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6

Chapter 6

Consumer Behavior

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LEARNING OBJECTIVES
6.1 Identify the three types of influences that affect the consumer
decision process.
6.2 Outline the six steps in the consumer decision process.
6.3 Distinguish between high-involvement and low-involvement
purchase decisions.
6.4 Describe the five social factors that influence consumer
behavior.
6.5 Describe the five psychological factors that influence consumer
behavior.
6.6 Describe the four situational factors that influence consumer
behavior.
6.7 Given a consumer purchase scenario, identify the primary
influences affecting the consumer decision process.
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Influences Affecting Consumer Behavior

• consumer behavior: the process through which the


ultimate buyer or household consumer makes
purchase decisions
• Companies must understand the core needs and
wants of their customers and the many factors that
influence their purchasing behavior.

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Influences Affecting Consumer Behavior

• Factors that influence purchasing behavior:


1. social factors: external influences such as culture, social
class, reference groups, family, and opinion leaders
2. psychological factors: are factors external to the individual
• Needs and motives
• Perceptions
• Attitudes
• Learning
• Self-concept
3. situational factors: external factors related to the
particular circumstances under which a purchase is made
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Influences Affecting Consumer Behavior

psychological situational
social factors
factors factors
• culture • Perception • circumstances
• social class • Learning under which a
• reference • Attitudes purchase is
groups • Needs and made
• family motives
• opinion • Self-concept
leaders

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The Consumer Decision Process:
opening example
• Trevor wants to purchase a new vehicle and has
always wanted a full-size truck.
• He enjoys outdoor activities and believes the rugged
style and capabilities of a truck mesh with his
lifestyle and occupation.
• How will he decide which vehicle to purchase?
• How can truck brands and dealerships influence his
choice?

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The Consumer Decision Process

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Problem or Opportunity Recognition
• The consumer becomes aware of a gap between his or
her existing situation and a desired or ideal situation.
– Trevor’s decision to purchase a truck stems from his
recognition that a truck would allow him to better pursue
his hobbies and would better fit his lifestyle.
• The marketer’s main task is to help prospective buyers
identify and recognize potential problems or needs
through:
– Advertising
– Promotions
– Personal sales assistance
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Information Search
(slide 1 of 2)

• The consumer gathers information about different


ways to solve a problem or achieve the desired state.
– This search may cover internal or external sources of
information.
• Internal search: conducting a mental review
• External search: gathering information from all kinds of
outside sources
– Trevor would likely visit dealerships, test-drive different
models, and read reviews comparing different models as
part of his external information. He might also talk to
friends who own trucks.

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Information Search
(slide 2 of 2)

• Consumers identify alternative brands or models for


consideration and possible purchase.
– evoked set: the collection of alternatives a consumer
considers when making a decision
– The number of brands included may vary with the
situation and the person.
• Marketers can attempt to influence the information
search through:
– Advertising
– Websites
– Publicity
– Personal selling
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Evaluation of Alternatives
• Some evaluation takes place as the search progresses.
– Consumers accept, distort, or reject information.
• Marketers attempt to influence the outcome in three
ways:
1. Educate consumers about attributes they view as
important in evaluating a particular class of products.
2. Identify which evaluative criteria are important and
attempt to show why a specific brand fulfills those criteria.
3. Induce a customer to expand the evoked set to include
their product.
• After test-driving a few vehicles, visiting websites, and
reading reviews, Trevor narrowed his choice to three
options.
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Purchase Decision and Purchase Act

• The consumer has evaluated each alternative and


narrowed the options down to one.
• The consumer then decides where to make the
purchase.
– The purchase may be made online or in person at a
retail store.
– Delivery options may influence the decision as to
where to purchase an item.

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Post-Purchase Evaluation

• Evaluating the purchase leads to two outcomes:


1. Satisfaction
2. Post-purchase anxiety, called cognitive dissonance
• Dissonance is likely to increase:
– As the dollar value of the purchase increases
– When the rejected alternatives have desirable features that the
chosen alternatives do not provide
– When the purchase decision has a major effect on the buyer
• To help reduce cognitive dissonance, marketers can
provide information that supports the chosen item.
– Purchase follow-up and personal attention
– Advertising that stresses customer satisfaction
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The Consumer Decision Process:
closing example
• During Trevor’s truck purchase process, he engaged
in all aspects of the consumer decision process.
– He decided to purchase the GMC Sierra from a
Chevrolet dealership.
– He was able to get the color and options he wanted, in
addition to a great financing package.
– The sales rep sent Trevor car wash gift cards and
reminded him that he made a good decision.
– Compliments Trevor received from friends further
increased his satisfaction with the purchase.
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How Involvement Level Affects
Consumer Decisions: opening example
• Target wants to identify ways to better support
customers by offering enhanced selling services for
certain product categories.
• What product categories would be most appropriate
for Target to implement these services?

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How Involvement Level Affects
Consumer Decisions
• involvement: the degree of interest an individual has in
the product, as well as how important that product is to
them
– May be high or low depending on the financial or social risk

1. Financial risk relates to the price of the product.

2. Social risk relates to how consumers might be judged or


perceived when wearing or using the product.

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How Involvement Level Affects
Consumer Decisions

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Consumer Decision Making Styles:
definitions
• routinized response behavior: behavior that occurs for low-
involvement products that consumers purchase on a frequent
basis
– Financial and social risk are low.
• limited problem solving: behavior that occurs for purchases
that consumers make less frequently and when their
knowledge or experience is limited
– Financial and social risk may be relatively low.
– Lack of knowledge leads consumers to spend more time
gathering information before making a purchasing decision.
• extended problem solving: the most complex decision style
and occurs for high-involvement products where financial
and/or social risk is high
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Consumer Decision Making Styles

Decision Level of Extent of Length of Time Example Products


Making Style Involvement Information to Make a
Search Decision
Routinized
Toothpaste,
response Low Little Short
detergent, deodorant
behavior
Limited
Low to Little to Short to Clothing, cookware,
problem
moderate moderate medium personal electronics
solving
Extended
Automobiles,
problem High Extensive Long
furniture, college
solving

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How Involvement Level Affects Consumer
Decisions: closing example (slide 1 of 2)
• Target managers wanted to identify areas of the
store that could benefit from increased personal
selling assistance.
• They focused on areas of high-involvement
purchases that require more extensive information
search and evaluation.
– Jewelry/watches
– Electronics
– Furniture

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How Involvement Level Affects Consumer
Decisions: closing example (slide 2 of 2)

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Social Factors Influencing
Consumer Behavior
• Five social factors:
1. Cultural influences
2. Social class
3. Reference groups
4. Opinion leaders
5. Family

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Cultural Influences
(slide 1 of 2)

• culture: the values, beliefs, preferences, and tastes


handed down from one generation to the next
– Broadest environmental determinant of consumer
behavior
– Some cultural values change over time; basic core
values do not.
• Work ethic
• Desire to accumulate wealth
• Importance of family and home life
– Marketing strategies and business practices that work
in one country may not work in another.
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Cultural Influences
(slide 2 of 2)

• subcultures: are groups with their own distinct


modes of behavior
– Marketers need to understand the differences
among subcultures to develop effective marketing
strategies.
– The three largest and fastest-growing U.S. ethnic
subcultures are Hispanics, Black or African Americans,
and Asians.
• Expected to become the majority by 2060

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Social Class
(slide 1 of 2)

• social class: based upon an individual’s occupation,


education, income, wealth, and possessions
– This can influence consumers’ purchasing behavior
due to the amount of disposable income, as well as
influence brand and store choice.
• Certain stores attract certain consumers.
– Examples: Walmart (lower household incomes) versus
Nordstrom (highest income ranges)

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Social Class

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Reference Groups
• reference groups: people or institutions whose
opinions are valued and to whom a person looks for
guidance in his or her own behavior, values, and
conduct
– Examples: religious, social, and leisure groups
• Reference group influence is strongest when two
conditions are met:
1. The visibility of the product to others (e.g., a highly
visible car purchase is more likely to be influenced by
the purchaser’s reference group)
2. The purchaser’s susceptibility to influence (e.g., teens
often base buying decisions on their friends’ opinion)
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Opinion Leaders

• opinion leaders: are trendsetters who purchase new


products before others in a group, and then
influence others in their purchases
– Likely to share experiences and opinions via word-of-
mouth or through social media

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Family
• Family may be the most important determinant of
consumer behavior.
• When creating marketing messages, marketers must
consider both genders as potential customers.
– Women have a greater role in making large family
purchases.
– Women take the lead in choosing entertainment and
outspend men in the purchase of electronics.
– Men are shopping more often at grocery stores.
– Men are taking a more active role in child care.
• Children and teenagers represent a huge market.
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Psychological Factors Influencing
Consumer Behavior: opening example
• Consumers seem fixated on health, wellness, and
maintaining a youthful appearance.
– This creates a market for products designed to help
individuals achieve their goals.
• CrossFit® includes over 13,000 affiliates worldwide.
• What factors drive consumers to choose CrossFit®
over competing exercise facilities?

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Psychological Factors Influencing
Consumer Behavior
• Factors internal to an individual influence consumer
behavior.
1. Perceptions
2. Learning responses
3. Attitudes
4. Needs and motives
5. Self-concepts

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Perception

• perception: the meaning a person attributes to


incoming stimuli gathered through the five senses—
sight, hearing, touch, taste, and smell
• To get positive responses, marketers will double the
size of a box, use certain colors or graphics, or
develop unique packaging.
• A big challenge for marketers is getting their
messages or products perceived in the first place.

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Learning

• learning: immediate or expected changes in


consumer behavior as a result of experience
• A positive initial experience results in repeat
purchases and positive word-of-mouth.
– Provides incentive for others to experience the
product
• Marketers:
– Invest significant resources influencing consumers to
have that first experience
– Use reinforcement to drive repeat purchases
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Attitudes

• attitudes: a person’s enduring favorable or


unfavorable evaluations, emotions, or tendencies
toward some object or idea
– Formed over time through individual experiences and
group contacts
– Highly resistant to change
• Marketers want to determine consumer attitudes
toward their offerings and identify ways to change
attitudes about their brand.

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Needs and Motives: definitions

• need: is an imbalance between the consumer’s


actual and desired states
– Maslow identified five levels of needs, arranging them
into a hierarchy.
• motives: inner states that direct a person toward the
goal of satisfying a need
– Without motives, a consumer could have a legitimate
need but never seek to satisfy it.

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Needs and Motives
(slide 1 of 3)

Needs Products Marketing Themes


Physiological Food, water, medicines, Fresh Express salads: “Consistently,
vitamins, exercise equipment deliciously, fresh.”
and gym memberships, GNC vitamins and supplements: “Live
health care and cleaning well.”
products, sleep aids and
Colgate Total: “#1 recommended by
mattresses, food for pets
dentists and hygienists.”
Safety Health and life insurance, Progressive Insurance: “Helping you
computer antivirus software, save money. That’s Progressive.”
smoke and carbon monoxide Blue Cross Blue Shield Association:
detectors, antibacterial “The Power of Blue.”
cleaners, business
Better Business Bureau: “Start with
protection, auto safety
trust.”
features
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Needs and Motives
(slide 2 of 3)

Needs Products Marketing Themes


Belongingness Cosmetics, food, Avon Walk for Breast Cancer: “The
entertainment, fashion, more of us who walk, the more of us
appliances and home survive.”
furnishings, clubs and Lowe’s: “Never Stop Improving.”
organizations, cars
Lee: “Get what fits.”
Payless shoes: “Save now. Feel good.”
Olay: “Love the skin you’re in.”
Ford: “Drive one.”

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Needs and Motives
(slide 3 of 3)

Needs Products Marketing Themes


Esteem Fashion, jewelry, gourmet Rolex watches: “It Doesn’t Just Tell
foods, electronics, Time. It Tells History.”
cosmetics, luxury cars, Lincoln automobiles: “Travel well.”
credit cards, investments,
L’Oréal Paris: “Because you’re worth
sports and hobbies,
it.”
travel, spas
Self-actualization Education, cultural University of Phoenix: “I’m a Phoenix.”
events, sports and Tony Robbins: “Unleash the power
hobbies, motivational within.”
seminars, technology,
Canyon Ranch: “The power of
travel, investments
possibility.”

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Self-Concept

• self-concept: a person’s view of themselves

Self-Concept Components Description


Real Self Objective view of the total person.
Self-Image An individual’s view of themselves.
Looking-Glass Self An individual’s view of how other people perceive them.

Ideal Self An individual’s view of who they aspire to be.

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Psychological Factors Influencing
Consumer Behavior: closing example
• CrossFit® is different from other gyms.
– It avoids traditional equipment (e.g., stairclimbers,
treadmills, and weight machines).
– It offers no cycling or aerobics classes and no saunas.
– Instead, it provides squat racks with weights, kettlebells,
medicine balls, and jump ropes.
• The environment goes beyond fulfilling a member’s
motive to get strong or lose weight.
• It also reinforces member perceptions and attitudes
about working out in a place that promotes elite fitness.

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Situational Factors Influencing
Consumer Behavior (slide 1 of 3)
• Some situational elements may be controlled or
created by the marketer
• Others are uncontrollable elements outside of the
marketer’s influence.

Factors:
1. Physical Surroundings
2. Social Surroundings
3. Purchase Reason
4. Buyer’s Mood and Condition

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Situational Factors Influencing
Consumer Behavior (slide 2 of 3)
Name Definition Examples
Physical Store location, lighting, store • Specialty clothing boutiques typically
surroundings size, décor, sounds, aromas, have wider aisles and sparse,
merchandise displays. Can uncluttered displays while discount
also include factors outside stores have narrower aisles and
the marketer’s control like shelves stocked full of goods,
weather or adjacent sometimes from floor to ceiling.
businesses.
Social The number and intent of • Standing in a line for concert tickets
surroundings other people around the with other buyers might increase
purchase. motivation to follow-through with
purchase.
• Eating at a restaurant with friends
might lead to more consumption
than if dining alone.
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Situational Factors Influencing
Consumer Behavior (slide 3 of 3)
Name Definition Examples
Purchase Purchasing for self • A store brand of soda may be purchased
reason versus others. for individual consumption but name
brand sodas purchased for parties or
social situations.
Necessary versus • It’s likely you’ll stop to fill an empty gas
discretionary purchases. tank regardless of how much you “want”
to buy gas.
Buyer’s The mood state (e.g. • A hungry driver will be more likely to stop
mood and hungry, happy, sad, at a fast food restaurant than someone
condition anxious) and condition who just ate a full meal at home.
(e.g. available spending • A consumer who just received a bonus at
money, illness) work might be more likely to buy
of the buyer. something new.
Adapted from Belk, Russell W. (1975), “Situational Variables and Consumer Behavior,”
Journal of Consumer Research, 2 (December), 157–164.
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Identifying Influences on
Consumer Behavior: opening example
• Ski Butternut has amassed a comprehensive
database that helps pinpoint who its customers are
and what they want.
• It compiles both individual and family profiles.
• All of this information helps the marketing team
devise strategies designed to compete with other ski
resorts in the region.

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Identifying Influences
on Consumer Behavior
• Americans spend hundreds of billions of dollars each
year on vacations and other leisure activities.
• How those dollars are spent depends on a number of
social, psychological, and situational influences.
– By understanding each of these influences, the
marketing team at Ski Butternut can build their
marketing mix around customers who are most likely
to visit their resort.
1. It focuses on families and the core value of spending
time together.
2. It reaches out to other subgroups, including senior
citizens and the teen-to-25 age range.
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Identifying Influences on
Consumer Behavior: Example 1
• Rob and Jonas are both affluent and married with
kids. Rob sees himself as an adventure seeker and
travels around the world with other hardcore skiers.
Jonas sees himself as laid back and has actually never
skied, instead opting to hang with fellow surfers
whenever possible.
• Can you spot the influences on their behavior?

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Answer to Example 1
Description Factor Influencing Consumer Behavior
Affluent (both) Social–Social class
Married (both) Social–Family
Sees himself as adventure seeker (Rob) Psychological–Self-concept
Sees himself as laid back (Jonas) Psychological–Self-concept
Travels with hardcore skiers (Rob) Social–Reference group
Hangs with surfers (Jonas) Social–Reference group

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Identifying Influences on
Consumer Behavior: Example 2
• Veronica fears skiing because she broke her arm last time
on the slopes. She was just a beginner then, but a friend
brought her to an advanced slope and Veronica tumbled
all the way to the bottom. She fears that could happen
again. However, a beautiful new resort opened within an
hour of her home and her bonus check at work just
arrived—and it was bigger than she expected. Now she’s
considering whether to give skiing another try.
• Veronica’s decision about whether to ski or not is most
affected by which influences?

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Answer to Example 2
Description Factor Influencing Consumer Behavior
Ski crash that broke arm Psychological–Learning
Fear it could happen again Psychological–Perceptions
Beautiful new resort nearby Situational–Physical surroundings
Bonus check from work Situational–Buyer Condition

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Identifying Influences on
Consumer Behavior: Example 3
• Tina and a group from her sorority are planning a three-day
weekend ski vacation and want to stay at a resort that also offers
spa services. There are two different ski resorts that offer spa
services, but one is considered more exclusive and desirable. They
are excited to take a ski vacation and view it as one last getaway
before they graduate and start working. Tina received $200 from her
grandmother as a birthday present and plans to use the money to
cover the hotel room and ski rental fees. Tina had never skied when
she was growing up but, after joining her sorority, a group of friends
invited her to go with them. She fell in love with the excitement and
thrill of downhill skiing and tries to go several times each season so
she can progress and move to more advanced ski runs.
• What factors have been instrumental in developing Tina’s interest in
skiing and the upcoming vacation?
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Answer to Example 3
Description Factor Influencing Consumer Behavior
Spa is considered more exclusive and Psychological–Perception
desirable
Last getaway before graduating and Situational–Purchase reason
starting to work
$200 birthday gift Situational–Buyer condition
Hopes to progress and move to more Psychological–Needs & motives
advanced ski runs

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Identifying Influences on Consumer
Behavior: closing example
• By looking at customer influences, the team at Ski
Butternut can identify the best new prospects for
their resort and persuade them to visit.
• By identifying those who might not be the best
prospects, the team can avoid spending time and
money promoting to people who are unlikely to
become customers.

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6

Chapter 6

Consumer Behavior

© 2019 Cengage. All rights reserved. Click back to L.O.s

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