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Consumer Decision Making
Chapter 4 Consumer Decision Making Prepared by Deborah Baker Texas Christian University Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Chapter 4 Objectives (continued)
1. 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. (continued) Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Chapter 4 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. 6. Identify and understand the social factors that affect consumer buying decisions. (continued) Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Chapter 4 Objectives 7. Identify and understand the individual factors that affect consumer buying decisions. 8. Identify and understand the psychological factors that affect consumer buying decisions. Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Understanding Consumer Behavior
Describes how consumers make purchase decisions Describes how they use and dispose of goods/services Reduces uncertainty when creating the marketing mix Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Consumer Decision-Making Process
Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps Information Search Evaluation of Alternatives Purchase Postpurchase Behavior Chapter 4 Ver 2e
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Need Recognition Stimuli
Internal External Marketing helps consumers recognize an imbalance between present status and preferred state Preferred State Present Status Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Information Search Internal Information Search
Recall information in memory External Information search Seek information in outside environment Non-marketing controlled source Marketing controlled source Chapter 4 Ver 2e ©2000 South-Western College Publishing
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More product experience Less product experience
Information Search 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 Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Evaluation of Alternatives
Evoked Set Evaluation of Products Analyze product attributes Use cutoff criteria Rank attributes by importance Purchase! Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Purchase To buy or not to buy... Marketing
Determines which attributes are most important in influencing a consumer’s choice Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Effective Communication Guarantees Warranties
Postpurchase Behavior Cognitive Dissonance ? Can minimize through: Effective Communication Follow-up Guarantees Warranties Marketing Did I make a good decision? Did I buy the right product? Did I get a good value? Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Types of Consumer Buying Decisions
Routine Response Behavior Limited Decision Making Extensive Less Involvement More Involvement Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Types of Consumer Buying Decisions
Routine Response Behavior Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision Limited Decision Making Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide Extensive Decision Making High involvement in selection process High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Factors Determining Level of Involvement
Level of Consumer Involvement Previous Experience Interest Factors Determining Level of Involvement Perceived Risk of Negative Consequences Social Visibility Situation Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Psycho- logical Factors
Factors Influencing Buying Decisions Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Components of American
Cultural Factors Components of American Culture Values Language Myths Customs Rituals Laws Material Artifacts Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Cultural Factors Core American Values Success Materialism Freedom
Consumer Decision Making Cultural Factors Core American Values Success Materialism Freedom Progress Youth Capitalism Chapter 4 Ver 2e ©2000 South-Western College Publishing Chapter 4
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Social Factors Social Influences Reference Groups Family Members
Opinion Leaders Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Types of Reference Groups
Direct Indirect Primary Secondary Aspirational Non-aspirational Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Purchase Roles in the Family
Instigators Influencers Decision-Makers Purchasers Consumers Purchase Roles in the Family Children Influence Purchase Decisions Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Individual Influences Self-Concept Lifestyle
Individual Factors Individual Influences Gender Personality Self-Concept Lifestyle Age Life Cycle Stage Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Psychological Influences on Buying Decisions
Psychological Factors Psychological Influences on Buying Decisions Perception Motivation Learning Beliefs & Attitudes Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Perception Selective Exposure Distortion Retention
Decide which stimuli to notice and which to ignore Distortion Distort information that conflicts with beliefs Retention Remember only information that supports feelings and beliefs Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Self- Actualization Needs
Motivation Physiological Needs Safety Needs Social Needs Esteem Needs Self- Actualization Needs Maslow’s Hierarchy of Needs Chapter 4 Ver 2e ©2000 South-Western College Publishing
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An experience changes behavior Not learned through direct experience
Learning Types of Learning Description Experiential Conceptual An experience changes behavior Not learned through direct experience Chapter 4 Ver 2e ©2000 South-Western College Publishing
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Beliefs and Attitudes Description Belief Attitude
An organized pattern of knowledge that an individual holds as true. Attitude Learned tendency to respond consistently toward an object Chapter 4 Ver 2e ©2000 South-Western College Publishing
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