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    Copyright Cengage Learning 2012All Rights Reserved

    1

    Chapter 6: Consumer Decision

    Making

    Prepared & Designed by Laura Rush, B-books, Ltd.

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    Learning Outcomes

    Explain why marketing managers should understandconsumer behavior

    Analyze the components of the consumer decision-

    making process

    Explain the consumers postpurchase evaluation

    process

    Identify the types of consumer buying decisions anddiscuss the significance of consumer involvement

    LO1

    LO2

    LO3

    LO4

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    Learning Outcomes

    Identify and understand the cultural factors that affectconsumer buying decisions

    Identify and understand the social factors that affect

    consumer buying decisions

    Identify and understand the individual factors thataffect consumer buying decisions

    Identify and understand the psychological factors thataffect consumer buying decisions

    LO5

    LO6

    LO8

    LO7

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    The Importance of Understanding

    Consumer Behavior

    Explain why marketingmanagers should understand

    consumer behavior.

    LO

    1

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    Consumer Behavior

    Processes a consumer uses to make

    purchase decisions, as well asto use and dispose of purchasedgoods or services, also includesfactors that influence purchasedecisions and the product use.

    LO1

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    Review Learning OutcomeUnderstanding Consumer Behavior

    Consumerbehavior

    consumers makepurchase decisions

    consumers use anddispose of product

    = HOW

    LO

    1

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    The Consumer Decision-Making

    Process

    Analyze the componentsof the consumer

    decision-making process.

    LO

    2

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    Consumer Decision-Making Process

    PostpurchaseBehavior

    Purchase

    Evaluationof Alternatives

    Information Search

    Need Recognition

    Cultural, Social,Individual andPsychological

    Factorsaffect

    all steps

    LO

    2

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    Need Recognition

    Market ing helps consumers recogn ize

    an imbalance between

    present s tatus and preferred state.

    LO

    2

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    Recognition of Unfulfilled Wants

    When a current product isnt performing

    properly

    When the consumer isrunning out of a product

    When another product seems superior tothe one currently used

    LO2

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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

    LO2

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    External Information Searches

    Need Mo re

    Informat ion

    More RiskLess knowledge

    Less product experienceHigh level of interestLack of confidence

    Less RiskMore knowledge

    More product experienceLow level of interest

    Confidence in decision

    Need Less

    Informat ion

    LO2

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    Evaluation of Alternatives

    and Purchase

    Evoked Set

    Purchase!

    Analyze product attributes

    Rank attributes byimportance

    Use cutoff criteria

    LO2

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    Purchase

    Determines whichattributesare most important

    in influencing aconsumers choice

    LO2

    i i

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    Review Learning OutcomeConsumer Decision-Making Process

    CULTURAL S

    OCIAL

    PSYCHOLOGICAL

    INDIVIDUAL

    NeedRecognition

    1 InformationSearch

    2 EvaluateAlternatives

    3 Purchase 4

    LO

    2

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    Postpurchase Behavior

    Explain the consumers

    postpurchase evaluation

    process.

    LO

    3

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    Postpurchase Behavior

    Consumers can reduce cognitive dissonance by:

    Seeking information that reinforces positive ideas about thepurchase

    Avoiding information that contradicts the purchase decision Revoking the original decision by returning the product

    Marketers can m inimize through:Effective Communication

    Follow-upGuaranteesWarranties

    Service during and after the sale

    LO3

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    Review Learning OutcomeConsumer postpurchase evaluation process

    LO

    3

    To Reduce Dissonance

    Consumer can:

    Justify decision

    Seek new information

    Avoid contradictoryinformation

    Return product

    Marketer can:

    Send postpurchase thank

    you or letter

    Display product superiority

    in ads

    Offer guarantees

    Cognitive

    DissonanceSatisfied

    Customer

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    Consumer Buying Decisions and

    Consumer Involvement

    Identify the types of consumer buying

    decisions and discuss the

    significance of consumer involvement.

    LO

    4

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    Consumer Buying Decisions and

    Consumer Involvement

    MoreInvolvement

    LessInvolvement

    RoutineResponseBehavior

    LimitedDecisionMaking

    ExtensiveDecisionMaking

    LO

    4

    C i f C B i

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    Continuum of Consumer Buying

    Decisions

    LO

    4

    F D i i

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    Factors Determining

    the Level of Consumer Involvement

    Situation

    Social Visibility

    Interest

    Perceived Risk of NegativeConsequences

    Previous Experience

    LO4

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    Marketing Implications of Involvement

    High-involvementpurchases require:

    Extensive and informative

    promotion to target market

    Low-involvementpurchases require:

    In-store promotion,

    eye-catching packagedesign, and good displays.Coupons, cents-off,2-for-1 offers

    LO4

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    Factors Influencing Buying Decisions

    SocialFactors

    IndividualFactors

    Psycho-logicalFactors

    CulturalFactors

    CONSUMER

    DECISION-MAKING

    PROCESS

    BUY /

    DONT BUY

    LO4

    R i L i O

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    Review Learning OutcomeConsumer Buying Decisions and Consumer Involvement

    Routine

    Limited

    Extensive

    Previous experience

    Interest

    Perceived risk of

    negative consequences

    Situation

    Social visibility

    LO4

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    Cultural Influences on

    Consumer Buying Decisions

    Identify and understandthe cultural factors

    that affect consumerbuying decisions.

    LO5

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    Components of Culture

    Myths

    Language

    Values

    Customs

    Rituals

    Laws

    Material artifacts

    LO5

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    Culture is. . .

    Learned

    Functional

    Pervasive

    Dynamic

    LO5

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    Values

    1. The most defining element of a culture is its values.2. People with similar value systems tend to react alike to

    prices and other marketing-related inducements.

    3. Values also correspond to consumption patterns.

    Success

    Materialism

    Freedom

    Progress

    Youth

    Capitalism

    LO5

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    Social Class

    A group of people in a societywho are considered nearly

    equal in status or communityesteem, who regularly socialize

    among themselves both formallyand informally, and who share

    behavioral norms.

    LO5

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    Social Class Measurements

    Wealth

    Other Variables

    Income

    Education

    Occupation

    LO5

    R i L i O

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    Review Learning OutcomeCultural Factors

    LO5

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    Social Influences on

    Consumer Buying Decisions

    Identify and understand

    the social factors that affect

    consumer buying decisions.

    LO6

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    Social Influences

    ReferenceGroups

    OpinionLeaders

    FamilyMembers

    LO6

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    Reference Groups

    ReferenceGroups

    Direct

    Indirect

    Primary

    Secondary

    Aspirational

    Nonaspirational

    LO6

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    Influences of Reference Groups

    1. They serve as information sources andinfluence perceptions.

    2. They affect an individuals aspirationlevels.

    3. Their norms either constrain or stimulate

    consumer behavior.

    LO6

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    Opinion Leaders

    Marketers are looking to Web logs,

    or blogs, to find opinion leaders Teenagers

    Movie stars

    Sports figures

    Celebrities

    LO6

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    Family

    Purchase Process Roles in the Family

    Initiators

    Influencers

    Decision Makers

    Purchasers

    Consumers

    LO6

    Relationships among Purchasers and

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    Relationships among Purchasers and

    Consumers in the Family

    LO6

    Review Learning Outcome

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    Review Learning OutcomeSocial Factors

    Direct IndirectReference

    Groups Primary Secondary Aspirational Nonaspirational

    Opinion

    LeadersPeople

    you know

    Socialization ProcessFamily

    Celebrities

    Initiators Decision Makers Consumers

    Influencers Purchasers

    LO6

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    Individual Influences on

    Consumer Buying Decisions

    Identify and understandthe individual factors

    that affectconsumer buying decisions.

    LO7

    Review Learning Outcome

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    Review Learning OutcomeIndividual Influences on Consumer Buying Decisions

    GenderAge

    Life Cycle

    PersonalitySelf-Concept

    Lifestyle

    LO

    7

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    Psychological Influences on

    Consumer Buying Decisions

    Identify and understand the

    psychological factors that affect

    consumer buying decisions.

    LO8

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    Psychological Influences

    Perception

    Motivation

    Learning

    Beliefs & Attitudes

    LO

    8

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    Perception

    SelectiveExposure

    SelectiveDistortion

    SelectiveRetention

    Consumer notices certain stimuliand ignores others

    Consumer changes or distortsinformation that conflicts

    with feelings or beliefs

    Consumer remembers only

    that information thatsupports personal beliefs

    LO8

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    Marketing Implications of Perception

    Important attributes

    Price

    Brand names

    Quality and reliability

    Threshold level of perception

    Product or repositioning changes

    Foreign consumer perception

    Subliminal perception

    LO

    8

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    Types of Learning

    Experiential

    Conceptual

    An experience changesbehavior

    Not learned through directexperience

    LO8

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    Beliefs and Attitudes

    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.

    LO8

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    Changing Attitudes

    Change beliefs about thebrands attributes

    Change the relative importanceof these beliefs

    Add new beliefs

    LO8

    Review Learning Outcome

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    Review Learning OutcomePsychological Factors

    LearningStimulus

    Generalization

    Stimulus

    Discrimination

    Selective ExposurePerception

    Selective Retention Selective Exposure

    NeedsMotivation

    Psychological EsteemSafety SocialSelf-

    Actualization

    Beliefs &

    Attitudes

    Changing

    Beliefs about

    Attributes

    Changing

    Importance of

    Beliefs

    Adding

    New Beliefs

    Ch t C Cli

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    Chapter 6 Company Clip

    ReadyMade, a unique do-it-yourself (DIY)magazine uses its knowledge of its loyalconsumer base to tailor its product.

    http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.html

    Copyright Cengage Learning 2012 53

    http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.html