Consumer Decision Making

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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

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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

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Identify and understand the social factors that affect consumer buying decisions 7. Identify and understand the individual factors that affect consumer buying decisions 8.Learning Objectives (continued) 6. Identify and understand the psychological factors that affect consumer buying decisions 4 .

Learning Objective 1 Explain why marketing managers should understand consumer behavior 1 5 .

also includes factors that influence purchase decisions and the product use. 1 6 . as well as to use and dispose of purchased goods or services.Consumer Behavior Consumer Behavior Processes a consumer uses to make purchase decisions.

Consumer Behavior consumers make purchase decisions Consumer behavior = HOW consumers use and dispose of product 1 7 .

Learning Objective 2 Analyze the components of the consumer decision-making process 2 8 .

2 9 .Consumer Decision-Making Process Decision- Consumer Decision-Making Process DecisionA five-step process used by consumers when buying goods or services.

Consumer Decision-Making Process DecisionNeed Recognition Information Search Cultural. Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior 2 10 . Social.

2 11 .Need Recognition Need Recognition Result of an imbalance between actual and desired states.

Need Recognition Present Status Preferre d State 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 .

2 14 .Want Want Recognition of an unfulfilled need and a product (or attribute or feature) that will satisfy it.

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   2 Non-marketing controlled Marketing controlled 16 .

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 2 17 .

2 18 .Evoked Set Evoked Set (consideration set) Group of brands. from which a buyer can choose. resulting from an information search.

Evaluation of Alternatives Evoked Set Analyze product attributes Use cutoff criteria Rank attributes by importance Purchase! 2 19 .

Determines which attributes are most important in influencing a consumer¶s choice 2 20 ...Purchase To buy or not to buy.

Learning Objective 3 Explain the consumer¶s postpurchase evaluation process 3 21 .

3 22 .Cognitive Dissonance Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

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? FollowFollow-up Guarantees Did I buy the right product? Warranties Did I get a good value? 3 24 .

Learning Objective 4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement 4 25 .

Types of Consumer Buying Decisions

Routine Response Behavior

Limited Decision Making

Extensive Decision Making

Less Involvement

More Involvement

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Five Factors Influencing Decisions
1. Level of consumer involvement 2. Length of time to make decision 3. Cost of good or service 4. Degree of information search 5. Number of alternatives considered

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Continuum of Consumer Buying Decisions

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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 .

apple.com 4 32 .Level of Involvement Previous Experience Interest Perceived Risk of Negative Consequences Factors Determining Level of Involvement Situation Social Visibility On Line http://www.

Marketing Implications of Involvement High-involvement purchases require: Extensive and informative promotion to target market Low-involvement purchases require: In-store promotion. and good displays 4 33 . eye-catching package design.

Learning Objective 5 Identify and understand the cultural factors that affect consumer buying decisions 5 34 .

Factors Influencing Buying Decisions Cultural Factors Social Factors Individual Factors Psychological Factors CONSUMER DECISIONMAKING PROCESS BUY / DON¶T BUY 5 35 .

5 36 . or products. of that behavior as they are transmitted from one generation to the next. and other meaningful symbols that shape human behavior and the artifacts.Culture Culture Set of values norms. attitudes.

Cultural Influences on Buying Decisions Values Language Myths Customs Components of American Culture Rituals Laws Material Artifacts 5 37 .

. . Pervasive Functional Learned Dynamic 5 38 .Culture is.

5 39 .Value Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

Core American Values Success Materialism Freedom Progress Core American Values Youth Capitalism 5 40 .

Understanding Culture Differences Language Blunders  Chevrolet¶s ³Nova´ translated to ³Doesn¶t Go´  Coors ³Turn It Loose´ became ³Suffer from Diarrhea´  Frank Perdue¶s ³It takes a tough man to make a tender chicken´ was heard as ³It takes a sexually stimulated man to make a chicken affectionate.´ 5 41 .

com http://www.dead.Subculture Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.thesource.net 5 42 . Online http://www.

who regularly socialize among themselves both formally and informally. and who share behavioral norms.Social Class Social Class A group of people in a society who are considered nearly equal in status or community esteem. 5 43 .

Social Class Measurements Occupation Income Social Class Measurements Education Wealth Other Variables 5 44 .

Social Class and Education Social Class Lower Working Middle Upper Percent 8 12 34 61 5 45 .

Indicates which medium to use for advertising 2.The Impact of Social Class on Marketing 1. Helps determine the best distribution for products 5 46 .

Learning Objective 6 Identify and understand the social factors that affect consumer buying decisions 6 47 .

Social Influences Social Influences on Buying Decisions Reference Groups Opinion Leaders Family Members 6 48 .

6 49 .Reference Group Reference Group A group in society that influences an individual¶s purchasing behavior.

Reference Groups Primary Direct Secondary Reference Groups Aspirational Indirect Non-aspirational 6 50 .

They serve as information sources and influence perceptions They affect an individual¶s aspiration levels Their norms either constrain or stimulate consumer behavior 2. 6 51 .Influences of Reference Groups 1. 3.

Opinion Leaders Opinion Leaders An individual who influences the opinion of others. 6 52 .

Opinion Leaders Peer groups Group referrals Endorsements Sports figures Celebrities 6 53 .

game-girlz.gamespot.Family Purchase Roles in the Family  Initiators  Influencers  Decision Makers  Purchasers Children Influence Purchase Decisions  Consumers On Line http://www.com http://www.com 6 54 .

Relationships among Purchasers and Consumers in the Family 6 55 .

Learning Objective 7 Identify and understand the individual factors that affect consumer buying decisions 7 56 .

Individual Influences Individual Influences Gender Age Life-Cycle Personality Self-Concept Lifestyle 7 57 .

SelfSelf-Concept Attitudes Perceptions Beliefs Self-evaluations 7 58 .

Learning Objective 8 Identify and understand the psychological factors that affect consumer buying decisions 8 59 .

Psychological Influences Perception Motivation Psychological Influences on Buying Decisions Learning Beliefs & Attitudes 8 60 .

organize.Perception Perception Process by which people select. 8 61 . and interpret stimuli into a meaningful and coherent picture.

Perception Selective Exposure Selective Distortion Selective Retention 8 62 .

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 8 63 .

500 advertisement messages per day 8 64 .A Consumer·s Selective Exposure Notices only 11 to 20 ads Exposure to over 2.

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 SelfSelfActualization Esteem Social Safety Physiological 8 67 .

immediate or expected. 8 68 . through experience and practice.Learning Learning A process that creates changes in behavior.

Types of Learning Types of Learning Experiential Description An experience changes behavior Not learned through direct experience Conceptual 8 69 .

8 70 .Stimulus Generalization Stimulus Generalization A form of learning that occurs when one response is extended to a second stimulus similar to the first.

8 71 .Stimulus Discrimination Stimulus Discrimination A learned ability to differentiate among similar products.

Beliefs and Attitudes Belief An organized pattern of knowledge that an individual holds as true about his or her world.cspinet.org 8 72 . Attitude A learned tendency to respond consistently toward a given object.com http://www. On Line http://saveharry.

Changing Attitudes  Changing beliefs about the brand¶s attributes  Changing the relative importance of these beliefs  Adding new beliefs 8 73 .

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