Transcript Chapter 4 - Austin Community College

C H A P T E R
4
Consumer Buying
Behavior and
Decision Making
McGraw-Hill/Irwin
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
After studying this chapter, you should be able to:
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Discuss the importance of consumer behavior.
Understand consumer decision making and some of the
important influences on those decisions.
Distinguish between low-involvement and high involvement
consumer behavior.
Understand how attitudes influence consumer purchases.
Appreciate how the social environment affects consumer
behavior.
Recognize many of the individual consumer differences
that influence purchase decisions and behavior.
Recognize the outcomes of consumers’ decisions to
purchase or not to purchase and how they affect marketing
success.
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Visa
Visa credit cards are the
world’s most used form of
“plastic” payment. In
2004 Visa U.S.A.
achieved record sales of
$956 billion and better
than expected revenues
of $2.4 billion. Visa’s
cards are accepted at
more than 21 million
locations in over 300
countries.
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Consumer Behavior
Consumer behavior can be defined as the
mental and emotional processes and the
physical activities that people engage in
when they select, purchase, use, and
dispose of products or services to satisfy
particular needs and desires.
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The Nature of Consumer Behavior
Size of the
Consumer
Market
Understanding
E-Customers
Understanding
Consumer
Markets &
Behavior
ConsumerOriented
Marketing
Design of
Strategy
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Changes in
the Consumer
Market
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Consumer Markets
In 2004, the consumption expenditures for U.S.
consumer market were huge: $8.2 trillion out of
a total gross domestic product of $11.7 trillion.
Some important growing consumer markets are:
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Consumer Decision Process
Exhibit 4-2
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High and Low-Involvement Decisions
Involvement represents the level of importance or
interest generated by a product or a decision.
Highinvolvement
decisions
High-involvement decisions are
characterized by high levels of
importance, thorough information
processing, and substantial differences
between alternatives.
Lowinvolvement
decisions
Low-involvement decisions occur
when relatively little personal interest,
relevance, or importance is associated
with a purchase.
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Types of Consumer Choices
Product
Store Type
Brand
Store
Shopping Area
Nonstore
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(Catalog, PC, TV shopping)
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Typology of Decision Making
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Extended purchase decision making based on logical and
objective criteria.
Symbolic purchase behavior based on image or social
approval.
Repetitive purchase behavior (decisions based on brand
loyalty).
Hedonic purchase behavior based on simple liking.
Promotional purchase behavior because products are on
sale.
Exploratory purchase behavior due to curiosity or desire
for variety.
Casual purchase behavior involving little thought.
Impulsive purchase behavior
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Influence of the Social Environment
Exhibit 4-3
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Culture Influences
Culture refers to the values, ideas, attitudes,
and symbols that people adopt to communicate,
interpret, and interact as members of society.
The process of absorbing a culture is called
socialization.
Values are shared beliefs or cultural norms
about what is important or right.
The norms and values of specific groups or
subcultures within a society are called ethnic
patterns.
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Social Class Influences
Social classes are relatively homogeneous
divisions within a society that contain people
with similar values, needs, lifestyles, and
behavior.
A recent perspective on social class includes the
four factors impacting social class:
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social capital (whom you know)
credential capital (where you received your degree),
income capital
investment capital (stocks and bonds)
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Family Influences
Exhibit 4-4
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Transitions in Household Types
Exhibit 4-5
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Reference Groups
Marketers recognize interpersonal influences beyond
the family, including friends, coworkers, and others.
These sources of influence are often called reference
groups, or those others look to for help and guidance.
Exhibit 4-6
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Interpersonal Influence Processes
Three types of interpersonal processes form the basis
for interpersonal influences.
Informational
influence
Utilitarian
influence
Informational influence is based on
the consumer’s desire to make informed
choices and reduce uncertainty.
Utilitarian influence is reflected in
compliance with the expectations, real
or imagined, of others.
Value-expressive influence stems
Value-expressive
from a desire to enhance self-concept
influence
through identification with others.
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Individual Differences
Word-of-mouth
communications
Motivation
Individual
Differences
Personality
Lifestyles and
Psychographics
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Individual Differences
Opinion Leader
Opinion leaders influence consumer
behavior through word-of-mouth
communications.
Market Mavens
Consumers who know about many kinds of
products, places to shop, and other facets of
the market, and they like to share this
information with other consumers.
Personality
Psychographics
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Personality reflects a person’s consistent
response to his or her environment.
Psychographics divide a market into lifestyle
segments on the basis of consumer interests,
values, opinions, personality characteristics,
attitudes, and demographics.
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Situational Factors
Situational determinants of consumer behavior
can be summarized as follows:
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Consumers purchase many goods for use in certain
situations, and the anticipated use influences choice. Gift
giving and social occasions are often important
determinants of purchase behavior.
Situational factors can be inhibitors as well as motivators.
Inhibitors that constrain consumer behavior include time
or budget constraints.
The likely influence of situations varies with the product.
Consumers buy clothing items, books, and many food
products with anticipated uses in mind.
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A Model of Consumer Satisfaction
Judgments of satisfaction and dissatisfaction are
generally thought to result from comparisons between a
person’s expectations about a purchased product and
the product’s actual performance.
Exhibit 4-7
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Consumer Satisfaction
Consumer researchers now recognize that
satisfaction is often a more dynamic process:
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Satisfaction judgments evolve and are changeable as
products are used.
Satisfaction judgments have a social component
determined by the satisfaction of others in the household.
Emotions are important and yield insights beyond simple
comparison standards, such as expectations and
performance.
Product satisfaction is also related, in some situations, to
quality of life and life satisfaction.
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Ethical and Social Issues
Consumer Behavior
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Unethical consumer behaviors include shoplifting and
abuse of return policies.
consumers are increasingly incorporating social concerns
into their buying decisions.
Environmentally concerned consumers show high
awareness of label information and product content.
Business Behavior
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Business behavior is evaluated in terms of two standards:
corporate social responsibility and business ethics.
Bearden Marketing 5th Ed
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Summary
After studying this chapter, you should be able to:







Discuss the importance of consumer behavior.
Understand consumer decision making and some of the
important influences on those decisions.
Distinguish between low-involvement and high involvement
consumer behavior.
Understand how attitudes influence consumer purchases.
Appreciate how the social environment affects consumer
behavior.
Recognize many of the individual consumer differences that
influence purchase decisions and behavior.
Recognize the outcomes of consumers’ decisions to
purchase or not to purchase and how they affect marketing
success.
Bearden Marketing 5th Ed
4-24
© 2007 The McGraw-Hill Companies, Inc. All rights reserved.