Download Marketing Summary Chapter 5

Marketing
Summary
Chapter 5
Marketing chapter 5 - Consumer Behavior
The consumer decision-making process
Consumer behavior: The process involved when individuals/groups select, purchase, use, and
dispose of goods, services, ideas, or experiences to satisfy needs/desires
Involvement: the relative importance of perceived consequences of the purchase to a consumer
Perceived risk: the belief that choice of a product has potentially negative consequences, whether
financial, physical, and/or social
5 steps in consumer-decision making process:
1. Problem recognition: the process that occurs whenever a consumer sees a significant
difference between her current state of affairs and the desired state.
Marketers stimulate problem recognition with the introduction of exciting new
products or through promotion that emphasizes the differences between the current and
desired states.
2. Information Search: the process whereby a consumer searches for appropriate information
to make a reasonable decision.
 Internet as search tool
 Search marketing: marketing strategies that involve the use of internet search
engines.
 Search Engine Optimization (SEO): a systematic process of ensuring that your
firm comes up at/near the top of lists of typical search phrases related to your
business.
 Search Engine Marketing (SEM): Search marketing strategy in which marketers
pay for ads or better positioning
 Sponsored search ads: paid ads that appear at the top/beside the internet
search engine results.
 Comparison shopping agents/shopbots: web applications that help online
shoppers find what they’re looking for at the lowest price & provide customer
reviews & ratings of products and sellers
 Behavioral Targeting: the marketing practice by which marketers deliver
advertisements for products a consumer is looking for by watching what the
consumer does online.
3. Evaluation of Alternatives
The informed consumer identifies a small number of products in which he is
interested. Then he narrows his choices by comparing the pros and cons of each option.
 Evaluative Criteria: the dimensions consumers use to compare competing
product alternatives
4. Product Choice
Consumers make a product choice when they decide on one alternative or product
and act on this choice.
 Heuristics: a mental rule of thumb that leads to a speedy decision by simplifying
the process.
 Brand Loyalty: a pattern of repeat product purchases, accompanied by an
underlying positive attitude toward the brand, based on the belief that the
brand makes products superior than its competitors
5. Postpurchase evaluation
The evaluation of the product results in a level of consumer
satisfaction/dissatisfaction.
 Cognitive Dissonance: the anxiety/regret a consumer may feel after choosing
from among several similar attractive choices.
Influences on Consumer Decision making:
1. Internal Factors
2. Situational factors
3. Social Influences
Internal influences on consumer’s decision making
1. Perception : the process by which people select, organize, and interpret information
from the outside world.
 Exposure: the extent to which a stimulus is capable of being registered by a
person’s sensory receptors
o Subliminal advertising: supposedly hidden messages in marketers’
communications
 Attention: the extent to which a person devotes mental processing to a
particular stimulus
 Interpretation: the process of assigning meaning to a stimulus based on prior
associations a person has with it & assumptions he/she makes about it
2. Motivation: an internal state that drives us to satisfy needs by activating goal oriented
behavior.
The Hierarchy of Needs (developed by Maslow) categorizes motives according to five
levels of importance--the more basic needs being on the bottom of the hierarchy and
the higher needs at the top.
3. Learning: a change in behavior caused by information or experience. Learning can occur
deliberately or when we are not trying.
 Behavioral Learning – the behavioral learning theories assume that learning take
place as a result of connections we form between events
o
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Classical conditioning: learning that occurs when a stimulus eliciting a
response is paired with another stimulus that initially doesn’t elicit a
response on its own but will cause a similar response over time because
of its association with the 1st stimulus
o Operant conditioning: learning that occurs as the result of rewards or
punishments
Cognitive learning – cognitive learning theory views people as problem-solvers
who do more than passively react to associations between stimuli. Cognitive
learning occurs when consumers make a connection between ideas or by
observing things in their environment
o Observational learning: learning that occurs when people watch the
action of others & note what happens to them as a result
4. Attitudes: a lasting evaluation of a person, object, or issue.
3 components of a person’s attitudes:
 Cognition: the belief or knowledge a person has about a product and its
important characteristics.
 Affect: the overall emotional response a person has to a product. Affect is
usually dominant for expressive products.
 Behavior: the doing components of attitudes, involves a consumer’s intention to
do something, such as the intention to purchase or use a certain product.
5. Personality: the set of unique psychological characteristics that consistently influences
the way a person responds to situations in the environment
- Self-concept: an individual’s self image that’s composed of a mixture of belief,
observations & feelings about personal attributes; the attitude toward the self.
Consumers buy products that are extensions of themselves and marketers create
brand images that will be congruent with the selves of different types of people
6. Age – people in the same age group may share a common set of experiences and have
similarities in product preferences.
The purchase of goods and services may also depend on consumers’ position in the
family life cycle—the stages through which family members pass as they grow older.
7. Lifestyle - a pattern of living that determines how people choose to spend their time,
money, and energy and that reflects their values, tastes, and preferences.
Consumers often choose goods, services, and activities that are associated with a certain
lifestyle.
Situational & social influences on consumers’ decisions
Situational influences – includes sensory marketing (marketing techniques that link distinct sensory
experiences such as a unique fragrances with a product or service)
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The physical environment - For example, physical surroundings may influence buying when
attractive decor elevates a person’s mood and leads to impulse buying.
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Time - If time pressures are high, consumers may search less and buy products that are
quick to obtain.
o Time poverty: consumers’ belief that they’re more pressed for time than before
Social influences on consumer’s decision
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Culture - society’s personality. It includes the values, beliefs, customs, and tastes produced
by a society. Culture includes important rituals that have consumption implications:
weddings, holidays, graduation.
Subculture - a group existing within a larger culture whose members share a distinctive set
of beliefs or characteristics. Each of us belongs to several subcultures. These subcultures can
be religious groups, ethnic groups, or regional groups.
o Microcultures: groups of consumers who identify with a specific activity or art form
Emerging Lifestyle trends: consumerism & Environmentalism
o Consumerism: a social movement that attempts to protect consumers from harmful
business practices
o Environmentalism: a broad philosophy & social movement that seeks conservation
& improvement of the natural environment
o Kyoto protocol: a global agreement among countries that aims at reducing
greenhouse gases that create climate change
o Environmental stewardship: a position taken by an organization to project or
enchance the natural environment as it conducts its business activities.
o Green marketing: a marketing strategy that supports environmental stewardship,
thus creating a differential benefit in the minds of customer
Social class - overall rank of people in a society. People who are within the same class have
similar occupations, income levels, and education. They also share tastes in clothing,
decorating styles, and leisure activities.
o Status symbols: visible markers that provide a way for people to flaunt their
membership in higher social classes
o Mass-class: the hundreds of millions of global consumers who now enjoy a level of
purchasing power that’s sufficient to let them afford high-quality products.
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Group membership - People act differently in groups than they do on their own.
o Reference group: set of people a consumer wants to please or imitate. Consumers
“refer to” these groups in making purchases—what they wear, where they go, what
brands they buy, and so on.
Opinion leaders: people who influence others’ attitudes or behaviors because of their
expertise about the product. They usually have high levels of interest in the product
category and serve as valuable information sources.
Gender roles: society’s expectations regarding the appropriate attitudes, behaviors, and
appearance for men and women.
o Metrosexual: a straight, urban male who’s keenly interested in fashion, home
design, gourmet cooking & personal care