consumer decision making. chapter 4 version 3e2 learning objective 1 1 explain why marketing...
TRANSCRIPT
Chapter 4 Version 3e 2
Learning Objective 11
Explain why marketing managers Explain why marketing managers should understand should understand consumer behavior.consumer behavior.
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Consumer 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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Learning Objective 22
Analyze the components Analyze the components of the consumer of the consumer decision-making process.decision-making process.
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Consumer Decision-Making Process
A five-step process used by consumers when buying goods or services.
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Consumer Decision-Making Process
Postpurchase BehaviorPostpurchase Behavior
PurchasePurchase
Evaluation of AlternativesEvaluation 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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Need Recognition
Result of an imbalance between actual and
desired states.
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Need Recognition
Internal StimuliInternal StimuliandandExternal StimuliExternal Stimuli
Present Status
Preferred State
Marketing helps consumers recognize an imbalance between present status and preferred state
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StimulusAny unit of input affecting one or more of the five senses:
sight
smell
taste
touch
hearing
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Want
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.
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Recognition of Unfulfilled Wants
• When a current product isn’t performing properly
• When the consumer is running out of an product
• When another product seems superior to the one currently used
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Information Searches
Process of recalling past information stored
in the memory.
Internal
Process of seeking information in the
outside environment.
External
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Information 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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External Information Searches
Need MoreNeed More Information Information
More Risk More Risk Less knowledgeLess knowledgeLess product experienceLess product experienceHigh level of interestHigh level of interest
Less Risk Less Risk More knowledgeMore knowledgeMore product experienceMore product experienceLow level of interestLow level of interest
Need LessNeed Less Information Information
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Extent people spend on External Search depends on:
• Perceived risk• Knowledge• Prior experience• Level of interest
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Evoked Set
Group of brands,
resulting from an information search,
from which a buyer
can choose.
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Evoked SetEvoked Set
Purchase!Purchase!
Evaluation of ProductsEvaluation of Products
Analyze product attributesAnalyze product attributes
Use cutoff criteriaUse cutoff criteria
Rank attributes by Rank attributes by importanceimportance
Evaluation of Alternatives 22
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Purchase
Determines which attributes Determines which attributes are most important are most important in influencing a in influencing a consumerconsumer’’s choices choice
To buy To buy or not to buy...or not to buy...
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Learning Objective
Explain the consumerExplain the consumer’’s s postpurchase evaluation process.postpurchase evaluation process.
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Cognitive Dissonance
Inner tension that a consumer experiences
after recognizing an inconsistency between behavior and values
or opinions.
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Postpurchase Behavior 33
Can minimize through:Effective CommunicationFollow-upGuaranteesWarranties
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?
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Learning Objective
Identify the types of Identify the types of consumer buying decisions consumer buying decisions and discuss the significance and discuss the significance of consumer involvement.of consumer involvement.
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Types of Consumer Buying Decisions
More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
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Five Factors influencing Decisions
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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Routine Response Behavior 44
• 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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Limited Decision Making 44
• 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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44Extensive 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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Level of Involvement
SituationSituation
Social VisibilitySocial Visibility
InterestInterest
Perceived Risk of Negative Consequences
Perceived Risk of Negative Consequences
Previous ExperiencePrevious Experience
Factors Determining Level of Involvement
Factors Determining Level of Involvement
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Marketing Implications of Involvement
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High-involvement purchases require:extensive promotion to target market andgood advertisement
Low-involvement purchases require: in-store promotion and eye-catching package design
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Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKINGPROCESS
BUY /
DON’T BUY
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Learning Objective
Identify and understand the Identify and understand the cultural factors that affect cultural factors that affect consumer buying decisions.consumer buying decisions.
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Culture
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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Cultural Influences on Buying Decisions
ValuesValues
LanguageLanguage
MythsMyths
CustomsCustoms
RitualsRituals
LawsLaws
Components ofComponents ofAmericanAmericanCultureCulture
Components ofComponents ofAmericanAmericanCultureCulture
Material ArtifactsMaterial Artifacts
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Culture is...
LearnedLearned
FunctionalFunctional
PervasivePervasive
DynamicDynamic
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Value
Enduring belief that a specific mode of conduct
is personally or socially preferable to another
mode of conduct.
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Core American Values
SuccessSuccess
MaterialismMaterialism
FreedomFreedom
ProgressProgress
YouthYouth
CapitalismCapitalism
CoreCoreAmerican American ValuesValues
CoreCoreAmerican American ValuesValues
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Global Language Blunders 55
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”
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Subculture
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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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.
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Learning Objective 66
Identify and understand the Identify and understand the social factors that affect social factors that affect consumer buying decisions.consumer buying decisions.
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Social Influences
Reference GroupsReference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily Members
Social Influences on Buying DecisionsSocial Influences on Buying Decisions
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Reference Group
A group in society that influences an individual’s purchasing behavior.
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Reference Groups
Types ofTypes ofReference Reference GroupsGroups
Direct
Indirect
Primary
Secondary
Aspirational
Non-aspirational
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Implications of Reference Groups 66
• They serve as information sources and influence perceptions
• They affect an individual’s aspiration levels
• Their norms either constrain or stimulate consumer behavior
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Family
Purchase Roles in the FamilyPurchase Roles in the Family
Instigators
Influencers
Decision-Makers
Purchasers
ConsumersChildren Children Influence Influence Purchase Purchase DecisionsDecisions
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Learning Objective
Identify and understand the Identify and understand the individual factors that affect individual factors that affect consumer buying decisions.consumer buying decisions.
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Individual Influences
GenderGender
Age Family Life CycleAge Family Life Cycle
PersonalitySelf-Concept Lifestyle
PersonalitySelf-Concept Lifestyle
Individual InfluencesIndividual Influences
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Family Life Cycle
• Single->• Married• Married with Children• Married and Empty Nest• Widow or Widower
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Psychographics
The analytical technique used to examine consumer lifestyles and to categorize consumers.
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“Types of Moms” 77
“Strong Shoulders” Moms“Strong Shoulders” Moms
“Tug-of-War” Moms“Tug-of-War” Moms
“June Cleaver” Moms“June Cleaver” Moms
“Mothers of Invention” Moms“Mothers of Invention” Moms
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Learning Objective
Identify and understand the Identify and understand the psychological factors that affect psychological factors that affect consumer buying decisions.consumer buying decisions.
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Psychological 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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Perception
Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.
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Perception
SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure
SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion
SelectiveSelectiveRetentionRetention SelectiveSelectiveRetentionRetention
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Perception
Selective ExposureSelective Exposure
SelectiveDistortionSelectiveDistortion
Consumer notices certain stimuli and ignores othersConsumer notices certain stimuli and ignores others
Consumer changes or distorts information that conflicts with feelings or beliefsConsumer changes or distorts information that conflicts with feelings or beliefs
Selective RetentionSelective Retention
Consumer remembers only that information that supports personal beliefs
Consumer remembers only that information that supports personal beliefs
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Notices only 11 to 20 adsNotices only 11 to 20 ads
Exposure to over 300 advertisement messages per dayExposure to over 300 advertisement messages per day
A Consumer’s Selective Exposure 88
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Marketing Implications of Perception
• Important attributes
• Higher price
• Brand names
• Quality and reliability
• Threshold level of perception
• Product changes
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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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Motivation 88
MaslowMaslow’’s s Hierarchy of Hierarchy of NeedsNeeds
MaslowMaslow’’s s Hierarchy of Hierarchy of NeedsNeeds
Physiological Physiological
SafetySafety
SocialSocial
EsteemEsteem
Self-Self-ActualizationActualization
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• Physiological (hunger, thirst) ads showing a juicy hamburger or a runner gulping down Gatorade after a marathon
• Safety (security, protection) Carbon Monoxide ads showing pictures of children who died
• Social (sense of belonging, love) Nike promotes its Air Jordan athletic shoes as part of a fashion statement & athletic statement
• Esteem (recognition, status) Mercedes-Benz cars are targeted toward people who are conscious of their place in a group (society) & want others to know that they have achieved success
• Self-actualization (self development & self-realization) Point in life at which “people feel they are where they should be”. AMEX one of the highest attainments in life. ((Platinum card If it’s in your wallet, it can get you in))
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Learning
A process that creates changes in behavior, immediate or expected, through experience and practice.
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Types 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 experienceNot learned through direct experience
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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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