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Lamb, Hair, McDaniel

Chapter 6

Consumer Consumer Decision Decision MakingMaking

2014-2015

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• Explain why marketing managers should understand consumer behavior

• Analyze the components of the consumer decision-making process

• Explain the consumer’s postpurchase evaluation process• 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 • Identify and understand the individual factors that affect

consumer buying decisions• Identify and understand the psychological factors that affect

consumer buying decisions

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Why a marketer should understand Why a marketer should understand consumer behaviorconsumer behavior

Consumer behavior

Consumer behavior

consumers make purchase decisionsconsumers make

purchase decisions

consumers use anddispose of product

consumers use anddispose of product

= HOW

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Consumer BehaviorConsumer Behavior

ConsumerBehavior

ConsumerBehavior

Consumer Behavior is the Study of

Consumer Decision Making Process

Consumer Behavior is the Study of

Consumer Decision Making Process

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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Exhibit 6.1Exhibit 6.1Consumer Decision-Making ProcessConsumer Decision-Making Process

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Consumer Decision Making ProcessConsumer Decision Making Process

Situational Influences on the Buying Decision Process

• Situational Influences– Factors that can influence a buyer’s purchase decision and

may cause the buyer to shorten, lengthen, or terminate the process.

• Situational Factors Include– Physical surroundings– Social surroundings– Time perspective– Reason for purchase– Buyer’s momentary mood

and condition

Psychological Influences on the Buying Decision Process

• Psychological Influences– Factors that in part determine people’s general behavior,

thus influencing their behavior as consumers• Psychological Influences Include

– Perception– Motives– Learning– Attitudes– Personality and self concept– Lifestyles

Social Influences on the Buying Decision Process

• Social Influences– The forces other people exert on one’s buying behavior

• Social Influences– Roles– Family– Reference groups– Opinion leaders– Social class– Culture and subcultures

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Cognitive Dissonance and Postpurchase Behavior

Cognitive Dissonance: Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

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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More Involvement

LessInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking

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Consumer Buying Decisions Consumer Buying Decisions and Consumer Involvementand Consumer Involvement

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Exhibit 6.2Exhibit 6.2Continuum of Consumer Buying DecisionsContinuum of Consumer Buying Decisions

Routine Limited Extensive

Involvement Low Low to Moderate

High

Time Short Short to Moderate

Long

Cost Low Low to Moderate

High

Information Search

Internal Only Mostly Internal

Internal and External

Number of Alternatives

One Few Many4

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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

4

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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

4

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Marketing Implications Marketing Implications of Involvementof Involvement

High-involvement purchases require:High-involvement purchases require:

Extensive and

Informative promotion

to target market

Extensive and

Informative promotion

to target market

Low-involvement purchases require:Low-involvement purchases require:

In-store promotion, eye-catching package design, and good displays. Coupons, and two-for-one offers

In-store promotion, eye-catching package design, and good displays. Coupons, and two-for-one offers

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Exhibit 6.4Exhibit 6.4U.S. Social ClassesU.S. Social Classes

SO

UR

CE

: Adapted from

Richard P

. Colem

an, “The C

ontinuing Significance of S

ocial Class to M

arketing,” Journal of C

onsumer R

esearch, Decem

ber 1983, 267; Dennis G

ilbert and Joseph A. K

ahl, The A

merican C

lass Structure: A

S

ynthesis (Hom

ewood, IL: D

orsey Press, 1982), ch. 11.

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Upper Classes

Capitalist Class 1% People whose investment decisions shape the national economy; income mostly from assets, earned or inherited; university connections

Upper Middle Class

14% Upper-level managers, professionals, owners of medium-sized businesses; well-to-do, stay-at-home homemakers who decline occupational work by choice; college educated; family income well above national average

Middle Classes

Middle Class 33% Middle-level white-collar, top-level blue-collar; education past high school typical; income somewhat above national average; loss of manufacturing jobs has reduced the population of this class

Working Class 32% Middle-level blue-collar, lower-level white-collar; income below national average; largely working in skilled or semi-skilled service jobs

Lower Classes

Working Poor 11-12%

Low-paid service workers and operatives; some high school education; below mainstream in living standard; crime and hunger are daily threats

Underclass 8-9% People who are not regularly employed and who depend primarily on the welfare system for sustenance; little schooling; living standard below poverty line

Exhibit 6.5Exhibit 6.5Types of Reference GroupsTypes of Reference Groups

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The first to try new products and services out of pure curiosity.

May be challenging to locate.

Marketers are increasingly using blogs, social networking, and other

online media to determine and attract opinion leaders.

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Opinion LeadersOpinion Leaders

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FamilyFamily

• Initiators

• Influencers

• Decision Makers

• Purchasers

• Consumers

Purchase Process Roles in the Family

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Personality, Self-Concept, and Lifestyle

• Personality combines psychological makeup and environmental forces

• Human behavior depends largely on self-concept

• Self-concept combines ideal self-image and real self-image.

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PerceptionPerception

Selective ExposureSelective Exposure

SelectiveDistortionSelectiveDistortion

Selective RetentionSelective Retention

Consumer notices certain stimuli and ignores othersConsumer notices certain stimuli and ignores others

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer remembers only that information that

supports personal beliefs

Consumer remembers only that information that

supports personal beliefs

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Ch 6 Discussion Questions

1. What is consumer decision making process? Take automobile as an example and explain each step of the consumer decision making process.

2. Explain the influence of Situational, Psychological and Social Influences on consumer decision making process. I may ask you to explain one of the Influences in consumer decision making process.

3. What is culture and subculture? Why do marketing managers need to understand culture and subculture in a society?

4. Explain level of consumer involvement in purchase and its relationship in consumer decision making.

5. What is postpurchase cognitive dissonance? How a marketer can reduce cognitive dissonance?