Chapter 5Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1...

Chapter 5 Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved 1

MKTG

Designed byAmy McGuire, B-books, Ltd.

Prepared byDeborah Baker, Texas Christian University

Lamb, Hair, McDaniel 2007-2008

5CHAPTERConsumer Decision Making


LO1

Consumer Behavior

ConsumerBehavior

ConsumerBehavior

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 the product use.


REVIEW LEARNING OUTCOMELO1

Understanding Consumer Behavior

Consumer behavior

Consumer behavior

consumers make purchase decisionsconsumers make

purchase decisions

consumers use anddispose of product

consumers use anddispose of product

= HOW


Consumer Decision-Making Process

LO2

A five-step process used

by consumers when

buying goods or services.

ConsumerDecision-Making

Process

ConsumerDecision-Making

Process



LO2 Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps


Need Recognition

LO2

Result of an imbalance between

actual and desired states.

NeedRecognition

NeedRecognition


Need Recognition

LO2

Marketing helps consumers recognize an imbalance between

present status and preferred state.

Present Status

Present Status

Preferred State

Preferred State

InternalStimuli

External

Stimuli


Stimulus

LO2

Any unit of input affecting

one or more of the five senses:sightsmelltastetouchhearing

StimulusStimulus


LO2

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


LO2

Information Search

Internal Information Search

Recall information in memory

External Information search

Seek information in outside environment Nonmarketing controlled Marketing controlled


LO2

External Information Searches

Need MoreNeed More Information 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 LessNeed Less Information Information


LO2

Evoked Set

Group of brands, resulting from

an information search, from

which a buyer can choose

Evoked SetEvoked Set


LO2

Evaluation of Alternativesand Purchase

Evoked SetEvoked Set

Purchase!Purchase!

Analyze product attributes

Analyze product attributes

Rank attributes byimportance

Rank attributes byimportance

Use cutoff criteriaUse cutoff criteria


LO2

Purchase

To buy To buy or not to buy...or not to buy...

Determines which attributes Determines which attributes are most important are most important

in influencing a in influencing a consumer’s choiceconsumer’s choice




CU

LT

UR

AL SO

CIA

L

PSYCHOLOGICAL

INDIVIDUAL

Need Recognition

1 InformationSearch

2 EvaluateAlternatives

3 Purchase 4


Cognitive DissonanceLO3

CognitiveDissonance

CognitiveDissonance

Inner tension that a

consumer experiences after

recognizing an

inconsistency between

behavior and values or

opinions.


Postpurchase BehaviorLO3

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

Marketing can minimize through:Effective Communication

Follow-upGuaranteesWarranties


LO3

Consumer Buying Decisions and Consumer Involvement

More Involvement

LessInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking


LO3

Five Factors Influencing Decisions

1. Level of consumer involvement1. Level of consumer involvement

2. Length of time to make decision2. Length of time to make decision

3. Cost of good or service3. Cost of good or service

4. Degree of information search4. Degree of information search

5. Number of alternatives considered5. Number of alternatives considered


LO3

Continuum of Consumer Buying Decisions


LO3

Routine Response Behavior

Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision


LO3

Limited Decision Making

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide


LO3

Extensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance


LO3

Factors Determining the Level of Consumer Involvement

SituationSituation

Social VisibilitySocial Visibility

InterestInterest

Perceived Risk of Negative Consequences

Perceived Risk of Negative Consequences

Previous ExperiencePrevious Experience


LO3

Marketing Implications of Involvement

High-involvement purchases require:High-involvement purchases require:

Extensive and informative promotion to target market

Extensive and informative promotion to target market

Low-involvement purchases require:Low-involvement

purchases require:

In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers

In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers



Consumer Buying Decisions and Consumer Involvement

RoutineRoutine

LimitedLimited

ExtensiveExtensive

Previous experience Interest Perceived risk of negative consequences Situation Social visibility


Factors Influencing Buying Decisions

LO4

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors CONSUMER

DECISION-MAKING

PROCESS

BUY / DON’T BUY


CultureLO4

CultureCulture

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 CultureLO4

MythsMyths

LanguageLanguage

ValuesValues

CustomsCustoms

RitualsRituals

LawsLaws

Material artifactsMaterial artifacts


Culture is. . . LO4

LearnedLearned

FunctionalFunctional

PervasivePervasive

DynamicDynamic


ValueLO4

ValueValueEnduring belief that a specific

mode of conduct is personally or

socially preferable to another

mode of conduct.


Core American ValuesLO4

SuccessSuccess

MaterialismMaterialism

FreedomFreedom

ProgressProgress

YouthYouth

CapitalismCapitalismhttp://www.thesource.com

Online


SubcultureLO4

SubcultureSubcultureA homogeneous group

of people who share elements of

the overall culture as well as unique

elements of their own group.

http://www.dead.net

Online


Social ClassLO4

Social ClassSocial 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 MeasurementsLO4

WealthWealth

Other VariablesOther Variables

IncomeIncome

EducationEducation

OccupationOccupation


Social Class and EducationLO4


The Impact of Social Class on Marketing

LO4

Indicates which medium to use for advertising

Helps determine the best distribution for products



Cultural Factors


Social Influences LO5

Reference Groups

Reference Groups

Opinion LeadersOpinion Leaders

Family MembersFamily

Members


Reference GroupLO5

A group in society that

influences an individual’s

purchasing behavior.

Reference GroupReference Group


LO5B

eyond

the

Book

Reference Groups

Supplemental content – not in book

Reference Groups

Direct

Indirect

Primary

Secondary

Aspirational

Nonaspirational


Influences of Reference GroupsLO5

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 LO5

An individual who influences

the opinion of others.

Opinion LeadersOpinion Leaders


Opinion Leaders LO5

Teenagers

Movie stars

Sports figures

Celebrities

Marketers are looking to Web logs, or blogs, to find opinion leaders


FamilyLO5

Initiators

Influencers

Decision Makers

Purchasers

Consumers

Purchase Process Roles in the Family


Relationships among Purchasers and Consumers in the Family

LO5



Social Factors

OpinionLeaders

People You Know

Socialization Process

Family

Celebrities

Initiators Decision Makers Consumers

Influencers Purchasers

Reference Groups

Information sourcesAffect aspiration

levels

Constrain or stimulate

consumer behavior


Individual Influences

LO6

GenderGender Age Life Cycle

Age Life Cycle

PersonalitySelf-Concept

Lifestyle

PersonalitySelf-Concept

Lifestyle


Psychological Influences

LO7

PerceptionPerception

MotivationMotivation

LearningLearning

Beliefs & AttitudesBeliefs & Attitudes


Perception

LO7

Process by which people select,

organize, and interpret stimuli into

a meaningful and coherent picture.

PerceptionPerception


Perception

LO7

SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure

SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion

SelectiveSelectiveRetentionRetention SelectiveSelectiveRetentionRetention


Perception

LO7

Selective ExposureSelective Exposure

SelectiveDistortionSelectiveDistortion

Selective RetentionSelective Retention

Consumer notices certain stimuli and ignores others

Consumer notices certain stimuli and ignores others

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer remembers only that information that

supports personal beliefs

Consumer remembers only that information that

supports personal beliefs


Marketing Implications of Perception

LO7

Important attributes Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Foreign consumer perception


Motivation

LO7

A method of classifying human

needs and motivations into five

categories in ascending order

of importance.

Maslow’s Hierarchyof Needs

Maslow’s Hierarchyof Needs


Maslow’s Hierarchy of Needs

LO7


Types of Learning

LO7

ExperientialExperiential

ConceptualConceptual

An experience changes behavior

An experience changes behavior

Not learned through direct experience

Not learned through direct experience

http://www.cspinet.org

Online


Beliefs and Attitudes

LO7

BeliefBelief

AttitudeAttitude

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

LO7

Change beliefs about the brand’s attributes

Change the relative importance of these beliefs

Add new beliefs


Biz Flix

LO7 Family Man



Psychological Factors

Learning Experiential Conceptual

Selective ExposurePerception

Selective Retention Selective Exposure

NeedsMotivation

Psychological EsteemSafety Social Esteem

Beliefs &Attitudes

ChangingBeliefs about

Attributes

ChangingImportance of

Beliefs

AddingNew Beliefs

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