Lamb Hair Mc Daniel 2012 2013 CHAPTER 6
Lamb, Hair, Mc. Daniel 2012 -2013 CHAPTER 6 Consumer Decision Making 11 © Nonstock/Jupiterimages © 2013 by Cengage Learning Inc. All Rights Copyright © 2012 by Cengage. Reserved. Learning Inc. All rights reserved © i. Stockphoto. com/i. Stock Inhouse 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 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 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=TRTk. CHE 1 s. S 4 10
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 11 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 13 2
Step 5 -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 Returning the product and revoking the original decision Marketing managers can minimize dissonance through effective communication with purchasers 14 3
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 effort. More a 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 21 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 24 5
Components of Culture Values Language Myths Customs Rituals Laws Material artifacts 25 5
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 30 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. 32 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 LO 7 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 42
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