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CHAPTER 4:UNDERSTANDING CUSTOMERS: BUSINESS TO CONSUMER MARKETS
Part 2: Use Information to Drive Marketing Decisions
McGraw-Hill Education
Copyright © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
LEARNING OBJECTIVES
Understand the value of knowing the consumer
Consider the role of personal and psychological factors in consumer decision making
Appreciate the critical and complex role of cultural, situational, and social factors in a consumer purchase decision
Understand the consumer decision making process
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THE POWER OF THE CONSUMER
Marketers are interested in learning about the process people use to make purchase decisions.
A company can only deliver value with an accurate and timely understanding of the customer.
Complex forces influence consumer choices and these forces change over time.
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MODEL OF THE CONSUMER DECISION PROCESSEXHIBIT
4.1
Marketing Activities Affect Consumer
Decision Process:Value Proposition
DistributionMarketing Communications
Environmental Forces AffectConsumer Decision Process:
EconomicTechnology
Political
Post-Purchase
Assessment
Search forInformation
ProductChoice
Decision
Evaluationof
AlternativeSolution
Problem Recognition
Internal Forces:Personal
CharacteristicsPsychological
Attributes
External FactorsCultural
SituationalSocial
Personal Characteristics
Life Cycle Stage
Occupation
Lifestyle Gender Roles
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Psychological Attributes
Motivation
Attitude
PerceptionLearning
Personality
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Psychological Attributes
Motivation: The stimulating power that induces and then directs behavior.
Attitude: A learned disposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
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CONTEMPORARY THEORIES OF MOTIVATIONEXHIBIT
4.5
Theory Key ElementsMarketingImplications
Maslow’s Hierarchy of Needs Theory
Humans have wants and needs which influence their behavior. People advance only to the next level if the lower needs are meet.
1. Physiological2. Safety3. Love/Social4. Self Esteem5. Self Actualization
Individuals are not interested in luxuries until they have had basic needs (food, shelter) met
Herzberg’s Two Factor Theory
Certain factors in the workplace result in job satisfaction.
1. Motivators: challenging work, recognition, and responsibility
2. Hygiene factors: status, job security, salary, and benefits
Satisfying hygiene factors does not create a loyal employee or customer. For a company to really create really satisfied employees it is important to focus on motivators
Aldelfer’s ERG Theory
Expansion on Maslow’s Hierarchy placing needs in three categories.
1. Existence2. Relatedness3. Growth
People need a sense of belonging and social interaction. Creating a relationship with the customers extends the customers satisfaction with the product
McClelland’s Achievement Motivation Theory
There are three categories of needs and people differ in the degree in which the various needs influence their behavior
1. Need for Achievement
2. Need for Power3. Need For Affiliation
Companies can be successful targeting one of three basic needs.
Psychological Attributes
PerceptionSelective RetentionSelective DistortionSelective Awareness
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Psychological Attributes
Learning: Any change in the content or organization of long-term memory or behavior. Conditioning creates an association
between two stimuli. Classical conditioning promotes learning
through stimulus and response. Operant conditioning rewards desirable
behavior. Cognitive learning is more active and
requires information to work through problems and life situations.
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Psychological Attributes
Personality Each person has a set of
consistent, enduring personal characteristics.
Those characteristics can be measured to identify differences between individuals.
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Psychological Attributes
Brand personality
Sincerity
Down-to-
Earth, Honest, Wholesome,
Cheerful
Excitement
Daring, Spirite
d, Imaginative, And
Current
Competence
Reliable,
Intelligence, And
Successful
Sophistication
Upper Class And
Charming
Ruggedness
Outdoorsy And Tough
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EXTERNAL FACTORS SHAPE CONSUMER CHOICES
Cultural Factors
Language
ValuesSubcultur
e
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SUBCULTURE GROUPS IN THE UNITED STATESEXHIBIT
4.7
Source: U.S. Census Bureau, www.census.gov, accessed August 4, 2008.
EXTERNAL FACTORS SHAPE CONSUMER CHOICES
Situational Factors
Physical Surrounding
s
Personal Circumstanc
es
Time
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EXTERNAL FACTORS SHAPE CONSUMER CHOICES
Social Factors
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Family Household Life Cycle
Social Class
Opinion Leaders
Reference Groups
THE LEVEL OF INVOLVEMENT INFLUENCES THE PROCESS
Involvement activated by A person’s background The aspirational focus Environment at decision-making time
High Involvement Learning People spend time more time in the
decision-making process and report higher satisfaction.
Low Involvement Learning Routine or relatively unimportant decision-
making
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CONSUMER DECISION MAKING PROCESSEXHIBIT
4.10
THE CONSUMER DECISION MAKING PROCESS
Problem Recognition
Real State
Preferred State
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THE CONSUMER DECISION MAKING PROCESS
Search for Information
Minimal Information
Search
Limited Information
Search
Extensive Information
Search
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THE CONSUMER DECISION MAKING PROCESS
Search for Information
Information Sources
Internal Information Search
External Information Sources
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THE CONSUMER DECISION MAKING PROCESS
Search for Information
Defining the Set of Alternatives
Complete Set
Awareness Set
Consideration (Evoked) Set
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THE CONSUMER DECISION MAKING PROCESS
Evaluation of
Alternatives
Emotional Choice
Attitude based Choice
Attribute based Choice
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THE CONSUMER DECISION MAKING PROCESS
Product Choice DecisionPhysical
Surroundings
Social Circumstances
Time
State of Mind
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THE CONSUMER DECISION MAKING PROCESS
Product Choice Decision
What
Where
How Much
When
Payment
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THE CONSUMER DECISION MAKING PROCESS
Post Purchase AssessmentDissonance
Use/Non Use
Disposal
SatisfactionDissatisfaction
Instrumental Performance
Symbolic Performance
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Photo Credits
Slide 4-7: Floresco Productions/age fotostock
Slide 4-11: #1 love images/Getty Images; #2 Paul Bradbury/age fotostock
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