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Consumer Decision Making
CHAPTER
6
Marketing
Designed by
Eric Brengle
B-books, Ltd.
10
Lamb, Hair, McDaniel
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Prepared by
Amit Shah
Frostburg State University
1
LOI
Consumer Behavior
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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2
LO2
Consumer Decision-Making
Process
Consumer
Decision-Making A five-step process used
by consumers when
Process
buying goods or services.
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3
LO2
Consumer Decision-Making Process
Need Recognition
Information Search
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
Evaluation
of Alternatives
Purchase
Postpurchase
Behavior
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4
LO2
Need Recognition
Need
Recognition
Result of an imbalance between
actual and desired states.
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5
LO2
Need Recognition
Present
Status
Preferred
State
Marketing helps consumers recognize
an imbalance between
present status and preferred state.
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6
LO2
Stimulus
Stimulus
Any unit of input affecting
one or more of the
five senses:
sight
smell
taste
touch
hearing
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7
LO2
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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8
LO2
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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LO2
External Information Searches
Need Less
Information
Less Risk
More knowledge
More product experience
Low level of interest
Confidence in decision
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Need More
Information
More Risk
Less knowledge
Less product experience
High level of interest
Lack of confidence
10
LO2
Evoked Set
Evoked Set
Group of brands, resulting
from an information search,
from which a buyer can
choose.
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LO2
Evaluation of Alternatives
and Purchase
Evoked Set
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!
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12
LO2
Purchase
To buy
or not to buy...
Determines which attributes
are most important
in influencing a
consumer’s choice
13
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LO3
Postpurchase Behavior
Explain the consumer’s
postpurchase evaluation
process
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14
LO3
Cognitive Dissonance
Cognitive
Dissonance
Inner tension that a
consumer experiences after
recognizing an
inconsistency between
behavior and values or
opinions.
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15
LO3
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
Marketers can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
16
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LO4
Consumer Buying Decisions and
Consumer Involvement
Routine
Response
Behavior
Limited
Decision
Making
Less
Involvement
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Extensive
Decision
Making
More
Involvement
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LO4 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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18
LO4
Continuum of Consumer Buying
Decisions
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19
LO4
Factors Determining
the Level of Consumer Involvement
Previous Experience
Interest
Perceived Risk of Negative
Consequences
Situation
Social Visibility
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20
LO5
Factors Influencing Buying
Decisions
Cultural
Factors
Individual
Factors
Social
Factors
Psychological
Factors
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CONSUMER
DECISIONMAKING
PROCESS
BUY /
DON’T BUY
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LO5
Culture
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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22
LO5
Components of Culture
Values
Language
Myths
Customs
Rituals
Laws
Material artifacts
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LO5
Culture is. . .
Pervasive
Functional
Learned
Dynamic
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LO5
Value
Value
Enduring belief that a specific
mode of conduct is
personally or socially
preferable to another
mode of conduct.
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25
LO5
Core American Values
Success
Materialism
Freedom
Progress
Youth
Capitalism
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26
LO5
Subculture
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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27
LO5
Social Class
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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LO5
Social Class Measurements
Occupation
Income
Education
Wealth
Other Variables
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29
LO6
Social Influences
Reference
Groups
Opinion
Leaders
Family
Members
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30
LO6
Reference Group
Reference Group
A group in society that
influences an individual’s
purchasing behavior.
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31
LO6
Reference Groups
Primary
Direct
Secondary
Reference
Groups
Aspirational
Indirect
Nonaspirational
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32
LO6
Influences of Reference Groups
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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LO6
Opinion Leaders
Opinion Leaders
An individual who influences
the opinion of others.
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Opinion Leaders
Marketers are looking to Web logs,
or blogs, to find opinion leaders




LO6
Teenagers
Movie stars
Sports figures
Celebrities
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35
Family
Purchase Process Roles in the Family
 Initiators
 Influencers
 Decision Makers
 Purchasers
 Consumers
LO6
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36
LO7
Individual Influences
Gender
Age
Life Cycle
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Personality
Self-Concept
Lifestyle
37
Psychological Influences
Perception
Motivation
Learning
Beliefs & Attitudes
LO8
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38
LO8
Perception
Perception
Process by which people
select, organize, and interpret
stimuli into a meaningful and
coherent picture.
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39
LO8
Perception
Selective
Exposure
Consumer notices certain stimuli
and ignores others
Selective
Distortion
Consumer changes or distorts
information that conflicts
with feelings or beliefs
Selective
Retention
Consumer remembers only
that information that
supports personal beliefs
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40
LO8
Types of Learning
Experiential
An experience changes
behavior
Conceptual
Not learned through direct
experience
http://www.cspinet.org
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Online
41
LO8
Stimulus Generation and
Discrimination
Stimulus
Generalization
Stimulus
Discrimination
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A form of learning that
occurs when one
response is extended to
a second stimulus
similar to the first.
A learned ability to
differentiate among
similar products.
42
LO8
Beliefs and Attitudes
Belief
An organized pattern of
knowledge that an individual
holds as true about his or her
world.
Attitude
A learned tendency to
respond consistently toward a
given object.
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43
LO8
Changing Attitudes
 Change beliefs about the
brand’s attributes
 Change the relative importance
of these beliefs
 Add new beliefs
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44