Consumer Decision Making 5 Consumer Decision Making Prepared by Deborah Baker Texas Christian University

Chapter 5 Learning Objectives 1. Explain why marketing managers should understand consumer behavior 2. Analyze the components of the consumer decision-making process 3. Explain the consumer’s postpurchase evaluation process

Chapter 5 Learning Objectives 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) Chapter 5 Learning Objectives (continued) 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

consumers make purchase decisions consumers use and dispose of product Chapter 5 Consumer Behavior Consumer behavior consumers make purchase decisions consumers use and dispose of product = HOW 1

Consumer Decision-Making Process Chapter 5 Consumer Decision-Making Process Postpurchase Behavior Purchase Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps 2

Chapter 5 Need Recognition Present Status Preferred State Internal Stimuli External Stimuli Marketing helps consumers recognize an imbalance between present status and preferred state 2

Information Searches Internal Information Search Chapter 5 Information Searches Internal Information Search External Information search 2

Evaluation of Alternatives Chapter 5 Evaluation of Alternatives Evoked Set Purchase! Analyze product attributes Rank attributes by importance Use cutoff criteria 2

Postpurchase Behavior Chapter 5 Postpurchase Behavior Cognitive Dissonance ? Did I make a good decision? Did I buy the right product? Did I get a good value? Can minimize through: Effective Communication Follow-up Guarantees Warranties Marketing 3

Types of Consumer Buying Decisions Chapter 5 Types of Consumer Buying Decisions Routine Response Behavior Limited Decision Making Extensive Less Involvement More Involvement 4

Perceived Risk of Negative Consequences Chapter 5 Level of Involvement Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience Factors Determining Level of Involvement On Line http://www.apple.com 4

Factors Influencing Buying Decisions Chapter 5 Factors Influencing Buying Decisions Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY 5

Cultural Influences on Buying Decisions Chapter 5 Cultural Influences on Buying Decisions Values Language Myths Customs Rituals Laws Components of American Culture Material Artifacts 5

Social Influences on Buying Decisions Chapter 5 Social Influences Reference Groups Opinion Leaders Family Members Social Influences on Buying Decisions 6

Reference Groups Primary Direct Secondary Reference Groups Chapter 5 Reference Groups Reference Groups Direct Indirect Primary Secondary Aspirational Non-aspirational 6

Individual Influences Chapter 5 Individual Influences Gender Age Life-Cycle Personality Self-Concept Lifestyle Individual Influences 7

Psychological Influences Chapter 5 Psychological Influences Psychological Influences on Buying Decisions Perception Motivation Learning Beliefs & Attitudes 8

Chapter 5 Perception Selective Exposure Distortion Retention 8

An experience changes behavior Not learned through direct experience Chapter 5 Types of Learning Types of Learning Description Experiential Conceptual An experience changes behavior Not learned through direct experience 8