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Chapter 6 Consumer Decision Making
1
Copyright ©2009 by Cengage Learning Inc. All rights reserved 1
Designed by
Eric Brengle
B-books, Ltd.
CHAPTER
6
Consumer Decision Making
Prepared by
Amit Shah
Frostburg State University
MarketingLamb, Hair, McDaniel
10
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Learning Outcomes
2
Explain why marketing managers should
understand consumer behavior
Analyze the components of the consumer
decision-making process
Explain the consumer’s postpurchase
evaluation process
LOI
LO2
LO3
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Learning Outcomes
3
Identify the types of consumer buying decisions and discuss the significance of consumer involvement
Identify and understand the cultural factors
that affect consumer buying decisions
Identify and understand the social factors that
affect consumer buying decisions
LO5
LO6
LO4
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Learning Outcomes
4
Identify and understand the individual
factors that affect consumer buying
decisions
Identify and understand the psychological
factors that affect consumer buying
decisions
LO8
LO7
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The Importance of Understanding
Consumer Behavior
5
Explain why marketing managers should understand
consumer behavior
LOI
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Consumer Behavior
6
LOI
Consumer
BehaviorProcesses 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.
Chapter 6 Consumer Decision Making
2
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REVIEW LEARNING OUTCOMEUnderstanding Consumer Behavior
7
LOI
Consumer behavior
consumers make purchase decisions
consumers use anddispose of product
= HOW
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The Consumer Decision-Making
Process
8
Analyze the components of the
consumer decision-making process
LO2
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Consumer Decision-Making
Process
9
LO2
Consumer
Decision-Making
Process
A five-step process used
by consumers when
buying goods or services.
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Consumer Decision-Making Process
10
LO2
PostpurchaseBehavior
Purchase
Evaluation of Alternatives
Information Search
Need Recognition
Cultural, Social, Individual and Psychological
Factors affect
all steps
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Need Recognition
11
LO2
Need
RecognitionResult of an imbalance between
actual and desired states.
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Need Recognition
12
LO2
Marketing helps consumers recognize
an imbalance between
present status and preferred state.
Present
Status
Preferred
State
Chapter 6 Consumer Decision Making
3
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Stimulus
13
LO2
Stimulus Any unit of input affecting
one or more of the
five senses:
sight
smell
taste
touch
hearing
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Recognition of Unfulfilled Wants
• 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
14
LO2
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Information Search
15
LO2
Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment Nonmarketing controlled Marketing controlled
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External Information Searches
16
LO2
Need More
Information
More Risk Less knowledge
Less product experienceHigh level of interestLack of confidence
Less Risk More knowledge
More product experienceLow level of interest
Confidence in decision
Need Less
Information
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Evoked Set
17
LO2
Evoked Set Group of brands, resulting
from an information search,
from which a buyer can
choose.
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Evaluation of Alternatives
and Purchase
18
LO2
Evoked Set
Purchase!
Analyze product attributes
Rank attributes byimportance
Use cutoff criteria
Chapter 6 Consumer Decision Making
4
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Purchase
19
LO2
To buy or not to buy...
Determines which attributes are most important
in influencing a consumer’s choice
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REVIEW LEARNING OUTCOMEConsumer Decision-Making Process
20
LO2
CU
LT
UR
AL S
OC
IAL
PSYCHOLOGICAL
INDIVIDUAL
Need
Recognition1 Information
Search2 Evaluate
Alternatives3
Purchase4
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Postpurchase Behavior
21
Explain the consumer’s
postpurchase evaluation
process
LO3
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Cognitive Dissonance
22
LO3
Cognitive
DissonanceInner tension that a
consumer experiences after
recognizing an
inconsistency between
behavior and values or
opinions.
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Postpurchase BehaviorConsumers can reduce dissonance by:
• Seeking information that reinforces positive ideas about the purchase
• Avoiding information that contradicts the purchase decision
• Revoking the original decision by returning the product
23
LO3
Marketers can minimize through:Effective Communication
Follow-upGuaranteesWarranties
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REVIEW LEARNING OUTCOMEConsumer postpurchase evaluation process
24
LO3
Chapter 6 Consumer Decision Making
5
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Consumer Buying Decisions and
Consumer Involvement
25
Identify the types of consumer buying decisions and a
discuss the significance aof consumer involvement
LO4
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Consumer Buying Decisions and
Consumer Involvement
26
LO4
MoreInvolvement
LessInvolvement
RoutineResponseBehavior
LimitedDecisionMaking
ExtensiveDecisionMaking
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Five Factors Influencing Decisions
27
LO4
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
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Continuum of Consumer Buying
Decisions
28
LO4
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Routine Response Behavior
• Little involvement in selection process
• Frequently purchased low cost goods
• May stick with one brand
• Buy first/evaluate later
• Quick decision
29
LO4
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Limited Decision Making
• Low levels of involvement
• Low to moderate cost goods
• Evaluation of a few alternative brands
• Short to moderate time to decide
30
LO4
Chapter 6 Consumer Decision Making
6
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Extensive Decision Making
• High levels of involvement
• High cost goods
• Evaluation of many brands
• Long time to decide
• May experience cognitive dissonance
31
LO4
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Factors Determining
the Level of Consumer Involvement
32
LO4
Situation
Social Visibility
Interest
Perceived Risk of Negative Consequences
Previous Experience
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Marketing Implications of
Involvement
33
LO4
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.Coupons, cents-off,2-for-1 offers
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REVIEW LEARNING OUTCOME Consumer Buying Decisions and Consumer Involvement
34
LO4
Routine
Limited
Extensive
Previous experience
Interest
Perceived risk of
negative consequences
Situation
Social visibility
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Cultural Influences on
Consumer Buying Decisions
35
Identify and understand the cultural factors
that affect consumer buying decisions
LO5
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Factors Influencing Buying
Decisions
36
LO5
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors
CONSUMERDECISION-
MAKINGPROCESS
BUY /
DON’T BUY
Chapter 6 Consumer Decision Making
7
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Culture
37
LO5
Culture
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.
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Components of Culture
38
LO5
Myths
Language
Values
Customs
Rituals
Laws
Material artifacts
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Culture is. . .
39
LO5
Learned
Functional
Pervasive
Dynamic
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Value
40
LO5
ValueEnduring belief that a specific
mode of conduct is
personally or socially
preferable to another
mode of conduct.
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Core American Values
41
LO5
Success
Materialism
Freedom
Progress
Youth
Capitalism
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Subculture
42
LO5
SubcultureA homogeneous group
of people who share elements
of the overall culture as well
as unique elements of their
own group.
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8
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Social Class
43
LO5
Social Class
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.
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Social Class Measurements
44
LO5
Wealth
Other Variables
Income
Education
Occupation
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Social Class and Education
45
LO5
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The Impact of Social Class on
Marketing
1. Indicates which medium to use for
advertising
2. Helps determine the best distribution
for products
46
LO5
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REVIEW LEARNING OUTCOME Cultural Factors
47
LO5
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Social Influences on
Consumer Buying Decisions
48
Identify and understand the social factors that affect consumer buying decisions
LO6
Chapter 6 Consumer Decision Making
9
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Social Influences
49
LO6
Reference Groups
Opinion Leaders
Family Members
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Reference Group
50
LO6
Reference Group A group in society that
influences an individual’s
purchasing behavior.
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Reference Groups
51
LO6
Reference Groups
Direct
Indirect
Primary
Secondary
Aspirational
Nonaspirational
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Influences of Reference Groups
1. They serve as information
sources and influence
perceptions.
2. They affect an individual’s
aspiration levels.
3. Their norms either constrain or
stimulate consumer behavior.
52
LO6
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Opinion Leaders
53
LO6
Opinion Leaders An individual who influences
the opinion of others.
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Opinion Leaders
54LO6
Teenagers
Movie stars
Sports figures
Celebrities
Marketers are looking to Web logs,
or blogs, to find opinion leaders
Chapter 6 Consumer Decision Making
10
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Family
55LO6
Initiators
Influencers
Decision Makers
Purchasers
Consumers
Purchase Process Roles in the Family
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Relationships among Purchasers and
Consumers in the Family
56
LO6
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REVIEW LEARNING OUTCOME Social Factors
57
LO6
Direct IndirectReference
Groups Primary Secondary Aspirational Nonaspirational
Opinion
LeadersPeople
you know
Socialization Process
Family
Celebrities
Initiators Decision Makers Consumers
Influencers Purchasers
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Individual Influences on
Consumer Buying Decisions
58
Identify and understand the individual factors
that affect consumer buying decisions
LO7
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Individual Influences
59
LO7
GenderAge
Life Cycle
PersonalitySelf-Concept
Lifestyle
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Psychological Influences on
Consumer Buying Decisions
60
Identify and understand
the psychological factors
that affect consumer
buying decisions
LO8
Chapter 6 Consumer Decision Making
11
Copyright ©2009 by Cengage Learning Inc. All rights reserved 61
LO8
Psychological Influences
Perception
Motivation
Learning
Beliefs & Attitudes
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Perception
62
LO8
Perception Process by which people
select, organize, and interpret
stimuli into a meaningful and
coherent picture.
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LO8
Perception
SelectiveExposure
SelectiveDistortion
SelectiveRetention
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Perception
64
LO8
Selective Exposure
SelectiveDistortion
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
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Marketing Implications of
Perception
• Important attributes
• Price
• Brand names
• Quality and reliability
• Threshold level of perception
• Product or repositioning changes
• Foreign consumer perception
• Subliminal perception
65LO8
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Motivation
66
LO8
Maslow’s
Hierarchy
of Needs
A method of classifying
human needs and motivations
into five categories in
ascending order of
importance.
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12
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Maslow’s Hierarchy of Needs
67
LO8
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Types of Learning
68
LO8
Experiential
Conceptual
An experience changes behavior
Not learned through direct experience
http://www.cspinet.org
Online
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Stimulus Generation and
Discrimination
69
LO8
Stimulus Generalization
A form of learning that
occurs when one
response is extended to
a second stimulus
similar to the first.
StimulusDiscrimination
A learned ability to differentiate among similar products.
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Beliefs and Attitudes
70
LO8
Belief
Attitude
An organized pattern of
knowledge that an individual
holds as true about his or her
world.
A learned tendency to
respond consistently toward a
given object.
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Changing Attitudes
71
LO8
Change beliefs about the
brand’s attributes
Change the relative importance
of these beliefs
Add new beliefs
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REVIEW LEARNING OUTCOME
72
LO8
Psychological Factors
LearningStimulus
Generalization
Stimulus
Discrimination
Selective ExposurePerception
Selective Retention Selective Exposure
NeedsMotivation
Psychological EsteemSafety Social Esteem
Beliefs &
Attitudes
Changing
Beliefs about
Attributes
Changing
Importance of
Beliefs
Adding
New Beliefs