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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
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iteri
mag
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© 2013 by Cengage Learning Inc. All Rights Reserved. 1
© iStockphoto.com
/iStock
Inhouse
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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
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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
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Explain why marketing managers should understand consumer behavior
1
The Importance of Understanding Consumer Behavior
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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
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Help government make public decisions
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Analyze the components
of the consumer decision-making
process
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The Consumer The Consumer Decision-Making ProcessDecision-Making Process
2
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Consumer Decision-Making Process
ConsumerDecision-Making
Process
ConsumerDecision-Making
Process
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Exhibit 6.1Exhibit 6.1Consumer Decision-Making ProcessConsumer Decision-Making Process
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Need Recognition
Result of an imbalance between
actual and desired states.Need
Recognition
NeedRecognition
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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.
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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
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Stimulus
Any unit of input affecting
one or more of the five senses:
•sight
•smell
•taste
•touch
•hearing
StimulusStimulus
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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
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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
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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
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Evoked Set
Evoked SetEvoked Set
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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
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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
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Explain the consumer’s postpurchase
evaluation process
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3
Postpurchase BehaviorPostpurchase Behavior
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Cognitive Dissonance
CognitiveDissonance
CognitiveDissonance
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values or
opinions.
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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
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Identify the types of consumer buying decisions and discuss the significance
of consumer involvement
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4
Types of Consumer Buying Decisions Types of Consumer Buying Decisions and Consumer Involvementand Consumer Involvement
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More Involvement
LessInvolvement
RoutineResponseBehavior
RoutineResponseBehavior
LimitedDecisionMaking
LimitedDecisionMaking
ExtensiveDecisionMaking
ExtensiveDecisionMaking
Consumer Buying Decisions and Consumer Involvement
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the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.
Involvement is…
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Exhibit 6.2Exhibit 6.2Continuum of Consumer Buying DecisionsContinuum of Consumer Buying Decisions
© 2013 by Cengage Learning Inc. All Rights Reserved.25
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
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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
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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
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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
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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
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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
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Identify and understand the cultural factors that
affect consumer buying decisions
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5
Cultural Influences on Cultural Influences on Consumer Buying DecisionsConsumer Buying Decisions
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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
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Components of Culture
MythsMyths
LanguageLanguage
ValuesValues
CustomsCustoms
RitualsRituals
LawsLaws
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.
ValueValue
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Subculture
Subculture
A homogeneous group
of people who share
elements of the overall
culture as well as cultural
elements unique to their
own group.
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Social Class
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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
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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
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Social Class Measurements
WealthWealth
Other VariablesOther Variables
IncomeIncome
EducationEducation
OccupationOccupation
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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
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Identify and understand the
social factors that affect consumer buying decisions
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6
Social Influences on Social Influences on Consumer Buying DecisionsConsumer Buying Decisions
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Social Influences
Reference Groups
Reference Groups
Opinion LeadersOpinion Leaders
Family MembersFamily
Members
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Exhibit 6.5Exhibit 6.5Types of Reference GroupsTypes of Reference Groups
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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.
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…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.
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Opinion Leaders…
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Family
• Initiators
• Influencers
• Decision Makers
• Purchasers
• Consumers
Purchase Process Roles in the Family
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Identify and understand the
individual factors that affect consumer buying decisions
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Individual Influences onIndividual Influences onConsumer Buying DecisionsConsumer Buying Decisions
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Individual Influences
GenderGender Age Life Cycle
Age Life Cycle
PersonalitySelf-Concept
Lifestyle
PersonalitySelf-Concept
Lifestyle
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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.”
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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.
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7
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Identify and understand the psychological factors that affect consumer buying
decisions
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Psychological Influences onPsychological Influences onConsumer Buying DecisionsConsumer Buying Decisions
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Psychological Influences
PerceptionPerception
MotivationMotivation
LearningLearning
Beliefs & AttitudesBeliefs & Attitudes
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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
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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 Subliminal perception
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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
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Exhibit 6.6Exhibit 6.6Maslow’s Hierarchy Maslow’s Hierarchy
of Needsof 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
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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.
Beliefs and Attitudes
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Changing Beliefs
• Change beliefs about the brand’s attributes
• Change the relative importance of these beliefs
• Add new beliefs
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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
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