consumer decision making key concepts. consumer behavior processes a consumer uses to make purchase...
TRANSCRIPT
Consumer Decision Making
Key Concepts
Consumer Behavior
ConsumerBehavior
ConsumerBehavior
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.
Part One: Understanding the Cultural Part One: Understanding the Cultural Influences on Influences on
Consumer Buying DecisionsConsumer Buying Decisions
Identify and understand the cultural factors that affect consumer
buying decisions
Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKING
PROCESS
BUY / DON’T BUY
Culture
CultureCulture
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.
Components of Culture
MythsMyths
LanguageLanguage
ValuesValues
CustomsCustoms
RitualsRituals
LawsLaws
Material artifactsMaterial artifacts
Culture is. . .
LearnedLearned
FunctionalFunctional
PervasivePervasive
DynamicDynamic
Value
ValueValue Enduring belief that a
specific mode of conduct is
personally or socially
preferable to another mode
of conduct.
Core American Values
SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
Subculture
SubcultureSubculture A homogeneous group
of people who share
elements of the overall
culture as well as unique
elements of their own
group.
Social Class
Social ClassSocial 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.
Social Class Measurements
WealthWealth
Other VariablesOther Variables
IncomeIncome
EducationEducation
OccupationOccupation
Social Class and Education
The Impact of Social Class on Marketing
• Indicates which medium to use for communication
• Helps determine the best distribution for products
Cultural Factors
Social Influences on Social Influences on Consumer Buying Decisions Consumer Buying Decisions
Identify and understand the
social factors that affect consumer buying decisions
Social Influences
Reference Groups
Reference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily
Members
Reference Group
A group in society that
influences an individual’s
purchasing behavior.
Reference GroupReference Group
Reference Groups
Reference Groups
Direct
Indirect
Primary
Secondary
Aspirational
Nonaspirational
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.
Opinion Leaders
An individual who influences
the opinion of others.
Opinion LeadersOpinion Leaders
Opinion Leaders
Teenagers
Movie stars
Sports figures
Celebrities
Marketers are looking to Web logs, or blogs, to find opinion leaders
Family
Initiators
Influencers
Decision Makers
Purchasers
Consumers
Purchase Process Roles in the Family
Relationships among Purchasers and Consumers in the Family
Social Factors – Re-cap
OpinionLeaders
People You Know
Socialization Process
Family
Celebrities
Initiators Decision Makers Consumers
Influencers Purchasers
Reference Groups
Information sourcesAffect aspiration
levels
Constrain or stimulate
consumer behavior
Individual Influences onIndividual Influences onConsumer Buying DecisionsConsumer Buying Decisions
Identify and understand the individual factors that affect consumer buying
decisions
Individual Influences
GenderGender Age Life Cycle
Age Life Cycle
PersonalitySelf-Concept
Lifestyle
PersonalitySelf-Concept
Lifestyle
Psychological Influences onPsychological Influences onConsumer Buying DecisionsConsumer Buying Decisions
Identify and understand the psychological factors that affect consumer buying
decisions
Psychological Influences
PerceptionPerception
MotivationMotivation
LearningLearning
Beliefs & AttitudesBeliefs & Attitudes
Perception
Process by which people select,
organize, and interpret stimuli into a
meaningful and coherent picture.
PerceptionPerception
Perception
SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure
SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion
SelectiveSelectiveRetentionRetention SelectiveSelectiveRetentionRetention
Perception
Selective ExposureSelective Exposure
SelectiveDistortionSelectiveDistortion
Selective RetentionSelective Retention
Consumer notices certain stimuli and ignores others
Consumer 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
Marketing Implications of Perception
Important attributes Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Foreign consumer perception
Motivation
A method of classifying human
needs and motivations into five
categories in ascending order of
importance.
Maslow’s Hierarchyof Needs
Maslow’s Hierarchyof Needs
Maslow’s Hierarchy of Needs
Types of Learning
ExperientialExperiential
ConceptualConceptual
An experience changes behaviorAn experience changes behavior
Not learned through direct experience
Not learned through direct experience
Beliefs and Attitudes
LO7
BeliefBelief
AttitudeAttitude
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.
Changing Attitudes
Change beliefs about the brand’s attributes
Change the relative importance of these beliefs
Add new beliefs
Psychological Factors – Re-cap
Learning Experiential Conceptual
Selective ExposurePerception
Selective Retention Selective Exposure
NeedsMotivation
Psychological EsteemSafety Social Esteem
Beliefs &Attitudes
ChangingBeliefs about
Attributes
ChangingImportance of
Beliefs
AddingNew Beliefs
Part Two: Understanding Consumer Behavior
Consumer behavior
Consumer behavior
consumers make purchase decisionsconsumers make
purchase decisions
consumers use anddispose of product
consumers use anddispose of product
= HOW
The Consumer The Consumer Decision-Making ProcessDecision-Making Process
The components of the consumer decision-making
process
Consumer Decision-Making Process
A five-step process used
by consumers when
buying goods or services.
ConsumerDecision-Making
Process
ConsumerDecision-Making
Process
Consumer 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
Need Recognition
Result of an imbalance between
actual and desired states.
NeedRecognition
NeedRecognition
Need Recognition
Marketing helps consumers recognize an imbalance between
present status and preferred state.
Present Status
Present Status
Preferred State
Preferred State
InternalStimuli
External
Stimuli
Stimulus
Any unit of input affecting
one or more of the five senses:sightsmelltastetouchhearing
StimulusStimulus
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
Information Search
Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment Nonmarketing controlled Marketing controlled
External Information Searches
Need MoreNeed More Information 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 LessNeed Less Information Information
Evaluation of Alternativesand Purchase
Evoked SetEvoked Set
Purchase!Purchase!
Analyze product attributes
Analyze product attributes
Rank attributes byimportance
Rank attributes byimportance
Use cutoff criteriaUse cutoff criteria
Cognitive Dissonance
CognitiveDissonance
CognitiveDissonance
Inner tension that a
consumer experiences after
recognizing an
inconsistency between
behavior and values or
opinions.
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
Marketing can minimize through:Effective Communication
Follow-upGuaranteesWarranties
Consumer Buying Decisions Consumer Buying Decisions and Consumer Involvement and Consumer Involvement
Identify the types of consumer buying decisions and discuss the significance
a of consumer involvement
Consumer Buying Decisions and Consumer Involvement
More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
Five Factors Influencing Decisions
1. Level of consumer involvement1. Level of consumer involvement
2. Length of time to make decision2. Length of time to make decision
3. Cost of good or service3. Cost of good or service
4. Degree of information search4. Degree of information search
5. Number of alternatives considered5. Number of alternatives considered
Continuum of Consumer Buying Decisions
Routine Response Behavior
Little involvement in selection process
Frequently purchased low cost goods
May stick with one brand
Buy first/evaluate later
Quick decision
Limited Decision Making
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide
Extensive Decision Making
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
Factors Determining the Level of Consumer Involvement
SituationSituation
Social VisibilitySocial Visibility
InterestInterest
Perceived Risk of Negative Consequences
Perceived Risk of Negative Consequences
Previous ExperiencePrevious Experience
Marketing Implications of 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, cents-off,2-for-1 offers
In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers