Lamb, Hair, McDaniel
MKTG2007-2008
5
CHAPTER
Chapter 5
Consumer
Decision Making
Copyright ©2008 by South-Western, a division of Thomson Learning. All rights reserved
1
Learning Outcomes
LO1
Explain why marketing managers
should understand consumer behavior
LO2
Analyze the components of the consumer
decision-making process
LO3
Explain the consumer’s postpurchase
evaluation process
Chapter 5
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2
Learning Outcomes
LO4
Identify the types of consumer buying
decisions and discuss the significance of
consumer involvement
LO5
Identify and understand the cultural factors
that affect consumer buying decisions
LO6
Identify and understand the social factors
that affect consumer buying decisions
Chapter 5
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3
Learning Outcomes
LO7
Identify and understand the individual factors
that affect consumer buying decisions
LO8
Identify and understand the psychological
factors that affect consumer buying decisions
Chapter 5
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4
LO1
The Importance of Understanding
Consumer Behavior
Explain why
marketing managers
should understand
consumer behavior
Chapter 5
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5
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.
LO1
Chapter 5
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6
LO1 REVIEW LEARNING OUTCOME
Understanding Consumer Behavior
consumers make
purchase decisions
Consumer
behavior
= HOW
consumers use and
dispose of product
Chapter 5
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7
LO2
The Consumer
Decision-Making Process
Analyze the
components
of the consumer
decision-making
process
Chapter 5
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8
Consumer
Decision-Making Process
Consumer
Decision-Making
Process
A five-step process used
by consumers when
buying goods or services.
LO2
Chapter 5
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9
Consumer
Decision-Making Process
Need Recognition
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
LO2
Chapter 5
Information Search
Evaluation
of Alternatives
Purchase
Postpurchase
Behavior
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10
Need Recognition
Need
Recognition
Result of an imbalance between
actual and desired states.
LO2
Chapter 5
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11
Need Recognition
Present
Status
LO2
Chapter 5
Preferre
d State
Marketing helps consumers recognize
an imbalance between
present status and preferred state.
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12
Stimulus
Stimulus
Any unit of input affecting
one or more of the five senses:
sight
smell
taste
touch
hearing
LO2
Chapter 5
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13
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
Chapter 5
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14
Information Search
Internal Information Search
 Recall information in memory
External Information search
 Seek information in outside
environment


Nonmarketing controlled
Marketing controlled
LO2
Chapter 5
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15
External Information
Searches
Need Less
Information
Less Risk
More knowledge
More product experience
Low level of interest
Confidence in decision
Need More
Information
More Risk
Less knowledge
Less product experience
High level of interest
Lack of confidence
LO2
Chapter 5
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16
Evoked Set
Evoked Set
Group of brands, resulting from
an information search, from
which a buyer can choose
LO2
Chapter 5
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17
Evaluation of Alternatives
and Purchase
Evoked Set
Analyze product
attributes
Use cutoff criteria
Rank attributes by
importance
LO2 Purchase!
Chapter 5
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18
Purchase
To buy
or not to buy...
Determines which attributes
are most important
in influencing a
consumer’s choice
LO2
Chapter 5
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19
LO2 REVIEW LEARNING OUTCOME
Consumer Decision-Making Process
Need
1
Recognition
Information
Search
2
Evaluate
3
Alternatives
Purchase
4
SOCIAL
CULTURAL
INDIVIDUAL
PSYCHOLOGICAL
Chapter 5
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20
LO3 Cognitive Dissonance
Cognitive
Dissonance
Chapter 5
Inner tension that a
consumer experiences after
recognizing an
inconsistency between
behavior and values or
opinions.
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21
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
Marketing can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Chapter 5
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22
Consumer
Buying
Decisions
LO3
and Consumer Involvement
Identify the types of
consumer buying
decisions and discuss
the significance a of
consumer involvement
Chapter 5
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23
Consumer Buying Decisions
and Consumer Involvement
Routine
Response
Behavior
Less
Involvement
Limited
Decision
Making
Extensive
Decision
Making
More
Involvement
LO3
Chapter 5
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24
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
LO3
Chapter 5
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25
Continuum of Consumer
Buying Decisions
LO3
Chapter 5
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26
Routine Response Behavior
 Little involvement in selection process
 Frequently purchased low cost goods
 May stick with one brand
 Buy first/evaluate later
 Quick decision
LO3
Chapter 5
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27
Limited Decision Making
 Low levels of involvement
 Low to moderate cost goods
 Evaluation of a few
alternative brands
 Short to moderate time to
decide
LO3
Chapter 5
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28
Extensive Decision Making
 High levels of involvement
 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive
dissonance
LO3
Chapter 5
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29
Factors Determining the Level
of Consumer Involvement
Previous Experience
Interest
Perceived Risk of
Negative Consequences
Situation
LO3
Chapter 5
Social Visibility
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30
Marketing Implications
of Involvement
High-involvement
purchases require:
Extensive and informative
promotion to target market
Low-involvement
purchases require:
In-store promotion,
eye-catching package
design, and good displays.
Coupons, cents-off,
2-for-1 offers
LO3
Chapter 5
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31
LO3 REVIEW LEARNING OUTCOME
Consumer Buying Decisions and Consumer Involvement
Previous experience
Interest
Perceived risk of negative
consequences
Situation
Social visibility
Extensive
Limited
Routine
Chapter 5
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32
LO4
Cultural Influences on
Consumer Buying Decisions
Identify and
understand the
cultural factors that
affect consumer
buying decisions
Chapter 5
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33
LO4
Factors Influencing
Buying Decisions
Cultural
Factors
Social
Factors
Individual
Factors
Chapter 5
Psychological
Factors
CONSUMER
DECISIONMAKING
PROCESS
BUY /
DON’T BUY
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34
LO4 Culture
Culture
Chapter 5
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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35
LO4 Components of Culture
Values
Language
Myths
Customs
Rituals
Laws
Material artifacts
Chapter 5
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36
LO4 Culture is. . .
Pervasive
Functional
Learned
Dynamic
Chapter 5
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37
LO4 Value
Value
Chapter 5
Enduring belief that a
specific mode of conduct
is personally or socially
preferable to another
mode of conduct.
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38
LO4 Core American Values
Success
Materialism
Freedom
Progress
Youth
Capitalism
http://www.thesource.com
Online
Chapter 5
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39
LO4 Subculture
Subculture
A homogeneous group
of people who share
elements of the overall
culture as well as unique
elements of their own
group.
http://www.dead.net
Online
Chapter 5
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40
LO4 Social Class
Social Class
Chapter 5
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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41
LO4
Social Class
Measurements
Occupation
Income
Education
Wealth
Other Variables
Chapter 5
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42
LO4 Social Class and Education
Chapter 5
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43
LO4
The Impact of Social Class
on Marketing
Indicates which
medium to use for
advertising
Helps determine the
best distribution for
products
Chapter 5
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44
LO4 REVIEW LEARNING OUTCOME
Cultural Factors
Chapter 5
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45
LO5
Social Influences on
Consumer Buying Decisions
Identify and
understand the
social factors that
affect consumer
buying decisions
Chapter 5
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46
LO5 Social Influences
Reference
Groups
Opinion
Leaders
Family
Members
Chapter 5
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47
LO5 Reference Group
Reference Group
A group in society that
influences an individual’s
purchasing behavior.
Chapter 5
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48
LO5 Reference Groups
Beyond the
Book
Primary
Direct
Secondary
Reference
Groups
Aspirational
Indirect
Nonaspirational
Supplemental content – not in book
Chapter 5
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49
LO5 Influences of Reference Groups
Chapter 5

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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50
LO5 Opinion Leaders
Opinion Leaders
An individual who influences
the opinion of others.
Chapter 5
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51
LO5 Opinion Leaders
Marketers are looking to Web logs,
or blogs, to find opinion leaders
 Teenagers
 Movie stars
 Sports figures
 Celebrities
Chapter 5
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52
LO5 Family
Purchase Process Roles
in the Family
 Initiators
 Influencers
 Decision Makers
 Purchasers
 Consumers
Chapter 5
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53
LO5
Chapter 5
Relationships among Purchasers
and Consumers in the Family
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54
LO6 REVIEW LEARNING OUTCOME
Social Factors
Reference
Groups
Opinion
Leaders
Affect aspiration
levels
Information sources
Constrain or
stimulate
consumer behavior
Celebrities
People You Know
Socialization Process
Family
Initiators
Decision Makers
Influencers
Chapter 5
Consumers
Purchasers
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55
LO6
Individual Influences on
Consumer Buying Decisions
Identify and
understand the
individual factors that
affect consumer
buying decisions
Chapter 5
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56
Individual Influences
Gender
Age
Life Cycle
Personality
Self-Concept
Lifestyle
LO6
Chapter 5
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57
LO7
Psychological Influences on
Consumer Buying Decisions
Identify and
understand the
psychological factors
that affect consumer
buying decisions
Chapter 5
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58
Psychological Influences
Perception
Motivation
Learning
Beliefs & Attitudes
LO7
Chapter 5
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59
Perception
Perception
Process by which people select,
organize, and interpret stimuli into
a meaningful and coherent picture.
LO7
Chapter 5
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60
Perception
Selective
Exposure
Selective
Distortion
Selective
Retention
LO7
Chapter 5
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61
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
LO7
Chapter 5
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62
Marketing Implications
of Perception







Important attributes
Price
Brand names
Quality and reliability
Threshold level of perception
Product or repositioning changes
Foreign consumer perception
LO7
Chapter 5
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63
Motivation
Maslow’s
Hierarchy
of Needs
A method of classifying human
needs and motivations into five
categories in ascending order
of importance.
LO7
Chapter 5
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64
Maslow’s Hierarchy of Needs
LO7
Chapter 5
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65
Types of Learning
Experiential
An experience changes
behavior
Conceptual
Not learned through direct
experience
LO7
http://www.cspinet.org
Online
Chapter 5
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66
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.
LO7
Chapter 5
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67
Changing Attitudes
 Change beliefs about the brand’s attributes
 Change the relative importance of these beliefs
 Add new beliefs
LO7
Chapter 5
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68
Biz Flix
LO7
Chapter 5
Family Man
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69
LO7 REVIEW LEARNING OUTCOME
Psychological Factors
Selective Exposure
Perception
Selective Retention
Selective Exposure
Needs
Motivation
Learning
Beliefs &
Attitudes
Chapter 5
Psychological
Safety
Social
Esteem
Experiential
Changing
Beliefs about
Attributes
Esteem
Conceptual
Changing
Importance of
Beliefs
Adding
New Beliefs
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70