chapter 1 copyright ©2012 by cengage learning inc. all rights reserved 1 lamb, hair, mcdaniel...

Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1

Lamb, Hair, McDaniel

CHAPTER 6

Consumer Decision Making

2012-2013

© N

on

sto

ck/J

up

iteri

mag

es

© 2013 by Cengage Learning Inc. All Rights Reserved. 1

© iStockphoto.com

/iStock

Inhouse

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

Learning OutcomesLearning Outcomes

1

2

3

4

© 2013 by Cengage Learning Inc. All Rights Reserved.2

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

Learning OutcomesLearning Outcomes

5

6

7

8


Explain why marketing managers should understand consumer behavior

1

The Importance of Understanding Consumer Behavior


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


Help government make public decisions

Analyze the components

of the consumer decision-making

process


The Consumer The Consumer Decision-Making ProcessDecision-Making Process

2

Consumer Decision-Making Process

ConsumerDecision-Making

Process

ConsumerDecision-Making

Process


Exhibit 6.1Exhibit 6.1Consumer Decision-Making ProcessConsumer Decision-Making Process


Need Recognition

Result of an imbalance between

actual and desired states.Need

Recognition

NeedRecognition


Consumers Scale Back

• A Pew Research Center poll suggests consumers are more focused on basic necessities.

• 63 percent of women and 51 percent of men report buying cheaper brands and increased shopping at discount stores.

• An increased number of respondents reported internet as a necessity, while a decreased number reported television.

Source: Dick Silverman."Luxury and Necessity: Redefining Values." WWD. Wednesday, June 10, 2009. 8.

© 2013 by Cengage Learning Inc. All Rights Reserved.

10

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


Stimulus

Any unit of input affecting

one or more of the five senses:

•sight

•smell

•taste

•touch

•hearing

StimulusStimulus


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


Information Search

Internal Information Search

• Recall information in memory

External Information search

• Seek information in outside environment• Nonmarketing controlled• Marketing controlled


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


Evoked Set

Evoked SetEvoked Set


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


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


Explain the consumer’s postpurchase

evaluation process


3

Postpurchase BehaviorPostpurchase Behavior

Cognitive Dissonance

CognitiveDissonance

CognitiveDissonance

Inner tension that a

consumer experiences

after recognizing an

inconsistency between

behavior and values or

opinions.


Postpurchase Behavior

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


Identify the types of consumer buying decisions and discuss the significance

of consumer involvement


4

Types of Consumer Buying Decisions Types of Consumer Buying Decisions and Consumer Involvementand Consumer Involvement

More Involvement

LessInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking

Consumer Buying Decisions and Consumer Involvement


the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

Involvement is…


Exhibit 6.2Exhibit 6.2Continuum of Consumer Buying DecisionsContinuum of Consumer Buying Decisions


Routine Limited Extensive

Involvement Low Low to Moderate

High

Time Short Short to Moderate

Long

Cost Low Low to Moderate

High

Information Search

Internal Only Mostly Internal

Internal and External

Number of Alternatives

One Few Many

Routine Response Behavior

Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision


Limited Decision Making

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide


Extensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance


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


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


Identify and understand the cultural factors that

affect consumer buying decisions


5

Cultural Influences on Cultural Influences on Consumer Buying DecisionsConsumer Buying Decisions

Factors Influencing Buying Decisions

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors CONSUMER

DECISION-MAKING

PROCESS

BUY / DON’T BUY


Components of Culture

MythsMyths

LanguageLanguage

ValuesValues

CustomsCustoms

RitualsRituals

LawsLaws

Material artifactsMaterial artifacts


Culture is. . .

LearnedLearned

FunctionalFunctional

PervasivePervasive

DynamicDynamic


Value

Enduring belief that a specific

mode of conduct is

personally or socially

preferable to another mode

of conduct.

ValueValue


Subculture

Subculture

A homogeneous group

of people who share

elements of the overall

culture as well as cultural

elements unique to their

own group.


Social 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.

Social ClassSocial Class

Exhibit 6.4Exhibit 6.4U.S. Social ClassesU.S. Social Classes

SO

UR

CE

: Adapted from

Richard P

. Colem

an, “The C

ontinuing Significance of S

ocial Class to M

arketing,” Journal of C

onsumer R

esearch, Decem

ber 1983, 267; Dennis G

ilbert and Joseph A. K

ahl, The A

merican C

lass Structure: A

S

ynthesis (Hom

ewood, IL: D

orsey Press, 1982), ch. 11.

38

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

Underclass 8-9% People who are not regularly employed and who depend primarily on the welfare system for sustenance; little schooling; living standard below poverty line

Social Class Measurements

WealthWealth

Other VariablesOther Variables

IncomeIncome

EducationEducation

OccupationOccupation


The Impact of Social Class on Marketing

Indicates which medium to use for advertising

Helps determine the best distribution for products


Identify and understand the

social factors that affect consumer buying decisions


6

Social Influences on Social Influences on Consumer Buying DecisionsConsumer Buying Decisions

Social Influences

Reference Groups

Reference Groups

Opinion LeadersOpinion Leaders

Family MembersFamily

Members


Exhibit 6.5Exhibit 6.5Types of Reference GroupsTypes of Reference Groups


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.


…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.


Opinion Leaders…

Family

• Initiators

• Influencers

• Decision Makers

• Purchasers

• Consumers

Purchase Process Roles in the Family


Identify and understand the

individual factors that affect consumer buying decisions


7

Individual Influences onIndividual Influences onConsumer Buying DecisionsConsumer Buying Decisions

Individual Influences

GenderGender Age Life Cycle

Age Life Cycle

PersonalitySelf-Concept

Lifestyle

PersonalitySelf-Concept

Lifestyle


Age and 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” or “young married with children.”


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.

LO7© 2013 by Cengage Learning Inc. All Rights Reserved.50

7

Identify and understand the psychological factors that affect consumer buying

decisions


8

Psychological Influences onPsychological Influences onConsumer Buying DecisionsConsumer Buying Decisions

Psychological Influences

PerceptionPerception

MotivationMotivation

LearningLearning

Beliefs & AttitudesBeliefs & Attitudes


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


Marketing Implications of Perception

Important attributes Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Foreign consumer perception Subliminal perception


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


Exhibit 6.6Exhibit 6.6Maslow’s Hierarchy Maslow’s Hierarchy

of Needsof Needs


Types of Learning

ExperientialExperiential

ConceptualConceptual

An experience changes behavior

An experience changes behavior

Not learned through direct experience

Not learned through direct experience


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.

Beliefs and Attitudes


Changing Beliefs

• Change beliefs about the brand’s attributes

• Change the relative importance of these beliefs

• Add new beliefs


Chapter 6 Video

Scholfield Honda

How does the cover of ReadyMade magazine reflect the principles of packaging design as influenced by the known behaviors of its consumers?

http://www.cengage.com/marketing/book_content/1439039429_lamb/company_clips/ch06.html

© 2013 by Cengage Learning Inc. All Rights Reserved.

60




chapter 1 copyright ©2012 by cengage learning inc. all rights reserved 1 lamb, hair, mcdaniel...

Documents

cengage learning

types of consumer

decisions learning outcomes

public decisions slide

purchase decisions consumers

comistock inhouse slide

step process

need recognition marketing