Transcript CULTURAL INFLUENCES ON CONSUMER BUYING DECISIONS

CHAPTER FIVE
CONSUMER DECISION
MAKING
Prepared by
Jack Gifford
Miami University (Ohio)
© 2000
South-Western
College Publishing
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THE IMPORTANCE OF
UNDERSTANDING CONSUMER
BEHAVIOR
CONSUMER BEHAVIOR describes how consumers
make purchase decisions and how they use and dispose
of the purchased goods and services
Knowing how consumers make decisions helps
marketers have the right product or service at the right
place at the right price using the right promotion
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THE CONSUMER DECISION-MAKING PROCESS
Cultural, social, individual, and psychological context
NEED
INFORMATION
RECOGNITION
SEARCH
EVALUATION OF
ALTERNATIVES
POSTPURCHASE
PURCHASE
BEHAVIOR
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STEP ONE: NEED RECOGNITION
Occurs when consumers are faced with an imbalance
between actual and desired physical or mental states
Is always triggered by an internal or external stimulus
A WANT exists when someone has an unfulfilled need and
has determined that a particular good or service will
satisfy it.
Marketers try to provide these stimuli to fulfill these
wants with their products or services
+
=
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ONE HUNGRY STUDENT PLUS ONE
HAMBURGER COMMERCIAL =
ONE MORE FAST FOOD SALE!
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STEP TWO: INFORMATION SEARCH
Can occur internally, externally, or both
Internal = memory
External from marketing-controlled sources (promotion) or
non-marketing controlled (family/friends) sources
The extent of external search depends upon:
Perceived risk (Performance, Financial, Physical, Social,
Psychological, Time-loss)
Knowledge
Prior experience
Level of interest in the good or service
Confidence level in internal decision-making ability
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STEP TWO: INFORMATION SEARCH
(continued)
INTERNAL SEARCH
EXTERNAL SEARCH
•Memory
Marketing-controlled
sources
•Physiological needs
Non-marketing controlled
sources
•All past experiences
•Values, attitudes and
beliefs
EVOKED
SET
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STEP TWO: INFORMATION SEARCH
(continued)
EVOKED
SET
CONSIDERATION SET
•Establish minimum
and maximum cutoffs
•Limiting parameters,
based upon knowledge,
importance, risk, and
confidence level
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STEP THREE: EVAUALTION OF
ALTERNATIVES
Key attributes required
Minimum levels of need satisfaction
Importance of brand name
Possible limitations to selection [availability,
price, physical limits (headroom in a car)]
Weigh internal and external information
against purchase decision criteria
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STEP FOUR: PURCHASE
DECISION
ACQUIRE THE USE OR OWNERSHIP
OF THE PRODUCT OR SERVICE
Ability to buy
Willingness to buy
Authority to buy
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STEP FIVE:POSTPURCHASE BEHAVIOR
Depends upon the quality of match between
expectations and outcomes
A positive match reinforces the correctness of the decision and
provides future motivation to repeat the purchase decision
under similar circumstances.
A negative match between expectations and actual outcomes
will result in cognitive dissonance; if strong, they are unlikely
to make the same “mistake” in the future.
Marketers try to reduce cognitive dissonance by producing
products and service expectations that will be met by their
offerings
Marketers also send follow up letters to reduce any lingering
dissonance
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CONTINUUM OF CONSUMER BUYING DECISIONS
ROUTINE
LIMITED
EXTENSIVE
INVOLVEMENT
LOW
LOW TO
MODERATE
HIGH
TIME
SHORT
SHORT TO
MODERATE
LONG
COST
LOW
LOW TO
MODERATE
HIGH
INFORMATION
SEARCH
INTERNAL
ONLY
MOSTLY
INTERNAL
INTERNAL &
EXTERNAL
NUMBER OF
ALTERNATIVES
ONE
FEW
MANY
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FACTORS DETERMINING THE LEVEL OF
CONSUMER INVOLVEMENT
Previous experience
Level of interest
Perceived risk of negative consequences
Specific situation
Social visibility of outcome
MARKETING
IMPLICATIONS
???
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College Publishing
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FACTORS INFLUENCING CONSUMER
BUYING DECISIONS
•CULTURAL FACTORS
•INDIVIDUAL FACTORS
•Culture & values
•Gender
•Subculture
•Age / Family Life Cycle
•Social class
•Personality, self-concept,
lifestyle
•SOCIAL FACTORS
•Reference groups
•Opinion leaders
•Family
© 2000
•PSYCHOLOGICAL
FACTORS
•Perception
•Motivation
•Learning
•Benefits & Attitudes
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CULTURAL INFLUENCES ON
CONSUMER BUYING DECISIONS
Exert the broadest
influence over a person’s
consumer behavior
The underlying elements
of every culture
include…
Values
Language
Myths
Customs
Rituals
Laws
Material artifacts
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CULTURAL INFLUENCES ON
CONSUMER BUYING DECISIONS
What people eat, how they dress,
what they think and feel, what
language they speak, are all
dimensions of culture
Culture gives order to society
Marketer’s actions must be
consistent with the culture and
values of its target customers to
be successful
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CULTURAL INFLUENCES ON
CONSUMER BUYING DECISIONS
Culture is learned
Culture is dynamic, not static
The most important element of a
culture is its shared values
Culture gives order to society
Examples of shared American
values include...
•Success
•Materialism
•Freedom
•Progress
•Youth
•Capitalism
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CULTURAL INFLUENCES ON
CONSUMER BUYING DECISIONS
As more companies expand their
operations globally, the need to
understand the cultures of
foreign countries becomes
increasingly important.
HAMBURGER IN U.S.A.
MADE WITH BEEF
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•
BECAUSE OF
RELIGIOUS
BELIEFS,
MOST
INDIANS DO
NOT EAT
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BEEF
CULTURAL INFLUENCES ON CONSUMER
BUYING DECISIONS: SUBCULTURES
A SUBCULTURE is a homogeneous group of people
who share elements of the overall culture as well as
cultural elements unique to their own group
Subculture may be based upon any meaningful
commonality, such as geographic regions, political or
religious beliefs, national or ethnic background, use of
leisure time, etc.
Membership may greatly influence what and how you
consume, something of vital interest to marketers
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CULTURAL INFLUENCES ON CONSUMER
BUYING DECISIONS: SOCIAL CLASS
Upper classes
Upper middle class
Middle classes
Working class
Working poor
Underclass
A social class is a group
of people who:
are nearly equal in status
regularly socialize among
themselves
share behavioral norms
…and most importantly
for marketers, consume
similar goods and
services for similar
reasons
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Defined partially by
occupation, income,
education, and wealth
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SOCIAL INFLUENCES ON
CONSUMER BEHAVIOR
Consumer interact with reference
groups, opinion leaders and family
members to obtain product information
and decision approval to..
Reduce risk of making a “wrong” decision
Reduce search time
Reduce uncertainty
To conform to subculture
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“Right” brand
of tennis
racket, shoes
and tennis
apparel.
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SOCIAL INFLUENCES ON CONSUMER
BEHAVIOR: REFERENCE GROUPS
All formal or
informal groups that
influence the buying
behavior of an
individual are that
person’s reference
groups
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SOCIAL INFLUENCES ON CONSUMER
BEHAVIOR: REFERENCE GROUPS
Direct Primary
Groups
Indirect reference
groups
Family
Friends
Coworkers
Aspirational
reference groups
Direct Secondary
Groups
Clubs
Professional groups
Religious groups
© 2000
“I want to be like Mike”
Nonaspirational,
disassociative
reference groups
“If I buy one of those cars, people
will think I’m a yuppie”
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SOCIAL INFLUENCES ON CONSUMER
BEHAVIOR: OPINION LEADERS
Opinion leaders are
persons who try “new
things” first; if they are
part of our positive
reference group, we then
may emulate their
behavior.
“That new two finger graphite bowling ball certainly
works for Marti. Maybe I should buy one.”
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INDIVIDUAL INFLUENCES ON
CONSUMER BUYING DECISIONS
Gender differences
Age and Family Life
Cycle differences
Physiological
Roles
Psychological
Shopping behavior
Tastes in food, clothing,
cars, furniture, and
recreation often change
with age
Consumption patterns of
single and married
individuals are different.
The presence of young
children again influences
consumption patterns
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INDIVIDUAL INFLUENCES ON
CONSUMER BUYING DECISIONS
Personality, self-concept and
lifestyle
Personality: underling disposition,
dominant characteristics, and how
people react in interact
Self-concept: how consumers perceive
themselves (ideal or real self image)
Lifestyle: a mode of living, as identified
by a person’s activities, interests, and
opinions
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INDIVIDUAL INFLUENCES ON
CONSUMER BUYING DECISIONS
Psychological dimensions include those factors that
consumers use to interact with their world, to recognize
their feelings, gather and analyze information,
formulate thoughts and opinions, and take action.
Psychological dimensions are individual, environment
and situation specific.
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INDIVIDUAL INFLUENCES ON CONSUMER
BUYING DECISIONS: PERCEPTION
The process by which we
select, organize, and
interpret stimuli into a
meaningful and coherent
picture is called
perception
Selective exposure?
Cues?
Selective distortion?
Selective retention?
Subliminal perception?
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INDIVIDUAL INFLUENCES ON CONSUMER
BUYING DECISIONS: MOTIVATION
MOTIVES are the
driving forces that cause
a person to take action to
satisfy specific needs.
One popular theory is
Maslow’s Hierarchy of
needs
SELF
ACTUALIZATION
NEEDS
ESTEEM NEEDS
SOCIAL NEEDS
SAFETY NEEDS
PHYSIOLOGICAL NEEDS
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INDIVIDUAL INFLUENCES ON CONSUMER
BUYING DECISIONS: LEARNING, BENEFITS
AND ATTITUDES
LEARNING
Experiential
Conceptual
BELIEFS &
ATTITUDES
A BELIEF is an
Reinforcement and
organized pattern of
repetition boost learning
knowledge that an
Concept of stimulus
individual holds to be
generalization and
true
discrimination
An ATTITUDE is a
learned tendency to
MARKETER’S
respond consistently
OBJECTIVES? © 2000 South-Westerntoward a given event
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•CULTURAL FACTORS
•INDIVIDUAL FACTORS
•Culture & values
•Gender
•Subculture
•Age / Family Life Cycle
•Social class
•Personality, self-concept,
lifestyle
•SOCIAL FACTORS
•Reference groups
•PSYCHOLOGICAL
FACTORS
•Perception
•Motivation
•Learning
•Benefits & Attitudes
•Opinion leaders
•Family
An understanding of consumer behavior and the factors
that influence it will help marketers successfully identify
target markets and design effective marketing mixes!
© 2000
South-Western
College Publishing
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