Download - Consumer Decision Making(1)
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Consumer Decision MakingConsumer Decision Making
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Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
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Learning ObjectivesLearning Objectives
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1.1. Explain why marketing managers should Explain why marketing managers should understand consumer behavior.understand consumer behavior.
2. Analyze the components of the consumer 2. Analyze the components of the consumer decision-making process.decision-making process.
3. Explain the consumer’s postpurchase 3. Explain the consumer’s postpurchase evaluation process.evaluation process.
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Learning Objectives (continued)Learning Objectives (continued)
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4. Identify the types of consumer buying 4. Identify the types of consumer buying decisions and discuss the significance of decisions and discuss the significance of consumer involvement.consumer involvement.
5. Identify and understand the cultural factors 5. Identify and understand the cultural factors that affect consumer buying decisions.that affect consumer buying decisions.
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Learning Objectives (continued)Learning Objectives (continued)
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6. Identify and understand the social factors 6. Identify and understand the social factors that affect consumer buying decisions. that affect consumer buying decisions.
7.7. Identify and understand the individual Identify and understand the individual factors that affect consumer buying factors that affect consumer buying decisions.decisions.
8. Identify and understand the psychological 8. Identify and understand the psychological factors that affect consumer buying factors that affect consumer buying decisions.decisions.
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Learning Objective Learning Objective 11
Explain why marketing managers Explain why marketing managers should understand should understand consumer behavior.consumer behavior.
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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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Learning Objective Learning Objective 22
Analyze the components Analyze the components of the consumer of the consumer
decision-making process.decision-making process.
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Consumer Decision-Making Consumer Decision-Making ProcessProcess
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
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
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Need RecognitionNeed Recognition
Result of an imbalance
between actual and
desired states.
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Need RecognitionNeed Recognition
Internal StimuliInternal Stimuliandand
External StimuliExternal Stimuli
Present Status
Preferred State
Marketing helps consumers
recognize an imbalance between present status and
preferred state
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StimulusStimulus
Any unit of input affecting
one or more of the five
senses:
sight
smell
taste
touch
hearing
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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 an product
When another product seems superior to the one currently used
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Information SearchesInformation Searches
Process of recalling past
information stored
in the memory.
Internal
Process of seeking
information in the
outside environment.
External
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Information SearchInformation Search
Internal 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 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
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Evoked SetEvoked Set
Group of brands,
resulting from an
information search,
from which a buyer
can choose.
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Evoked SetEvoked Set
Purchase!Purchase!
Evaluation of ProductsEvaluation of Products
Analyze product attributesAnalyze product attributes
Use cutoff criteriaUse cutoff criteria
Rank attributes by Rank attributes by importanceimportance
Evaluation of AlternativesEvaluation of Alternatives22
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PurchasePurchase
Determines which attributes Determines which attributes are most important are most important
in influencing a in influencing a consumer’s choiceconsumer’s choice
To buy To buy or not to buy...or not to buy...
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Learning Objective Learning Objective
Explain the consumer’s Explain the consumer’s postpurchase evaluation process.postpurchase evaluation process.
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Cognitive DissonanceCognitive Dissonance
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values
or opinions.
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Postpurchase BehaviorPostpurchase Behavior33
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?
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Learning Objective Learning Objective
Identify the types of Identify the types of consumer buying decisions consumer buying decisions and discuss the significance and discuss the significance
of consumer involvement.of consumer involvement.
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Types of Consumer Buying Types of Consumer Buying DecisionsDecisions
More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
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Five Factors influencing DecisionsFive Factors influencing Decisions
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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Routine Response BehaviorRoutine Response Behavior44
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 Making44
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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44Extensive 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
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
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Marketing Implications of Marketing Implications of InvolvementInvolvement
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High-involvement purchases require:
extensive promotion to target market and
good advertisement
Low-involvement purchases require: in-store promotion and eye-catching package design
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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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Learning Objective Learning Objective
Identify and understand the Identify and understand the cultural factors that affect cultural factors that affect
consumer buying decisions.consumer buying decisions.
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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.
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Cultural Influences on Buying Cultural Influences on Buying DecisionsDecisions
ValuesValues
LanguageLanguage
MythsMyths
CustomsCustoms
RitualsRituals
LawsLaws
Components ofComponents ofAmericanAmericanCultureCulture
Components ofComponents ofAmericanAmericanCultureCulture
Material ArtifactsMaterial Artifacts
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Culture is...Culture is...
LearnedLearned
FunctionalFunctional
PervasivePervasive
DynamicDynamic
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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
SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
CoreCoreAmerican American
ValuesValues
CoreCoreAmerican American
ValuesValues
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Global Language BlundersGlobal Language Blunders55
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”
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SubcultureSubculture
A homogeneous group
of people who share
elements of the overall
culture as well as
unique elements of
their own group.
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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.
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Learning Objective Learning Objective 66
Identify and understand the Identify and understand the social factors that affect social factors that affect
consumer buying decisions.consumer buying decisions.
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Social Influences Social Influences
Reference Groups
Reference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily Members
Social Influences on Buying Decisions
Social Influences on Buying Decisions
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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
Types ofTypes ofReference Reference
GroupsGroups
Direct
Indirect
Primary
Secondary
Aspirational
Non-aspirational
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Implications of Reference GroupsImplications of Reference Groups66
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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Opinion Leaders Opinion Leaders
An individual who
influences the opinion
of others.
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FamilyFamily
Purchase Roles in the Family
Purchase Roles in the Family
Instigators
Influencers
Decision-Makers
Purchasers
ConsumersChildren Children Influence Influence Purchase Purchase DecisionsDecisions
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Learning Objective Learning Objective
Identify and understand the Identify and understand the individual factors that affect individual factors that affect consumer buying decisions.consumer buying decisions.
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Individual InfluencesIndividual Influences
GenderGender
Age Family Life Cycle
Age Family Life Cycle
PersonalitySelf-Concept
Lifestyle
PersonalitySelf-Concept
Lifestyle
Individual InfluencesIndividual Influences
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Psychographics Psychographics
The analytical technique
used to examine consumer
lifestyles and to categorize
consumers.
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““Types of Moms”Types of Moms”77
“Strong Shoulders” Moms“Strong Shoulders” Moms
“Tug-of-War” Moms“Tug-of-War” Moms
“June Cleaver” Moms“June Cleaver” Moms
“Mothers of Invention” Moms“Mothers of Invention” Moms
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Learning Objective Learning Objective
Identify and understand the Identify and understand the psychological factors that affect psychological factors that affect
consumer buying decisions.consumer buying decisions.
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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
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Perception Perception
Process by which people
select, organize, and
interpret stimuli into
a meaningful and
coherent picture.
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PerceptionPerception
SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure
SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion
SelectiveSelectiveRetentionRetention SelectiveSelective
RetentionRetention
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PerceptionPerception
Selective ExposureSelective Exposure
SelectiveDistortionSelectiveDistortion
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
Selective RetentionSelective Retention
Consumer remembers only that information that
supports personal beliefs
Consumer remembers only that information that
supports personal beliefs
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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 Exposure88
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Marketing Implications of Marketing Implications of PerceptionPerception
Important attributes
Higher price
Brand names
Quality and reliability
Threshold level of perception
Product changes
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Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs
A method of classifying
human needs and
motivations into five
categories in ascending
order of importance.
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MotivationMotivation88
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
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Learning Learning
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 LearningLearningTypes of Types of LearningLearning DescriptionDescriptionDescriptionDescription
ExperientialExperiential
ConceptualConceptual
An experience changes behaviorAn experience changes behavior
Not learned through direct experience
Not learned through direct experience
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Stimulus Generalization Stimulus Generalization
A form of learning that
occurs when one response
is extended to a second
stimulus similar to the first.
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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.
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Belief
Attitude A learned tendency to
respond consistently
toward a given object.