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CONSUMER DECISION MAKING PROCESS 1 Prepared by – Eric (nobody) from nowhere
CONSUMER DECISION MAKING PROCESS
1
Prepared by – Eric (nobody) from nowhere
LEARNING OBJECTIVES
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11. Explain why marketing managers should understand consumer behavior.
2. Analyze the components of the consumer decision-making process.
3. Explain the consumer’s post-purchase evaluation process.
LEARNING OBJECTIVES (CONTINUED)
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4. Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
5. Identify and understand the cultural factors that affect consumer buying decisions.
LEARNING OBJECTIVES (CONTINUED)
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6. Identify and understand the social factors that affect consumer buying decisions.
7. Identify and understand the individual factors that affect consumer buying decisions.
8. Identify and understand the psychological factors that affect consumer buying decisions.
1ST LEARNING OBJECTIVE
5
Explain why marketing managers should understand consumer
behavior.
CONSUMER BEHAVIOR
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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.
2ND LEARNING OBJECTIVE
7
Analyze the components of the consumer
decision-making process.
CONSUMER DECISION-MAKING PROCESS
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A five-step process used by consumers when buying goods or services.
STEPS IN THE CONSUMER DECISION-MAKING PROCESS
9Postpurchase 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
A. NEED RECOGNITION
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Result of an imbalance between actual and desired
states.
NEED RECOGNITION
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Internal StimuliInternal StimuliandandExternal StimuliExternal Stimuli
Present Status
Preferred State
Marketing helps consumers recognize an imbalance between present status and preferred state
STIMULUS
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Any unit of input affecting one or more of the five senses:
Sight
Smell
Taste
Touch
Hearing
WHAT DO WE MEAN BY “WANT”
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Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.
RECOGNITION 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.
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B. INFORMATION SEARCHES
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Process of recalling past information stored
in the memory.
Internal
Process of seeking information in the outside environment.
External
INFORMATION SEARCH
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Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment
Non-marketing controlled
Marketing controlled
EXTERNAL INFORMATION SEARCHES
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Need More Information
More Risk More Risk Less knowledgeLess knowledgeLess product experienceLess product experienceHigh level of interestHigh level of interest
Less Risk Less Risk More knowledgeMore knowledgeMore product experienceMore product experienceLow level of interestLow level of interest
Need Less Information
EVOKED SET
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Group of brands, resulting from an information search,
from which a buyer can choose.
C. EVALUATION OF ALTERNATIVES
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Ch
ap
ter 4
Ve
rsion
3e
Evoked Set
Purchase!
Evaluation of Products:Evaluation of Products:
Analyze product attributesAnalyze product attributes
Use cutoff criteriaUse cutoff criteria
Rank attributes by importanceRank attributes by importance
D. PURCHASE
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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...
3RD LEARNING OBJECTIVE
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Explain the consumer’s Post-purchase evaluation process.
COGNITIVE DISSONANCE
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Inner tension that a consumer experiences
after recognizing an inconsistency between behavior and values or
opinions.
E. POST-PURCHASE BEHAVIOR
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Can minimize through:Effective
CommunicationFollow-up
GuaranteesWarranties
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?
4TH LEARNING OBJECTIVE
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Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
TYPES OF CONSUMER BUYING DECISIONS
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More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
FIVE 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
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ROUTINE RESPONSE BEHAVIOR
Little involvement in selection process
Frequently purchased low cost goods
May stick with one brand
Buy first/evaluate later
Quick decision
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LIMITED DECISION MAKING
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide
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EXTENSIVE DECISION MAKING
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High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
LEVEL OF INVOLVEMENT
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SituationSituation
Social VisibilitySocial Visibility
InterestInterest
Perceived Risk of Negative Consequences
Perceived Risk of Negative Consequences
Previous Experience
Previous Experience
Factors Determining Level of Involvement
Factors Determining Level of Involvement
FACTORS INFLUENCING BUYING DECISIONS
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Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKINGPROCESS
BUY /
DON’T BUY
5TH LEARNING OBJECTIVE
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Identify and understand the cultural factors that affect consumer buying decisions.
CULTURE
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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.
CULTURAL INFLUENCES ON BUYING DECISIONS
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ValuesValues
LanguageLanguage
MythsMyths
CustomsCustoms
RitualsRituals
LawsLaws
Components ofComponents ofAmericanAmericanCultureCulture
Components ofComponents ofAmericanAmericanCultureCulture
Material ArtifactsMaterial Artifacts
CULTURE IS...
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LearnedLearned
FunctionalFunctional
PervasivePervasive
DynamicDynamic
VALUES
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Enduring belief that a specific mode of conduct is personally
or socially preferable to another mode of conduct.
EG. OF CORE AMERICAN VALUES
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SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
CoreCoreAmerican American ValuesValues
CoreCoreAmerican American ValuesValues
GLOBAL LANGUAGE BLUNDERS
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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”
SUBCULTURE
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A homogeneous group of people who share elements of
the overall culture as well as unique elements of
their own group.
SOCIAL CLASS
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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.
6TH LEARNING OBJECTIVE
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Identify and understand the social factors that affect consumer buying decisions.
SOCIAL INFLUENCES
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Reference GroupsReference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily Members
Social Influences on Buying Decisions
Social Influences on Buying Decisions
REFERENCE GROUP
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A group in society that influences an individual’s purchasing
behavior.
REFERENCE GROUPS
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Types ofTypes ofReference Reference GroupsGroups
Direct
Indirect
Primary
Secondary
Aspirational
Non-aspirational
IMPLICATIONS OF REFERENCE GROUPS
They serve as information sources and influence perceptions
They affect an individual’s aspiration levels
Their norms either constrain or stimulate consumer behavior
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OPINION LEADERS
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An individual who
influences the opinion
of others.
FAMILY
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Purchase Roles in the Family
Purchase Roles in the Family
Instigators
Influencers
Decision-Makers
Purchasers
Consumers
Children Influence Purchase Decisions
7TH LEARNING OBJECTIVE
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Identify and understand the individual factors that affect consumer buying decisions.
INDIVIDUAL INFLUENCES
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GenderGender
Age Family Life Cycle
Age Family Life Cycle
PersonalitySelf-Concept Lifestyle
PersonalitySelf-Concept Lifestyle
Individual InfluencesIndividual Influences
PSYCHOGRAPHICS
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The analytical technique used to examine consumer lifestyles and
to categorize consumers.
This technique is used to understand the role of above
individual influences.
8TH LEARNING OBJECTIVE
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Identify and understand the psychological factors that affect consumer buying decisions.
PSYCHOLOGICAL INFLUENCES
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Psychological Psychological Influences on Influences on Buying DecisionsBuying Decisions
Psychological Psychological Influences on Influences on Buying DecisionsBuying Decisions
PerceptionPerception
MotivationMotivation
LearningLearning
Beliefs & AttitudesBeliefs & Attitudes
PERCEPTION
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Process by which people select, organize, and interpret stimuli
into a meaningful and coherent picture.
PERCEPTION
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SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure
SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion
SelectiveSelectiveRetentionRetention SelectiveSelectiveRetentionRetention
PERCEPTION
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Selective Exposure
Selective Exposure
SelectiveDistortion
SelectiveDistortion
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 Retention
Selective Retention
Consumer remembers only that information that supports personal beliefs.
Consumer remembers only that information that supports personal beliefs.
A CONSUMER’S SELECTIVE EXPOSURE
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Notices only 11 to 20 adsNotices only 11 to 20 ads
Exposure to over 250 advertisement messages per day
Exposure to over 250 advertisement messages per day
MARKETING IMPLICATIONS OF PERCEPTION
Important attributes
Higher price
Brand names
Quality and reliability
Threshold level of perception
Product changes
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THANK YOU
