Lamb, Hair, McDaniel

2012-2013

CHAPTER 6 Consumer Decision Making

2013 by Cengage Learning Inc. All Rights

Chapter 1 Copyright 2012 by Cengage Learning Inc. All rights reserved Reserved.

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Exhibit 6.1
Consumer Decision-Making Process

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Need Recognition
Need Recognition
Result of an imbalance between actual and desired states.

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Consumers Scale Back

A Pew Research Center poll suggests consumers are more focused on basic necessities. 63 percent of women and 51 percent of men report buying cheaper brands and increased shopping at discount stores. An increased number of respondents reported internet as a necessity, while a decreased number reported television.
Source: Dick Silverman."Luxury and Necessity: Redefining Values." WWD. Wednesday, June 10, 2009. 8.

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Recognition of Unfulfilled Wants

When a current product isnt performing properly When the consumer is running out of a product
When another product seems superior to the one currently used
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Information Search
Internal Information Search
Recall information in memory

External Information search Seek information in outside environment

Nonmarketing controlled Marketing controlled

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External Information Searches

Need Less Information
Less Risk More knowledge More product experience Low level of interest Confidence in decision

Need More Information

More Risk Less knowledge Less product experience High level of interest Lack of confidence

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Evoked Set

Evoked Set
Group of brands, resulting from an information search, from which a buyer can choose

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Evaluation of Alternatives and Purchase

Evoked Set
Analyze product attributes

Use cutoff criteria

Rank attributes by importance

Purchase!
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Purchase
To buy or not to buy...

Determines which attributes are most important in influencing a consumers choice

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Cognitive Dissonance
Cognitive Dissonance

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

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Postpurchase Behavior
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

Marketing can minimize dissonance through effective communication with purchasers.
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Consumer Buying Decisions and Consumer Involvement

Routine Response Behavior

Limited Decision Making

Extensive Decision Making

Less Involvement
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More Involvement
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Routine Response Behavior

Little involvement in selection process
Frequently purchased low cost goods May stick with one brand

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Buy first/evaluate later

Quick decision
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Limited Decision Making

Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide

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Extensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance
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Marketing Implications of Involvement

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

Low-involvement purchases require:

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

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Factors Influencing Buying Decisions

Cultural Factors

Social Factors

Individual Factors

Psychological Factors

CONSUMER DECISIONMAKING PROCESS

BUY / DONT BUY

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Components of Culture
Values

Language
Myths Customs Rituals Laws Material artifacts
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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.

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U.S. Social Classes

SOURCE: Adapted from Richard P. Coleman, The Continuing Significance of Social Class to Marketing, Journal of Consumer Research, December 1983, 267; Dennis Gilbert and Joseph A. Kahl, The American Class Structure: A Synthesis (Homewood, IL: Dorsey Press, 1982), ch. 11.

Exhibit 6.4

Upper Classes
Capitalist Class 1% People whose investment decisions shape the national economy; income mostly from assets, earned or inherited; university connections Upper-level managers, professionals, owners of medium-sized businesses; well-to-do, stay-at-home homemakers who decline occupational work by choice; college educated; family income well above national average

Upper Middle Class

14%

Middle Classes
Middle Class 33% Middle-level white-collar, top-level blue-collar; education past high school typical; income somewhat above national average; loss of manufacturing jobs has reduced the population of this class Middle-level blue-collar, lower-level white-collar; income below national average; largely working in skilled or semi-skilled service jobs

Working Class

32%

Lower Classes
Working Poor 1112% 8-9% Low-paid service workers and operatives; some high school education; below mainstream in living standard; crime and hunger are daily threats People who are not regularly employed and who depend primarily on the welfare system for sustenance; little schooling; living standard below poverty line

Underclass

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Social Class Measurements

Occupation Income Education Wealth Other Variables
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Social Influences
Reference Groups

Opinion Leaders

Family Members

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Types of Reference Groups

Primary: small, informal group Direct Face-to-Face membership Secondary: large, formal group Reference Groups Aspirational Group that someone would like to join Indirect Nonmembership Nonaspirational Group with which someone wants to avoid being identified

Exhibit 6.5

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Influences of Reference Groups

They serve as information sources and influence perceptions.
They affect an individuals aspiration levels. Their norms either constrain or stimulate consumer behavior.

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Opinion Leaders
are the first to try new products and services out of pure curiosity. can be challenging to locate.

Marketers are increasingly using blogs, social networking, and other online media to determine and attract opinion leaders.
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Individual Influences

Gender

Age Life Cycle

Personality Self-Concept Lifestyle

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Personality, Self-Concept, and Lifestyle

Personality combines psychological makeup and environmental forces. Human behavior depends largely on self-concept. Self-concept combines ideal self-image and real self-image.

LO7
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Psychological Influences
Perception
Motivation Learning Beliefs & Attitudes
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Perception

Selective Exposure Selective Distortion Selective Retention

Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Consumer remembers only that information that supports personal beliefs
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Motivation
Maslows Hierarchy of Needs

A method of classifying human needs and motivations into five categories in ascending order of importance.

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Maslows Hierarchy of Needs

Exhibit 6.6

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Beliefs and Attitudes

Belief

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.

Attitude

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Changing Beliefs

Change beliefs about the brands attributes

Change the relative importance of these beliefs

Add new beliefs

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