Transcript Chapter 1 - Oakton Community College

Lamb, Hair, McDaniel
2012-2013
CHAPTER 6
Consumer Decision Making
11
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Chapter 1
Learning Outcomes
1
Explain why marketing managers should understand
consumer behavior
2
Analyze the components of the consumer decisionmaking process
3
Explain the consumer’s post-purchase evaluation
process
4
Identify the types of consumer buying decisions and
discuss the significance of consumer involvement
2
Learning Outcomes
5
Identify and understand the cultural factors that
affect consumer buying decisions
6
Identify and understand the social factors that
affect consumer buying decisions
7
Identify and understand the individual factors that
affect consumer buying decisions
8
Identify and understand the psychological factors
that affect consumer buying decisions
3
The Importance of Understanding
Consumer Behavior
Explain why
marketing managers
should understand
consumer behavior
1
4
Understanding Consumer Behavior
What is it?
The processes a consumer uses to make decisions
when purchasing goods or services
Why understand consumer behavior?
Helps marketing managers…
 redesign products to meet consumer needs
 promote products in an effort to change decisions
 and helps the government shape public policy by
educating consumers
5
The Consumer
Decision-Making Process
Analyze the
components
of the consumer
decision-making
process
2
6
Consumer
Decision-Making Process
Consumer
Decision-Making
Process
A five-step process used
by consumers when
buying goods or services.
How the consumer goes
about addressing needs
7
2
Exhibit 6.1
Consumer Decision-Making Process
8
Step 1-Need Recognition
Need
Recognition
9
Result of an imbalance between
actual and desired states.
2
Needs versus Wants
Needs: Will trigger the decision-making process
Needs: Result from an imbalance between actual and
desired states
Internal stimuli (ex. hunger)
External stimuli (ex. peers)
Wants: Recognition of an unfulfilled
need and a product that will
satisfy that need
http://www.youtube.com/watch?v=TRTkCHE1sS4
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Step 2-Information Search
Internal Information Search
 Recall information in memory
External Information search
 Seek information in outside environment
 Non-marketing controlled-ex. Friends
 Marketing controlled-ex. Radio, TV, Internet
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2
Step 3-Evaluation of Alternatives
The consideration set , or the consumer’s preferred alternatives
Evoked Set
Analyze product
attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!
12
2
Step 4-Purchase
To buy
or not to buy...
Determines which attributes
are most important
in influencing a
consumer’s choice
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2
Step 5-Postpurchase Behavior
Consumers can reduce dissonance by:
 Seeking information that reinforces positive
ideas about the purchase
 Avoiding information that contradicts the
purchase decision
 Returning the product and revoking
the original decision
Marketing managers can minimize dissonance
through effective communication with purchasers
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3
Cognitive Dissonance
Cognitive
Dissonance
15
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values or
opinions.
3
Types of Consumer Buying Decisions
and Consumer Involvement
Identify the types of
consumer buying decisions
and discuss the significance
of consumer involvement
4
16
Consumer Buying Decisions
and Consumer Involvement
Routine
Response
Behavior
17
Limited
Decision
Making
Extensive
Decision
Making
Less
Involvement:
The amount of time and effortMore
a
Involvement
Involvement
buyer invests in the search, evaluation, and
decision processes of consumer behavior.
4
Routine Response Behavior





18
Little involvement in selection process
Frequently purchased low cost goods
May stick with one brand
Buy first/evaluate later
Quick decision
4
Limited Decision Making




19
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide
4
Extensive Decision Making





20
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
4
Factors Determining the Level of
Consumer Involvement
Previous Experience
Interest
Perceived Risk of
Negative Consequences
Situation
Social Visibility
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4
Marketing Implications
of Involvement
22
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
4
1-Cultural Influences on
Consumer Buying Decisions
Identify and understand
the cultural factors that
affect consumer
buying decisions
5
23
Culture is. . .
Pervasive: Everywhere
Functional: Rules & laws
Learned:
From others
Dynamic: Always changing
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5
Components of Culture
Values
Language
Myths
Customs
Rituals
Laws
Material artifacts
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5
Subculture
Subculture
A homogeneous group
of people who share
elements of the overall
culture as well as cultural
elements unique to their
own group.
26
5
Factors Influencing Buying
Decisions
Cultural
Factors
Individual
Factors
27
Social
Factors
Psychological
Factors
CONSUMER
DECISIONMAKING
PROCESS
BUY /
DON’T BUY
5
Social Class and Marketing
28

Social class: Measured as a combination
of occupation, income, education & wealth

Indicates which medium to use for
advertising (radio, TV, magazines,
internet)

Helps determine the best distribution for
products (MBZ vs. Honda)
5
2-Social Influences on
Consumer Buying Decisions
Identify and
understand the
social factors that
affect consumer
buying decisions
6
29
Social Influences
Reference
Groups
Opinion
Leaders
Family
Members
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6
Reference Groups
31

They serve as information sources and
influence perceptions.

They affect an individual’s aspiration levels.

Their norms either constrain or stimulate
consumer behavior.
6
Opinion Leaders
…are the first to try new products
and services out of pure curiosity
…can 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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6
Family Members
Purchase Process Roles
in the Family
 Initiators
 Influencers
 Decision
Makers
 Purchasers
 Consumers
33
6
3-Individual Influences on
Consumer Buying Decisions
Identify and
understand the
individual factors that
affect consumer
buying decisions
7
34
Individual Influences
Gender
35
Age
Life Cycle
Personality
Self-Concept
Lifestyle
7
Age & 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
– Young married with children
– Middle-aged married w/o children
– Non-traditional households
36
7
Personality and Self-Concept
• Personality: a broad concept
– How a person reacts to situations
– Combines psychological makeup and
environmental forces
• Human behavior: depends on self-concept
• Self-concept: how consumers perceive
themselves
– Ideal self-image versus real self-image
– How an individual really wants to be viewed.
– How
LO7
37
7
4-Psychological Influences on
Consumer Buying Decisions
Identify and understand
the psychological
factors that affect
consumer buying
decisions
8
38
Psychological Influences
Perception
Motivation
Learning
Beliefs & Attitudes
39
8
Perception
40
Selective
Exposure
Consumer notices certain stimuli
and ignores others
Selective
Distortion
Consumer changes or distorts
information that conflicts
with feelings or beliefs
Selective
Retention
Consumer remembers only
that information that
supports personal beliefs
8
Motivation
Maslow’s
Hierarchy
of Needs
A method of classifying human
needs and motivations into five
categories in ascending order of
importance.
As a person fulfills one need, a higher
level need becomes more important.
41
8
Exhibit 6.6
Maslow’s Hierarchy of Needs
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