Wk 15 Consumer Decision Making

(1)

1

Lamb, Hair, McDaniel

Wk 15

Consumer

_Consumer

Decision Making

2014-2015

(2)

• Explain why marketing managers should understand

consumer behavior

• Analyze the components of the consumer decision-making

process

• Explain the consumer’s postpurchase evaluation process

• Identify the types of consumer buying decisions and

discuss the significance of consumer involvement

• Identify and understand the cultural factors that affect

consumer buying decisions

• Identify and understand the social factors that affect

consumer buying decisions

• Identify and understand the individual factors that affect

consumer buying decisions

• Identify and understand the psychological factors that

affect consumer buying decisions

(3)

Why a marketer should

understand consumer

behavior

Consumer

behavior

Consumer

behavior

consumers make

purchase decisions

consumers make

purchase decisions

consumers use and

dispose of product

consumers use and

dispose of product

= HOW

(4)

Consumer Behavior

Consumer

Behavior

Consumer

Behavior

Consumer Behavior

is the Study of

Consumer Decision

Making Process

Consumer Behavior

is the Study of

Consumer Decision

Making Process

Processes a consumer uses to

make purchase decisions, as

well as to use and dispose of

purchased goods or services;

also includes factors that

(5)

5

Exhibit 6.1

Consumer Decision-Making

Process

(6)

Consumer Decision Making

Process

(7)

Situational Influences on the

Buying Decision Process

• _{Situational Influences}

–

Factors that can influence a buyer’s purchase

decision and may cause the buyer to shorten,

lengthen, or terminate the process.

• _{Situational Factors Include}

–

Physical surroundings

–

Social surroundings

–

Time perspective

–

_{Reason for purchase}

–

_{Buyer’s momentary mood}

(8)

Psychological Influences on

the Buying Decision Process

• _{Psychological Influences}

–

_{Factors that in part determine people’s general}

behavior, thus influencing their behavior as

consumers

• Psychological Influences Include

–

_Perception

–

_Motives

–

_Learning

–

Attitudes

–

Personality and self concept

(9)

Social Influences on the

Buying Decision Process

• Social Influences

–

_{The forces other people exert on one’s buying}

behavior

• _{Social Influences}

–

_Roles

–

Family

–

Reference groups

–

_{Opinion leaders}

–

_{Social class}

(10)

Cognitive Dissonance

and Postpurchase

Behavior

Cognitive Dissonance: Inner tension that a

consumer experiences after recognizing an

inconsistency between behavior and values

or opinions.

Consumers can reduce dissonance by:

• Seeking information that reinforces positive

ideas about the purchase

• Avoiding information that contradicts the

purchase decision

• Revoking the original decision by returning

the product

(11)

More

Involvement

Less

Consumer Buying

Decisions

and Consumer

Involvement

(12)

12

Exhibit 6.2

Continuum of Consumer Buying Decisions

Routine

Limited

Extensive

Involvemen

t

Low

Low to

Moderate

High

Time

Short

Short to

Moderate

Long

Cost

Low

Low to

Moderate

High

Information

Search

Internal

Only

Mostly

Internal

and

External

Number of

Alternative

s

One

Few

Many

(13)

Routine Response

Behavior



_{Little involvement in selection process}



_{Frequently purchased low cost goods}



_{May stick with one brand}



_{Buy first/evaluate later}



_{Quick decision}

(14)

Limited Decision Making



_{Low levels of involvement}



_{Low to moderate cost goods}



Evaluation of a few alternative

brands



_{Short to moderate time to decide}

(15)

Extensive Decision

Making



_{High levels of involvement}



_{High cost goods}



_{Evaluation of many brands}



_{Long time to decide}



_{May experience cognitive dissonance}

(16)

Marketing Implications

of Involvement

High-involvement

purchases require:

High-involvement

purchases require:

Extensive and

Informative promotion

to target market

Extensive and

Informative promotion

to target market

Low-involvement

purchases require:

Low-involvement

purchases require:

In-store promotion,

eye-catching package

design, and good

displays. Coupons,

and two-for-one offers

In-store promotion,

eye-catching package

design, and good

displays. Coupons,

and two-for-one offers

(17)

Exhibit 6.4

U.S. Social Classes

S

Reserved. 17

Upper Classes

Capitalist Class

1% People whose investment decisions shape the national economy; income mostly from assets, earned or inherited; university connections

Upper Middle Class

14% Upper-level managers, professionals, owners of medium-sized businesses; well-to-do, stay-at-home homemakers who decline occupational work by choice; college educated; family income well above national average

Middle Classes

Middle Class 33% Middle-level white-collar, top-level blue-collar; education past high school typical; income somewhat above national average; loss of manufacturing jobs has reduced the

population of this class

Working Class 32% Middle-level blue-collar, lower-level white-collar; income below national average; largely working in skilled or semi-skilled service jobs

Lower Classes

Working Poor 11-12%

Low-paid service workers and operatives; some high school education; below mainstream in living standard; crime and hunger are daily threats

(18)

Exhibit 6.5

Types of Reference Groups

(19)

The first to try new products and

services out of pure curiosity.

May be challenging to locate.

Marketers are increasingly using

blogs, social networking, and other

online media to determine and

attract opinion leaders.

Opinion Leaders

(20)

Family

• Initiators

• Influencers

• Decision Makers

• Purchasers

• Consumers

Purchase Process Roles

in the Family

(21)

Personality,

Self-Concept, and Lifestyle

• _{Personality combines}

psychological makeup and

environmental forces

• _{Human behavior depends}

largely on self-concept

• _{Self-concept combines}

_ideal

self-image

and

real

self-image

.

(22)

Perception

Selective

Exposure

Selective

Exposure

Selective

Distortion

Selective

Distortion

Selective

Retention

Selective

Retention

Consumer notices certain

stimuli and ignores others

Consumer notices certain

stimuli and ignores others

Consumer changes or distorts

information that conflicts

with feelings or beliefs

Consumer changes or distorts

information that conflicts

with feelings or beliefs

Consumer remembers only

that information that

supports personal beliefs

Consumer remembers only

that information that

supports personal beliefs

(23)

Ch 6 Discussion Questions

1. What is consumer decision making process? Take

automobile as an example and explain each step of

the consumer decision making process.

2. Explain the influence of Situational, Psychological

and Social Influences on consumer decision making

process. I may ask you to explain one of the

Influences in consumer decision making process.

3. What is culture and subculture? Why do marketing

managers need to understand culture and subculture

in a society?

4. Explain level of consumer involvement in purchase

and its relationship in consumer decision making.

5. What is postpurchase cognitive dissonance? How a