mktg10 Ie ch06 PPT Mod 6 0

Chapter 6
Consumer Decision
Making
MKTG10
Lamb, Hair, and McDaniel
1 © 2016 Cengage Learning. All Rights Reserved.

LEARNING OUTCOMES
6-1 Explain why marketing managers should
understand consumer behavior
6-2 Analyze the components of the consumer decision-

making process
6-3 Explain the consumer’s postpurchase evaluation

process
6-4 Identify the types of consumer buying decisions and

discuss the significance of consumer involvement
© 2016 Cengage Learning. All Rights Reserved. 2

LEARNING OUTCOMES
6-5 Identify and understand the cultural factors
that affect consumer buying decisions
6-6 Identify and understand the social factors that

affect consumer buying decisions
6-7 Identify and understand the individual factors

that affect consumer buying decisions
6-8 Identify and understand the psychological

factors that affect consumer buying decisions

The Importance of Understanding
6-1
Consumer Behavior
Explain why marketing

managers
should understand
consumer behavior
© 2016 Cengage Learning. All Rights Reserved.

Understanding Consumer
Behavior
consumers
consumersmake
make
purchase
purchasedecisions
decisions
Consumer
Consumer = HOW
behavior
behavior
consumers
consumersuse
useand
and
dispose
disposeof
ofproduct
product

Value
• Value is a personal assessment of the net worth one obtains
from making a purchase. What you get minus what you give.
• Purchases are made based upon perceived value, which is

what you expect to get. The Actual value may be more or less
than you expected.
• Utilitarian value is derived from a product or service that helps

the consumer solve problems and accomplish tasks.
• Hedonic value is an end in itself rather than as a means to an

end. Its emotional – good feelings, happiness and satisfaction.

The Consumer
6-2
Decision-Making Process
Analyze the components

of the consumer decision-
making process

Consumer
Decision-Making Process

The Consumer Decision-
6.1 Making Process
9
Need Recognition
Result of an imbalance between actual and

desired states.
Need recognition is the first

stage in the decision-
making process

Stimulus
Any unit of input affecting one or

more of the five senses:
• Sight
• Smell
• Taste
• Touch
• Hearing

Need Recognition
Int
e
Sti rnal
mu
li
Preferred
Preferred
Present
Present State
State
Status
Status
n al
t e r li
Ex timu
S Marketing helps consumers recognize
an imbalance between present status
and preferred state.
Information Search
Internal Information Search
• Recall information in memory
External Information search
• Seek information in outside

environment
• Nonmarketing-controlled
• Marketing-controlled

External Information Searches
Need Less Need More

Information Information
Less Risk More Risk

More knowledge Less knowledge
More product experience Less product experience
Low level of interest High level of interest
Confidence in decision Lack of confidence

Evoked Set
(Consideration set)

Evaluation of Alternatives and Purchase
Evoked Set Analyze

Analyze product
product
attributes
attributes
Use
Use cutoff
cutoff criteria
criteria
Rank
Rank attributes
attributes by
by
importance
importance
Purchase!
Purchase
To buy
or not to buy...
Ultimately, the
consumer has to
decide whether to
buy or not to buy.

6-3 Postpurchase Behavior
Explain the consumer’s

postpurchase evaluation
process

Cognitive Dissonance
Inner tension that a consumer

experiences after recognizing
an inconsistency between
behavior and values or
opinions.

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

Types of Consumer Buying Decisions
6-4 and Consumer Involvement
Identify the types of

consumer buying decisions
and discuss the significance
of consumer involvement

Consumer Buying Decisions
and Consumer Involvement
Routine
Routine Limited
Limited Extensive
Extensive
Response
Response Decision
Decision Decision
Decision
Behavior
Behavior Making
Making Making
Making
Less More
Involvement Involvement

Involvement
The amount of time and effort

a buyer invests in the search,
evaluation, and decision
processes of consumer
behavior.

Continuum of Consumer
6.2 Buying Decisions
Routine Limited Extensive
Involvement Low Low to High

Moderate
Time Short Short to Long
Moderate
Cost Low Low to High
Moderate
Information Internal Only Mostly Internal and
Search Internal External
Number of One Few Many
Alternatives
24 © 2016 Cengage Learning. All Rights Reserved.

Routine Response Behavior
 Little involvement in selection process
 Frequently purchased low cost goods
 May stick with one brand
 Buy first/evaluate later
 Quick decision

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

Extensive Decision Making
 High levels of involvement
 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance

Marketing Implications
of Involvement
Extensive
Extensiveand
and
High-involvement
High-involvement Informative
Informativepromotion
promotion
purchases
purchases require:
require:
to
totarget
targetmarket
market
In-store
In-storepromotion,
promotion,
eye-catching
eye-catchingpackage
package
Low-involvement
Low-involvement design,
design,and
andgood
good
purchases
purchases require:
require: displays.
displays.Coupons,
Coupons,
and
andtwo-for-one
two-for-oneoffers
offers

Cultural Influences on
6-5
Identify and understand

the cultural factors that
affect consumer
buying decisions

Factors Influencing Buying Decisions
Cultural Social
Factors Factors CONSUMER
DECISION- BUY or
MAKING DON’T BUY
PROCESS
Psycho-
Individual
logical
Factors
Factors

Culture
It is the set of values, norms, attitudes, and other
meaningful symbols that shape human behavior. It is the
essential character of a society that distinguishes it from
other cultural groups.
Components of culture
The underlying elements of every culture are the:
• values,
• language,
• myths, These components guide the
• customs, behavior of the people.
• rituals, and
• laws
Culture is. . .
Pervasive
Pervasive
Functional
Functional
Learned
Learned
Dynamic
Dynamic

Subculture
A homogeneous group
of people who share elements of the overall
culture as well as cultural elements unique to
their own group.

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.

Social Class Measurements
Occupation
Occupation
Income
Income
Education
Education
Wealth
Wealth
Other
Other Variables
Variables

The Impact of
Social Class on Marketing
 Indicates which medium to use for

advertising
 Helps determine the best distribution

for products

Social Influences on
6-6

the social factors that
affect consumer buying
decisions

Social Influences on consumer buying
decisions
Many consumers seek out the opinions of others to reduce
their search and evaluation effort or uncertainty, especially
as the perceived risk of the decision increases.
Consumers interact socially with:

Reference
ReferenceGroups
Groups
Opinion
OpinionLeaders
Leaders To obtain product information and
decision approval.
Family
FamilyMembers
Members

Influences of
Reference Groups
 They serve as information sources and

influence perceptions.
 They affect an individual’s aspiration

levels.
 Their norms either constrain or

stimulate consumer behavior.

Opinion Leaders
An individual who influences others. They are often the most

influential, informed, plugged in, and vocal members of
society.
The first to try new products and services out of pure
curiosity.
May be challenging to locate.

Marketers are increasingly using social media to
determine and attract opinion leaders.

Family
The family is the most important social institution for many
consumers, influencing values, attitudes, and buying behavior.

Individual Influences on
6-7

the individual factors that
affect consumer buying
decisions

Individual Influences on consumer
buying decisions
A person’s buying decisions are also influenced by unique

personal characteristics, such as gender; age and life cycle stage;
and personality, self-concept, and lifestyle.

Psychological Influences on
6-8

the psychological factors
that affect consumer
buying decisions

Psychological Influences
The psychological influences are the factors consumers use to
interact with their world. They are the tools used to recognize
feelings, gather and analyze information, formulate thoughts
and opinions, and take action.
The three psychological factors that influence buyer behavior
are:
• Perception
• Motivation
• Learning

Perception
Selective
Selective Consumer
Consumer notices
notices certain
certain
Exposure
Exposure stimuli
stimuli and
and ignores
ignores others
others
Consumer
Consumer changes
changes oror distorts
distorts
Selective
Selective information
information that
that conflicts
conflicts
Distortion
Distortion with
with feelings
feelings or
or beliefs
beliefs
Consumer
Consumer remembers
remembers only
only
Selective
Selective that
that information
information that
that
Retention
Retention supports
supports personal
personal beliefs
beliefs

Marketing Implications
of Perception
 Important attributes
 Price
 Brand names
 Quality and reliability
 Threshold level of perception
 Product or repositioning changes
 Foreign consumer perception
 Subliminal perception

Motivation
A motive is the driving force that causes a

person to take action to satisfy specific needs
•Physiological
•Safety
•Social
•Esteem
•Self-actualization

Maslow’s Hierarchy of
6.6 Needs

Learning
An
An experience
experience changes
changes
Experiential
Experiential behavior
behavior
Not
Not learned
learned through
through direct
direct
Conceptual
Conceptual experience
experience

mktg10 Ie ch06 PPT Mod 6 0

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

mktg10 Ie ch06 PPT Mod 6 0

Uploaded by

Copyright:

Available Formats

Chapter 6

1 © 2016 Cengage Learning. All Rights Reserved.

6-2 Analyze the components of the consumer decision-

6-3 Explain the consumer’s postpurchase evaluation

6-4 Identify the types of consumer buying decisions and

© 2016 Cengage Learning. All Rights Reserved. 2

6-6 Identify and understand the social factors that

6-7 Identify and understand the individual factors

6-8 Identify and understand the psychological

© 2016 Cengage Learning. All Rights Reserved. 3

Explain why marketing

© 2016 Cengage Learning. All Rights Reserved.

© 2016 Cengage Learning. All Rights Reserved. 5

• Purchases are made based upon perceived value, which is

• Utilitarian value is derived from a product or service that helps

• Hedonic value is an end in itself rather than as a means to an

© 2016 Cengage Learning. All Rights Reserved. 6

Analyze the components

© 2016 Cengage Learning. All Rights Reserved.

© 2016 Cengage Learning. All Rights Reserved. 8

Result of an imbalance between actual and

Need recognition is the first

© 2016 Cengage Learning. All Rights Reserved. 10

Any unit of input affecting one or

© 2016 Cengage Learning. All Rights Reserved. 11

Internal Information Search

• Recall information in memory

External Information search

• Seek information in outside

© 2016 Cengage Learning. All Rights Reserved. 13

Need Less Need More

Less Risk More Risk

© 2016 Cengage Learning. All Rights Reserved. 14

© 2016 Cengage Learning. All Rights Reserved. 15

Evoked Set Analyze

© 2016 Cengage Learning. All Rights Reserved. 17

Explain the consumer’s

© 2016 Cengage Learning. All Rights Reserved.

Inner tension that a consumer

© 2016 Cengage Learning. All Rights Reserved. 19

 Avoiding information that contradicts the

 Revoking the original decision by

© 2016 Cengage Learning. All Rights Reserved. 20

Identify the types of

© 2016 Cengage Learning. All Rights Reserved.

© 2016 Cengage Learning. All Rights Reserved. 22

The amount of time and effort

© 2016 Cengage Learning. All Rights Reserved. 23

Involvement Low Low to High

24 © 2016 Cengage Learning. All Rights Reserved.

 Little involvement in selection process

 Frequently purchased low cost goods

 May stick with one brand

 Buy first/evaluate later

© 2016 Cengage Learning. All Rights Reserved. 25

 Low levels of involvement

 Low to moderate cost goods

 Evaluation of a few alternative brands

 Short to moderate time to decide

© 2016 Cengage Learning. All Rights Reserved. 26

 High cost goods

 Evaluation of many brands