Lamb Hair Mc Daniel 2010 2011 CHAPTER 6
Lamb, Hair, Mc. Daniel 2010 -2011 CHAPTER 6 Consumer Decision Making 1
Learning Outcomes LO 1 Explain why marketing managers should understand consumer behavior LO 2 Analyze the components of the consumer decisionmaking process LO 3 Explain the consumer’s postpurchase evaluation process LO 4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement 2
Learning Outcomes LO 5 Identify and understand the cultural factors that affect consumer buying decisions LO 6 Identify and understand the social factors that affect consumer buying decisions LO 7 Identify and understand the individual factors that affect consumer buying decisions LO 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 LO 1 4
Understanding Consumer Behavior consumers make purchase decisions Consumer behavior = HOW consumers use and dispose of product LO 1 5
The Consumer Decision-Making Process Analyze the components of the consumer decision-making process LO 2 6
Consumer Decision-Making Process LO 2 A five-step process used by consumers when buying goods or services. 7
Consumer Decision-Making Process Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps LO 2 Information Search Evaluation of Alternatives Purchase Postpurchase Behavior 8
Need Recognition Result of an imbalance between actual and desired states. LO 2 9
Need Recognition Int e Sti rnal mu li al n r li e t Ex timu S LO 2 Present Status Preferre d State Marketing helps consumers recognize an imbalance between present status and preferred state. 10
Stimulus Any unit of input affecting one or more of the five senses: • sight • smell • taste • touch • hearing LO 2 11
Recognition of Unfulfilled Wants • When a current product isn’t performing properly • When the consumer is running out of a product • When another product seems superior to the one currently used LO 2 12
Information Search Internal Information Search • Recall information in memory External Information search • LO 2 Seek information in outside environment • • Nonmarketing controlled Marketing controlled 13
External Information Searches Need Less Information Less Risk More knowledge More product experience Low level of interest Confidence in decision LO 2 Need More Information More Risk Less knowledge Less product experience High level of interest Lack of confidence 14
Evoked Set Group of brands, resulting from an information search, from which a buyer can choose LO 2 15
Evaluation of Alternatives and Purchase Evoked Set Analyze product attributes Use cutoff criteria Rank attributes by importance LO 2 Purchase! 16
Purchase To buy or not to buy. . . Determines which attributes are most important in influencing a consumer’s choice LO 2 17
Postpurchase Behavior Explain the consumer’s postpurchase evaluation process LO 3 18
Cognitive Dissonance LO 3 Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. 19
Postpurchase Behavior Consumers can reduce dissonance by: q Seeking information that reinforces positive ideas about the purchase q Avoiding information that contradicts the purchase decision q Revoking the original decision by returning the product Marketing can minimize through: Effective Communication Follow-up Guarantees Warranties LO 3 20
Consumer Buying Decisions and Consumer Involvement Identify the types of consumer buying decisions and discuss the significance a of consumer involvement LO 4 21
Consumer Buying Decisions and Consumer Involvement Routine Response Behavior Less Involvement LO 4 Limited Decision Making Extensive Decision Making More Involvement 22
Five Factors Influencing Decisions 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 LO 4 23
Continuum of Consumer Buying Decisions LO 4 24
Routine Response Behavior § Little involvement in selection process § Frequently purchased low cost goods § May stick with one brand § Buy first/evaluate later § Quick decision LO 4 25
Limited Decision Making § Low levels of involvement § Low to moderate cost goods § Evaluation of a few alternative brands § Short to moderate time to decide LO 4 26
Extensive Decision Making § High levels of involvement § High cost goods § Evaluation of many brands § Long time to decide § May experience cognitive dissonance LO 4 27
Factors Determining the Level of Consumer Involvement Previous Experience Interest Perceived Risk of Negative Consequences Situation LO 4 Social Visibility 28
Marketing 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 LO 4 29
Consumer Behavior • In Japan, only 25% of men in their 20’s want to buy a car – Available public transportation – Environmental impact – Uncool to own a car • Japanese automakers work to change perceptions by: – Offering public test drives – Endorsements from popular music groups – Target women – Increase technological features appealing to young men LO 4 SOURCE: Murphy, John. “Japan’s Young Won’t Rally Round the Car, ” The Wall Street Journal, February 29, 2008, B 1, B 2. 30
Cultural Influences on Consumer Buying Decisions Identify and understand the cultural factors that affect consumer buying decisions LO 5 31
Factors Influencing Buying Decisions Cultural Factors Individual Factors LO 5 Social Factors Psychological Factors CONSUMER DECISIONMAKING PROCESS BUY / DON’T BUY 32
Components of Culture Values Language Myths Customs Rituals Laws Material artifacts LO 5 33
Culture is. . . Pervasive Functional Learned Dynamic LO 5 34
Value LO 5 Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct. 35
Core American Values Success Materialism Freedom Progress Youth Capitalism LO 5 http: //www. thesource. com Online 36
Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group. http: //www. dead. net Online LO 5 37
Social Class LO 5 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. 38
Social Class Measurements Occupation Income Education Wealth Other Variables LO 5 39
The Impact of Social Class on Marketing § Indicates which medium to use for advertising § Helps determine the best distribution for products LO 5 40
Social Influences on Consumer Buying Decisions Identify and understand the social factors that affect consumer buying decisions LO 6 41
Social Influences Reference Groups Opinion Leaders Family Members LO 6 42
Reference Groups Primary Direct Secondary Reference Groups Aspirational Indirect Nonaspirational LO 6 Supplemental content – not in book 43
Influences of Reference Groups § They serve as information sources and influence perceptions. § They affect an individual’s aspiration levels. § Their norms either constrain or stimulate consumer behavior. LO 6 44
Opinion Leaders An individual who influences the opinion of others. LO 6 45
Opinion Leaders Marketers are looking to Web logs, or blogs, to find opinion leaders • Teenagers • Movie stars • Sports figures • Celebrities LO 6 46
Beyond the Book Reference Group Today’s college students make up one of this country’s most influential consumer groups, even though demographically it is one of the smallest. Here’s what a recent survey revealed about this reference group’s preferences: Brand: Apple Product(s): i. Pod / i. Phone Store: Target Online community: Facebook Love/hate: Geico’s gecko Down time: watch TV / surf the Web SOURCE: Beth Snyder Bulik, “Apple, Target, Facebook Tops for College Students, ” Advertising Age, 10/04/07 LO 6 47
Family Purchase Process Roles in the Family LO 6 • Initiators • Influencers • Decision Makers • Purchasers • Consumers 48
Relationships among Purchasers and Consumers in the Family LO 6 49
Individual Influences on Consumer Buying Decisions Identify and understand the individual factors that affect consumer buying decisions LO 7 50
Individual Influences Gender LO 7 Age Life Cycle Personality Self-Concept Lifestyle 51
Psychological Influences on Consumer Buying Decisions Identify and understand the psychological factors that affect consumer buying decisions LO 8 52
Psychological Influences Perception Motivation Learning Beliefs & Attitudes LO 8 53
Perception Selective Exposure Selective Distortion Selective Retention LO 8 54
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 LO 8 55
Marketing Implications of Perception Important attributes: § Price § Brand names § Quality and reliability § Threshold level of perception § Product or repositioning changes § Foreign consumer perception LO 8 56
Beyond the Book Marketing Implications of Perception LO 8 Is Subliminal Perception Real? Eat some popcorn, ok? 57
Motivation Maslow’s Hierarchy of Needs LO 8 A method of classifying human needs and motivations into five categories in ascending order of importance. 58
Maslow’s Hierarchy of Needs LO 8 59
Types of Learning Experiential An experience changes behavior Conceptual Not learned through direct experience http: //www. cspinet. org Online LO 8 60
Beliefs and Attitudes Belief Attitude LO 8 An organized pattern of knowledge that an individual holds as true about his or her world. A learned tendency to respond consistently toward a given object. 61
Changing Attitudes • Change beliefs about the brand’s attributes • Change the relative importance of these beliefs • Add new beliefs LO 8 62
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