Chapter 6 Consumer Decision Makingwweb.uta.edu/faculty/gossett/3321/LHM 10e...

Chapter 6 Consumer Decision Making

1

Copyright ©2009 by Cengage Learning Inc. All rights reserved 1

Designed by

Eric Brengle

B-books, Ltd.

CHAPTER

6

Consumer Decision Making

Prepared by

Amit Shah

Frostburg State University

MarketingLamb, Hair, McDaniel

10

Copyright ©2009 by Cengage Learning Inc. All rights reserved

Learning Outcomes

2

Explain why marketing managers should

understand consumer behavior

Analyze the components of the consumer

decision-making process

Explain the consumer’s postpurchase

evaluation process

LOI

LO2

LO3


Learning Outcomes

3

Identify the types of consumer buying decisions and discuss the significance of consumer involvement

Identify and understand the cultural factors

that affect consumer buying decisions

Identify and understand the social factors that

affect consumer buying decisions

LO5

LO6

LO4


Learning Outcomes

4

Identify and understand the individual

factors that affect consumer buying

decisions

Identify and understand the psychological

factors that affect consumer buying

decisions

LO8

LO7


The Importance of Understanding

Consumer Behavior

5

Explain why marketing managers should understand

consumer behavior

LOI


Consumer Behavior

6

LOI

Consumer

BehaviorProcesses a consumer uses to

make purchase decisions, as

well as to use and dispose of

purchased goods or services;

also includes factors that

influence purchase decisions

and the product use.


2


REVIEW LEARNING OUTCOMEUnderstanding Consumer Behavior

7

LOI

Consumer behavior

consumers make purchase decisions

consumers use anddispose of product

= HOW


The Consumer Decision-Making

Process

8

Analyze the components of the

consumer decision-making process

LO2


Consumer Decision-Making

Process

9

LO2

Consumer

Decision-Making

Process

A five-step process used

by consumers when

buying goods or services.


Consumer Decision-Making Process

10

LO2

PostpurchaseBehavior

Purchase

Evaluation of Alternatives

Information Search

Need Recognition

Cultural, Social, Individual and Psychological

Factors affect

all steps


Need Recognition

11

LO2

Need

RecognitionResult of an imbalance between

actual and desired states.


Need Recognition

12

LO2

Marketing helps consumers recognize

an imbalance between

present status and preferred state.

Present

Status

Preferred

State


3


Stimulus

13

LO2

Stimulus Any unit of input affecting

one or more of the

five senses:

sight

smell

taste

touch

hearing


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

14

LO2


Information Search

15

LO2

Internal Information Search

Recall information in memory

External Information search

Seek information in outside environment Nonmarketing controlled Marketing controlled


External Information Searches

16

LO2

Need More

Information

More Risk Less knowledge

Less product experienceHigh level of interestLack of confidence

Less Risk More knowledge

More product experienceLow level of interest

Confidence in decision

Need Less

Information


Evoked Set

17

LO2

Evoked Set Group of brands, resulting

from an information search,

from which a buyer can

choose.


Evaluation of Alternatives

and Purchase

18

LO2

Evoked Set

Purchase!

Analyze product attributes

Rank attributes byimportance

Use cutoff criteria


4


Purchase

19

LO2

To buy or not to buy...

Determines which attributes are most important

in influencing a consumer’s choice


REVIEW LEARNING OUTCOMEConsumer Decision-Making Process

20

LO2

CU

LT

UR

AL S

OC

IAL

PSYCHOLOGICAL

INDIVIDUAL

Need

Recognition1 Information

Search2 Evaluate

Alternatives3

Purchase4


Postpurchase Behavior

21

Explain the consumer’s

postpurchase evaluation

process

LO3


Cognitive Dissonance

22

LO3

Cognitive

DissonanceInner tension that a

consumer experiences after

recognizing an

inconsistency between

behavior and values or

opinions.


Postpurchase BehaviorConsumers 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

23

LO3

Marketers can minimize through:Effective Communication

Follow-upGuaranteesWarranties


REVIEW LEARNING OUTCOMEConsumer postpurchase evaluation process

24

LO3


5


Consumer Buying Decisions and

Consumer Involvement

25

Identify the types of consumer buying decisions and a

discuss the significance aof consumer involvement

LO4


Consumer Buying Decisions and

Consumer Involvement

26

LO4

MoreInvolvement

LessInvolvement

RoutineResponseBehavior

LimitedDecisionMaking

ExtensiveDecisionMaking


Five Factors Influencing Decisions

27

LO4

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


Continuum of Consumer Buying

Decisions

28

LO4


Routine Response Behavior

• Little involvement in selection process

• Frequently purchased low cost goods

• May stick with one brand

• Buy first/evaluate later

• Quick decision

29

LO4


Limited Decision Making

• Low levels of involvement

• Low to moderate cost goods

• Evaluation of a few alternative brands

• Short to moderate time to decide

30

LO4


6


Extensive Decision Making

• High levels of involvement

• High cost goods

• Evaluation of many brands

• Long time to decide

• May experience cognitive dissonance

31

LO4


Factors Determining

the Level of Consumer Involvement

32

LO4

Situation

Social Visibility

Interest

Perceived Risk of Negative Consequences

Previous Experience


Marketing Implications of

Involvement

33

LO4

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


REVIEW LEARNING OUTCOME Consumer Buying Decisions and Consumer Involvement

34

LO4

Routine

Limited

Extensive

Previous experience

Interest

Perceived risk of

negative consequences

Situation

Social visibility


Cultural Influences on

Consumer Buying Decisions

35

Identify and understand the cultural factors


LO5


Factors Influencing Buying

Decisions

36

LO5

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors

CONSUMERDECISION-

MAKINGPROCESS

BUY /

DON’T BUY


7


Culture

37

LO5

Culture

Set of values, norms,

attitudes, and other

meaningful symbols that

shape human behavior and

the artifacts, or products, of

that behavior as they are

transmitted from one

generation to the next.


Components of Culture

38

LO5

Myths

Language

Values

Customs

Rituals

Laws

Material artifacts


Culture is. . .

39

LO5

Learned

Functional

Pervasive

Dynamic


Value

40

LO5

ValueEnduring belief that a specific

mode of conduct is

personally or socially

preferable to another

mode of conduct.


Core American Values

41

LO5

Success

Materialism

Freedom

Progress

Youth

Capitalism


Subculture

42

LO5

SubcultureA homogeneous group

of people who share elements

of the overall culture as well

as unique elements of their

own group.


8


Social Class

43

LO5

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

44

LO5

Wealth

Other Variables

Income

Education

Occupation


Social Class and Education

45

LO5


The Impact of Social Class on

Marketing

1. Indicates which medium to use for

advertising

2. Helps determine the best distribution

for products

46

LO5


REVIEW LEARNING OUTCOME Cultural Factors

47

LO5


Social Influences on


48

Identify and understand the social factors that affect consumer buying decisions

LO6


9


Social Influences

49

LO6

Reference Groups

Opinion Leaders

Family Members


Reference Group

50

LO6

Reference Group A group in society that

influences an individual’s

purchasing behavior.


Reference Groups

51

LO6

Reference Groups

Direct

Indirect

Primary

Secondary

Aspirational

Nonaspirational


Influences of Reference Groups

1. They serve as information

sources and influence

perceptions.

2. They affect an individual’s

aspiration levels.

3. Their norms either constrain or

stimulate consumer behavior.

52

LO6


Opinion Leaders

53

LO6

Opinion Leaders An individual who influences

the opinion of others.


Opinion Leaders

54LO6

Teenagers

Movie stars

Sports figures

Celebrities

Marketers are looking to Web logs,

or blogs, to find opinion leaders


10


Family

55LO6

Initiators

Influencers

Decision Makers

Purchasers

Consumers

Purchase Process Roles in the Family


Relationships among Purchasers and

Consumers in the Family

56

LO6


REVIEW LEARNING OUTCOME Social Factors

57

LO6

Direct IndirectReference

Groups Primary Secondary Aspirational Nonaspirational

Opinion

LeadersPeople

you know

Socialization Process

Family

Celebrities

Initiators Decision Makers Consumers

Influencers Purchasers


Individual Influences on


58

Identify and understand the individual factors


LO7


Individual Influences

59

LO7

GenderAge

Life Cycle

PersonalitySelf-Concept

Lifestyle


Psychological Influences on


60

Identify and understand

the psychological factors

that affect consumer

buying decisions

LO8


11


LO8

Psychological Influences

Perception

Motivation

Learning

Beliefs & Attitudes


Perception

62

LO8

Perception Process by which people

select, organize, and interpret

stimuli into a meaningful and

coherent picture.


LO8

Perception

SelectiveExposure

SelectiveDistortion

SelectiveRetention


Perception

64

LO8

Selective Exposure

SelectiveDistortion

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


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

65LO8


Motivation

66

LO8

Maslow’s

Hierarchy

of Needs

A method of classifying

human needs and motivations

into five categories in

ascending order of

importance.


12


Maslow’s Hierarchy of Needs

67

LO8


Types of Learning

68

LO8

Experiential

Conceptual

An experience changes behavior

Not learned through direct experience

http://www.cspinet.org

Online


Stimulus Generation and

Discrimination

69

LO8

Stimulus Generalization

A form of learning that

occurs when one

response is extended to

a second stimulus

similar to the first.

StimulusDiscrimination

A learned ability to differentiate among similar products.


Beliefs and Attitudes

70

LO8

Belief

Attitude

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.


Changing Attitudes

71

LO8

Change beliefs about the

brand’s attributes

Change the relative importance

of these beliefs

Add new beliefs


REVIEW LEARNING OUTCOME

72

LO8

Psychological Factors

LearningStimulus

Generalization

Stimulus

Discrimination

Selective ExposurePerception

Selective Retention Selective Exposure

NeedsMotivation

Psychological EsteemSafety Social Esteem

Beliefs &

Attitudes

Changing

Beliefs about

Attributes

Changing

Importance of

Beliefs

Adding

New Beliefs

http://www.cspinet.org/

Chapter 6 Consumer Decision Makingwweb.uta.edu/faculty/gossett/3321/LHM 10e...

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