1 lamb, hair, mcdaniel chapter 6 consumer decision making 2010-2011
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Lamb, Hair, McDaniel
CHAPTER 6
Consumer Decision Making
2010-2011
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LO 1 Explain why marketing managers should understand consumer behavior
LO 2 Analyze the components of the consumer decision-making 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
Learning OutcomesLearning Outcomes
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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
Learning OutcomesLearning Outcomes
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Explain why marketing managers should understand consumer behavior
The Importance of Understanding The Importance of Understanding Consumer BehaviorConsumer Behavior
LO1
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Understanding Consumer Behavior
Consumer behavior
Consumer behavior
consumers make purchase decisionsconsumers make
purchase decisions
consumers use anddispose of product
consumers use anddispose of product
= HOW
LO1
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Analyze the components
of the consumer decision-making
process
The Consumer The Consumer Decision-Making ProcessDecision-Making Process
LO2
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Consumer Decision-Making Process
A five-step process used
by consumers when
buying goods or services.
ConsumerDecision-Making
Process
ConsumerDecision-Making
Process
LO2
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Consumer Decision-Making Process
Postpurchase Behavior
Postpurchase Behavior
PurchasePurchase
Evaluation of Alternatives
Evaluation of Alternatives
Information SearchInformation Search
Need RecognitionNeed Recognition
Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological
Factors Factors affect affect
all stepsall steps
Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological
Factors Factors affect affect
all stepsall steps
LO2
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Need Recognition
Result of an imbalance between
actual and desired states.
NeedRecognition
NeedRecognition
LO2
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Need Recognition
Marketing helps consumers recognize an imbalance between present status and preferred state.
Present Status
Present Status
Preferred State
Preferred State
InternalStimuli
External
Stimuli
LO2
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Stimulus
Any unit of input affecting
one or more of the five senses:
•sight
•smell
•taste
•touch
•hearing
StimulusStimulus
LO2
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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
LO2
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Information Search
Internal Information Search
• Recall information in memory
External Information search
• Seek information in outside environment• Nonmarketing controlled• Marketing controlled
LO2
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ExternalInformation Searches
Need MoreNeed More Information Information
More Risk Less knowledge
Less product experienceHigh level of interestLack of confidence
Less Risk More knowledge
More product experienceLow level of interest
Confidence in decision
Need LessNeed Less Information Information
LO2
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Evoked Set
Group of brands, resulting from an
information search, from which a
buyer can choose
Evoked SetEvoked Set
LO2
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Evaluation of Alternativesand Purchase
Evoked SetEvoked Set
Purchase!Purchase!
Analyze product attributes
Analyze product attributes
Rank attributes byimportance
Rank attributes byimportance
Use cutoff criteriaUse cutoff criteria
LO2
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Purchase
To buy or not to buy...
Determines which attributes Determines which attributes are most important are most important
in influencing a in influencing a consumer’s choiceconsumer’s choice
LO2
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Explain the consumer’s postpurchase
evaluation process
Postpurchase BehaviorPostpurchase Behavior
LO3
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Cognitive Dissonance
CognitiveDissonance
CognitiveDissonance
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values or
opinions.
LO3
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Postpurchase BehaviorConsumers 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
Marketing can minimize through:Effective Communication
Follow-upGuaranteesWarranties
LO3
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Identify the types of consumer buying
decisions and discuss the significance a of
consumer involvement
Consumer Buying Decisions Consumer Buying Decisions and Consumer Involvement and Consumer Involvement
LO4
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More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
Consumer Buying Decisions and Consumer Involvement
LO4
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Five Factors Influencing Decisions
1. Level of consumer involvement1. Level of consumer involvement
2. Length of time to make decision2. Length of time to make decision
3. Cost of good or service3. Cost of good or service
4. Degree of information search4. Degree of information search
5. Number of alternatives considered5. Number of alternatives considered
LO4
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Continuum of Consumer Buying Decisions
LO4
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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
LO4
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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
LO4
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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
LO4
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Factors Determining the Level of Consumer Involvement
SituationSituation
Social VisibilitySocial Visibility
InterestInterest
Perceived Risk of Negative Consequences
Perceived Risk of Negative Consequences
Previous ExperiencePrevious Experience
LO4
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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, cents-off,2-for-1 offers
In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers
LO4
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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
menSOURCE: Murphy, John. “Japan’s Young Won’t Rally Round the Car,” The Wall Street Journal, February 29, 2008, B1, B2.
LO4
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Identify and understand the
cultural factors that affect consumer buying decisions
Cultural Influences on Cultural Influences on Consumer Buying DecisionsConsumer Buying Decisions
LO5
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Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKING
PROCESS
BUY / DON’T BUY
LO5
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Components of Culture
MythsMyths
LanguageLanguage
ValuesValues
CustomsCustoms
RitualsRituals
LawsLaws
Material artifactsMaterial artifacts
LO5
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Culture is. . .
LearnedLearned
FunctionalFunctional
PervasivePervasive
DynamicDynamic
LO5
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Value
ValueValue Enduring belief that a
specific mode of conduct
is personally or socially
preferable to another
mode of conduct.
LO5
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Core American Values
SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
http://www.thesource.com
Online
LO5
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Subculture
http://www.dead.net
Online
Subculture A homogeneous group
of people who share
elements of the overall
culture as well as unique
elements of their own
group.
LO5
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Social Class
Social ClassSocial Class
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.
LO5
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Social Class Measurements
WealthWealth
Other VariablesOther Variables
IncomeIncome
EducationEducation
OccupationOccupation
LO5
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The Impact of Social Class on Marketing
Indicates which medium to use for advertising
Helps determine the best distribution for products
LO5
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Identify and understand the
social factors that affect consumer buying decisions
Social Influences on Social Influences on Consumer Buying DecisionsConsumer Buying Decisions
LO6
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Social Influences
Reference Groups
Reference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily
Members
LO6
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Reference Groups
Supplemental content – not in book
Reference Groups
Direct
Indirect
Primary
Secondary
Aspirational
Nonaspirational
LO6
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Influences ofReference Groups
They serve as information sources and influence perceptions.
They affect an individual’s aspiration levels.
Their norms either constrain or stimulate consumer behavior.
LO6
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Opinion Leaders
An individual who influences
the opinion of others.
Opinion LeadersOpinion Leaders
LO6
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Opinion Leaders
LO6
Marketers are looking to Web logs, or blogs, to find opinion leaders•Teenagers
•Movie stars
•Sports figures
•Celebrities
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Beyond t
he
BookReference Group
SOURCE: Beth Snyder Bulik, “Apple, Target, Facebook Tops for College Students,” Advertising Age, 10/04/07
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): iPod / iPhone Store: TargetOnline community: FacebookLove/hate: Geico’s geckoDown time: watch TV / surf the Web
LO6
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Family
• Initiators
• Influencers
• Decision Makers
• Purchasers
• Consumers
Purchase Process Roles in the Family
LO6
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Relationships among Purchasers and Consumers in the Family
LO6
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Identify and understand the
individual factors that affect
consumer buying decisions
Individual Influences onIndividual Influences onConsumer Buying DecisionsConsumer Buying Decisions
LO7
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Individual Influences
GenderGender Age Life Cycle
Age Life Cycle
PersonalitySelf-Concept
Lifestyle
PersonalitySelf-Concept
Lifestyle
LO7
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Identify and understand the psychological
factors that affect consumer buying
decisions
Psychological Influences onPsychological Influences onConsumer Buying DecisionsConsumer Buying Decisions
LO8
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Psychological Influences
PerceptionPerception
MotivationMotivation
LearningLearning
Beliefs & AttitudesBeliefs & Attitudes
LO8
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Perception
SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure
SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion
SelectiveSelectiveRetentionRetention SelectiveSelectiveRetentionRetention
LO8
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Perception
Selective ExposureSelective Exposure
SelectiveDistortionSelectiveDistortion
Selective RetentionSelective 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
LO8
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Marketing Implications of Perception
Important attributes: Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Foreign consumer perception
LO8
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Beyon
d t
he B
ookMarketing Implications of Perception
Is Subliminal Perception Real?
Eat some popcorn, ok?
LO8
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Motivation
A method of classifying human
needs and motivations into five
categories in ascending order of
importance.
Maslow’s Hierarchyof Needs
Maslow’s Hierarchyof Needs
LO8
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LO8
Maslow’sHierarchy of Needs
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Types of Learning
ExperientialExperiential
ConceptualConceptual
An experience changes behavior
An experience changes behavior
Not learned through direct experience
Not learned through direct experience
http://www.cspinet.org
Online
LO8
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BeliefBelief
AttitudeAttitude
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.
LO8
Beliefs and Attitudes
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Changing Attitudes
• Change beliefs about the brand’s attributes
• Change the relative importance of these beliefs
• Add new beliefs
LO8