Chapter 5Chapter 5Consumer Decision MakingConsumer Decision Making

Consumer Decision-Making ProcessConsumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

External Information SearchesExternal Information Searches

Need MoreNeed More Information Information

More Risk More Risk Less knowledgeLess knowledge

Less product Less product experienceexperience

High level of interestHigh level of interest

Less Risk Less Risk More knowledgeMore knowledge

More product More product experienceexperience

Low level of interestLow level of interest

Need LessNeed Less Information Information

Evoked SetEvoked Set

Purchase!Purchase!

Evaluation of ProductsAnalyze product

attributesUse cutoff criteriaRank attributes by

importance

Evaluation of AlternativesEvaluation of Alternatives

Postpurchase BehaviorPostpurchase Behavior

Can minimize through:Effective Communication

Follow-upGuaranteesWarranties

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?

Types of Consumer Buying DecisionsTypes of Consumer Buying Decisions

More Involvement

LessInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking

Level of InvolvementLevel of Involvement

SituationSituation

Social VisibilitySocial Visibility

InterestInterest

Perceived Risk of Negative

Consequences

Perceived Risk of Negative

Consequences

Previous ExperiencePrevious

Experience

Factors Determining

Level of Involvement

Factors Determining

Level of Involvement

Marketing Implications of Marketing Implications of InvolvementInvolvement

High-involvement purchases require:

extensive promotion to target market and

good advertisement

Low-involvement purchases require: in-store promotion and eye-catching package design

Factors Influencing Buying Factors Influencing Buying DecisionsDecisions

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors CONSUMER

DECISION-MAKING

PROCESS

BUY /

DON’T BUY

Cultural Influences on Buying Cultural Influences on Buying DecisionsDecisions

ValuesValues

LanguageLanguage

MythsMyths

CustomsCustoms

RitualsRituals

LawsLaws

Components ofComponents ofAmericanAmericanCultureCulture

Components ofComponents ofAmericanAmericanCultureCulture

Material ArtifactsMaterial Artifacts

Core American ValuesCore American Values

SuccessSuccess

MaterialismMaterialism

FreedomFreedom

ProgressProgress

YouthYouth

CapitalismCapitalism

CoreCoreAmerican American

ValuesValues

CoreCoreAmerican American

ValuesValues

Global Language BlundersGlobal 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”

Reference GroupsReference Groups

Types ofTypes ofReference Reference

GroupsGroups

Direct

Indirect

Primary

Secondary

Aspirational

Non-aspirational

FamilyFamily

Purchase Roles in the Family

Purchase Roles in the Family

• Instigators

• Influencers

• Decision-Makers

• Purchasers

• ConsumersChildren Children Influence Influence Purchase Purchase DecisionsDecisions

Individual InfluencesIndividual Influences

GenderGender

Age Family Life Cycle

Age Family Life Cycle

PersonalitySelf-Concept

Lifestyle

PersonalitySelf-Concept

Lifestyle

Individual InfluencesIndividual Influences

Psychological InfluencesPsychological Influences

Psychological Psychological Influences on Influences on

Buying DecisionsBuying Decisions

Psychological Psychological Influences on Influences on

Buying DecisionsBuying Decisions

PerceptionPerception

MotivationMotivation

LearningLearning

Beliefs & AttitudesBeliefs & Attitudes

Perception Perception

Process by which people select, organize,

and interpret stimuli into

a meaningful and

coherent picture.

Notices only 11 to 20 ads

Notices only 11 to 20 ads

Exposure to over 250 advertisement messages per day

Exposure to over 250 advertisement messages per day

A Consumer’s Selective ExposureA Consumer’s Selective Exposure

MotivationMotivation

Maslow’s Maslow’s Hierarchy of Hierarchy of

NeedsNeeds

Maslow’s Maslow’s Hierarchy of Hierarchy of

NeedsNeeds

Physiological Physiological

SafetySafety

SocialSocial

EsteemEsteem

Self-Self-ActualizationActualization

Beliefs and Attitudes Beliefs and Attitudes

An organized pattern of

knowledge that an individual

holds as true about his

or her world.

Belief

AttitudeA learned tendency to respond

consistently

toward a given object.

Types of Decision ProcessesDegree of Level of Purchase Perceived Time Degree of Level of Purchase Perceived Time Search Experience Frequency Risk PressureSearch Experience Frequency Risk Pressure

LowLow MediumMedium HighHigh

ExtendeExtended d

LimitedLimited

RoutineRoutine