Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel...

Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1

Lamb, Hair, McDaniel

CHAPTER 6

Consumer Decision Making

2011-2012

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LO 1 Explain why marketing managers should understand consumer behavior

LO 2 Analyze the components of the consumer decision-making process

LO 3 Explain the consumer’s postpurchase evaluation process

LO 4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement

Learning OutcomesLearning Outcomes


LO 5 Identify and understand the cultural factors that affect consumer buying decisions

LO 6 Identify and understand the social factors that affect consumer buying decisions

LO 7 Identify and understand the individual factors that affect consumer buying decisions

LO 8 Identify and understand the psychological factors that affect consumer buying decisions

Learning OutcomesLearning Outcomes


Explain why marketing managers should understand consumer behavior

The Importance of Understanding The Importance of Understanding Consumer BehaviorConsumer Behavior

LO1


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

LO1


Analyze the components

of the consumer decision-making

process

The Consumer The Consumer Decision-Making ProcessDecision-Making Process

LO2


Consumer Decision-Making Process

A five-step process used

by consumers when

buying goods or services.

ConsumerDecision-Making

Process

ConsumerDecision-Making

Process

LO2


LO2

Exhibit 6.1Exhibit 6.1Consumer Decision-Consumer Decision-

Making ProcessMaking Process


Need Recognition

Result of an imbalance between

actual and desired states.

NeedRecognition

NeedRecognition

LO2


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

LO2


Stimulus

Any unit of input affecting

one or more of the five senses:

•sight

•smell

•taste

•touch

•hearing

StimulusStimulus

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

LO2


Information Search

Internal Information Search

• Recall information in memory

External Information search

• Seek information in outside environment• Nonmarketing controlled• Marketing controlled

LO2


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

LO2


Evoked Set

Group of brands, resulting from an

information search, from which a

buyer can choose

Evoked SetEvoked Set

LO2


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

LO2


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

LO2


Explain the consumer’s postpurchase

evaluation process

Postpurchase BehaviorPostpurchase Behavior

LO3


Cognitive Dissonance

CognitiveDissonance

CognitiveDissonance

Inner tension that a

consumer experiences

after recognizing an

inconsistency between

behavior and values or

opinions.

LO3


Postpurchase BehaviorConsumers 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

Marketing can minimize dissonance through effective communication with purchasers.

LO3


Identify the types of consumer buying

decisions and discuss the significance of

consumer involvement

Types of Consumer Buying Decisions and Types of Consumer Buying Decisions and Consumer InvolvementConsumer Involvement

LO4


More Involvement

LessInvolvement

RoutineResponseBehavior

RoutineResponseBehavior

LimitedDecisionMaking

LimitedDecisionMaking

ExtensiveDecisionMaking

ExtensiveDecisionMaking

Consumer Buying Decisions and Consumer Involvement

LO4


Involvement

LO4

the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

Involvement is…


LO4

Exhibit 6.2Exhibit 6.2Continuum of Continuum of

Consumer Buying Consumer Buying DecisionsDecisions


Routine Response Behavior

Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision

LO4


Limited Decision Making

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide

LO4


Extensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance

LO4


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

LO4


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

LO4


Identify and understand the

cultural factors that affect consumer buying decisions

Cultural Influences on Cultural Influences on Consumer Buying DecisionsConsumer Buying Decisions

LO5


Factors Influencing Buying Decisions

Social Factors

Individual Factors

Psycho-logical Factors

Cultural Factors CONSUMER

DECISION-MAKING

PROCESS

BUY / DON’T BUY

LO5


Components of Culture

MythsMyths

LanguageLanguage

ValuesValues

CustomsCustoms

RitualsRituals

LawsLaws

Material artifactsMaterial artifactsLO5


Culture is. . .

LearnedLearned

FunctionalFunctional

PervasivePervasive

DynamicDynamic

LO5


Value

ValueValue Enduring belief that a

specific mode of conduct

is personally or socially

preferable to another

mode of conduct.

LO5


Understanding Cultural Differences

LO5

• A firm has little chance of selling products in a culture that it does not understand.

• Like people, products have cultural value.

In China In U.S.

Color of mourning

Brides wear


Subculture

Subculture A homogeneous group

of people who share

elements of the overall

culture as well as cultural

elements unique to their

own group.

LO5


Social Class

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.

LO5


Exhibit 6.4Exhibit 6.4U.S. Social ClassesU.S. Social Classes

SOURCE: Adapted from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, December 1983, 267; Dennis Gilbert and Joseph A. Kahl, The American Class Structure: A Synthesis (Homewood, IL: Dorsey Press, 1982), ch. 11.

LO5


Social Class Measurements

WealthWealth

Other VariablesOther Variables

IncomeIncome

EducationEducation

OccupationOccupation

LO5


The Impact of Social Class on Marketing

Indicates which medium to use for advertising

Helps determine the best distribution for products

LO5



social factors that affect consumer buying decisions

Social Influences on Social Influences on Consumer Buying DecisionsConsumer Buying Decisions

LO6


Social Influences

Reference Groups

Reference Groups

Opinion LeadersOpinion Leaders

Family MembersFamily

Members

LO6


LO6

Exhibit 6.5Exhibit 6.5Types of Reference GroupsTypes of Reference Groups


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.

LO6


Opinion Leaders

An individual who influences

the opinion of others.

Opinion LeadersOpinion Leaders

LO6


Opinion Leaders…

LO6

…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.


Family

• Initiators

• Influencers

• Decision Makers

• Purchasers

• Consumers

Purchase Process Roles in the Family

LO6



individual factors that affect

consumer buying decisions

Individual Influences onIndividual Influences onConsumer Buying DecisionsConsumer Buying Decisions

LO7


Individual Influences

GenderGender Age Life Cycle

Age Life Cycle

PersonalitySelf-Concept

Lifestyle

PersonalitySelf-Concept

Lifestyle

LO7


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.”

LO7


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.

LO7


Identify and understand the psychological

factors that affect consumer buying

decisions

Psychological Influences onPsychological Influences onConsumer Buying DecisionsConsumer Buying Decisions

LO8


Psychological Influences

PerceptionPerception

MotivationMotivation

LearningLearning

Beliefs & AttitudesBeliefs & Attitudes

LO8


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

LO8


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

LO8


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

LO8


LO8

Exhibit 6.6Exhibit 6.6Maslow’s Hierarchy Maslow’s Hierarchy

of Needsof Needs


Types of Learning

ExperientialExperiential

ConceptualConceptual

An experience changes behavior

An experience changes behavior

Not learned through direct experience

Not learned through direct experience

LO8


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.

LO8

Beliefs and Attitudes


Changing Beliefs

• Change beliefs about the brand’s attributes

• Change the relative importance of these beliefs

• Add new beliefs

LO8


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BookChapter 6 Videos

ReadyMade – Consumer Decision Making

How does the cover of ReadyMade magazine reflect the principles of packaging design as influenced by the known behaviors of its consumers?

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Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel...

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