chapter 6 consumer decision making 2014
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Lamb, Hair, McDaniel
Chapter 6
Consumer Decision Making
2012-2013
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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
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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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Explain why marketing managers
should understand consumer behavior
The Importance of Understanding
Consumer Behavior
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Understanding Consumer Behavior
Consumer behavior
consumers make purchase decisions
consumers use and dispose of product
= HOW
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Analyze the components of the consumer decision-
making process
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The Consumer
Decision-Making Process
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Consumer Decision-Making Process
A five-step process used by consumers
when buying goods or services.
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Exhibit 6.1 Consumer Decision-Making Process
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Need Recognition
Result of an imbalance between actual and
desired states.
Need recognition is the first
stage in the decision-
making process
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When “Need” Turns to Greed
• In 2011, a woman allegedly pepper sprayed
a crowd of shoppers reaching for discounted
Xbox 360s.
• Black Friday:
• Retailers offer their best bargains of the
year
• Consumers camp out for days at stores’
front doors
• Violent incidents were reported in at least
seven states during the 2011 Black Friday
sales, most occurring at or near Walmart
stores.
Michael Martinez, “Woman Surrenders in Black Friday Pepper Spray Incident,” CNN, November 26, 2011, http://articles.cnn.com/2011-11-
26/us/us_california-pepper-spray-suspect_1_pepper-spray-woman-surrenders-video-game?_s=PM:US (Accessed May 3, 2012).
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Need Recognition
Marketing helps consumers recognize
an imbalance between present status
and preferred state.
Present
Status
Preferred
State
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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
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Information Search
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
Need More
Information
More Risk Less knowledge
Less product experience High level of interest Lack of confidence
Less Risk More knowledge
More product experience Low level of interest
Confidence in decision
Need Less
Information
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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
Evoked Set
Purchase!
Analyze product
attributes
Rank attributes by
importance
Use cutoff criteria
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Purchase
To buy or not to buy...
Determines which Attributes are most
in influencing a consumer’s choice
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Explain the consumer’s postpurchase evaluation
process
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Postpurchase Behavior
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Cognitive Dissonance
Inner tension that a consumer
experiences after recognizing
an inconsistency between
behavior and values or
opinions.
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Postpurchase Behavior
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
Marketing can minimize dissonance through effective communication with purchasers.
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Identify the types of consumer buying decisions and discuss the significance of consumer involvement
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Types of Consumer Buying Decisions
and Consumer Involvement
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More Involvement
Less Involvement
Routine Response Behavior
Limited Decision Making
Extensive Decision Making
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Consumer Buying Decisions and Consumer Involvement
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the amount of time and effort a buyer
invests in the search, evaluation, and
decision processes of consumer
behavior.
Involvement
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Exhibit 6.2 Continuum 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 Many 4
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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 4
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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
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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
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Factors Determining the Level of Consumer Involvement
Situation
Social Visibility
Interest
Perceived Risk of Negative Consequences
Previous Experience
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Not All Involvement Is The Same
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Enduring Involvement
Emotional Involvement
Situational Involvement
Shopping Involvement
Product Involvement
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Marketing Implications of Involvement
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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Identify and understand the cultural factors that
affect consumer buying decisions
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Cultural Influences on
Consumer Buying Decisions
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Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION- MAKING
PROCESS
BUY / DON’T BUY
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Components of Culture
Myths
Language
Values
Customs
Rituals
Laws
Material artifacts 5
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Culture is. . .
Learned
Functional
Pervasive
Dynamic
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Value
Enduring belief that a specific
mode of conduct is personally or
socially preferable to another
mode of conduct.
5
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Subculture
A homogeneous group
of people who share elements of the
overall culture as well as cultural
elements unique to their own group.
5
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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.
5
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Exhibit 6.4 U.S. Social Classes
SO
UR
CE
: Adapte
d fro
m R
ichard
P. C
ole
man, “T
he C
ontin
uin
g S
ignific
ance o
f Socia
l Cla
ss to
Mark
etin
g,” J
ourn
al o
f
Consum
er R
esearc
h, D
ecem
ber 1
983, 2
67; D
ennis
Gilb
ert a
nd J
oseph A
. Kahl, T
he A
meric
an C
lass S
tructu
re: A
Synth
esis
(Hom
ew
ood, IL
: Dors
ey P
ress, 1
982), c
h. 1
1.
© 2013 by Cengage Learning Inc. All Rights Reserved. 39
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
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Social Class Measurements
Wealth
Other Variables
Income
Education
Occupation
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The Impact of Social Class on Marketing
Indicates which medium to use for advertising
Helps determine the best distribution for products
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Identify and understand the social factors that
affect consumer buying decisions
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Social Influences on
Consumer Buying Decisions
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Social Influences
Reference Groups
Opinion Leaders
Family Members
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Exhibit 6.5 Types of Reference Groups
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Reference Groups
Direct Face-to-Face membership
Primary: small, informal group
Secondary: large, formal group
Indirect Nonmembership
Aspirational Group that someone would
like to join
Nonaspirational Group with which someone wants to avoid being
identified 6
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Influences of Reference Groups
They serve as information sources and influence perceptions.
They affect an individual’s aspiration levels.
Their norms either constrain or stimulate consumer behavior.
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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 Leaders
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Family
• Initiators
• Influencers
• Decision Makers
• Purchasers
• Consumers
Purchase Process Roles
in the Family
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Identify and understand the individual factors that
affect consumer buying decisions
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Individual Influences on
Consumer Buying Decisions
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Individual Influences
Gender
Age Life Cycle
Personality Self-Concept
Lifestyle
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Age and Family Life Cycle Stage
• Consumer tastes in food, clothing, cars, furniture, and recreation are often age related.
• Marketers define target markets according to life cycle stages such as “young singles” or “young married with children.”
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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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Identify and understand the psychological factors
that affect consumer buying decisions
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Psychological Influences on
Consumer Buying Decisions
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Psychological Influences
Perception
Motivation
Learning
Beliefs & Attitudes
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Perception
Selective Exposure
Selective Distortion
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
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Important attributes
Price
Brand names
Quality and reliability
Threshold level of perception
Product or repositioning changes
Foreign consumer perception
Subliminal perception
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Exhibit 6.6 Maslow’s Hierarchy of Needs
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Types of Learning
Experiential
Conceptual
An experience changes behavior
Not learned through direct experience
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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.
Beliefs and Attitudes
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Changing Beliefs
• Change beliefs about the brand’s
attributes
• Change the relative importance of
these beliefs
• Add new beliefs
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Chapter 6 Video
Ski Butternut
Ski Butternut is a ski and snowboard mountain in the
Berkshires. Because the mountain is a “soft” mountain,
Ski Butternut collects large amounts of data based on
rentals and Web traffic to make sure that they understand
who the customer is and to whom they need to market.
Matt Sawyer also discusses how they change the
mountain itself to meet the needs of the customer.
CLICK TO PLAY VIDEO
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