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5 MKTG CHAPTER Lamb, Hair, McDaniel 2008-2009 Consumer Decision Making
Chapter 5 Consumer Decision Making MKTG Lamb, Hair, McDaniel 5 CHAPTER Consumer Decision Making Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University
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Learning Outcomes LO1 LO2 LO3 Explain why marketing managers
Chapter 5 Consumer Decision Making Learning Outcomes Explain why marketing managers should understand consumer behavior Analyze the components of the consumer decision-making process Explain the consumer’s postpurchase evaluation process LO1 LO2 LO3
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Learning Outcomes LO4 LO5 LO6
Chapter 5 Consumer Decision Making Learning Outcomes Identify the types of consumer buying decisions and discuss the significance of consumer involvement Identify and understand the cultural factors that affect consumer buying decisions Identify and understand the social factors LO4 LO5 LO6
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Learning Outcomes LO7 LO8
Chapter 5 Consumer Decision Making Learning Outcomes Identify and understand the individual factors that affect consumer buying decisions Identify and understand the psychological factors that affect consumer buying decisions LO7 LO8
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Consumer Behavior LO1 Consumer Behavior
Chapter 5 Consumer Decision Making Consumer Behavior 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. LO1
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REVIEW LEARNING OUTCOME
Chapter 5 Consumer Decision Making REVIEW LEARNING OUTCOME LO1 Understanding Consumer Behavior Consumer behavior consumers make purchase decisions consumers use and dispose of product = HOW
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Consumer Decision-Making Process
Chapter 5 Consumer Decision Making Consumer Decision-Making Process Consumer Decision-Making Process A five-step process used by consumers when buying goods or services. LO2
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Consumer Decision-Making Process
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 LO2
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Need Recognition LO2 Need Recognition
Chapter 5 Consumer Decision Making Need Recognition Need Recognition Result of an imbalance between actual and desired states. LO2
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Chapter 5 Consumer Decision Making
Need Recognition Marketing helps consumers recognize an imbalance between present status and preferred state. Present Status Preferred State Internal Stimuli External LO2
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Chapter 5 Consumer Decision Making
Stimulus Stimulus Any unit of input affecting one or more of the five senses: sight smell taste touch hearing LO2
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Recognition of Unfulfilled Wants
Chapter 5 Consumer Decision Making Recognition of Unfulfilled Wants When a current product isn’t performing properly When the consumer is running out of a product When another product seems superior to the one currently used LO2
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Information Search LO2 Internal Information Search
Chapter 5 Consumer Decision Making Information Search Internal Information Search Recall information in memory External Information search Seek information in outside environment Nonmarketing controlled Marketing controlled LO2
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External Information Searches
Chapter 5 Consumer Decision Making External Information Searches Need More Information More Risk Less knowledge Less product experience High level of interest Lack of confidence Less Risk More knowledge More product experience Low level of interest Confidence in decision Need Less Information LO2
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Evoked Set LO2 Evoked Set
Chapter 5 Consumer Decision Making Evoked Set Evoked Set Group of brands, resulting from an information search, from which a buyer can choose LO2
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Evaluation of Alternatives and Purchase
Chapter 5 Consumer Decision Making Evaluation of Alternatives and Purchase Evoked Set Purchase! Analyze product attributes Rank attributes by importance Use cutoff criteria LO2
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Purchase LO2 To buy or not to buy... Marketing
Chapter 5 Consumer Decision Making Purchase To buy or not to buy... Determines which attributes are most important in influencing a consumer’s choice Marketing LO2
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REVIEW LEARNING OUTCOME
Chapter 5 Consumer Decision Making REVIEW LEARNING OUTCOME LO2 Consumer Decision-Making Process CULTURAL SOCIAL PSYCHOLOGICAL INDIVIDUAL Need Recognition 1 Information Search 2 Evaluate Alternatives 3 Purchase 4
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Cognitive Dissonance LO3 Cognitive Dissonance
Chapter 5 Consumer Decision Making LO3 Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.
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Postpurchase Behavior
Chapter 5 Consumer Decision Making LO3 Consumers can reduce dissonance by: Seeking information that reinforces positive ideas about the purchase Avoiding information that contradicts the purchase decision Revoking the original decision by returning the product Marketing can minimize through: Effective Communication Follow-up Guarantees Warranties
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Consumer Buying Decisions and Consumer Involvement
Chapter 5 Consumer Decision Making Consumer Buying Decisions and Consumer Involvement More Involvement Less Routine Response Behavior Limited Decision Making Extensive LO3
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Five Factors Influencing Decisions
Chapter 5 Consumer Decision Making 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 LO3
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Continuum of Consumer Buying Decisions
Chapter 5 Consumer Decision Making Continuum of Consumer Buying Decisions LO3
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Routine Response Behavior
Chapter 5 Consumer Decision Making Routine Response Behavior Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision LO3
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Limited Decision Making
Chapter 5 Consumer Decision Making Limited Decision Making Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide LO3
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Extensive Decision Making
Chapter 5 Consumer Decision Making Extensive Decision Making High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance LO3
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Factors Determining the Level of Consumer Involvement
Chapter 5 Consumer Decision Making Factors Determining the Level of Consumer Involvement Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience LO3
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Marketing Implications of Involvement
Chapter 5 Consumer Decision Making Marketing Implications of Involvement High-involvement purchases require: Extensive and informative promotion to target market Low-involvement purchases require: In-store promotion, eye-catching package design, and good displays. Coupons, cents-off, 2-for-1 offers LO3
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REVIEW LEARNING OUTCOME
Chapter 5 Consumer Decision Making REVIEW LEARNING OUTCOME LO3 Consumer Buying Decisions and Consumer Involvement Routine Limited Extensive Previous experience Interest Perceived risk of negative consequences Situation Social visibility
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Factors Influencing Buying Decisions
Chapter 5 Consumer Decision Making LO4 Social Factors Individual Factors Psycho-logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY
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Culture Chapter 5 Consumer Decision Making LO4 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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Components of Culture LO4 Values Language Myths Customs Rituals Laws
Chapter 5 Consumer Decision Making LO4 Myths Language Values Customs Rituals Laws Material artifacts
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Culture is. . . LO4 Pervasive Functional Learned Dynamic
Chapter 5 Consumer Decision Making LO4 Learned Functional Pervasive Dynamic
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Value Chapter 5 Consumer Decision Making LO4 Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.
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Core American Values LO4 Success Materialism Freedom Progress Youth
Chapter 5 Consumer Decision Making LO4 Success Materialism Freedom Progress Youth Capitalism Online
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Subculture LO4 Subculture
Chapter 5 Consumer Decision Making LO4 Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group. Online
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Social Class LO4 Social Class
Chapter 5 Consumer Decision Making LO4 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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Social Class Measurements
Chapter 5 Consumer Decision Making LO4 Wealth Other Variables Income Education Occupation
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Social Class and Education
Chapter 5 Consumer Decision Making LO4
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The Impact of Social Class on Marketing
Chapter 5 Consumer Decision Making LO4 Indicates which medium to use for advertising Helps determine the best distribution for products
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REVIEW LEARNING OUTCOME
Chapter 5 Consumer Decision Making REVIEW LEARNING OUTCOME LO4 Cultural Factors
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Social Influences LO5 Reference Groups Opinion Leaders Family Members
Chapter 5 Consumer Decision Making LO5 Reference Groups Opinion Leaders Family Members
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Reference Group LO5 Reference Group
Chapter 5 Consumer Decision Making LO5 Reference Group A group in society that influences an individual’s purchasing behavior.
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Influences of Reference Groups
Chapter 5 Consumer Decision Making LO5 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 LO5 Opinion Leaders
Chapter 5 Consumer Decision Making LO5 Opinion Leaders An individual who influences the opinion of others.
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Marketers are looking to Web logs, or blogs, to find opinion leaders
Chapter 5 Consumer Decision Making LO5 Teenagers Movie stars Sports figures Celebrities Marketers are looking to Web logs, or blogs, to find opinion leaders
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Purchase Process Roles in the Family
Chapter 5 Consumer Decision Making LO5 Purchase Process Roles in the Family Initiators Influencers Decision Makers Purchasers Consumers
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Relationships among Purchasers and Consumers in the Family
Chapter 5 Consumer Decision Making LO5
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REVIEW LEARNING OUTCOME
Chapter 5 Consumer Decision Making REVIEW LEARNING OUTCOME LO6 Social Factors Reference Groups Information sources Affect aspiration levels Constrain or stimulate consumer behavior Opinion Leaders People You Know Celebrities Family Socialization Process Initiators Decision Makers Consumers Influencers Purchasers
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Self-Concept Lifestyle
Chapter 5 Consumer Decision Making Individual Influences Gender Age Life Cycle Personality Self-Concept Lifestyle LO6
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Psychological Influences
Chapter 5 Consumer Decision Making Psychological Influences Perception Motivation Learning Beliefs & Attitudes LO7
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LO7 Perception Perception
Chapter 5 Consumer Decision Making Perception Perception Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture. LO7
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LO7 Perception Selective Exposure Distortion Retention
Chapter 5 Consumer Decision Making Perception Selective Exposure Distortion Retention LO7
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LO7 Perception Selective Exposure Selective Distortion
Chapter 5 Consumer Decision Making Perception Selective Exposure Selective Distortion Selective Retention Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Consumer remembers only that information that supports personal beliefs LO7
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Marketing Implications
Chapter 5 Consumer Decision Making Marketing Implications of Perception Important attributes Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Foreign consumer perception LO7
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LO7 Motivation Maslow’s Hierarchy of Needs
Chapter 5 Consumer Decision Making Motivation Maslow’s Hierarchy of Needs A method of classifying human needs and motivations into five categories in ascending order of importance. LO7
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Maslow’s Hierarchy of Needs
Chapter 5 Consumer Decision Making Maslow’s Hierarchy of Needs Exhibit 5.5 Maslow’s Hierarchy of Needs LO7
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An experience changes behavior Not learned through direct experience
Chapter 5 Consumer Decision Making Types of Learning Experiential Conceptual An experience changes behavior Not learned through direct experience Online LO7
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LO7 Beliefs and Attitudes Belief Attitude
Chapter 5 Consumer Decision Making Beliefs and Attitudes Belief Attitude An organized pattern of knowledge that an individual holds as true about his or her world. A learned tendency to respond consistently toward a given object. LO7
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LO7 Changing Attitudes Change beliefs about the brand’s attributes
Chapter 5 Consumer Decision Making Changing Attitudes Change beliefs about the brand’s attributes Change the relative importance of these beliefs Add new beliefs LO7
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REVIEW LEARNING OUTCOME
Chapter 5 Consumer Decision Making REVIEW LEARNING OUTCOME LO7 Psychological Factors Learning Experiential Conceptual Selective Exposure Perception Selective Retention Needs Motivation Psychological Esteem Safety Social Beliefs & Attitudes Changing Beliefs about Attributes Changing Importance of Beliefs Adding New Beliefs
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