1. Chapter 5 Consumer Decision Making

2. Consumer Decision-Making Process
Postpurchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social, Individual and
Psychological Factors affect all steps

3. External Information Searches
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

4. Evaluation of Alternatives
Evoked Set
Purchase!
Evaluation of Products Analyze product attributes Use cutoff criteria Rank attributes by importance

5. Postpurchase Behavior
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

6. Types of Consumer Buying Decisions
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making
Less
Involvement
More
Involvement

7. Level of Involvement Factors Determining Level of Involvement
Situation
Social Visibility
Interest
Perceived Risk of Negative Consequences
Previous Experience
Factors Determining Level of Involvement

8. Marketing Implications of Involvement
High-involvement purchases require:
extensive promotion to target market and
good advertisement
Low-involvement purchases require: in-store promotion and eye-catching package design

9. Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho- logical Factors
Cultural Factors
CONSUMER DECISION-
MAKING
PROCESS
BUY /
DON’T BUY

10. Cultural Influences on Buying Decisions
Values
Language
Myths
Customs
Rituals
Laws
Components of American
Culture
Material Artifacts

11. Core American Values Core American Values Success Materialism Freedom
Progress
Youth
Capitalism
Core
American
Values

12. Global Language Blunders
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”

13. Types of Reference Groups
Primary
Secondary
Aspirational
Non-aspirational
Direct
Types of Reference Groups
Indirect

14. Purchase Roles in the Family
Instigators
Influencers
Decision-Makers
Purchasers
Consumers
Purchase Roles in the Family
Children
Influence
Purchase
Decisions

15. Individual Influences
Gender
Personality
Self-Concept Lifestyle
Age Family Life Cycle

16. Psychological Influences
Psychological Influences on Buying Decisions
Perception
Motivation
Learning
Beliefs & Attitudes

17. Perception
Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

18. A Consumer’s Selective Exposure
Exposure to over 250 advertisement messages per day
Notices only 11 to 20 ads

19. Maslow’s Hierarchy of Needs
Motivation
Physiological
Safety
Social
Esteem
Self- Actualization
Maslow’s Hierarchy of Needs

20. Beliefs and Attitudes Belief Attitude
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.
Attitude

21. Types of Decision Processes
Degree of Level of Purchase Perceived Time Search Experience Frequency Risk Pressure
Extended
Limited
Routine
Low
Medium
High