Transcript Understanding Different Consumer Behaviors

Consumer Decision Making
Learning Objective
Explain why marketing managers
should understand
consumer behavior.
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Consumer Behavior
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Processes a consumer uses to
make purchase decisions, as well
as to use and dispose of
purchased goods or services; also
includes factors that influence
purchase decisions and
the product use.
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Learning Objective
Analyze the components
of the consumer
decision-making process.
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Consumer Decision-Making Process
A five-step process used
by consumers when buying goods
or services.
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Consumer Decision-Making Process
Need Recognition
Information Search
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
Evaluation
of Alternatives
Purchase
Postpurchase
Behavior
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Need Recognition
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Result of an imbalance between
actual and
desired states.
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Need Recognition
Marketing helps
consumers recognize
an imbalance between
present status and
preferred state
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Internal Stimuli
and
External Stimuli
Preferred State
Present Status
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Stimulus
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Any unit of input affecting one or
more of the five senses:
sight
smell
taste
touch
hearing
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Want
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.
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Recognition of Unfulfilled Wants
• When a current product isn’t performing
properly
• When the consumer is running
out of an product
• When another product seems superior to
the one currently used
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Information Searches
Internal
2
Process of recalling past
information stored
in the memory.
External
Process of seeking information in
the
outside environment.
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Information Search
Internal Information Search
 Recall information in memory
External Information search

Seek information in outside environment


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Non-marketing controlled
Marketing controlled
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External Information Searches
Need Less
Information
Need More
Information
Less Risk
More knowledge
More product experience
Low level of interest
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More Risk
Less knowledge
Less product experience
High level of interest
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Extent people spend on External Search
depends on:
•
•
•
•
Perceived risk
Knowledge
Prior experience
Level of interest
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Evoked Set
2
Group of brands,
resulting from an information
search,
from which a buyer
can choose.
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Evaluation of Alternatives
Evoked Set
2
Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!
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Purchase
To buy
or not to buy...
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Determines which attributes
are most important
in influencing a
consumer’s choice
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Learning Objective
Explain the consumer’s
postpurchase evaluation process.
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Cognitive Dissonance
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Inner tension that a consumer
experiences
after recognizing an inconsistency
between behavior and values
or opinions.
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Postpurchase Behavior
Cognitive Dissonance
?
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
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Can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
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Learning Objective
Identify the types of
consumer buying decisions
and discuss the significance
of consumer involvement.
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Types of Consumer Buying Decisions4
Routine
Response
Behavior
Limited
Decision
Making
Less
Involvement
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Extensive
Decision
Making
More
Involvement
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Five Factors influencing Decisions 4
1.Level of consumer involvement
2.Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered
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Routine Response Behavior
• Little involvement in selection process
• Frequently purchased low cost goods
• May stick with one brand
• Buy first/evaluate later
• Quick decision
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Limited Decision Making
• Low levels of involvement
• Low to moderate cost goods
• Evaluation of a few alternative brands
• Short to moderate time to decide
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Extensive Decision Making
 High levels of involvement
 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance
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Level of Involvement
Previous Experience
Interest
Perceived Risk of
Negative
Consequences
Factors
Determining Level
of Involvement
Situation
Social Visibility
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Marketing Implications of
Involvement
High-involvement
purchases require:
extensive promotion to
target market and
good advertisement
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Low-involvement
purchases require: instore promotion and
eye-catching package
design
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Factors Influencing Buying Decisions 4
Cultural
Factors
Social
Factors
Individual
Factors
Psychological
Factors
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CONSUMER
DECISIONMAKING
PROCESS
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BUY /
DON’T BUY
Learning Objective
Identify and understand the
cultural factors that affect
consumer buying decisions.
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Culture
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Set of values norms, attitudes,
and other meaningful symbols
that shape human behavior and
the artifacts, or products, of that
behavior as they are transmitted
from one generation to the next.
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Cultural Influences on Buying
Decisions
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Values
Language
Myths
Customs
Rituals
Components of
American
Culture
Laws
Material Artifacts
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Culture is...
Pervasive
Functional
Learned
Dynamic
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Value
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Enduring belief that a specific
mode of conduct
is personally or socially preferable
to another
mode of conduct.
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Core American Values
Success
Materialism
Freedom
Core
American
Values
Progress
Youth
Capitalism
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Global Language Blunders
 Chevrolet’s “Nova” translated to “No Go”
 Coors “Turn it Loose” became
“Suffer from Diarrhea”
 Toyota’s MR2 sounded like a
swearword in French
 Coca-Cola in Chinese means
“bite the wax tadpole”
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Subculture
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A homogeneous group
of people who share elements of
the overall culture as well as
unique elements of
their own group.
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Social Class
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A group of people in a society
who are considered nearly equal
in status or community esteem,
who regularly socialize among
themselves both formally and
informally, and who share
behavioral norms.
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Learning Objective
Identify and understand the
social factors that affect
consumer buying decisions.
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Social Influences
Social Influences on
Buying Decisions
Reference Groups
Family Members
Opinion Leaders
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Reference Group
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A group in society that influences
an individual’s purchasing
behavior.
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Reference Groups
Primary
Direct
Secondary
Types of
Reference
Groups
Aspirational
Indirect
Non-aspirational
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Implications of Reference Groups 6
• They serve as information sources and
influence perceptions
• They affect an individual’s aspiration levels
• Their norms either constrain or stimulate
consumer behavior
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Opinion Leaders
An individual who
influences the opinion
of others.
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Family
 Instigators
 Influencers
 Decision-Makers
Purchase Roles in
the Family
 Purchasers
 Consumers
Children
Influence
Purchase
Decisions
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Learning Objective
Identify and understand the
individual factors that affect
consumer buying decisions.
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Individual Influences
Individual Influences
Personality
Self-Concept
Lifestyle
Gender
Age
Family Life Cycle
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Family Life Cycle
•
•
•
•
•
Single->
Married
Married with Children
Married and Empty Nest
Widow or Widower
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Psychographics
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The analytical technique used to
examine consumer lifestyles and
to categorize consumers.
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“Types of Moms”
“June Cleaver” Moms
“Tug-of-War” Moms
“Strong Shoulders” Moms
“Mothers of Invention” Moms
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Learning Objective
Identify and understand the
psychological factors that affect
consumer buying decisions.
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Psychological Influences
Perception
Motivation
Psychological
Influences on
Buying Decisions
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Learning
Beliefs & Attitudes
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Perception
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Process by which people select,
organize, and interpret stimuli
into
a meaningful and
coherent picture.
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Perception
Selective
Exposure
Selective
Distortion
Selective
Retention
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Perception
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
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A Consumer’s Selective Exposure 8
Exposure to over 300
advertisement messages per day
Notices only
11 to 20 ads
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Marketing Implications of
Perception
• Important attributes
• Higher price
• Brand names
• Quality and reliability
• Threshold level of perception
• Product changes
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Maslow’s Hierarchy of Needs
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A method of classifying human
needs and motivations into five
categories in ascending order of
importance.
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Motivation
Maslow’s
Hierarchy of
Needs
SelfActualization
Esteem
Social
Safety
Physiological
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• Physiological (hunger, thirst) ads showing a juicy hamburger or a
runner gulping down Gatorade after a marathon
• Safety (security, protection) Carbon Monoxide ads showing pictures
of children who died
• Social (sense of belonging, love) Nike promotes its Air Jordan athletic
shoes as part of a fashion statement & athletic statement
• Esteem (recognition, status) Mercedes-Benz cars are targeted toward
people who are conscious of their place in a group (society) & want
others to know that they have achieved success
• Self-actualization (self development & self-realization) Point in life at
which “people feel they are where they should be”. AMEX one of
the highest attainments in life. ((Platinum card If it’s in your wallet,
it can get you in))
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Learning
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A process that creates changes in
behavior, immediate or expected,
through experience
and practice.
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Types of Learning
Types of
Learning
Description
Experiential
An experience changes behavior
Conceptual
Not learned through direct experience
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Stimulus Generalization
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A form of learning that occurs
when one response is extended to
a second stimulus similar to the
first.
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Beliefs and Attitudes
Belief
An organized pattern of
knowledge that an individual
holds as true about his
or her world.
Attitude
A learned tendency to respond
consistently
toward a given object.
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