumer
behavior = HOW
behavior

consumers
consumers useuse and
and
dispose
dispose of
of product
product

1 7
 Learning Objective

Analyze the components of the

22 consumer decision-making
process

2
8
 Consumer Decision-Making Process

Consumer Decision-Making Process

A five-step process used

by consumers when
buying goods or services.

2
9
 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
Factors of Alternatives
Alternatives
affect
affect
all
all steps
steps Purchase
Purchase

Postpurchase
Postpurchase
Behavior
Behavior

2
10
 Need Recognition

Need Recognition

Result of an imbalance between actual and desired states.

2
11
 Need Recognition

Int
e
Sti rnal
mu
li

Preferre
Preferre
Present
Present ddState
State
Status
Status
a l
t e rn li
Ex timu
S Marketing helps consumers recognize
an imbalance between
present status and preferred state

2
12
 Stimulus

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

sight
smell
taste
touch
hearing

2
13
 Want

Want

Recognition of an unfulfilled need

and a product (or attribute or
feature) that will satisfy it.

2
14
 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

2
15
 Information Searches

Internal Information Search

 Recall information in memory

External Information search

 Seek information in outside

environment
 Non-marketing controlled
 Marketing controlled

2
16
 External Information Searches

Need Less Need More

Information Information

Less Risk More Risk

More knowledge Less knowledge
More product experience Less product experience
Low level of interest High level of interest
Confidence in decision Lack of confidence

2
17
 Evoked Set

Evoked Set (consideration set)

Group of brands, resulting from an

information search,
from which a buyer can choose.

2
18
 Evaluation of Alternatives

Evoked Set
Analyze
Analyze product
product attributes
attributes

Use
Use cutoff
cutoff criteria
criteria

Rank
Rank attributes
attributes by
by
importance
importance
Purchase!

2
19
 Purchase

To buy
or not to buy...

Determines which attributes

are most important
in influencing a
consumer’s choice

2
20
 Learning Objective

Explain the consumer’s

33
postpurchase evaluation process

3
21
 Cognitive Dissonance

Cognitive Dissonance

Inner tension that a consumer

experiences after recognizing an
inconsistency between behavior
and values or opinions.

3
22
 Reducing Cognitive Dissonance

Consumers 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

3
23
 Postpurchase Behavior

?
Cognitive Dissonance

Can minimize through:

Effective Communication
Did I make a good decision? Follow-up
Guarantees
Did I buy the right product? Warranties

Did I get a good value?

3
24
 Learning Objective

Identify the types of consumer

44 buying decisions and discuss
the significance of consumer
involvement

4
25
 Types of Consumer Buying Decisions

Routine
Routine Limited
Limited Extensive
Extensive
Response
Response Decision
Decision Decision
Decision
Behavior
Behavior Making
Making Making
Making

Less More
Involvement Involvement

4
26
 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

4
27
 Continuum of
Consumer Buying Decisions

4
28
 Routine Response Behavior

 Little involvement in selection process

 Frequently purchased low cost goods

 May stick with one brand
 Buy first/evaluate later
 Quick decision

4
29
 Limited Decision Making

 Low levels of involvement

 Low to moderate cost goods

 Evaluation of a few alternative brands

 Short to moderate time to decide

4
30
 Extensive Decision Making

 High levels of involvement

 High cost goods

 Evaluation of many brands

 Long time to decide

 May experience cognitive dissonance

4
31
 Level of Involvement

Previous
Previous
Experience
Experience
Interest
Interest

Perceived
Perceived Risk
Risk of
of
Factors
FactorsDetermining
Determining Negative
Negative
Level
Levelof
ofInvolvement
Involvement Consequences
Consequences

Situation
Situation
Social
Social Visibility
Visibility
On Line
http://www.apple.com

4
32
 Marketing Implications of Involvement

High-involvement
High-involvement Extensive
Extensive and
and informative
informative
purchases
purchases require:
require: promotion
promotion to
to target
target market
market

In-store
In-store promotion,
promotion,
Low-involvement
Low-involvement eye-catching
eye-catching package
package
purchases
purchases require:
require: design,
design, and
and good
good displays
displays

4
33
 Learning Objective

Identify and understand the

55 cultural factors that affect
consumer buying decisions

5
34
 Factors Influencing Buying Decisions

Cultural Social
Factors Factors CONSUMER BUY /
DECISION-
MAKING DON’T BUY
Psycho- PROCESS
Individual logical
Factors Factors

5
35
 Culture

Culture
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.

5
36
 Cultural Influences on Buying Decisions
Values
Values

Language
Language

Myths
Myths
Customs
Customs
Components
Components Rituals
Rituals
of
of
American
American Laws
Laws
Culture
Culture
Material
Material Artifacts
Artifacts
5
37
 Culture is. . .

Pervasive
Pervasive

Functional
Functional

Learned
Learned

Dynamic
Dynamic

5
38
 Value

Value

Enduring belief that a specific

mode of conduct is personally or
socially preferable to another
mode of conduct.

5
39
 Core American Values

Success
Success

Materialism
Materialism

Freedom
Freedom

Progress
Progress
Core
Core
American
American Youth
Youth
Values
Values
Capitalism
Capitalism
5
40
 Understanding Culture Differences
Language Blunders

 Chevrolet’s “Nova” translated to

“Doesn’t Go”

 Coors “Turn It Loose” became

“Suffer from Diarrhea”

 Frank Perdue’s “It takes a tough man to make

a tender chicken” was heard as “It takes a
sexually stimulated man to make a chicken
affectionate.”

5
41
 Subculture

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

Online
http://www.thesource.com
http://www.dead.net

5
42
 Social Class

Social 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.

5
43
 Social Class Measurements

Occupation
Occupation
Income
Income

Social
Social Class
Class Education
Education
Measurements
Measurements

Wealth
Wealth
Other
Other Variables
Variables

5
44
 Social Class and Education

Social
Social Class
Class Percent
Percent
Lower
Lower 88
Working
Working 12
12
Middle
Middle 34
34
Upper
Upper 61
61

5
45
 The Impact of Social Class on Marketing

1. Indicates which medium to use for

advertising

2. Helps determine the best distribution

for products

5
46
 Learning Objective

Identify and understand the

66 social factors that affect
consumer buying decisions

6
47
 Social Influences

Social
Social Influences
Influences on
on
Buying
Buying Decisions
Decisions

Reference
Reference Opinion
Opinion Family
Family
Groups
Groups Leaders
Leaders Members
Members

6
48
 Reference Group

Reference Group

A group in society that influences an

individual’s purchasing behavior.

6
49
 Reference Groups

Primary

Direct
Secondary
Reference
Groups
Aspirational

Indirect
Non-aspirational

6
50
 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

6
51
 Opinion Leaders

Opinion Leaders

An individual who influences

the opinion of others.

6
52
 Opinion Leaders

Peer
Peer groups
groups

Group
Group referrals
referrals

Endorsements
Endorsements

Sports
Sports figures
figures

Celebrities
Celebrities

6
53
 Family

Purchase
Purchase Roles
Roles  Initiators
in
in the
the Family
Family
 Influencers
 Decision Makers
 Purchasers
Children Influence
Purchase Decisions  Consumers

On Line
http://www.game-girlz.com
http://www.gamespot.com

6
54
 Relationships among Purchasers and
Consumers in the Family

6
55
 Learning Objective

Identify and understand the

77 individual factors that affect
consumer buying decisions

7
56
 Individual Influences

Individual
IndividualInfluences
Influences

Personality
Personality
Age
Age
Gender
Gender Self-Concept
Self-Concept
Life-Cycle
Life-Cycle Lifestyle
Lifestyle

7
57
 Self-Concept

Attitudes
Attitudes

Perceptions
Perceptions

Beliefs
Beliefs

Self-evaluations
Self-evaluations

7
58
 Learning Objective

Identify and understand the

88 psychological factors that affect
consumer buying decisions

8
59
 Psychological Influences

Perception
Perception

Motivation
Motivation

Learning
Learning
Psychological
Psychological
Influences
Influences on
on
Buying
Buying Decisions
Decisions Beliefs
Beliefs &
& Attitudes
Attitudes

8
60
 Perception

Perception

Process by which people select,

organize, and interpret stimuli into a
meaningful and coherent picture.

8
61
 Perception

Selective
Selective Selective
Selective
Exposure
Exposure Distortion
Distortion

Selective
Selective
Retention
Retention

8
62
 Perception

Selective
Selective Consumer
Consumer notices
notices certain
certain stimuli
stimuli
Exposure
Exposure and
and ignores
ignores others
others

Consumer
Consumer changes
changes or
or 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

8
63
 A Consumer’s Selective Exposure

Notices
Noticesonly
only
11
11to
to20
20ads
ads

Exposure to over
2,500 advertisement
messages per day

8
64
 Marketing Implications of Perception

 Important attributes

 Price

 Brand names

 Quality and reliability

 Threshold level of perception

 Product or repositioning changes

8
65
 Maslow’s Hierarchy of Needs

Maslow’s Hierarchy of Needs

A method of classifying human needs

and motivations into five categories
in ascending order of importance.

8
66
 Maslow’s Hierarchy of Needs
Self-
Actualization
Esteem

Social

Safety

Physiological

8
67
 Learning

Learning

A process that creates changes in behavior, immediate or expected, through

experience and practice.

8
68
 Types of Learning

Types
Types of
of Description
Description
Learning
Learning

Experiential
Experiential An
An experience
experience changes
changes behavior
behavior

Not
Not learned
learned through
through direct
direct
Conceptual
Conceptual experience
experience

8
69
 Stimulus Generalization

Stimulus Generalization

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

8
70
 Stimulus Discrimination

Stimulus Discrimination

A learned ability to differentiate among similar products.

8
71
 Beliefs and Attitudes

Belief An organized pattern of knowledge

that an individual holds as true
about his or her world.

Attitude A learned tendency to respond

consistently toward a given object.

On Line
http://saveharry.com
http://www.cspinet.org

8
72
 Changing Attitudes

 Changing beliefs about the

brand’s attributes

 Changing the relative importance

of these beliefs

 Adding new beliefs

8
73