1. Consumer Decision Making4
chapter
Prepared by
Deborah Baker
Texas Christian University
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2. chapter 4 Learning Objectives
Consumer Decision Making
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. 4
chapter
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3. Learning Objectives (continued)
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. 4
chapter
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4. Learning Objectives (continued)
Consumer Decision Making
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. 4
chapter
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5. Explain why marketing managers should understand1
Learning Objective
Explain why marketing managers should understand
consumer behavior.
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6. 1
Consumer 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.
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7. Analyze the components of the consumer decision-making process.2
Learning Objective
Analyze the components of the consumer decision-making process.
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8. Consumer Decision-Making Process2
A five-step process used by consumers when buying goods or services.
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9. Consumer Decision-Making Process2
Postpurchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social, Individual and
Psychological Factors affect all steps
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10. Result of an imbalance between actual and2
Need Recognition
Result of an imbalance between actual and
desired states.
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11. 2 Need Recognition Internal Stimuli and External Stimuli
Consumer Decision Making 2
Need Recognition
Internal Stimuli
and
External Stimuli
Present Status
Preferred State
Marketing helps consumers recognize an imbalance between present status and preferred state
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12. Any unit of input affecting one or more of the five senses:2
Stimulus
Any unit of input affecting one or more of the five senses:
sight
smell
taste
touch
hearing
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13. (or attribute or feature)2
Want
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.
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14. Recognition of Unfulfilled Wants2
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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15. 2 Information Searches Internal External
Process of recalling past information stored
in the memory.
Internal
Process of seeking information in the
outside environment.
External
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16. 2 Information Search External Information search
Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment
Non-marketing controlled
Marketing controlled
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17. External Information Searches2
External Information Searches
Need More Information
More Risk
Less knowledge
Less product experience
High level of interest
Less Risk
More knowledge
More product experience
Low level of interest
Need Less Information
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18. resulting from an information search,2
Evoked Set
Group of brands,
resulting from an information search,
from which a buyer
can choose.
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19. Evaluation of Alternatives2
Evaluation of Alternatives
Evoked Set
Purchase!
Evaluation of Products Analyze product attributes Use cutoff criteria Rank attributes by importance
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20. 2 Purchase To buy or not to buy... Marketing
Determines which attributes are most important in influencing a consumer’s choice
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21. Explain the consumer’s postpurchase evaluation process.3
Learning Objective
Explain the consumer’s
postpurchase evaluation process.
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22. 3 Cognitive Dissonance Inner tension that a consumer experiences
after recognizing an inconsistency between behavior and values
or opinions.
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23. Postpurchase Behavior3
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
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24. 4 Learning Objective Identify the types of consumer buying decisions
and discuss the significance
of consumer involvement.
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25. Types of Consumer Buying Decisions4
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making
Less
Involvement
More
Involvement
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26. Five Factors influencing Decisions4
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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27. Routine Response Behavior4
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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28. Limited Decision Making4
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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29. Extensive Decision Making4
Extensive Decision Making
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
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30. 4 Level of Involvement Factors Determining Level of Involvement
Situation
Social Visibility
Interest
Perceived Risk of Negative Consequences
Previous Experience
Factors Determining Level of Involvement
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31. Marketing Implications of Involvement4
High-involvement purchases require:
extensive promotion to target market and
good advertisement
Low-involvement purchases require: in-store promotion and eye-catching package design
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32. Factors Influencing Buying Decisions4
Social Factors
Individual Factors
Psycho- logical Factors
Cultural Factors
CONSUMER DECISION-
MAKING
PROCESS
BUY /
DON’T BUY
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33. 5 Learning Objective Identify and understand the
cultural factors that affect
consumer buying decisions.
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34. 5
Culture
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.
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35. Cultural Influences on Buying Decisions5
Values
Language
Myths
Customs
Rituals
Laws
Components of American
Culture
Material Artifacts
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36. 5 Culture is... Pervasive Functional Learned Dynamic
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37. 5 Value Enduring belief that a specific mode of conduct
is personally or socially preferable to another
mode of conduct.
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38. 5 Core American Values Core American Values Success Materialism
Freedom
Progress
Youth
Capitalism
Core
American
Values
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39. Global Language Blunders5
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”
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40. 5
Subculture
A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.
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41. 5
Social 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.
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42. 6 Learning Objective Identify and understand the
social factors that affect
consumer buying decisions.
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43. Social Influences on Buying Decisions6
Social Influences
Social Influences on Buying Decisions
Reference Groups
Family Members
Opinion Leaders
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44. 6
Reference Group
A group in society that influences an individual’s purchasing behavior.
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45. Types of Reference Groups6
Reference Groups
Primary
Secondary
Aspirational
Non-aspirational
Direct
Types of Reference Groups
Indirect
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46. Implications of Reference Groups6
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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47. influences the opinion6
Opinion Leaders
An individual who
influences the opinion
of others.
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48. Purchase Roles in the Family6
Family
Instigators
Influencers
Decision-Makers
Purchasers
Consumers
Purchase Roles in the Family
Children
Influence
Purchase
Decisions
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49. 7 Learning Objective Identify and understand the
individual factors that affect
consumer buying decisions.
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50. Individual Influences7
Individual Influences
Individual Influences
Gender
Personality
Self-Concept Lifestyle
Age Family Life Cycle
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51. 7
Psychographics
The analytical technique used to examine consumer lifestyles and to categorize consumers.
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52. “Strong Shoulders” Moms “Mothers of Invention” Moms7
“Types of Moms”
“June Cleaver” Moms
“Tug-of-War” Moms
“Strong Shoulders” Moms
“Mothers of Invention” Moms
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53. 8 Learning Objective Identify and understand the
psychological factors that affect
consumer buying decisions.
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54. Psychological Influences8
Psychological Influences
Psychological Influences on Buying Decisions
Perception
Motivation
Learning
Beliefs & Attitudes
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55. 8
Perception
Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.
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56. 8 Perception Selective Exposure Selective Distortion Selective
Retention
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57. 8 Perception Selective Exposure
Selective Distortion
Consumer notices certain stimuli
and ignores others
Consumer changes or distorts information that conflicts
with feelings or beliefs
Selective Retention
Consumer remembers only
that information that
supports personal beliefs
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58. A Consumer’s Selective Exposure8
A Consumer’s Selective Exposure
Exposure to over 250 advertisement messages per day
Notices only 11 to 20 ads
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59. Marketing Implications of Perception8
Important attributes
Higher price
Brand names
Quality and reliability
Threshold level of perception
Product changes
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60. Maslow’s Hierarchy of Needs8
Maslow’s Hierarchy of Needs
A method of classifying human needs and motivations into five categories in ascending order of importance.
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61. Maslow’s Hierarchy of Needs8
Motivation
Physiological
Safety
Social
Esteem
Self- Actualization
Maslow’s Hierarchy of Needs
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62. 8
Learning
A process that creates changes in behavior, immediate or expected, through experience and practice.
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63. An experience changes behavior Not learned through direct experience8
Types of Learning
Types of
Learning
Description
Experiential
Conceptual
An experience changes behavior
Not learned through direct experience
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64. Stimulus Generalization8
Stimulus Generalization
A form of learning that occurs when one response is extended to a second stimulus similar to the first.
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65. 8 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
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