+ All Categories
Home > Documents > Consumer Decision Making(1)

Consumer Decision Making(1)

Date post: 27-Oct-2014
Category:
Upload: rakesh-kumar-singh
View: 33 times
Download: 0 times
Share this document with a friend
Popular Tags:
65
©2003 South-Western Chapter 4 Version 3e 1 chapter Consumer Decision Making Consumer Decision Making 4 Prepared by Prepared by Deborah Baker Deborah Baker Texas Christian University Texas Christian University
Transcript
Page 1: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 1

chap

ter

Consumer Decision MakingConsumer Decision Making

44

Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

Page 2: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 2

chap

ter

Learning ObjectivesLearning Objectives

44

1.1. Explain why marketing managers should Explain why marketing managers should understand consumer behavior.understand consumer behavior.

2. Analyze the components of the consumer 2. Analyze the components of the consumer decision-making process.decision-making process.

3. Explain the consumer’s postpurchase 3. Explain the consumer’s postpurchase evaluation process.evaluation process.

Page 3: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 3

chap

ter

Learning Objectives (continued)Learning Objectives (continued)

44

4. Identify the types of consumer buying 4. Identify the types of consumer buying decisions and discuss the significance of decisions and discuss the significance of consumer involvement.consumer involvement.

5. Identify and understand the cultural factors 5. Identify and understand the cultural factors that affect consumer buying decisions.that affect consumer buying decisions.

Page 4: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 4

chap

ter

Learning Objectives (continued)Learning Objectives (continued)

44

6. Identify and understand the social factors 6. Identify and understand the social factors that affect consumer buying decisions. that affect consumer buying decisions.

7.7. Identify and understand the individual Identify and understand the individual factors that affect consumer buying factors that affect consumer buying decisions.decisions.

8. Identify and understand the psychological 8. Identify and understand the psychological factors that affect consumer buying factors that affect consumer buying decisions.decisions.

Page 5: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 5

Learning Objective Learning Objective 11

Explain why marketing managers Explain why marketing managers should understand should understand consumer behavior.consumer behavior.

Page 6: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 6

Consumer BehaviorConsumer 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

the product use.

11

Page 7: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 7

Learning Objective Learning Objective 22

Analyze the components Analyze the components of the consumer of the consumer

decision-making process.decision-making process.

Page 8: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 8

Consumer Decision-Making Consumer Decision-Making ProcessProcess

A five-step process used

by consumers when buying

goods or services.

22

Page 9: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 9

Consumer Decision-Making Consumer Decision-Making ProcessProcess

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

22

Page 10: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 10

Need RecognitionNeed Recognition

Result of an imbalance

between actual and

desired states.

22

Page 11: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 11

Need RecognitionNeed Recognition

Internal StimuliInternal Stimuliandand

External StimuliExternal Stimuli

Present Status

Preferred State

Marketing helps consumers

recognize an imbalance between present status and

preferred state

22

Page 12: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 12

StimulusStimulus

Any unit of input affecting

one or more of the five

senses:

sight

smell

taste

touch

hearing

22

Page 13: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 13

WantWant

Recognition of an

unfulfilled need and

a product

(or attribute or feature)

that will satisfy it.

22

Page 14: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 14

Recognition of Unfulfilled WantsRecognition of Unfulfilled Wants

When a current product isn’t performing properly

When the consumer is running out of an product

When another product seems superior to the one currently used

22

Page 15: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 15

Information SearchesInformation Searches

Process of recalling past

information stored

in the memory.

Internal

Process of seeking

information in the

outside environment.

External

22

Page 16: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 16

Information SearchInformation Search

Internal Information Search

Recall information in memory

External Information search

Seek information in outside environment

Non-marketing controlled Marketing controlled

22

Page 17: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 17

External Information SearchesExternal Information Searches

Need MoreNeed More Information Information

More Risk More Risk Less knowledgeLess knowledge

Less product Less product experienceexperience

High level of interestHigh level of interest

Less Risk Less Risk More knowledgeMore knowledge

More product More product experienceexperience

Low level of interestLow level of interest

Need LessNeed Less Information Information

22

Page 18: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 18

Evoked SetEvoked Set

Group of brands,

resulting from an

information search,

from which a buyer

can choose.

22

Page 19: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 19

Evoked SetEvoked Set

Purchase!Purchase!

Evaluation of ProductsEvaluation of Products

Analyze product attributesAnalyze product attributes

Use cutoff criteriaUse cutoff criteria

Rank attributes by Rank attributes by importanceimportance

Evaluation of AlternativesEvaluation of Alternatives22

Page 20: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 20

PurchasePurchase

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

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

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

22

Page 21: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 21

Learning Objective Learning Objective

Explain the consumer’s Explain the consumer’s postpurchase evaluation process.postpurchase evaluation process.

33

Page 22: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 22

Cognitive DissonanceCognitive Dissonance

Inner tension that a

consumer experiences

after recognizing an

inconsistency between

behavior and values

or opinions.

33

Page 23: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 23

Postpurchase BehaviorPostpurchase Behavior33

Can minimize through:Effective Communication

Follow-upGuaranteesWarranties

Cognitive DissonanceCognitive Dissonance

??Did I make a good decision?Did I make a good decision?

Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?

Page 24: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 24

Learning Objective Learning Objective

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

of consumer involvement.of consumer involvement.

44

Page 25: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 25

Types of Consumer Buying Types of Consumer Buying DecisionsDecisions

More Involvement

LessInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking

44

Page 26: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 26

Five Factors influencing DecisionsFive Factors influencing Decisions

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

44

Page 27: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 27

Routine Response BehaviorRoutine Response Behavior44

Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision

Page 28: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 28

Limited Decision MakingLimited Decision Making44

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide

Page 29: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 29

44Extensive Decision MakingExtensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance

Page 30: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 30

Level of InvolvementLevel of Involvement

SituationSituation

Social VisibilitySocial Visibility

InterestInterest

Perceived Risk of Negative

Consequences

Perceived Risk of Negative

Consequences

Previous ExperiencePrevious

Experience

Factors Determining

Level of Involvement

Factors Determining

Level of Involvement

44

Page 31: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 31

Marketing Implications of Marketing Implications of InvolvementInvolvement

44

High-involvement purchases require:

extensive promotion to target market and

good advertisement

Low-involvement purchases require: in-store promotion and eye-catching package design

Page 32: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 32

Factors Influencing Buying Factors Influencing Buying DecisionsDecisions

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors CONSUMER

DECISION-MAKING

PROCESS

BUY /

DON’T BUY

44

Page 33: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 33

Learning Objective Learning Objective

Identify and understand the Identify and understand the cultural factors that affect cultural factors that affect

consumer buying decisions.consumer buying decisions.

55

Page 34: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 34

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.

55

Page 35: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 35

Cultural Influences on Buying Cultural Influences on Buying DecisionsDecisions

ValuesValues

LanguageLanguage

MythsMyths

CustomsCustoms

RitualsRituals

LawsLaws

Components ofComponents ofAmericanAmericanCultureCulture

Components ofComponents ofAmericanAmericanCultureCulture

Material ArtifactsMaterial Artifacts

55

Page 36: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 36

Culture is...Culture is...

LearnedLearned

FunctionalFunctional

PervasivePervasive

DynamicDynamic

55

Page 37: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 37

ValueValue

Enduring belief that a

specific mode of conduct

is personally or socially

preferable to another

mode of conduct.

55

Page 38: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 38

Core American ValuesCore American Values

SuccessSuccess

MaterialismMaterialism

FreedomFreedom

ProgressProgress

YouthYouth

CapitalismCapitalism

CoreCoreAmerican American

ValuesValues

CoreCoreAmerican American

ValuesValues

55

Page 39: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 39

Global Language BlundersGlobal Language Blunders55

Chevrolet’s “Nova” translated to “No Go”

Coors “Turn it Loose” became “Suffer from Diarrhea”

Toyota’s MR2 sounded like a swearword in French

Coca-Cola in Chinese means “bite the wax tadpole”

Page 40: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 40

SubcultureSubculture

A homogeneous group

of people who share

elements of the overall

culture as well as

unique elements of

their own group.

55

Page 41: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 41

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.

55

Page 42: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 42

Learning Objective Learning Objective 66

Identify and understand the Identify and understand the social factors that affect social factors that affect

consumer buying decisions.consumer buying decisions.

Page 43: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 43

Social Influences Social Influences

Reference Groups

Reference Groups

Opinion LeadersOpinion Leaders

Family MembersFamily Members

Social Influences on Buying Decisions

Social Influences on Buying Decisions

66

Page 44: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 44

Reference GroupReference Group

A group in society that

influences an individual’s

purchasing behavior.

66

Page 45: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 45

Reference GroupsReference Groups

Types ofTypes ofReference Reference

GroupsGroups

Direct

Indirect

Primary

Secondary

Aspirational

Non-aspirational

66

Page 46: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 46

Implications of Reference GroupsImplications of Reference Groups66

They serve as information sources and influence perceptions

They affect an individual’s aspiration levels

Their norms either constrain or stimulate consumer behavior

Page 47: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 47

Opinion Leaders Opinion Leaders

An individual who

influences the opinion

of others.

66

Page 48: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 48

FamilyFamily

Purchase Roles in the Family

Purchase Roles in the Family

Instigators

Influencers

Decision-Makers

Purchasers

ConsumersChildren Children Influence Influence Purchase Purchase DecisionsDecisions

66

Page 49: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 49

Learning Objective Learning Objective

Identify and understand the Identify and understand the individual factors that affect individual factors that affect consumer buying decisions.consumer buying decisions.

77

Page 50: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 50

Individual InfluencesIndividual Influences

GenderGender

Age Family Life Cycle

Age Family Life Cycle

PersonalitySelf-Concept

Lifestyle

PersonalitySelf-Concept

Lifestyle

Individual InfluencesIndividual Influences

77

Page 51: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 51

Psychographics Psychographics

The analytical technique

used to examine consumer

lifestyles and to categorize

consumers.

77

Page 52: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 52

““Types of Moms”Types of Moms”77

“Strong Shoulders” Moms“Strong Shoulders” Moms

“Tug-of-War” Moms“Tug-of-War” Moms

“June Cleaver” Moms“June Cleaver” Moms

“Mothers of Invention” Moms“Mothers of Invention” Moms

Page 53: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 53

Learning Objective Learning Objective

Identify and understand the Identify and understand the psychological factors that affect psychological factors that affect

consumer buying decisions.consumer buying decisions.

88

Page 54: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 54

Psychological InfluencesPsychological Influences

Psychological Psychological Influences on Influences on

Buying DecisionsBuying Decisions

Psychological Psychological Influences on Influences on

Buying DecisionsBuying Decisions

PerceptionPerception

MotivationMotivation

LearningLearning

Beliefs & AttitudesBeliefs & Attitudes

88

Page 55: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 55

Perception Perception

Process by which people

select, organize, and

interpret stimuli into

a meaningful and

coherent picture.

88

Page 56: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 56

PerceptionPerception

SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure

SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion

SelectiveSelectiveRetentionRetention SelectiveSelective

RetentionRetention

88

Page 57: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 57

PerceptionPerception

Selective ExposureSelective Exposure

SelectiveDistortionSelectiveDistortion

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

Selective RetentionSelective Retention

Consumer remembers only that information that

supports personal beliefs

Consumer remembers only that information that

supports personal beliefs

88

Page 58: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 58

Notices only 11 to 20 ads

Notices only 11 to 20 ads

Exposure to over 250 advertisement messages per day

Exposure to over 250 advertisement messages per day

A Consumer’s Selective ExposureA Consumer’s Selective Exposure88

Page 59: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 59

Marketing Implications of Marketing Implications of PerceptionPerception

Important attributes

Higher price

Brand names

Quality and reliability

Threshold level of perception

Product changes

88

Page 60: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 60

Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs

A method of classifying

human needs and

motivations into five

categories in ascending

order of importance.

88

Page 61: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 61

MotivationMotivation88

Maslow’s Maslow’s Hierarchy of Hierarchy of

NeedsNeeds

Maslow’s Maslow’s Hierarchy of Hierarchy of

NeedsNeeds

Physiological Physiological

SafetySafety

SocialSocial

EsteemEsteem

Self-Self-ActualizationActualization

Page 62: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 62

Learning Learning

A process that creates

changes in behavior,

immediate or expected,

through experience

and practice.

88

Page 63: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 63

Types of LearningTypes of Learning

Types of Types of LearningLearningTypes of Types of LearningLearning DescriptionDescriptionDescriptionDescription

ExperientialExperiential

ConceptualConceptual

An experience changes behaviorAn experience changes behavior

Not learned through direct experience

Not learned through direct experience

88

Page 64: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 64

Stimulus Generalization Stimulus Generalization

A form of learning that

occurs when one response

is extended to a second

stimulus similar to the first.

88

Page 65: Consumer Decision Making(1)

©2003 South-WesternChapter 4 Version 3e 65

Beliefs and Attitudes Beliefs and Attitudes

An organized pattern of

knowledge that an individual

holds as true about his

or her world.

88

Belief

Attitude A learned tendency to

respond consistently

toward a given object.


Recommended