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3 Marketing Management Marketing Management SECTION 1 SECTION 1
menu SECTION 1 SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors C H A P T E R T H R E E Marketing Management Marketing Management 7th Edition 7th Edition J. Paul Peter James H. Donnelly, Jr. J. Paul Peter James H. Donnelly, Jr. 3 Consumer Behavior
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Overview of the Buying Process CONSUMER DECISION MAKING
menu SECTION 1 Overview of the Buying Process Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors SOCIAL INFLUENCES MARKETING INFLUENCES SITUATIONAL INFLUENCES PSYCHOLOGICAL INFLUENCES 3 CONSUMER DECISION MAKING FIGURE 3-1
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3 SECTION 1 Understanding Consumer Behavior
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Understanding Consumer Behavior An understanding of consumers and their needs and purchasing behavior shapes successful marketing. No single theory of consumer behavior can totally explain why consumers behave the way they do. 3
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3 SECTION 1 Cultural Influences On Consumer Behavior
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Cultural Influences On Consumer Behavior Achievement and success activity – Hard work is good, natural and healthy; leads to success Efficiency and practicality – Admiration for things that solve problems; solving problems is good Material comfort – “The good life” Individualism – Self-reliance, self-interest 3
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3 SECTION 1 Cultural Influences On Consumer Behavior
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Cultural Influences On Consumer Behavior Freedom – Freedom of choice External conformity – Desire for acceptance Humanitarianism – Caring for others—doing good Youthfulness – Young at heart, especially in appearance and style Fitness and health – Caring about one’s body and continuing wellness 3
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3 SECTION 1 Understanding Cultural Impact On Consumer Behavior
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Understanding Cultural Impact On Consumer Behavior The family, religious organizations and educational institutions transmit cultural values Educational institutions are playing an ever-growing role Many sub cultural barriers are decreasing because of mass communication, mass transit, and decline of the influence of religious values 3
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3 SECTION 1 Social Classes Upper Americans Middle Class
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Social Classes Upper Americans 14% of the population High income – high quality, high prestige brands Middle Class 34% of the population Concerned with following media recommendations and what peers say is popular 3
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3 SECTION 1 Social Classes Working Class Lower Americans
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Social Classes Working Class 38% of the population “Family folk” – depend upon relatives for financial and emotional support Lower Americans 16% of the population Very diversified, from frugality to instant gratification 3
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3 SECTION 1 Reference Groups and Families
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Reference Groups and Families Primary reference groups include family and close friends while secondary reference groups include fraternal and professional organizations The family constitutes an important reference group. It has been suggested that the home, rather than an individual, defines consumer behavior because the purchase may serve multiple users of these goods and services. 3
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3 SECTION 1 Decision Influences
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Decision Influences PRODUCT INFLUENCES As a key task, marketers differentiate their products from their competitors and create the perception of a worthwhile product purchase. PRICE INFLUENCES 3 Today’s value-conscious consumers may buy products more on the basis of price than other attributes.
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3 SECTION 1 Decision Influences
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Decision Influences PROMOTION INFLUENCES Marketing communications plays a critical role in informing consumers about products and services. PLACE INFLUENCES 3 Convenience increases the probability of consumers finding and buying certain products.
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3 SECTION 1 Situational Influences
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Situational Influences Physical features are the most readily apparent features of a situation. Social features provide additional depth to a description of a situation. Time is a dimension of situations that may be specified in units ranging from time of day to season of year. Task features include intent or requirement to select, shop for, or obtain information about a purchase. Current conditions are things like momentary moods rather than chronic individual traits 3
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3 SECTION 1 Psychological Influences
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Psychological Influences Product knowledge refers to the amount of information a consumer has stored in his or her memory about product classes, brands, models and ways to purchase them. Product involvement refers to a consumer’s perception of the importance or personal relevance of an item. 3
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3 SECTION 1 Decision Making Styles
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Decision Making Styles Extensive decision making (or Extensive Problem Solving) > Requires high degrees of time and effort because the purchase is complex, high priced or has high importance to the consumer Limited decision making (or Limited Problem Solving) > Less time and effort but still may involve trips to several stores to compare brands and and styles Routine decision making (or Routine Problem Solving) > The most common way people purchase most packaged goods. Products are simple, inexpensive and familiar 3
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3 SECTION 1 Decision Making Process NEED RECOGNITION
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Decision Making Process NEED RECOGNITION ALTERNATIVE SEARCH ALTERNATIVE EVALUATION 3 PURCHASE DECISION POSTPURCHASE EVALUATION
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Maslow’s Hierarchy of Needs
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Maslow on Needs Maslow’s Hierarchy of Needs Self-actualization – to actualize all that a person can become Esteem needs – self-aware and important to others Belongingness – need for companionship Safety Needs – protection from harm, ill health, et al Physiological Needs – survival needs of all humans 3
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3 SECTION 1 Data Sources Internal sources – Comes from experience
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Data Sources Internal sources – Comes from experience Group sources – Communication from other people Marketing sources – Advertising, sales people, packaging Public sources – Publicity from article, independent ratings Experiential sources – Handling, examining and trying the actual product 3
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3 SECTION 1 Alternative Evaluation A Process:
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Alternative Evaluation A Process: Consumer completes information gathering Consumer identifies alternative(s) Differences in alternative characteristics identified Alternative’s characteristics compared to the characteristics deemed most needed and relevant The favored brand generally offers the most desirable attributes The consumer buys the alternative with the greatest number of desired characteristics 3
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menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Purchasing Traditional risk theorists believe that consumers tend to make risk minimizing decisions based on their perception of risk associated with a particular purchase. Consumers generally try to reduce their risk by reducing negative consequences or by reducing perceived uncertainty. 3
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3 SECTION 1 Post-purchase Evaluation Cognitive Dissonance:
menu SECTION 1 Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors Post-purchase Evaluation Cognitive Dissonance: > Inconsistency or disharmony with attitudes and beliefs Anxiety over decisions occur when: > The decision carries importance financially, psychologically, or both. > The alternatives appear plentiful > The forgone alternatives display many favorable features 3
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3 SECTION 1 The Authors menu J. Paul Peter, Ph.D.
Chapter Three Overview of Buying Process Understanding Consumer Behavior Cultural Influences Understanding Cultural Impact Social Classes Reference Groups and Families Decision Influences Situational Influences Psychological Influences Decision Making Styles Decision Making Process Maslow on Needs Data Sources Alternative Evaluation Purchasing The Authors The Authors J. Paul Peter, Ph.D. University of Wisconsin – Madison 3Click image to go to author’s web site James H. Donnelly, Jr., Ph.D. University of Kentucky – Lexington 3Click image to go to author’s web site 3 Marketing Management 7th Edition – McGraw-Hill 3Click on the book to go to the book site PowerPoint design by Lance Fuhrer, MBA PowerPoint content by Larry Fuhrer, MBA, MBA Keller Graduate School of Management of DeVry University
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