MKTG 6 CHAPTe R Consumer Decision Making Understanding

MKTG 6 CHAPTe. R Consumer Decision Making

Understanding Consumer Behavior Consumers ………purchase decisions Consumer behavior = HOW consumers ………and ………of product

Importance of Consumer Behavior • Why study consumer behavior? – Complex: personality is a poor predictor of purchasing. – Purchasing agent is variable (no longer wife, husband, etc…) – May have + attitude without intent to buy (I like Jennifer Anniston v. s. I plan to see Anniston’s new movie; Mercedes) – Routine or involved decisions

The Consumer Decision Process

Need Recognition ………. stimuli ……. . stimuli

Search for Information ……………… ……for Information

Factors Affecting Consumers’ Search Process Perceived Benefits

Actual or Perceived Risk _________ __ risk

Actual or Perceived Risk Performance risk Financial risk Psychological risk

An Involved Choice? • Previous experience, interest, social visibility and purchase situation • Purchase situation includes: 1. Time (convenience 2. Reason for purchase stores a good value vs (gift vs personal use; grocery? ) restaurant choice) 3. Atmospherics (how stores makes you feel) – What are some of the other things that makes you purchase a particular product?

Purchase Situation by Gender

The Consumer Decision Process

Evaluation of Alternatives: Attribute Sets/ Evaluative criteria Universal Retrieval Evoked Set

Post purchase Customer satisfaction Post-purchase outcomes Post-purchase dissonance Customer loyalty

Cognitive Dissonance • • Buyer’s remorse How do companies try to reduce it? ?

Other Influences • • Social factors (reference groups, opinion leaders, family) Cultural factors (values, subcultures, class) Individual factors (demographics, psychographics) Psychological factors (perception, motivation, learning, and beliefs)

Social Factors Reference groups – Those you look to for guidance. What are some reference groups that you can think of? ? – Marketers: opinion leaders, influence others, usually type of product – Most influential for visible products (car vs mattress – function)

Cultural Factors • • • Subcultures and values Social Class is defined as people with the same status in a society. It is NOT simply a function of income a. Factors U. S. : usually measured i. Occupation ii. Education iii. Housing b. U. S. is fluid (change) c. People over rank themselves

Individual Factors • Demographic change • Change in lifestyles and attitudes 1936 1965 1972 1986 1980 current Betty Crocker pictures change as consumer attitudes and lifestyles also change.

Oil of Olay Ads Before After People did not see the positive association between oil and beauty. As such, the second logo for Olay was changed and oil was taken out.

Psychological Factors Perception – Gathering & interpreting of information from the world around us. – The process involves: a. Selective exposure – Seek what interests us, ignore others – Ex: political information and what else? ? b. Selective distortion – Screen/modify ideas we disagree with – Ex: power of suggestion, Bugs Bunny, and what else? ? c. Selective retention – Remember what you want – Ex: forget homework, photo memory

Selective Distortion

Motivation Maslow’s Hierarchy of Needs A method of classifying human needs and motivations into five categories in ascending order of importance.

Maslow’s Hierarchy of Needs Exhibit 5. 5 Maslow’s Hierarchy of Needs

Safety Ad Appeal

Involvement and Consumer Buying Decisions