Chapter 5 Consumer Decision Making

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

External Information Searches Need Less Information Need More Information Less Risk More knowledge More product experience Low level of interest More Risk Less knowledge Less product experience High level of interest

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

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

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

Level of Involvement Factors Determining Level of Involvement Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience Factors Determining Level of Involvement

Marketing Implications of Involvement High-involvement purchases require: extensive promotion to target market and good advertisement Low-involvement purchases require: in-store promotion and eye-catching package design

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

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

Core American Values Core American Values Success Materialism Freedom Progress Youth Capitalism Core American Values

Global Language Blunders 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”

Types of Reference Groups Primary Secondary Aspirational Non-aspirational Direct Types of Reference Groups Indirect

Purchase Roles in the Family Instigators Influencers Decision-Makers Purchasers Consumers Purchase Roles in the Family Children Influence Purchase Decisions

Individual Influences Gender Personality Self-Concept Lifestyle Age Family Life Cycle

Psychological Influences Psychological Influences on Buying Decisions Perception Motivation Learning Beliefs & Attitudes

Perception Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

A Consumer’s Selective Exposure Exposure to over 250 advertisement messages per day Notices only 11 to 20 ads

Maslow’s Hierarchy of Needs Motivation Physiological Safety Social Esteem Self- Actualization Maslow’s Hierarchy of Needs

Beliefs and Attitudes Belief Attitude An organized pattern of knowledge that an individual holds as true about his or her world. Belief A learned tendency to respond consistently toward a given object. Attitude

Types of Decision Processes Degree of Level of Purchase Perceived Time Search Experience Frequency Risk Pressure Extended Limited Routine Low Medium High