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Chapter 4

Consumer Buying Behavior and Decision Making

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McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
 After
After studying
studying this
this chapter,
chapter, you
you
should
should be
be able
able to:
to:
• Discuss the importance of consumer behavior.

• Understand consumer decision making and

some of the important influences on those
decisions.

• Distinguish between low-involvement and

high-involvement consumer behavior.

• Understand how attitudes influence consumer

purchases.

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 After
After studying
studying this
this chapter,
chapter, you
you
should
should be
be able
able to:
to:
• Appreciate how the social environment affects
consumer behavior.

• Recognize many of the individual consumer

differences that influence purchase decisions
and behavior.

• Recognize the outcomes of consumers’

decisions to purchase or not to purchase and
how they affect marketing success.

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 The
The Nature
Nature of
of Consumer
Consumer Behavior
Behavior
and
and Decision
Decision Making
Making
•• Consumer
Consumer Behavior:
Behavior:
–– The
Themental
mentalandandemotional
emotionalprocesses
processesand
and
physical
physicalactivities
activities people
peopleengage
engagein inwhen
when
they
theyselect,
select,purchase,
purchase,use,
use, and
anddispose
disposeofof
products
productsor
orservices
servicesto
tosatisfy
satisfyparticular
particular
needs
needsand
anddesires.
desires.

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 The
The Nature
Nature of
of Consumer
Consumer
Behavior
Behavior and
and Decision
Decision Making
Making
• Factors important to understanding
consumer markets and consumer behavior:
– The size of the consumer market.

– Changes in consumer shopping habits and

purchase decisions.

– Emphasis on consumer-oriented marketing.

– The design of effective marketing strategy.

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 Growing
Growing Consumer
Consumer Markets
Markets
1. New retail line-ups
• “Price-centric”
• Lifestyle
• “Occasion-centric”

2. Outdoor living market.

3. Consumer electronics.

4. Enhanced experience
businesses.

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 Growing
Growing Consumer
Consumer Markets
Markets

5. Anti-aging products and

services.

6. Health as a national hobby.

7. High-end sports apparel and

equipment.

8. Safe packaging, pure

contents, and “green”
concerns.

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 Consumer
Consumer Behavior
Behavior and
and the
the Design
Design
of
of Marketing
Marketing Strategy
Strategy

Brand Equity:
The marketplace value of a brand.

Service Recovery:
Winning back consumers who defect.

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 Understanding
Understanding E-Customers
E-Customers
•• The
The10 10Most
MostImportant
ImportantWebsite
Website
Attributes:
Attributes:
1.
1. Product
Productrepresentation
representation
2.
2. Product
Productprices
prices
3.
3. Product
Productselection
selection
4.
4. On
Ontime
timedelivery
delivery
5.
5. Ease
Easeof ofordering
ordering
6.
6. Product
Productinformation
information
7.
7. Level
Leveland
andquality
qualityof
ofconsumer
consumersupport
support
8.
8. Product
Productshopping
shoppingandandhandling
handling
9.
9. Posted
Postedprivacy
privacypolicy
policy
10.
10.Site
Sitenavigation
navigationand
andappearance
appearance

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 Consumer
Consumer Decision
Decision Making
Making

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 High-
High- and
and Low-Involvement
Low-Involvement Decisions
Decisions

•• Involvement:
Involvement: •• Consumer
Consumer
––The
The level
level of
of Information
Information
importance
importance or or Processing:
Processing:
interest
interest ––The
The cognitive
cognitive
generated
generated by by aa processes
processes byby which
which
product
product or
or aa consumers
consumers interpret
interpret
decision.
decision. and
and integrate
integrate
information
information from
from the
the
environment.
environment.

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 High-and
High-and Low-Involvement
Low-Involvement Decisions
Decisions

•• High-involvement
High-involvementDecisions:
Decisions:
–– Characterized
Characterizedby byhigh
highlevels
levelsof
ofimportance
importance
thorough
thoroughinformation
informationprocessing,
processing,and
and
substantial
substantialdifferences
differencesbetween
betweenalternatives.
alternatives.
•• Low-involvement
Low-involvement
Decisions:
Decisions:
–– Occur
Occurwhen
when
relatively
relativelylittle
little
personal
personalinterest,
interest,
relevance,
relevance, or or
importance
importanceisis
associated
associated with
withaa
purchase.
purchase.
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 Types
Types of
of Consumer
Consumer Choices
Choices
•• Six
Six Generic
Generic Consumer
Consumer Behavior
Behavior
Choices:
Choices:
1.
1. Product
Product
2.
2. Brand
Brand
3.
3. Shopping
Shopping area
area
4.
4. Store
Store type
type
5.
5. Store
Store
6.
6. Nonstore
Nonstore source
source (catalogs,
(catalogs, PC,
PC, && TV
TV
shopping)
shopping)

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 Attitudes
Attitudes
•• Consumer
Consumer •• Attitudes
Attitudes have
have
Attitudes:
Attitudes: valence;
valence; they
they can
can be
be
–– Learned
Learned positive,
positive, negative,
negative, or
or
predispositions
predispositions to
to neutral.
neutral.
respond
respond favorably
favorably
or
or unfavorably
unfavorably to
to aa
product
product or
or brand.
brand.
•• Strong
Strong attitudes
attitudes are
are
resistant
resistant to
to change.
change.

•• Attitudes
Attitudes can
can erode
erode
over
over time
time ifif not
not
reinforce.
reinforce.
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 Attitudes
Attitudes –– Marketing
Marketing Implications
Implications

1.
1. Attitudes
Attitudes are
are based
based on
on beliefs
beliefs
consumers
consumers holdhold about
about the
the
attributes
attributes or
or features
features (price,
(price,
level
level of
of services,
services, quality)
quality) of
of the
the
products
products they
they are
are evaluating.
evaluating.

2.
2. Attitudes
Attitudes are
are primary
primary causes
causes of
of
behavior
behavior causing
causing consumers
consumers to
to
buy
buy oror not
not buy
buy products
products

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 Experiential
Experiential Choices
Choices

• Consumers • Affect Referral:

frequently make – Consumers elicit from
choices based on memory their overall
their emotions and evaluations of
products and choose
feelings.
the alternative for
which they have the
most positive feelings.

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 Experiential
Experiential Choices
Choices
• Impulse
Purchases:
– Choices made on
the spur of the
moment, often • Time-inconsistent
without prior Choices:
problem
– Choices consumers
recognition.
make which act against
their own better
judgment and engage in
behavior they would
normally reject.
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 Influence
Influence of
of the
the Social
Social Environment
Environment

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 Cultural
Cultural Influences
Influences
•• Culture:
Culture:
–– The •• Culture
Culture is
is learned
learned and
and
Thevalues,
values,ideas,
ideas,
attitudes,
attitudes, and
and
transmitted
transmitted from
from one
one
symbols
symbolsthatthatpeople
people generation
generation to to the
the next.
next.
adopt
adopt toto
communicate,
communicate,
interpret,
interpret,and
and
interact
interact as
as
members
membersof ofsociety.
society.

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 Cultural
Cultural Influences
Influences
•• Socialization:
Socialization: •• Consumer
Consumer
–– The
Theprocess
processofof Socialization:
Socialization:
absorbing
absorbingaa culture
culture –– When
Whensocialization
socializationisis
applied
appliedto
tomarketing
marketing
and
andconsumer
consumer
behavior.
behavior.

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 Values
Values

• Values:
– Shared beliefs or cultural norms about
what is important or right.

Cultural values directly influence how

Consumers view and use individual
products, brands, and services.

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 Values
Values
•• The
The List
List of
of Values
Values (LOV):
(LOV):
••Self-respect
Self-respect
•• Warm
Warm relationships
relationships
•• Self-fulfillment
Self-fulfillment
•• Sense
Sense of of belonging
belonging
•• Respect
Respect fromfrom others
others
•• Excitement
Excitement
•• Security
Security
•• Sense
Sense of of accomplishment
accomplishment
•• Fun
Fun and
and enjoyment
enjoyment inin life
life
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 Values
Values

• Values and Lifestyles (VALS):

– Identifies eight market segments that
share similar end values.

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 Subcultures
Subcultures

• Ethnic Patterns:
– The norms and values of specific groups or
subcultures within a society.

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 Subcultures
Subcultures

•• Demographic
Demographiccharacteristics
characteristicsused
usedto
to
identify
identifysubcultures:
subcultures:
–– Nationality
Nationality--Hispanics,
Hispanics,Italians
Italians

–– Race
Race--African-American,
African-American,American
American
Indian,
Indian,Asian
Asian

–– Region
Region--New
NewEngland,
England,the
theSouth
South

–– Age
Age--Elderly,
Elderly,teenager
teenager

–– Religion
Religion--Catholic,
Catholic,Jewish,
Jewish,
fundamentalist
fundamentalist

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 Social
Social Class
Class Influences
Influences

•• Social
Social Classes:
Classes:
–– Relatively
Relativelyhomogeneous
homogeneousdivisions
divisions
within
withinaasociety
societythat
thatcontain
containpeople
people
with
withsimilar
similar values,
values,needs,
needs,
lifestyles,
lifestyles,and
andbehavior.
behavior.

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 Family
Family Influences
Influences and
and the
the Family
Family Life
Life Cycle
Cycle

•• Family
Family influences
influences playplay two
two
important
important roles
roles in:
in:

–– The
Thesocialization
socializationof
ofpeople.
people.

–– Affecting
Affectingindividual
individual
purchase
purchase decisions.
decisions.

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 Family
Family Influences
Influences and
and the
the Family
Family Life
Life Cycle
Cycle

•• Family
Family Life
Life Cycle:
Cycle:
–– The
The sequence
sequence of
of steps
steps aa family
family goes
goes through:
through:
•• From
Fromyoung,
young, to
to

•• Single
Singleadults,
adults, to
to

•• Married
Marriedcouples
coupleswhose
whosechildren
childrenhave
have left
left home,
home, to
to

•• The
Theretired
retiredsurvivor
survivor

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 Interpersonal
Interpersonal Influences
Influences

•• Reference
Reference Groups:
Groups:
––Those
Those others
others look
look to
to for
for help
help and
and
guidance
guidance including
including friends,
friends, co-
co-
workers,
workers, and
and others.
others.

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 Interpersonal
Interpersonal Influence
Influence
Processes
Processes
• Three Types of Interpersonal Processes:
1. Informational influence is based on the
consumer’s desire to make informed choices and
reduce uncertainty.

2. Utilitarian influence is reflected in compliance with

the expectations, real or imagined, of others –
referred to as norms.

3. Value-expressive influence stems from a desire to

enhance self-concept through identification with
others.

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 Interpersonal
Interpersonal Influence
Influence
Processes
Processes

• Normative Influence:
– A combination of Utilitarian and Value-
Expressive Influence.

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 Individual
Individual Differences
Differences

• Sources of Individual
Differences
Influencing Consumer
Behavior:
1. Word-of-mouth
communications
2. Personality
3. Lifestyles and
psychographics
4. Motivation

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 Word-of-Mouth
Word-of-Mouth Communications
Communications

Opinion Leaders:
Influence consumer behavior through
word-of-mouth communications.

Market Mavens:
Consumers who know about many kinds of products,
places to shop, and other facts of the market, and they
like to share this information with other consumers.

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 Personality
Personality
•• Personality:
Personality:
–– Reflects
Reflectsaaperson’s
person’s
consistent
consistentresponse
response
to
tohis
his or
orher
her •• Personality
Personality traits
traits
environment.
environment. related
related to
to consumer
consumer
behavior:
behavior:
–– Extroversion
Extroversion
–– self-esteem
self-esteem
–– dogmatism
dogmatism (closed-
(closed-
mindedness)
mindedness)
–– aggressiveness
aggressiveness

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 Personality
Personality

•• Self-Concept:
Self-Concept:
–– The
Theoverall
overallperception
perceptionand
andfeeling
feelingthat
that one
onehas
has
about
about herself
herself or
or himself.
himself.

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 Lifestyles
Lifestyles and
and Psychographics
Psychographics

• Lifestyle:
– Describes a person’s
pattern of living as • Psychographics:
expressed in – Divide a market into
activities, interests, lifestyle segments on
and opinions (AIO the basis of consumer
statements). interests, values,
opinions, personality
characteristics,
attitudes, and
demographics.

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 Motivation
Motivation
•• Motivation:
Motivation:

–– Refers
Refersto
toaastate
stateor
orcondition
conditionwithin
withinaa
person
personthat
thatprompts
promptsgoal-directed
goal-directed
behavior.
behavior.

•• Maslow’s
Maslow’sHierarchy:
Hierarchy:

–– Self-actualization
Self-actualizationNeeds
Needs--Art,
Art,books,
books,recreation
recreation
–– Esteem
EsteemNeeds
Needs--Clothing,
Clothing,home
homefurnishings
furnishings
–– Love
Loveand
andBelonging
BelongingNeeds
Needs--Mementos,
Mementos,gifts,
gifts,photos
photos
–– Safety
SafetyNeeds
Needs--Burglar
Burglaralarms,
alarms,seat
seatbelts
belts
–– Physiological
PhysiologicalNeeds
Needs--Food,
Food,heat,
heat,shelter
shelter

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 Situational
Situational Factors
Factors

Consumers purchase goods

for use in certain situations.

The anticipated use

influences choice.

Situational factors can

inhibit as well as motivate.

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 Situational
Situational Factors
Factors

•• Consumers
Consumers buybuy products
products with
with
anticipated
anticipated uses
uses in
in mind.
mind.

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 Consumer
Consumer Behavior
Behavior Outcomes
Outcomes

Consumer Learning happens when changes

occur in knowledge or behavior patterns.

Marketers influence consumers by imparting knowledge

through advertising, product labels, and personal selling.

Marketers hope consumers will attend to, comprehend,

and then remember these messages

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 Consumer
Consumer Satisfaction,
Satisfaction, Dissatisfaction,
Dissatisfaction,
and
and Complaint
Complaint Behavior
Behavior

• Satisfaction and
dissatisfaction
describe the positive,
neutral, or negative
feelings that may
occur after purchase. • Firms adopting a customer
value perspective must
• Consumer complaints employ marketing
are overt expressions communications that
of dissatisfaction. convey realistic
expectations.

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 AA Model
Model of
of Consumer
Consumer Satisfaction
Satisfaction

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 Findings
Findings of
of Customer
Customer
Satisfaction
Satisfaction Research
Research
1.
1. Satisfaction
Satisfactionjudgements
judgementsevolve
evolveand
andare
arechangeable
changeable
as
asproducts
productsare
areused.
used.

2.
2. Satisfaction
Satisfactionjudgments
judgmentshave
haveaasocial
socialcomponent
component
determined
determinedby bythe
thesatisfaction
satisfactionof
ofothers
othersin
inthe
the
household.
household.

3.
3. Emotions
Emotionsare
areimportant
importantand
andyield
yieldinsights
insightsbeyond
beyond
simple
simplecomparison
comparisonstandards,
standards,such
suchasasexpectations
expectations
and
andperformance.
performance.

4.
4. Product
Productsatisfaction
satisfactionisisalso
alsorelated
relatedto
toquality
qualityof
oflife
life
and
andlife
lifesatisfaction.
satisfaction.

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 Customer
Customer Complaints
Complaints

Voice Responses
(seeking satisfaction directly from the seller)

Private Responses
(bad-mouthing to friends)

Third-party Responses
(taking legal action, filing complaints
with consumer affairs agencies)

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 Cognitive
Cognitive Dissonance
Dissonance

Cognitive
CognitiveDissonance:
Dissonance:
•• AA form
form of
of
postpurchase •• Cognitive
Cognitive Dissonance
Dissonance
postpurchase doubt
doubt
about occurs
occurs when:
when:
about the
the
appropriateness –– Decisions
Decisionsare
aremajor
appropriateness of
of aa major
decision. –– The
Thepurchase
purchaseisisimportant
important
decision.
–– Perceived
Perceivedrisk
riskisishigh
high
–– The
Thepurchase
purchaseisisvisible
visible
–– The
Thedecision
decisioninvolves
involvesaa
long-term
long-termcommitment
commitment

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 Ethical
Ethical and
and Social
Social Issues
Issues in
in
Consumer
Consumer Behavior
Behavior

Unethical consumer behaviors include

shoplifting and abuse of return policies

Consumers are increasingly incorporating

social concerns into their buying decisions

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 Ethical
Ethical and
and Social
Social Issues
Issues
in
in Business
Business Behavior
Behavior

Standards of Business Behavior Evaluation

Corporate Social
Business Ethics
Responsibility

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