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Slide 5-1

LEARNING OBJECTIVES
Describe the stages in the consumer purchase
LO 5-1 decision process.

Distinguish among three variations of the


LO 5-2 consumer purchase decision process: routine,
limited, and extended problem solving.

LO 5-3 Identify major psychological influences on


consumer behavior.

Identify the major sociocultural influences on


LO 5-4 consumer behavior.

Slide 5-2
LO 5-1
CONSUMER PURCHASE DECISION
PROCESS

 Consumer Behavior
The actions a person takes in purchasing and
using products and services, including the
mental and social processes that come before
and after these actions.

 Purchase Decision Process


As shown in figure 5.1

Slide 5-3
FIGURE 5-1 The purchase decision process
consists of five stages

Slide 5-4
LO 5-1 STAGE I: PROBLEM RECOGNITION

Perceiving a Need

The initial step in the purchase decision, is


perceiving a difference between a person’s ideal
and actual situations big enough to trigger a
decision.

In marketing, advertisements or salespeople can


activate a consumer’s decision process by
showing the shortcomings of competing (or
currently owned) products.

Slide 5-5
LO 5-1 STAGE II: INFORMATION SEARCH

SCAN YOUR MEMORY


FOR PREVIOUS
EXPERIENCES WITH
PRODUCTS OR BRANDS

PERSONAL SOURCES
INTERNAL PUBLIC SOURCES
MARKET DOMINATED

EXTERNAL

Slide 5-6
FIGURE 5-2 Consumer Reports’ evaluation of smartphones

Slide 5-7
LO 5-1 STAGE III: ALTERNATIVE EVALUATION

The alternative evaluation


stage clarifies the problem  Evaluative
for the consumer by: Criteria
(1) Suggesting criteria to use Objective vs subjective
for the purchase,  Consideration
(2) yielding brand names that
might meet the criteria,
Set
and Attribute to be accepted
(3)developing consumer
value perceptions.
Slide 5-8
LO 5-1 STAGE IV: PURCHASE DECISION

 Decide from Whom to Buy

 Decide When to Buy

Slide 5-9
LO 5-1 STAGE V: POSTPURCHASE BEHAVIOR

Expectation
comparison

 Customer Satisfaction
Studies
• Satisfied Customers
Tell 3 People
• Dissatisfied Customers
Tell 9 People

Slide 5-10
EXTENDED ROUTINE
PROBLEM PROBLEM
SOLVING SOLVING

LIMITED
PROBLEM INVOLVEMENT
SOLVING

CONSUMER
INVOLVEMENT &
PROBLEM SOLVING
Slide 5-11
FIGURE 5-3 Comparison of problem-solving
variations: extended, limited, and routine

Slide 5-12
CONSUMER INVOLVEMENT &
LO 5-2
MARKETING STRATEGY

Low Involvement
 Market leader
• Maintain Product Quality
• Avoid Stockouts
• Reduce Cognitive
Dissonance with Ads

 Market Challenger
• Rebates, coupons
• Linking product attributes to
high involvement issues Slide 5-13
LO 5-2
CONSUMER INVOLVEMENT &
MARKETING STRATEGY

High Involvement
Market Leader
• Use Personal Selling
• Use Advertising
• Use Social media

Market Challenger
• Use Comparative Ads
• Use Novel Criteria
Slide 5-14
LO 5-2
Situational Influence

ANTECEDENT
STATES TEMPORAL
EFFECTS

PYHSICAL
SURROUNDINGS

SOCIAL
SURROUNDING

PURCHASE
TASK

Slide 5-15
FIGURE 5-4 Influences on
the consumer purchase
decision process from
both internal and external
sources
Slide 5-16
LO 5-3
PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOUR

PSYCHOLOGICAL
CONCEPTS
MOTIVATION
AND VALUES,
PERSONALITY BELIEFS
AND
ATTITUDES
PERCEPTION

LIFESTYLE

LEARNING

Slide 5-17
MOTIVATION
The energizing force that stimulates behavior to
satisfy a need.

Slide 5-18
Personality
•Personality refers to a person’s
consistent
•behaviors or responses to
recurring situations.

Enduring characteristics
and behavior that
comprise a person’s
unique adjustment to life,
including major traits such
as assertiveness,
extroversion,
compliance, dominance,
and aggression,
https://www.16personalities
.com/free-personality-testSlide 5-19
Perception
The process by which an individual selects, organizes, and interprets
information to create a meaningful picture of the world.

Slide 5-20
Perception
• Selective Perception

• Selective Exposure

• Selective Comprehension

• Selective Retention

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Slide 5-22
Subliminal perception means that you
see or hear messages without being
aware of them.

Slide 5-23
Perceived Risk

Perceived risk
represents the
anxiety felt
because the consumer
cannot anticipate the
outcomes of a
purchase but believes
there may be negative
consequences
https://www.researchgate.net/publication/346405
445_To_buY_or_not_to_buY_Perceived_risk_ba
rriers_to_online_shopping_among_South_Africa
n_generation_Y_consumers
Slide 5-24
 Strategies to Reduce Perceived Risk

• Obtain Seals of Approval

• Secure Endorsements

• Provide Free Trials/Samples

• Give Extensive Instructions

• Provide Warranties/Guarantees

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Behavioral Learning
REINFORCEMENT
RESPONSE
QUE

DRIVE

1 2 3 4
Drive is a need Stimulus or Action taken by
symbol Reinforcement
that moves an a consumer to
perceived by is the reward
individual satisfy the drive.
to action. consumers
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 Cognitive Learning
Involves making connections between two or more ideas or
simply observing the outcomes of others’ behaviors and
adjusting your own accordingly.

 Brand Loyalty
Brand loyalty results from the positive reinforcement of
previous actions. A consumer reduces risk and saves time
by consistently purchasing the same brand which has
favorable results.

Slide 5-27
CONSUMER VALUES, BELIEFS, & ATTITUDES

 Attitude Formation

VALUE

An attitude is a
“learned predisposition
ATTITUDE to respond to an
object or class of
objects in a
consistently favorable
BELIEF
or unfavorable way.”

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Colgate and Hellmann's
How did these ads change attitudes?

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Attitude Change
Marketers use 3 approaches to try to change
consumer attitudes toward products and brands

• Change Beliefs About a Brand’s


Attributes

• Change Perceived Importance


of Attributes

• Add New Product Attributes


Slide 5-30
Consumer Lifestyle
Lifestyle is a mode of living that is identified by how people spend
their time and resources, what they consider important in their
environments, and what they think of themselves and the world
around them.
 Psychographics
Analysis of Customer Lifestyle

Slide 5-31
VALS

VALS examines the VALS measures the


intersection of enduring differences
psychology, between people that
demographics, and explain and predict
lifestyles. lifestyles meaningfully.

The VALS system identifies


eight consumer segments
based on:
(1) their primary motivation
for buying and having certain
products and services and
(2) their resources.

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LO 5-4
SOCIOCULTURAL INFLUENCES ON
CONSUMER BEHAVIOR

 Personal Influence
Opinion Leaders
Word of Mouth

 Reference Group Influence


Associative group
Aspiration group
Dissociative group

Slide 5-34
Personal Influence

Consumer Socialization

Family Life Cycle

Family Decision Making

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LO 5-4
SOCIAL CLASS INFLUENCE

Social class may be defined as the relatively


permanent, homogeneous divisions in a
 Social society into which people sharing similar
values, interests, and behavior can be
Class grouped. A person’s occupation, source of
income (not level of income), and education
determine his or her social class.

• Upper Class
• Middle Class
• Working/Lower Class
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LO 5-4
SOCIAL CLASS INFLUENCE

What are the


consequences
• Upper Class
for marketers
• Middle Class regarding the
• Working/Lower Class social class
divide?

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CULTURE AND SUBCULTURE
INFLUENCES
culture refers to the set of values, ideas, and
 Culture attitudes that are learned and shared among
the members of a group.
 Subcultures

Buying pattern such as:


Quality & brand conscious
Buying preference
Product attribute preference
Price conscious
Spend more money on certain products

Slide 5-39

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