lhm chapter 05 7e

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2Chapter 5 Marketing 7e, Lamb HairMcDaniel

Learning ObjectivesLearning Objectives

1. Explain why marketing managers should

understand consumer behavior.

2. Analyze the components of the consumerdecision-making process.

3. Explain the consumers postpurchase

evaluation process.


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Learning Objectives (continued)Learning Objectives (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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Learning Objectives (continued)Learning Objectives (continued)

6. Identify and understand the social factors

that affect consumer buying decisions.

7. Identify and understand the individualfactors that affect consumer buying

decisions.

8. Identify and understand the psychologicalfactors that affect consumer buying

decisions.


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Learning ObjectiveLearning Objective

Explain why

marketing managersshould understand

consumer behavior.

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On Line

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http://www.newyork.org

On Line

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http://www.newyork.org
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Consumer BehaviorConsumer Behavior

Processes a consumer uses to

make purchase decisions, as

well as to use and dispose ofpurchased goods or services;

also includes factors that

influence purchase decisionsand

the product use.

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Analyze the

components of theconsumer decision-

making process.

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Consumer Decision-Making ProcessConsumer Decision-Making Process

A five-step process usedby consumers when buying

goods or services.

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ConsumerConsumer

Decision-Making ProcessDecision-Making Process

PostpurchaseBehavior

PostpurchaseBehavior

PurchasePurchase

Evaluationof Alternatives

Evaluationof Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

FactorsFactors

affectaffect

all stepsall steps

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

FactorsFactorsaffectaffect

all stepsall steps

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Result of an imbalancebetween actual and

desired states.

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Internal StimuliInternal Stimuliandand

External StimuliExternal Stimuli

Present

Status

Preferred

State

Marketing helps

consumers

recognize an

imbalance betweenpresent status and

preferred state

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StimulusStimulus

Any unit of input affecting one or more of the five senses:

sight

smell

taste

touch

hearing

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WantWant

Recognition of an

unfulfilled need and

a product

(or attribute or feature)

that will satisfy it.

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Recognition of Unfulfilled WantsRecognition of Unfulfilled Wants

When a current product isntperforming properly

When the consumer is runningout of a product

When another product seemssuperior to the one currently used

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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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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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External Information SearchesExternal Information Searches

Need MoreNeed More

InformationInformation

More RiskMore RiskLess knowledgeLess knowledge

Less productLess productexperienceexperience

High level of interestHigh level of interest

Less RiskLess RiskMore knowledgeMore knowledge

More productMore productexperienceexperience

Low level of interestLow level of interest

Need LessNeed Less

InformationInformation

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Evoked SetEvoked Set

Group of brands,

resulting from an information search,

from which a buyer

can choose.

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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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PurchasePurchase

To buyTo buyor not to buy...or not to buy...

Determines which attributesDetermines which attributes

are most importantare most important

in influencing ain influencing aconsumers choiceconsumers choice

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Explain the

consumerspostpurchase

evaluation process.

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Cognitive DissonanceCognitive Dissonance

Inner tension that a consumer experiences

after recognizing an inconsistency between

behavior and values

or opinions.

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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-upGuaranteesGuarantees

WarrantiesWarranties

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Identify the types of

consumer buying

decisions and discuss

the significance

of consumer

involvement.

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Types of ConsumerTypes of Consumer

Buying DecisionsBuying Decisions

MoreInvolvementLessInvolvement

Routine

ResponseBehavior

RoutineResponseBehavior

Limited

DecisionMaking

LimitedDecisionMaking

Extensive

DecisionMaking

ExtensiveDecisionMaking

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Five Factors influencing DecisionsFive 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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Continuum ofContinuum of

Consumer Buying DecisionsConsumer Buying Decisions44


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Routine Response BehaviorRoutine Response Behavior

Little involvement in selectionprocess

Frequently purchased low costgoods

May stick with one brand

Buy first/evaluate later

Quick decision

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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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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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Level of InvolvementLevel of Involvement44

On Line

http://www.gardenburger.com

On Line

http://www.gardenburger.com

SituationSituation

Social VisibilitySocial Visibility

InterestInterest

Perceived Risk ofNegative

Consequences

Perceived Risk ofNegative

Consequences

PreviousExperience

PreviousExperience

FactorsFactorsDeterminingDetermining

Level ofLevel of

InvolvementInvolvement

FactorsFactorsDeterminingDetermining

Level ofLevel ofInvolvementInvolvement
http://www.gardenburger.com/http://www.gardenburger.com/http://www.gardenburger.com/


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Marketing ImplicationsMarketing Implications

of Involvementof Involvement

High-involvementpurchases require:

Extensive andinformative promotionto

target market

Low-involvementpurchases require:

In-store promotion,eye-catching packagedesign, and good

displays

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Factors InfluencingFactors Influencing


SocialFactors

IndividualFactors

Psycho-logicalFactors

CulturalFactors

CONSUMERDECISION-MAKING

PROCESS

BUY /

DONT BUY

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Identify and

understand the

cultural factors that

affect consumer

buying decisions.

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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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Cultural Influences onCultural Influences on


ValuesValues

LanguageLanguage

MythsMyths

CustomsCustoms

RitualsRituals

LawsLaws

Components ofComponents of

AmericanAmericanCultureCulture

Components ofComponents of

AmericanAmericanCultureCulture

Material ArtifactsMaterial Artifacts

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Culture is...Culture is...

LearnedLearned

FunctionalFunctional

PervasivePervasive

DynamicDynamic

55On Line

http://www.dead.net

http://www.chuckecheese.com

On Line

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http://www.chuckecheese.com
http://www.dead.net/http://www.chuckecheese.com/http://www.chuckecheese.com/http://www.dead.net/http://www.chuckecheese.com/http://www.dead.net/


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ValueValue

Enduring belief that a specific

mode of conduct

is personally or socially preferable

to another

mode of conduct.

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Core American ValuesCore American Values

SuccessSuccess

MaterialismMaterialism

FreedomFreedom

ProgressProgress

YouthYouth

CapitalismCapitalism

CoreCoreAmericanAmericanValuesValues

CoreCore

AmericanAmericanValuesValues

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Global Language BlundersGlobal Language Blunders

Chevrolets Nova translated to No Go

Coors Turn it Loose became

Suffer from Diarrhea

Toyotas MR2 sounded like aswearword in French

Coca-Cola in Chinese meansbite the wax tadpole

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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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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.

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Social Class MeasurementsSocial Class Measurements

WealthWealth

Other VariablesOther Variables

IncomeIncome

EducationEducation

OccupationOccupation


MeasurementsMeasurements


MeasurementsMeasurements

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The Impact of Social ClassThe 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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Identify and

understand the

social factors that

affect consumer

buying decisions.

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46Chapter 5 Marketing 7e, Lamb Hair

McDaniel

Social InfluencesSocial Influences

ReferenceGroups

ReferenceGroups

OpinionLeaders

OpinionLeaders

FamilyMembers

FamilyMembers

Social Influences onBuying Decisions

Social Influences onBuying Decisions

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McDaniel

Reference GroupReference Group

A group in society that

influences an individualspurchasing behavior.

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McDaniel

Reference GroupsReference Groups

ReferenceReferenceGroupsGroups

Direct

Indirect

Primary

Secondary

Aspirational

Non-aspirational

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McDaniel

Implications of Reference GroupsImplications of Reference Groups

1. They serve as information sourcesand influence perceptions

2. They affect an individualsaspiration levels

3. Their norms either constrain orstimulate consumer behavior

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McDaniel

Opinion LeadersOpinion Leaders

An individual who

influences the opinion

of others.

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McDaniel

Opinion LeadersOpinion Leaders

Movie Stars

Sports Figures

Celebrities

Peer Groups

Group Referrals

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McDaniel

FamilyFamily

ChildrenChildren

InfluenceInfluencePurchasePurchaseDecisionsDecisions

Purchase Rolesin the Family

Purchase Rolesin the Family

Initiators

Influencers

Decision Makers

Purchasers

Consumers

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On Line

http://www.gamegirlz.com

http://www.gamespot.com

On Line

http://www.gamegirlz.com

http://www.gamespot.com
http://www.gamegirlz.com/http://www.gamespot.com/http://www.gamespot.com/http://www.gamegirlz.com/http://www.gamespot.com/http://www.gamegirlz.com/


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McDaniel

Relationships among PurchasersRelationships among Purchasers

and Consumers in the Familyand Consumers in the Family66


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McDaniel


Identify andIdentify and

understand theunderstand the

individual factorsindividual factorsthat affect consumerthat affect consumer

buying decisions.buying decisions.

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McDaniel

Individual InfluencesIndividual Influences

GenderGenderAge

Family LifeCycle

AgeFamily Life

Cycle

PersonalitySelf-Concept

Lifestyle

PersonalitySelf-Concept

Lifestyle

IndividualInfluences

IndividualInfluences

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On Line

http://www.ballyfitness.com

On Line

http://www.ballyfitness.com
http://www.ballyfitness.com/http://www.ballyfitness.com/http://www.ballyfitness.com/


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McDaniel

Family Life CycleFamily 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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McDaniel

PsychographicsPsychographics

The analytical technique used

to examine consumer lifestyles

and to categorize consumers.

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McDaniel


Identify and

understand the

psychological factorsthat affect consumer

buying decisions.

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McDaniel

Psychological InfluencesPsychological Influences

PsychologicalPsychological

Influences onInfluences onBuying DecisionsBuying Decisions

PsychologicalPsychological

Influences onInfluences onBuying DecisionsBuying Decisions

PerceptionPerception

MotivationMotivation

LearningLearning

Beliefs & AttitudesBeliefs & Attitudes

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Process by which people select,

organize, and interpret stimuli intoa meaningful and

coherent picture.

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McDaniel


SelectiveSelectiveExposureExposure

SelectiveSelective

ExposureExposureSelectiveSelectiveDistortionDistortion

SelectiveSelective

DistortionDistortion

SelectiveSelectiveRetentionRetentionSelectiveSelectiveRetentionRetention

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McDaniel


SelectiveExposure

SelectiveExposure

SelectiveDistortion

SelectiveDistortion

SelectiveRetentionSelectiveRetention

Consumer notices certain stimuliand ignores others

Consumer notices certain stimuliand ignores others

Consumer changes or distortsinformation that conflicts

with feelings or beliefs

Consumer changes or distortsinformation that conflicts

with feelings or beliefs

Consumer remembers onlythat information that

supports personal beliefs

Consumer remembers onlythat information thatsupports personal beliefs

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McDaniel

Notices only11 to 20 ads

Notices only11 to 20 ads

Exposure to over 250advertisement messages per day

Exposure to over 250advertisement messages per day

A Consumers Selective ExposureA Consumers Selective Exposure88

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Marketing ImplicationsMarketing 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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McDaniel

Maslows Hierarchy of NeedsMaslows Hierarchy of Needs

A method of classifying human

needs and motivations into five

categories in ascending order

of importance.

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McDaniel

MotivationMotivation

MaslowsMaslowsHierarchy ofHierarchy of

NeedsNeeds

MaslowsMaslowsHierarchy ofHierarchy of

NeedsNeeds

PhysiologicalPhysiological

SafetySafety

SocialSocial

EsteemEsteem

Self-Self-ActualizationActualization

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McDaniel

LearningLearning

A process that creates

changes in behavior,

immediate or expected,

through experience

and practice.

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McDaniel

Types of LearningTypes of Learning

Types ofTypes ofLearningLearning

Types ofTypes ofLearningLearning DescriptionDescription

DescriptionDescription

ExperientialExperiential

ConceptualConceptual

An experience changes behaviorAn experience changes behavior

Not learned through direct

experience

Not learned through direct

experience

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McDaniel

Stimulus GeneralizationStimulus Generalization

A form of learning that occurs

when one response is

extended to a second stimulus

similar to the first.

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Beliefs and AttitudesBeliefs and Attitudes

An organized pattern of

knowledge that an individual

holds as true about his

or her world.

Belief

Attitude

A learned tendency to respond

consistently

toward a given object.

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On Line

http://saveharry.com

http://www.cspinet.org

On Line

http://saveharry.com

http://www.cspinet.org
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lhm chapter 05 7e

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