Consumer Decision Making

Consumer Decision Making
Chapter 4 Consumer Decision Making Consumer Decision Making Chapter 4 Prepared by Deborah Baker Texas Christian University Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 4 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. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

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. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Learning Objectives (continued)
Chapter 4 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. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Explain why marketing managers should understand
Chapter 4 Consumer Decision Making Learning Objective 1 On Line Explain why marketing managers should understand consumer behavior. On Line How prevalent are the terrorist attacks of September 11, 2001, in consumers’ minds today? Visit New York.com and New York.org to see how the tourism industry in New York is faring. Also check out some of your favorite Web sites. Are references to September 11 still posted? Discussion/Team Activity: Break the class into teams and have each team choose a product that was recently purchased by one of the members. Answer the following questions about this purchase: What product did you buy? What is the brand name? Where did you buy the product? Why? Is this the first time you have made this purchase? If not, how many times have you purchased it? What factors caused you to purchase this product? Why did you buy this brand rather some other? How many brands were considered? Did you do any research before you made this purchase? Explain. Are you pleased with your decision? Would you purchase the brand again? Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 4 Consumer Decision Making Consumer Behavior 1 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. Notes: Understanding consumer behavior can help marketing managers adapt the marketing mix to influence consumer purchasing decisions. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Analyze the components of the consumer decision-making process.
Learning Objective 2 Analyze the components of the consumer decision-making process. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Consumer Decision-Making Process
Chapter 4 Consumer Decision Making Consumer Decision-Making Process 2 A five-step process used by consumers when buying goods or services. Notes: The consumer decision-making process represents a general five-step process that moves the consumer from recognition of a need to the evaluation of a purchase. It is a guideline for studying how consumers make decisions. Note that consumer decisions may not proceed in order through all the processes, and in fact, may end at any time without a purchase decision. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Consumer Decision-Making Process
Chapter 4 Consumer Decision Making Consumer Decision-Making Process 2 Postpurchase Behavior Purchase Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Result of an imbalance between actual and
Need Recognition 2 Result of an imbalance between actual and desired states. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Internal Stimuli and External Stimuli
Chapter 4 Consumer Decision Making Need Recognition 2 Internal Stimuli and External Stimuli Present Status Preferred State Marketing helps consumers recognize an imbalance between present status and preferred state Notes: A marketing manager’s objective is to get consumers to recognize an imbalance between their present status and their preferred state. Advertising and sales promotion often provide this stimulus. Recognition of needs may be triggered by internal stimuli, such as hunger and thirst, or by external stimuli, including package design, advertisements, or a brand name mentioned by a friend. Surveying buyer preferences provides information about consumer wants and needs that can be used to tailor products and services. For example, Proctor & Gamble used the Internet to test market its Crest Whitestrips home-bleaching kit. The test revealed that 80% of potential buyers were women between ages 35 and 54, identifying the best target market. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Any unit of input affecting one or more of the five senses:
Stimulus 2 Any unit of input affecting one or more of the five senses: sight smell taste touch hearing Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

(or attribute or feature)
Chapter 4 Consumer Decision Making Want 2 Recognition of an unfulfilled need and a product (or attribute or feature) that will satisfy it. Notes: Another way that marketers create new products is by observing trends in the marketplace. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Recognition of Unfulfilled Wants
2 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 Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Internal External Information Searches 2
Chapter 4 Consumer Decision Making Information Searches 2 Internal External Process of recalling past information stored in the memory. Process of seeking information in the outside environment. Notes: After recognizing a want or need, the next step is a search for information about the various alternatives available to satisfy it. An information search can occur internally, externally, or both. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Information Search 2 External Information search
Chapter 4 Consumer Decision Making Information Search 2 Internal Information Search Recall information in memory External Information search Seek information in outside environment Non-marketing controlled Marketing controlled Notes: An internal information search is the process of recalling information in memory. This includes prior experience or prior knowledge about a product. An external information search relies on information in the outside environment. This includes personal and public references, advertisements, and publicity. External information may be obtained from non-marketing controlled sources and/or marketing controlled sources. Non-marketing controlled sources include personal experience, personal sources, and public sources such as Underwriters Laboratories. Market controlled sources is biased toward a specific product because it originates with marketers promoting that product. These sources include mass-media advertising, sales promotion, salespeople, product labels and packaging, and the Internet. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

External Information Searches
Chapter 4 Consumer Decision Making External Information Searches 2 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 Notes: The extent to which an individual conducts an external source depends on such factors as the perceived risk of purchasing a product, knowledge, prior experience, and level of interest in the good or service. Discussion/Team Activity: Discuss information searches conducted for products or services recently evaluated or purchased. Characterize this discussion based on the factors described on this slide. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

resulting from an information search,
Chapter 4 Consumer Decision Making Evoked Set 2 Group of brands, resulting from an information search, from which a buyer can choose. Notes: The information search should yield a group of brands, or evoked set, which are the consumer’s preferred alternatives. From this set, consumers will further evaluate the alternatives and make a choice. Discussion/Team Activity: Describe the evoked set derived from information searches previously conducted. What were the characteristics that made these products the preferred alternatives? Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Evaluation of Alternatives
Chapter 4 Consumer Decision Making Evaluation of Alternatives 2 Evoked Set Purchase! Analyze product attributes Rank attributes by importance Use cutoff criteria Notes: Once the evoked set is constructed, the consumer is ready to make a decision. One way to make a choice is to pick product attributes that are important to him/her, then exclude all products in the set that do not meet that criteria. Another way to narrow the number of choices is to use cutoffs, or minimum or maximum levels of an attribute that an alternative must have. Many times, price is an important cutoff attribute. The goal of the marketing manager is to determine which attributes have the most influence on a consumer’s choice, and design a marketing mix that stresses those attributes to the consumer. A single attribute, such as price, may not always explain a consumer’s evaluation of products. Attributes that the marketer may consider important are not always important to the consumer. Brand names, such as Johnson & Johnson, have a significant impact over the choice of products. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

To buy or not to buy... Purchase 2 Marketing
Determines which attributes are most important in influencing a consumer’s choice Marketing Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Explain the consumer’s postpurchase evaluation process.
Learning Objective 3 Explain the consumer’s postpurchase evaluation process. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Cognitive Dissonance 3 Inner tension that a consumer experiences
Chapter 4 Consumer Decision Making Cognitive Dissonance 3 Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. Notes: Once a purchase decision is made, the next step in the process is the evaluation of the product after purchase. Consumers expect certain outcomes from the purchase, and how well these expectations are met determines the level of customer satisfaction. Price often creates high expectations. When people feel inconsistency between their values or opinions and their behavior, they feel an inner tension called cognitive dissonance. In purchase decisions, this is also called “buyer’s remorse.” Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Postpurchase Behavior
Chapter 4 Consumer Decision Making Postpurchase Behavior 3 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 Notes: To minimize cognitive dissonance, consumers try to justify their decisions by seeking new information, avoiding contradictory information, or revoking the original decision by returning the product. Marketing managers can help reduce cognitive dissonance through effective communication with consumers, such as follow-up notes, advertising, and guarantees. Discussion/Team Activity: Discuss any of your purchases that generated cognitive dissonance and what was done to address the situation. What role, if any, did marketing play in minimizing cognitive dissonance? What was the outcome? Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

consumer buying decisions and discuss the significance
Learning Objective 4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Types of Consumer Buying Decisions
Chapter 4 Consumer Decision Making Types of Consumer Buying Decisions 4 More Involvement Less Routine Response Behavior Limited Decision Making Extensive Notes: Consumer buying decisions fall along a continuum of three broad categories: routine response behavior, limited decision making, and extensive decision making. Routine response behavior: Frequently purchased, low-cost goods and services, with low involvement on search and decisions by consumers before making the purchase. Consumers buy first and evaluate later. Limited decision making: Consumer has previous product experience but is unfamiliar with the current brands available. A moderate effort is spent searching for information or in considering alternatives. Extensive decision making: Applies to unfamiliar, expensive products, or an infrequently bought item. The most complex type of consumer buying decisions, and is associated with high involvement on the part of the consumer. Discussion/Team Activity: Name products that fall into each of the decision making descriptions, and describe the decision making process for each. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Five Factors influencing Decisions
4 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 Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Continuum of Consumer Buying Decisions
Chapter 4 Consumer Decision Making Continuum of Consumer Buying Decisions 4 Notes: 1. Exhibit 4.2 compares the three categories of buying decisions. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Routine Response Behavior
4 Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Limited Decision Making
4 Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Extensive Decision Making
4 High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Factors Determining Level of Involvement
Chapter 4 Consumer Decision Making Level of Involvement 4 On Line Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience Factors Determining Level of Involvement On Line: Gardenburger Does the Gardenburger Web site seem more health oriented or taste oriented? What makes you think so? Is the emphasis what you expected it would be? Notes: The level of involvement in the purchase depends on the following factors: Previous experience: When consumers have had previous experience with a product or repeat trials, quick choices are made. Interest: Involvement is directly related to consumer interests, such as cars, motorcycles, or electronics. Perceived risk of negative consequences: As the risk increases, so does the consumer level of involvement. Risks include financial risks, social risks, and psychological risk. Situation: The circumstances of a purchase may transform a low-involvement decision into a high-involvement one. For example, a low-priced brand of wine may be purchased routinely, but a high-involvement decision might be required for purchasing a more prestigious wine for a special occasion. Social visibility: Involvement increases as the social visibility of a product increases. These products that make a statement about the user may include cars, jewelry, furniture, and clothing. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Marketing Implications of Involvement
4 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 Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Factors Influencing Buying Decisions
Chapter 4 Consumer Decision Making Factors Influencing Buying Decisions 4 Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY Notes: The consumer decision-making process is strongly influenced by cultural, social, individual, and psychological factors. Exhibit 4.3 summarizes these influences. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Identify and understand the
Learning Objective 5 Identify and understand the cultural factors that affect consumer buying decisions. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 4 Consumer Decision Making Culture 5 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. Notes: Cultural factors exert the deepest influence over consumer behavior and decision making. Culture is the character of society, and the underlying elements of every culture are values, language, myths, customs, rituals, and laws, as well as material artifacts. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Cultural Influences on Buying Decisions
Chapter 4 Consumer Decision Making Cultural Influences on Buying Decisions 5 Values Language Myths Customs Rituals Laws Components of American Culture Material Artifacts Notes: 1. Exhibit 4.4 lists some defining moments of American culture. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Learned Functional Pervasive Dynamic
Chapter 4 Consumer Decision Making Culture is... 5 On Line Learned Functional Pervasive Dynamic On Line Grateful Dead What kind of marketing program could you design to attract the subculture of Grateful Dead followers? Visit the GD Online Store to see how marketers are currently doing this. What other elements of the site could help you design a successful program? Chuck E. Cheese What evidence can you find on the Chuck E. Cheese Web site that the company has a Hispanic marketing campaign? Explain what you find. Notes: Culture is: Pervasive: Cultural values influence individual life, yet most are completely unaware of its presence. What people eat, how they dress, and what language they speak are all cultural dimensions. Functional: By establishing expectations, culture gives order to society, such as laws. Learned: Culture is not genetic. Instead, consumers must learn what is acceptable from family and friends. Dynamic: It adapts to changing needs and an evolving environment. The rapid growth of technology has accelerated the rate of cultural change. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Value 5 Enduring belief that a specific mode of conduct
Chapter 4 Consumer Decision Making Value 5 Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct. Notes: 1. The most defining element of a culture is its values. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Core American Values 5 Core American Values Success Materialism
Chapter 4 Consumer Decision Making Core American Values 5 Success Materialism Freedom Progress Youth Capitalism Core American Values Notes: Exhibit 4.5 lists components of core American values—those considered central to the American way of life. The personal values of the target market have important implications for marketing managers. When marketers understand the core values, they can target their message more effectively. For example, the personal values of mature adults, baby boomers, and Generations-X and -Y are quite different. Discussion/Team Activity: Discuss the personal values of each of the age groups listed above, and what marketing managers can do to appeal to each group. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Global Language Blunders
Chapter 4 Consumer Decision Making Global Language Blunders 5 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” Notes: Language is another important aspect of culture for the marketing manager. The above examples point out the importance of product name translation, slogans, and promotional messages into foreign languages. Global expansion makes an understanding of the culture of foreign countries even more important. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Subculture 5 A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Social Class 5 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. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Social Class Measurements
5 Wealth Other Variables Income Education Occupation Social Class Measurements Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

The Impact of Social Class on Marketing
Chapter 4 Consumer Decision Making The Impact of Social Class on Marketing 5 Indicates which medium to use for advertising Helps determine the best distribution for products Notes: Marketers are interested in social class for the reasons of determining which medium to use for advertising, and for determining where best to distribute their products. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Social Influences on Buying Decisions
Chapter 4 Consumer Decision Making Social Influences 6 Reference Groups Opinion Leaders Family Members Social Influences on Buying Decisions Notes: Consumers interact socially with reference groups, opinion leaders, and family members to obtain product information and decision approval. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Reference Groups 6 Primary Direct Secondary Reference Groups
Chapter 4 Consumer Decision Making Reference Groups 6 Reference Groups Direct Indirect Primary Secondary Aspirational Non-aspirational Notes: Reference groups are characterized as either direct or indirect. Direct reference groups may be primary or secondary. Primary membership groups include all groups with which people interact regularly in an informal way, such as family, friends, and coworkers. People associate with secondary membership groups less consistently and more formally. This includes clubs, professional groups, and religious groups. Indirect reference groups include aspirational reference groups, such as organizations that a person would like to join. On the other hand, a non-aspirational reference group is one that someone wants to avoid being identified with. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Implications of Reference Groups
Chapter 4 Consumer Decision Making Implications of Reference Groups 6 They serve as information sources and influence perceptions They affect an individual’s aspiration levels Their norms either constrain or stimulate consumer behavior Notes: For marketers, reference groups have three implications, as stated on this slide. Understanding the effect of reference groups on a product is important for marketers in tracking the product life cycle. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

influences the opinion
Chapter 4 Consumer Decision Making Opinion Leaders 6 An individual who influences the opinion of others. Notes: Reference groups often include individuals known as opinion leaders who influence others. Opinion leaders are often the first to try new products. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Opinion Leaders 6 Peer Groups Group Referrals Movie Stars
Chapter 4 Consumer Decision Making Opinion Leaders 6 Peer Groups Group Referrals Movie Stars Notes: On a national level, companies sometimes use prominent public figures, such as movie stars, sports figures, and celebrities to promote products. For example, Nike signed Tiger Woods as its spokesperson. Sports Figures Celebrities Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Purchase Roles in the Family
Chapter 4 Consumer Decision Making Family 6 On Line Children Influence Purchase Decisions Purchase Roles in the Family Initiators Influencers Decision Makers Purchasers Consumers On Line GameGirlz What kid of games are available at the GameGirlz Web site? How do the games “for” girls differ from the games “for” boys at GameSpot? Notes: The family is the most important social institution for many consumers, influencing values, attitudes, and buying behavior. Purchase decisions vary significantly among family members, who assume a variety of roles in the purchase process. Initiators are the ones who suggest or initiate the purchase process. Influencers are those members whose opinions are valued. Decision Makers actually makes the decision to buy or not to buy. The purchaser is the one who exchanges money for the product. The consumer is the one who uses the product. Children can have great influence over the purchase decision. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Relationships among Purchasers and Consumers in the Family
Chapter 4 Consumer Decision Making Relationships among Purchasers and Consumers in the Family 6 Notes: Exhibit 4.10 represents the patterns of family purchasing relationships that are possible. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Individual Influences
Chapter 4 Consumer Decision Making Individual Influences 7 On Line Gender Age Family Life Cycle Personality Self-Concept Lifestyle Individual Influences On Line: Bally Total Fitness Does Bally Total Fitness use its Web site as a means to connect with consumers via their body image? Does the content and design of the site surprise you? Why or why not? Notes: A person’s buying decisions are also influenced by unique personal characteristics, such as gender; age and family life cycle; and personality, self-concept, and lifestyle. The physiological differences in men and women result in the need for different products. In addition, the distinct cultural, social, and economic roles of men and women result in differing decision-making processes. Men and women shop differently. As a broad statement, women enjoy shopping; men shop out of necessity in more convenient stores with less variety. Trends in gender marketing are influenced by the changing roles of men and women. With working women on the rise, many industries are directing their marketing attention to women. The age and family life cycle can have a significant impact on consumer behavior. Consumer tastes in clothes, food, cars, and recreation are often age related. Related to age is the family life cycle, an orderly series of stages through which consumers’ attitudes and behavior evolve through maturity, experience, and changing income and status. Personality is a broad concept combining psychological makeup and environmental forces. Self-concept combines the ideal self-image and the real self-image. Consumers seldom buy products that jeopardize their self-image. A lifestyle is a mode of living as identified by a person’s activities, interests, and opinions. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Family Life Cycle 7 An orderly series of stages through which consumers’ attitudes and behavioral tendencies evolve through maturity, experience, and changing income and status. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 4 Consumer Decision Making Psychographics 7 The analytical technique used to examine consumer lifestyles and to categorize consumers. Notes: Lifestyle characteristics are useful in segmenting and targeting consumers. Many companies use psychographics to better select and understand their market segments. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Learning Objective 8 Identify and understand the psychological factors that affect consumer buying decisions. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Psychological Influences
Chapter 4 Consumer Decision Making Psychological Influences 8 Psychological Influences on Buying Decisions Perception Motivation Learning Beliefs & Attitudes Notes: The psychological influences are the factors consumers use to interact with their world. They are the tools used to recognize feelings, gather and analyze information, formulate thoughts and opinions, and take action. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Perception 8 Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Selective Exposure Distortion Retention
Perception 8 Selective Exposure Distortion Retention Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Perception 8 Selective Exposure Selective Distortion
Chapter 4 Consumer Decision Making Perception 8 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 Discussion/Team Activity: Discuss examples representing each of the described perception states. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

A Consumer’s Selective Exposure
8 Exposure to over 250 advertisement messages per day Notices only 11 to 20 ads Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Marketing Implications of Perception
Chapter 4 Consumer Decision Making Marketing Implications of Perception 8 Important attributes Higher price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Notes: Marketers must recognize the importance of signals in a consumers perception of products. Marketing managers first identify the important attributes such as those listed on this slide, then design signals to communicate these attributes to consumers. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Maslow’s Hierarchy of Needs
Chapter 4 Consumer Decision Making Maslow’s Hierarchy of Needs 8 A method of classifying human needs and motivations into five categories in ascending order of importance. Notes: By studying motivation, marketers can analyze the major forces influencing consumers’ purchase decisions. When a product is purchased a need is usually fulfilled. These needs become motives when aroused sufficiently. Motives are the driving forces that cause a person to take action to satisfy those needs. Maslow’s Hierarchy of Needs, shown in Exhibit 4.12 and on Slide 66, arranges needs in ascending order of importance. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Maslow’s Hierarchy of Needs
Chapter 4 Consumer Decision Making Motivation 8 Physiological Safety Social Esteem Self- Actualization Maslow’s Hierarchy of Needs Notes: As one need is fulfilled, a higher level need becomes more important. The basic human needs are physiological: the need for food, water, and shelter. Safety needs include security and freedom from pain and discomfort. Social needs include love and a sense of belonging. Self-esteem includes self-respect, a sense of accomplishment, and the prestige and recognition for those accomplishments. The highest level is self-actualization, or finding self-fulfillment and self-expression. Maslow felt that very few people ever attain this level. Discussion/Team Activity: Discuss advertisements and advertising slogans that appeal to each level of Maslow’s Hierarchy of Needs. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Chapter 4 Consumer Decision Making Learning 8 A process that creates changes in behavior, immediate or expected, through experience and practice. Notes: Almost all consumer behavior results from learning, the process that creates changes in behavior through experience and practice. There are two types of learning: experiential and conceptual. Reinforcement and repetition boost learning. This is a key strategy in promotional campaigns because it can lead to increased learning. Generally, to enhance learning, advertising messages should be spread over time rather than clustered together. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

An experience changes behavior Not learned through direct experience
Types of Learning 8 Types of Learning Description Experiential Conceptual An experience changes behavior Not learned through direct experience Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Stimulus Generalization
8 A form of learning that occurs when one response is extended to a second stimulus similar to the first. Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

Belief Attitude Beliefs and Attitudes 8
Chapter 4 Consumer Decision Making Beliefs and Attitudes 8 On Line 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. On Line Save Harry (Potter) Center for Science in the Public Interest Identify the beliefs and attitudes of the supporters of SaveHarry.com. Can you think of any way to turn these negative beliefs about product attributes into positive ones? Should Coke respond? If so, how? Notes: Beliefs and attitudes are closely linked to values. If a product is meeting its goals, positive attitudes toward the product need to be reinforced. If the brand is not succeeding, the marketing manager must work to change the consumers’ attitudes toward it. Changes in attitudes can be accomplished in three ways: * Changing beliefs about the brand’s attributes * Changing the relative importance of these beliefs * Adding new beliefs Attitude Chapter 4 Essentials of Marketing 4e, Lamb Hair McDaniel ©2005 South-Western/Thomson Learning

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