1chapter 5 marketing 7e, lamb hair mcdaniel ©2004 south-western/thomson learning consumer decision...
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1 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Consumer Decision MakingConsumer Decision Making
Prepared byPrepared byDeborah BakerDeborah Baker
Texas Christian UniversityTexas Christian University
Chapter 5
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2 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning ObjectivesLearning Objectives
1. Explain why marketing managers should understand consumer behavior.
2. Analyze the components of the consumer decision-making process.
3. Explain the consumer’s postpurchase evaluation process.
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3 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objectives Learning Objectives (continued)(continued)
4. Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
5. Identify and understand the cultural factors that affect consumer buying decisions.
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4 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objectives Learning Objectives (continued)(continued)
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.
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5 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Explain why marketing managers should understand consumer behavior.
11
On Linehttp://www.newyork.comhttp://www.newyork.org
On Linehttp://www.newyork.comhttp://www.newyork.org
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6 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Consumer BehaviorConsumer Behavior
Processes a consumer uses
to make purchase decisions,
as well as to use and
dispose of purchased goods
or services; also includes
factors that influence
purchase decisions and
the product use.
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7 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Analyze the components of the consumer decision-making process.
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8 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Consumer Decision-Making ProcessConsumer Decision-Making Process
A five-step process used
by consumers when buying
goods or services.
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9 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Consumer Consumer Decision-Making ProcessDecision-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
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10 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Need RecognitionNeed Recognition
Result of an imbalance
between actual and
desired states.
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11 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Need RecognitionNeed Recognition
Internal StimuliInternal Stimuliandand
External StimuliExternal Stimuli
Present Status
Preferred State
Marketing helps consumers
recognize an imbalance between present status and
preferred state
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12 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
StimulusStimulus
Any unit of input affecting one or more of the five
senses:
sight
smell
taste
touch
hearing
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13 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
WantWant
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.
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14 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Recognition of Unfulfilled Recognition of Unfulfilled WantsWants
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
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15 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Information SearchesInformation Searches
Process of recalling past
information stored
in the memory.
Process of seeking
information in the
outside environment.
Internal
External
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16 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Information SearchInformation Search
Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment
Non-marketing controlled Marketing controlled
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17 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
External Information External Information SearchesSearches
Need MoreNeed More Information Information
More Risk More Risk Less knowledgeLess knowledge
Less product Less product experienceexperience
High level of interestHigh level of interest
Less Risk Less Risk More knowledgeMore knowledge
More product More product experienceexperience
Low level of interestLow level of interest
Need LessNeed Less Information Information
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18 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Evoked SetEvoked Set
Group of brands,
resulting from an information search,
from which a buyer
can choose.
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19 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Evaluation of AlternativesEvaluation of Alternatives
Evoked SetEvoked Set
Purchase!Purchase!
Analyze product attributesAnalyze product attributesAnalyze product attributesAnalyze product attributes
Rank attributes byRank attributes byimportanceimportance
Rank attributes byRank attributes byimportanceimportance
Use cutoff criteriaUse cutoff criteriaUse cutoff criteriaUse cutoff criteria
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20 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
PurchasePurchase
To buy To buy or not 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
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21 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Explain the consumer’s postpurchase evaluation process.
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22 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Cognitive DissonanceCognitive Dissonance
Inner tension that a consumer
experiences
after recognizing an inconsistency
between behavior and values
or opinions.
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23 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Cognitive DissonanceCognitive Dissonance
??Did I make a good decision?Did I make a good decision?
Did I buy the right product?Did I buy the right product?
Did I get a good value?Did I get a good value?
Postpurchase BehaviorPostpurchase Behavior
Can minimize through:Can minimize through:Effective CommunicationEffective Communication
Follow-upFollow-upGuaranteesGuaranteesWarrantiesWarranties
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24 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
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25 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Types of Consumer Types of Consumer Buying DecisionsBuying Decisions
More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
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26 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Five Factors influencing Five Factors influencing DecisionsDecisions
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
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27 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Continuum of Continuum of Consumer Buying DecisionsConsumer Buying Decisions
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28 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Routine Response BehaviorRoutine Response Behavior
Little involvement in selection process
Frequently purchased low cost goods
May stick with one brand
Buy first/evaluate later
Quick decision
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29 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Limited Decision MakingLimited Decision Making
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide
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30 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Extensive Decision MakingExtensive Decision Making
High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
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31 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Level of InvolvementLevel of Involvement44
On Linehttp://www.gardenburger.com
On Linehttp://www.gardenburger.com
SituationSituation
Social VisibilitySocial Visibility
InterestInterest
Perceived Risk of Negative
Consequences
Perceived Risk of Negative
Consequences
Previous ExperiencePrevious
Experience
Factors Factors Determining Determining
Level of Level of Involvement Involvement
Factors Factors Determining Determining
Level of Level of Involvement Involvement
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32 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Marketing Implications Marketing Implications of Involvementof 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
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33 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Factors Influencing Factors Influencing Buying DecisionsBuying Decisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKING
PROCESS
BUY /
DON’T BUY
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34 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Identify and understand the cultural factors that affect consumer buying decisions.
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35 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
CultureCulture
Set of values norms,
attitudes, and other
meaningful symbols that
shape human behavior and
the artifacts, or products, of
that behavior as they are
transmitted from one
generation to the next.
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36 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Cultural Influences on Cultural Influences on Buying DecisionsBuying Decisions
ValuesValues
LanguageLanguage
MythsMyths
CustomsCustoms
RitualsRituals
LawsLaws
Components ofComponents ofAmericanAmericanCultureCulture
Components ofComponents ofAmericanAmericanCultureCulture
Material ArtifactsMaterial Artifacts
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37 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Culture is...Culture is...
LearnedLearned
FunctionalFunctional
PervasivePervasive
DynamicDynamic
55On Linehttp://www.dead.nethttp://www.chuckecheese.com
On Linehttp://www.dead.nethttp://www.chuckecheese.com
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38 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
ValueValue
Enduring belief that a
specific mode of conduct
is personally or socially
preferable to another
mode of conduct.
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39 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Core American ValuesCore American Values
SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
CoreCoreAmerican American
ValuesValues
CoreCoreAmerican American
ValuesValues
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40 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Global Language BlundersGlobal Language Blunders
Chevrolet’s “Nova” translated to “No Go”
Coors “Turn it Loose” became “Suffer from Diarrhea”
Toyota’s MR2 sounded like a swearword in French
Coca-Cola in Chinese means “bite the wax tadpole”
55
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41 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
SubcultureSubculture
A homogeneous group
of people who share
elements of the overall
culture as well as
unique elements of
their own group.
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42 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
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.
55
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43 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Social Class MeasurementsSocial Class Measurements
WealthWealth
Other VariablesOther Variables
IncomeIncome
EducationEducation
OccupationOccupation
Social Class Social Class Measurements Measurements
Social Class Social Class Measurements Measurements
55
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44 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
The Impact of Social Class The Impact of Social Class on Marketingon Marketing
Indicates which medium to use for advertising
Helps determine the best distribution for products
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45 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Identify and understand the social factors that affect consumer buying decisions.
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46 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Social Influences Social Influences
Reference Groups
Reference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily
Members
Social Influences on Buying Decisions
Social Influences on Buying Decisions
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47 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Reference GroupReference Group
A group in society that
influences an individual’s
purchasing behavior.
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48 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Reference GroupsReference Groups
Reference Reference GroupsGroups
Direct
Indirect
Primary
Secondary
Aspirational
Non-aspirational
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49 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Implications of Reference Implications of Reference GroupsGroups
1. They serve as information sources and influence perceptions
2. They affect an individual’s aspiration levels
3. Their norms either constrain or stimulate consumer behavior
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50 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Opinion Leaders Opinion Leaders
An individual who
influences the opinion
of others.
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51 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Opinion LeadersOpinion Leaders
Movie Stars
Sports Figures
Celebrities
Peer Groups
Group Referrals
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52 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
FamilyFamily
Children Children Influence Influence Purchase Purchase DecisionsDecisions
Purchase Roles in the Family
Purchase Roles in the Family
Initiators
Influencers
Decision Makers
Purchasers
Consumers
66On Linehttp://www.gamegirlz.comhttp://www.gamespot.com
On Linehttp://www.gamegirlz.comhttp://www.gamespot.com
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53 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Relationships among Relationships among Purchasers and Consumers in Purchasers and Consumers in
the Familythe Family66
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54 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Identify and Identify and understand the understand the individual factors individual factors that affect consumer that affect consumer buying decisions.buying decisions.
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55 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Individual InfluencesIndividual Influences
GenderGenderAge
Family Life Cycle
Age Family Life
Cycle
PersonalitySelf-Concept
Lifestyle
PersonalitySelf-Concept
Lifestyle
Individual InfluencesIndividual Influences
77
On Linehttp://www.ballyfitness.com
On Linehttp://www.ballyfitness.com
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56 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Family Life Cycle Family Life Cycle
An orderly series of stages through which
consumers’ attitudes and behavioral
tendencies evolve through maturity,
experience, and changing income and status.
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57 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Psychographics Psychographics
The analytical technique used
to examine consumer lifestyles
and to categorize consumers.
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58 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Objective Learning Objective
Identify and understand the psychological factors that affect consumer buying decisions.
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59 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Psychological InfluencesPsychological Influences
Psychological Psychological Influences on Influences on
Buying DecisionsBuying Decisions
Psychological Psychological Influences on Influences on
Buying DecisionsBuying Decisions
PerceptionPerception
MotivationMotivation
LearningLearning
Beliefs & AttitudesBeliefs & Attitudes
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60 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Perception Perception
Process by which people select,
organize, and interpret stimuli into
a meaningful and
coherent picture.
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61 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
PerceptionPerception
SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure
SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion
SelectiveSelectiveRetentionRetention SelectiveSelective
RetentionRetention
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62 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
PerceptionPerception
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
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63 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Notices only 11 to 20 ads
Notices only 11 to 20 ads
Exposure to over 250 advertisement messages per day
Exposure to over 250 advertisement messages per day
A Consumer’s Selective A Consumer’s Selective ExposureExposure
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64 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Marketing Implications Marketing Implications of Perceptionof Perception
Important attributes
Higher price
Brand names
Quality and reliability
Threshold level of perception
Product or repositioning changes
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65 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs
A method of classifying
human needs and
motivations into five
categories in ascending
order of importance.
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66 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
MotivationMotivation
Maslow’s Maslow’s Hierarchy of Hierarchy of
NeedsNeeds
Maslow’s Maslow’s Hierarchy of Hierarchy of
NeedsNeeds
Physiological Physiological
SafetySafety
SocialSocial
EsteemEsteem
Self-Self-ActualizationActualization
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67 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Learning Learning
A process that creates
changes in behavior,
immediate or expected,
through experience
and practice.
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68 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Types of LearningTypes of Learning
Types of Types of LearningLearningTypes of Types of LearningLearning DescriptionDescriptionDescriptionDescription
ExperientialExperiential
ConceptualConceptual
An experience changes behaviorAn experience changes behavior
Not learned through direct experience
Not learned through direct experience
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69 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Stimulus Generalization Stimulus Generalization
A form of learning that
occurs when one response
is extended to a second
stimulus similar to the first.
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70 Chapter 5 Marketing 7e, Lamb Hair McDaniel©2004 South-Western/Thomson Learning
Beliefs and Attitudes Beliefs and Attitudes
An organized pattern of
knowledge that an individual
holds as true about his
or her world.
Belief
AttitudeA learned tendency to respond
consistently
toward a given object.
88On Linehttp://saveharry.comhttp://www.cspinet.org
On Linehttp://saveharry.comhttp://www.cspinet.org