1 Lamb, Hair, McDaniel CHAPTER 14 Supply Chain Management 2010-2011.
Lamb Chapter 6 notes pdf
2
onsumer Decision Making KEY TERM! KEY CONCEPTS L01 consumer behavior processes 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 product use L0 2 consumer decision making process a five- step process used by con sumers when buying goods or services need recognition result of an imbalance between actual and desired states want recognition of an unfulfilled need and a product that will satisfy it stimulus any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing internal information search the process of recalling past information stored in the memory external information search the process of seeking information in the outside environment nonmarketing-controlled information source a product information source that is not associated with advertising or promotion marketing-controlled information source a product information source that originates with marketers promoting the product evoked set (consideration set) a group of brands, resulting from an information search, from which a buyer can choose L0 3 cognitive dissonance inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions L0 4 involvement the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior Explain why marketing managers should understand consumer behavior. An understanding of consumer behavior reduces marketing managers' uncertainty when they are defining a target market and designing a marketing mix. Analyze the components of the consumer decision-making process. The consumer decision-making process begins with need recognition, when stimuli trigger awareness of an unfulfilled want. If additional information is required to make a purchase decision, the consumer may engage in an internal or external information search. The consumer then evaluates the additional information and establishes purchase guidelines. Finally, a purchase decision is made. Explain the consumer's postpurchase evaluation process. Consumer postpurchase evaluation is influenced by prepurchase expectations, the prepurchase information search, and the consumer's general level of self- confidence. When a purchase creates cognitive dissonance, consumers tend to react by seeking positive reinforcement for the purchase decision, avoiding negative information about the purchase decision, or revoking the purchase decision by returning the product. Identify the types of consumer buying decisions and discuss the significance of consumer involvement. Consumer decision making falls into three broad categories: routine response behavior, limited decision making, and extensive decision making. High-involvement decisions usually include an extensive information search and a thorough evaluation of alternatives. In contrast, low-involvement decisions are characterized by brand loyalty and a lack of personal identification with the product. The main factors affecting the level of consumer involvement are previous experience, interest, perceived risk of negative consequences (financial, social, and psychological), situation, and social visibility. Identify and understand the cultural factors that affect consumer buying decisions. Cultural influences on consumer buying decisions include culture and values, subculture, and social class. Culture is the essential character of a society that distinguishes it from other cultural groups. The underlying elements of every culture are the values, language, myths, customs, rituals, laws, and the artifacts, or products, that are transmitted from one generation to the next. The most defining element of a culture is its values. A culture can be divided into subcultures on the basis of demographic characteristics, geographic regions, national and ethnic background, political beliefs, and religious beliefs. Identify and understand the social factors that affect consumer buying decisions. Social factors include such external influences as reference groups, opinion leaders, and family. Consumers seek out others' opinions for guidance on new products or services and products with image-related attributes or because attribute information is lacking or uninformative. Consumers may use products or brands to identify with or become a member of a reference group, or to follow an opinion leader. Family members also influence purchase decisions; children tend to shop in similar patterns as their parents. served. May not he scanned, copied or duplicated, or posted to a public!} accessible website, in whole or in part. ■
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Transcript of Lamb Chapter 6 notes pdf
o n s u m e r D e c i s i o n M a k i n g
K E Y T E R M ! K E Y C O N C E P T S
L01 consumer behaviorprocesses a consumeruses to make purchase
decisions, as well as to use and disposeof purchased goods or services;also includes factors that influencepurchase decisions and product use
L0 2 consumer decisionmaking process a five-step process used by con
sumers when buying goods or servicesneed recognition result of animbalance between actual anddesired stateswant recognition of an unfulfilledneed and a product that will satisfy itstimulus any unit of input affectingone or more of the five senses: sight,smell, taste, touch, hearinginternal information search theprocess of recalling past informationstored in the memoryexternal information search theprocess of seeking information in theoutside environmentnonmarketing-controlledinformation source a productinformation source that is not associatedwith advertising or promotionmarketing-controlledinformation source a productinformation source that originates withmarketers promoting the productevoked set (consideration set)a group of brands, resulting from aninformation search, from which abuyer can choose
L0 3 cognitive dissonanceinner tension that aconsumer experiences after
recognizing an inconsistency betweenbehavior and values or opinions
L0 4 involvement theamount of time andeffort a buyer invests in
the search, evaluation, and decisionprocesses of consumer behavior
Explain why marketing managers should understand consumerbehavior. An understanding of consumer behavior reduces marketingmanagers' uncertainty when they are defining a target market and designing a
marketing mix.
Analyze the components of the consumer decision-making process.The consumer decision-making process begins with need recognition, whenstimuli trigger awareness of an unfulfilled want. If additional information is required
to make a purchase decision, the consumer may engage in an internal or external informationsearch. The consumer then evaluates the additional information and establishes purchaseguidelines. Finally, a purchase decision is made.
Explain the consumer's postpurchase evaluation process. Consumerpostpurchase evaluation is influenced by prepurchase expectations, theprepurchase information search, and the consumer's general level of self-
confidence. When a purchase creates cognitive dissonance, consumers tend to react byseeking positive reinforcement for the purchase decision, avoiding negative informationabout the purchase decision, or revoking the purchase decision by returning the product.
Identify the types of consumer buying decisions and discuss thesignificance of consumer involvement. Consumer decision making falls intothree broad categories: routine response behavior, limited decision making, and
extensive decision making. High-involvement decisions usually include an extensive informationsearch and a thorough evaluation of alternatives. In contrast, low-involvement decisions arecharacterized by brand loyalty and a lack of personal identification with the product. The mainfactors affecting the level of consumer involvement are previous experience, interest, perceivedrisk of negative consequences (financial, social, and psychological), situation, and social visibility.
Identify and understand the cultural factors that affect consumerbuying decisions. Cultural influences on consumer buying decisions includeculture and values, subculture, and social class. Culture is the essential character
of a society that distinguishes it from other cultural groups. The underlying elements of everyculture are the values, language, myths, customs, rituals, laws, and the artifacts, or products,that are transmitted from one generation to the next. The most defining element of aculture is its values. A culture can be divided into subcultures on the basis of demographiccharacteristics, geographic regions, national and ethnic background, political beliefs, andreligious beliefs.
Identify and understand the social factors that affect consumerbuying decisions. Social factors include such external influences as reference
groups, opinion leaders, and family. Consumers seek out others' opinions for guidance onnew products or services and products with image-related attributes or because attributeinformation is lacking or uninformative. Consumers may use products or brands to identifywith or become a member of a reference group, or to follow an opinion leader. Familymembers also influence purchase decisions; children tend to shop in similar patterns astheir parents.
served. May not he scanned, copied or duplicated, or posted to a public!} accessible website, in whole or in part.
■
