1. Consumer Behavior: How and Why We Buy
Chapter 5
Consumer Behavior: How and Why We Buy

2. Chapter Objectives
Define consumer behavior and explain why consumers buy what they do
Describe the prepurchase, purchase, and postpurchase activities
Explain how internal factors influence consumers’ decision-making processes
Show how situational factors influence consumer behavior
Explain how consumers’ relationships influence their decision-making processes
Show how the Internet offers consumer-to-consumer marketing opportunities
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

3. Real People, Real Choices: Decision Time at (RED)
What is the optimal way to generate the most money for the Global Fund?
Option 1: Expand the (RED) model based on what the research revealed about the teen market
Option 2: Stick with the existing (RED) model
Option 3: Expand the (RED) model to include more traditional non-profit aspects
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

4. Decisions, Decisions
Consumer behavior: The process we use to select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy needs/desires
Internal, situational, and social factors influence consumer behavior
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

5. Consumer Behavior Varies
The amount of effort expended by consumers varies according to:
Extended problem-solving vs. habitual decision-making
Involvement: Relative importance of perceived consequences of the purchase
Perceived risk: Choice of product has potentially negative consequences
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

6. Decision-Making Process: Step 1: Problem Recognition
Occurs when consumer sees a significant difference between current state and ideal state
Marketers can develop ads that stimulate problem recognition
Example: radio ads promoting restaurants which are played at lunchtime
Example: TV ad showing excitement of owning a new car
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

7. Decision-Making Process: Step 2: Information Search
Consumers need adequate information to make a reasonable decision
Consumers search memory and the environment for information
Internet search engines, portals, or “shopping robots” are being increasingly relied upon
Behavioral targeting:
Marketers deliver ads for products consumers look for by watching what they do online
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

8. Decision-Making Process: Step 3: Evaluation of Alternatives
A consumer identifies a small number of products in which he or she is interested, then narrow choices and compare pros/cons
Evaluative criteria: Product characteristics consumers use to compare competing alternatives
Marketers identify and discuss important evaluative criteria
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

9. Decision-Making Process: Step 4: Product Choice
Consumers often rely on heuristics to make decisions
Heuristics: A mental rule of thumb used for a speedy decision, such as . . .
Price equals quality
Brand loyalty
Country of origin
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

10. Decision-Making Process: Step 5: Postpurchase Evaluation
Consumer satisfaction/dissatisfaction after purchase of product is critical
Degree of satisfaction is influenced by whether or not expectations of product quality are met/exceeded
Marketing communications must create accurate expectations for the product
Cognitive dissonance is common
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

11. Internal Influences on Consumers’ Decisions
Multiple factors cause individual consumers to interpret information about the outside world differently:
Perception
Motivation
Learning
Attitudes
Personality
Age group
Lifestyle
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

12. Perception Perception:
Process by which we select, organize, and interpret information from outside world
Three factors are necessary for perception to occur
Exposure: capable of registering a stimulus
Attention: mental processing activity
Interpretation: assigning meaning to a stimulus
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

13. Motivation
Motivation: Internal state that drives us to satisfy needs by activating goal-oriented behavior
The hierarchy of needs categorizes motivation as being related to five different types of needs
Need types include physiological, safety, belongingness, ego, and self-actualization
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

14. Learning Learning: Behavioral learning Cognitive learning theory
A relatively permanent change in behavior caused by information or experience
Behavioral learning
Classical conditioning
Operant conditioning
Stimulus generalization
Cognitive learning theory
Observational learning
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

15. Attitudes Attitudes: Lasting evaluations of a person, object, or issue
Three attitude components
Affect (feeling): emotional response
Cognition (knowing): beliefs or knowledge
Behavior (doing): intention to do something
Marketers decide which attitude component will drive consumer preferences
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

16. Personality Personality: Personality traits: Self-concept
The set of unique psychological characteristics that consistently influences the way a person responds to situations in the environment
Personality traits:
Innovativeness, materialism, self-confidence, sociability, need for cognition
Self-concept
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

17. Age Group Nostalgia is often used to market goods
Goods/services often appeal to a specific age group
Purchases are often associated with a particular stage in the family life cycle
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

18. Lifestyle
Lifestyle: A pattern of living that determines how people choose to spend their time, money, and energy
Psychographics: Group consumers according to psychological and behavioral similarities
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

19. Situational Influences on Consumers’ Decisions
Many situational influences shape purchase choices:
Important dimensions of the physical environment include décor, smells, and lighting
Arousal and pleasure determine consumers’ reaction to store environment
Entertainment helps enhance the shopping experience
Time is a situational factor
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

20. Social Influences on Consumer Decisions
We are members of many groups that influence our buying decisions:
Culture/subcultures
Social class
Group memberships
Opinion leaders
Gender roles
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

21. Culture and Subcultures
The values, beliefs, customs, and tastes produced or practiced by a group of people
Includes key rituals like weddings and funerals
Cultural values are important
Subculture:
A group within a society who share a distinctive set of beliefs, characteristics, or common experiences
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

22. Emerging Lifestyle Trends
Social movements within society also influence consumer choices
Consumerism
A social movement that attempts to protect consumers from harmful business practices
Resulted in the Consumer Bill of Rights:
Right to be safe; right to be informed; right to be heard; right to choose freely
Environmentalism
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

23. Emerging Lifestyle Trends
Environmentalism
Seeks conservation and improvement of the natural environment
Kyoto Protocol – reduces greenhouse gasses
Environmental stewardship – firms protect or enhance environment in business activities
Green marketing – marketing strategy that supports environmental stewardship
Greenwashing – environmentally friendly claims that are exaggerated
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

24. Social Class Social class:
The overall rank or social standing of groups of people within a society, according to factors such as family background, education, occupation, and income
Status symbols such as luxury products allow people to flaunt their social classes
Mass-class consumers are targeted by many marketers
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

25. Group Memberships Reference group:
A set of people a consumer wants to please or imitate and that therefore has an effect on an individual’s evaluations, aspirations, or behavior
Conformity means that people change behavior due to group pressure
Referred to as the bandwagon effect
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

26. Opinion Leaders Opinion leaders
Are people who influence others’ attitudes or behaviors because others perceive them as possessing expertise about the product
Have high interest in product category
Update knowledge by reading, talking with salespeople, etc.
Impart both positive and negative product information
Are among the first to buy goods
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

27. Gender Roles
Gender roles Society’s expectations regarding appropriate attitudes, behaviors, and appearance for men and women
Consumers often associate “sex-typed” products with one gender or the other
Sex roles are constantly evolving
Metrosexuals
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

28. Consumer-to-Consumer E-Commerce (C2C)
C2C E-Commerce:
Online communications and purchases that occur among individuals without directly involving the manufacturer or retailer
Popular online C2C formats include:
Gaming
Chat rooms, rings, lists, and boards
Social networks
Online brand communities
Blogs
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

29. Real People, Real Choices: Decision Made at (RED)
Julia chose option 1
Julia felt (RED) should complement partnerships with international brands with smaller special editions appealing to youth
Implementation: (RED) skateboard was introduced in 2008 to target teens
Measuring success: Brand tracking study measured awareness, consideration, preference, and brand momentum
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

30. Keeping It Real: Fast-Forward to Next Class Decision Time at NCR
Meet Brad Tracy, VP of Americas Marketing Deployment for NCR
NCR recently released a new generation of point of sale (POS) workstations
The decision to be made: Should NCR continue to attend a particular trade show?
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

31. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2009 Pearson Education, Inc.  
Publishing as Prentice Hall
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall