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Consumer Consumer DecisionDecision MakingMaking
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Learning ObjectivesLearning 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
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Learning ObjectivesLearning Objectives
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
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Learning Objectives (continued)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
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Learning ObjectiveLearning Objective
Explain why marketing managers should understand consumer behavior
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Consumer BehaviorConsumer Behavior
Consumer BehaviorConsumer Behavior 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.
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Consumer BehaviorConsumer Behavior
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Consumer behavior
consumers make purchase decisions
consumers use anddispose of product
= HOW
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Learning Objective Learning Objective
Analyze the components of the consumer decision-making process
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Consumer Decision-Making Consumer Decision-Making ProcessProcess
Consumer Decision-Making ProcessConsumer Decision-Making Process
A five-step process used by consumers when
buying goods or services.
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Consumer Decision-Making Consumer Decision-Making ProcessProcess
Postpurchase Behavior
Purchase
Evaluation of Alternatives
Information Search
Need Recognition
Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological
Factors Factors affect affect
all stepsall steps
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Need RecognitionNeed Recognition
Need RecognitionNeed Recognition
Result of an imbalance between actual and desired states.
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Need RecognitionNeed Recognition
Marketing helps consumers recognize an imbalance between
present status and preferred state
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Present Status
Preferred State
InternalStimuli
External
Stimuli
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StimulusStimulus
StimulusStimulusAny unit of input affecting one or more of the five senses:
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sightsmelltastetouch
hearing
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WantWant
WantWant
Recognition of an unfulfilled need and a product (or attribute or
feature) that will satisfy it.
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Recognition of Unfulfilled WantsRecognition 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
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Information SearchesInformation SearchesInternal Information Search
Recall information in memory
External Information search
Seek information in outside environment Non-marketing controlled Marketing controlled
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External Information SearchesExternal Information Searches
Need MoreNeed More Information Information
More Risk More Risk Less knowledgeLess knowledge
Less product experienceLess product experienceHigh level of interestHigh level of interestLack of confidenceLack of confidence
Less Risk Less Risk More knowledgeMore knowledge
More product experienceMore product experienceLow level of interestLow level of interest
Confidence in decisionConfidence in decision
Need LessNeed Less Information Information
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Evoked SetEvoked Set
Evoked Set (consideration set)Evoked Set (consideration set)
Group of brands, resulting from an information search,
from which a buyer can choose.
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Evaluation of AlternativesEvaluation of Alternatives
Evoked SetEvoked Set
Purchase!Purchase!
Analyze product attributesAnalyze product attributes
Rank attributes byRank attributes byimportanceimportance
Use cutoff criteriaUse cutoff criteria
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PurchasePurchase
To buy To buy or not to buy...or not to buy...
Determines which attributes Determines which attributes are most important are most important
in influencing a in influencing a consumer’s choiceconsumer’s choice
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Learning Objective Learning Objective
Explain the consumer’s postpurchase evaluation process
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Cognitive DissonanceCognitive Dissonance
Cognitive DissonanceCognitive Dissonance
Inner tension that a consumer experiences after recognizing an inconsistency between behavior
and values or opinions.
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Reducing Cognitive DissonanceReducing Cognitive Dissonance
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Consumers 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
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Postpurchase BehaviorPostpurchase Behavior
Cognitive DissonanceCognitive Dissonance
?Did I make a good decision?Did I make a good decision?
Did I buy the right product?Did I buy the right product?
Did I get a good value?Did I get a good value?
Can minimize through:Can minimize through:Effective CommunicationEffective Communication
Follow-upFollow-upGuaranteesGuaranteesWarrantiesWarranties
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Learning Objective Learning Objective
Identify the types of consumer buying decisions and discuss the significance of consumer involvement
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Types of Consumer Buying Types of Consumer Buying DecisionsDecisions
More Involvement
LessInvolvement
RoutineResponseBehavior
LimitedDecisionMaking
ExtensiveDecisionMaking
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Five Factors Influencing DecisionsFive Factors Influencing Decisions
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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 Continuum of Consumer Buying DecisionsConsumer Buying Decisions
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Routine Response BehaviorRoutine Response Behavior
Little involvement in selection process
Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision
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Limited Decision MakingLimited Decision Making
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide
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Extensive Decision MakingExtensive Decision Making
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
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Level of InvolvementLevel of Involvement
On Linehttp://www.apple.com
Situation
Social Visibility
Interest
Perceived Risk of Negative
Consequences
Previous Experience
Factors Determining Factors Determining Level of Involvement Level of Involvement
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Marketing Implications of Marketing Implications of InvolvementInvolvement
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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
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Learning Objective Learning Objective
Identify and understand the cultural factors that affect consumer buying decisions
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Factors Influencing Buying Factors Influencing Buying DecisionsDecisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKING
PROCESS
BUY /
DON’T BUY
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CultureCulture
CultureCultureSet 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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Cultural Influences on Buying Cultural Influences on Buying DecisionsDecisions
Values
Language
Myths
Customs
Rituals
Laws
Components Components ofofAmericanAmericanCultureCulture
Material Artifacts
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Culture is. . . Culture is. . .
Learned
Functional
Pervasive
Dynamic
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ValueValue
ValueValue
Enduring belief that a specific mode of conduct is personally or
socially preferable to another mode of conduct.
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Core American ValuesCore American Values
Success
Materialism
Freedom
Progress
Youth
Capitalism
CoreCoreAmerican American ValuesValues
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Understanding Culture DifferencesUnderstanding Culture Differences
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Language Blunders
Chevrolet’s “Nova” translated to “Doesn’t Go”
Coors “Turn It Loose” became “Suffer from Diarrhea”
Frank Perdue’s “It takes a tough man to make a tender chicken” was heard as “It takes a sexually stimulated man to make a chicken affectionate.”
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SubcultureSubculture
SubcultureSubcultureA homogeneous group
of people who share elements of the overall culture as well as unique elements of their own
group.
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Onlinehttp://www.thesource.comhttp://www.dead.net
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Social ClassSocial Class
Social ClassSocial ClassA 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 MeasurementsSocial Class Measurements
WealthOther Variables
Income
Education
Occupation
Social Class Social Class Measurements Measurements
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Social Class and EducationSocial Class and Education
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Social Class Percent Lower 8 Working 12 Middle 34 Upper 61
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The Impact of Social Class on The Impact of Social Class on MarketingMarketing
1. Indicates which medium to use for advertising
2. Helps determine the best distribution for products
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Learning Objective Learning Objective
Identify and understand the social factors that affect consumer buying decisions
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Social Influences Social Influences
Reference Groups
Opinion Leaders
Family Members
Social Influences on Buying Decisions
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Reference GroupReference Group
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Reference GroupReference Group
A group in society that influences an individual’s purchasing behavior.
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Reference GroupsReference Groups
Reference Reference GroupsGroups
Direct
Indirect
Primary
Secondary
Aspirational
Non-aspirational
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Influences of Reference GroupsInfluences 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
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Opinion Leaders Opinion Leaders
Opinion LeadersOpinion Leaders
An individual who influences the opinion of others.
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Opinion LeadersOpinion Leaders
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Endorsements
Group referrals
Peer groups
Sports figures
Celebrities
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FamilyFamily
Children Influence Children Influence Purchase DecisionsPurchase Decisions
Purchase Roles in the Family
Initiators
Influencers Decision Makers Purchasers Consumers
On Linehttp://www.game-girlz.comhttp://www.gamespot.com
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Relationships among Purchasers and Relationships among Purchasers and Consumers in the FamilyConsumers in the Family
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Learning Objective Learning Objective
Identify and understand the individual factors that affect consumer buying decisions
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Individual InfluencesIndividual Influences
Gender Age Life-Cycle
PersonalitySelf-Concept
Lifestyle
Individual Influences
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Self-ConceptSelf-Concept
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Perceptions
Attitudes
Beliefs
Self-evaluations
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Learning Objective Learning Objective
Identify and understand the psychological factors that affect consumer buying decisions
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Psychological InfluencesPsychological Influences
Psychological Psychological Influences on Influences on Buying DecisionsBuying Decisions
Perception
Motivation
Learning
Beliefs & Attitudes
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Perception Perception
PerceptionPerception
Process by which people select, organize, and interpret stimuli into a
meaningful and coherent picture.
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PerceptionPerception
SelectiveSelectiveExposureExposure
SelectiveSelectiveDistortionDistortion
SelectiveSelectiveRetentionRetention
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PerceptionPerception
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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A Consumer’s Selective ExposureA Consumer’s Selective Exposure
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Exposure to over 2,500 advertisement
messages per day
Notices only 11 to 20 ads
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Marketing Implications of Marketing Implications of PerceptionPerception
Important attributes
Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes
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Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
A method of classifying human needs and motivations into five categories
in ascending order of importance.
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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs
Physiological Physiological
SafetySafety
SocialSocial
EsteemEsteem
Self-Self-ActualizationActualization
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Learning Learning
LearningLearning
A process that creates changes in behavior, immediate or expected, through experience and practice.
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Types of LearningTypes of Learning
Types of Types of LearningLearning DescriptionDescription
Experiential
Conceptual
An experience changes behavior
Not learned through direct experience
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Stimulus Generalization Stimulus Generalization
Stimulus GeneralizationStimulus Generalization
A form of learning that occurs when one response is extended to a second stimulus similar to the first.
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Stimulus Discrimination Stimulus Discrimination
Stimulus DiscriminationStimulus Discrimination
A learned ability to differentiate among similar products.
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Beliefs and Attitudes Beliefs and Attitudes
An organized pattern of knowledge that an individual holds as true about his or her world.
Belief
Attitude A learned tendency to respond consistently toward a given object.
On Linehttp://saveharry.comhttp://www.cspinet.org
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Changing Attitudes Changing Attitudes
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Changing beliefs about the brand’s attributes
Changing the relative importance of these beliefs
Adding new beliefs