Transcript Chapter 6

Marketing 333
Chapter 6
Consumer Decision
Making
What is Consumer Behavior?
Activities people engage in when selecting,
purchasing, and using products so as to satisfy
needs and desires.
Decision-Making Process
Step 1:
Need
Recognition
Step 4:
Purchase
Decision
Step 2:
Information
Search
Step 3:
Evaluation
of Alternatives
Step 5:
Post-purchase
Evaluation
Decision-Making Process
Need Recognition
Awareness that there is a discrepancy
between an actual and a desired
condition.
My car has
died!
Decision-Making Process
Information Search.
Internal and external search for
information to make a decision.
Decision-Making Process: Information
Search
Internal Search:
 Scan memory
External Search:
 Shopping
 Personal sources
 Public media
 Advertisements
Decision-Making Process: Information
Search
Perceived risk: Consumer’s uncertainty about the
consequences of future actions.
Types of risk:
–
–
–
–
Performance risk
Financial risk
Physical risk
Social risk
Involvement

The Importance an
individual attaches to
a product
Decision-Making Process:
High Involvement Products
Problem
Recognition
Extensive
information
search
Extensive
weighing of
alternatives
Don’t
Buy
Problem
still
faced
Buy
Postpurchase
evaluation
Purchase
decision
Decision-Making Process:
Low Involvement Products
Problem
Recognition
Minimal
information
search
Purchase
decision
Postpurchase
consumption;
minimal
evaluation
Implications of Involvement
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
Decision-Making Process
Evaluation of Alternatives.
Determine choice criteria to evaluate
product alternatives.
Performance
Safety
Lots of storage
Variety of
colors
Decision-Making Process
Purchase Decision
Choose which brand to buy or not to buy
I’ll take
that one.
Decision-Making Process
Post-purchase Evaluation
 Purchase satisfaction
 Cognitive dissonance
Why did I buy
such an expensive
car?
Situations Surrounding the
Decision Process



Routinized Problem
Solving
Limited Problem Solving
Extensive Problem
Solving
What Influences the Buying
Decision?
Cultural
Factors
Individual
Factors
Social
Factors
Psychological
Factors
CONSUMER
DECISIONMAKING
PROCESS
BUY /
DON’T BUY
Culture
Culture: Values,
beliefs, and
customary behaviors
learned and shared
by members of a
society.
Subculture
Subculture: A culture within
a culture
 Ethnicity
 Age
 Religions
Social Class
Social Class: Group of
people with similar
levels of prestige,
power, and wealth who
also share a set of
related beliefs, attitudes,
and values.
Reference Groups
Reference group: Group
that influences an
individual because that
individual is a member or
aspires to be a member
of that group.
Reference Groups
Types of reference groups:
 Membership group
 Voluntary membership group
 Aspirational group
Family
Family: A group of two or
more persons related by
birth, marriage, or
adoption and residing
together. (traditional)
Don’t forget non-traditional
families.
Individual Influences on Consumer
Buying Decisions




Age
Family Life-Cycle
Personality
Self Concept
Personality
Personality: Fundamental disposition of an
individual; distinctive patterns of thought,
emotion, and behavior that characterize an
individual’s response to the situations of his or
her life.
Self Concept

How consumers perceive themselves
–
–
Ideal self image
Real self image
Psychographics


AIOs
Lifestyles
Perception

Processing of interpreting sensations and
giving meaning to stimuli
–
–
–
Selective exposure
Selective distortion
Selective retention
Maslow’s Hierarchy of Needs
Self-Actualization
Esteem
Social
Safety
Physiological
Learning
Learning: Any change in behavior or cognition
that results from experience or an
interpretation of experience.
–
–
–
–
Experiential Learning
Conceptual Learning
Stimulus generalization
Stimulus discrimination
Attitudes
Attitude: learned tendency to respond
consistently toward a given object
ffective
ehavioral
ognitive