McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved. LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO: LO1 LO2 Describe the stages in the consumer purchase decision process. Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving. 5-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO: LO3 Identify major psychological influences on consumer behavior. LO4 Identify the major sociocultural influences on consumer behavior. 5-3 LO1 PURCHASE DECISION PROCESS PROBLEM RECOGNITION Consumer Behavior Purchase Decision Process 5-4 CONSUMER PURCHASE DECISION PROCESS • Consumer Behavior – Actions a person takes in purchasing and using products and services – including the mental and social processes that come before and after these actions Slide 5-6 CONSUMER PURCHASE DECISION PROCESS • Purchase Decision Process – Stages a buyer passes through in making choices about which products and services to buy – The five stages are: 1) Problem recognition 2) Information search 3) Alternative evaluation 4) Purchase decision 5) Post-purchase behavior Slide 5-6 FIGURE 5-1 The purchase decision process consists of five stages 5-7 LO1 PURCHASE DECISION PROCESS INFORMATION SEARCH Internal Search External Search • Personal Sources • Public Sources • Market-Dominated Sources 5-8 CONSUMER PURCHASE DECISION PROCESS 1. Problem Recognition: Perceiving a Need – Perceives a difference between a person’s ideal and actual situations big enough to trigger a decision – Advertisements or salespeople can activate a consumer’s decisionmaking process by showing the shortcomings of competing or currently owned products Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 2. Information Search: Seeking Value – Internal Search – scanning one’s memory for previous experiences with products or brands – Often sufficient for frequently purchased products Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 2. Information Search: Seeking Value – External Search – necessary when past experience or knowledge is insufficient, risk of making a bad decision is high , and cost of gathering information is low Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 2. Information Search: Seeking Value – External Search – primary sources of external information: a) Personal sources – friends and relatives whom consumer trusts b) Public sources – includes various product-rating organizations like Consumer Reports, government agencies, or consumer-oriented TV programs Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 2. Information Search: Seeking Value, cont. – External Search – primary sources of external information: c) Marketer-dominated sources – information from sellers that include advertising, company websites, salespeople and point-ofpurchase displays in stores Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 3. Alternative Evaluation: Assessing Value – The information stage clarifies the problem for consumers by: – Suggesting criteria, or points to consider, for the purchase – Providing brand names that might meet the criteria – Developing consumer value perceptions Slide 5-6 LO1 PURCHASE DECISION PROCESS ALTERNATIVE EVALUATION Evaluative Criteria Consideration Set 5-15 CONSUMER PURCHASE DECISION PROCESS 3. Alternative Evaluation: Assessing Value – Consumer’s evaluative criteria represent both the objective attributes of a brand and the subjective ones used to compare different products and brands (often mentioned in advertisements) Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 3. Alternative Evaluation: Assessing Value, cont. – Consumers often have several criteria for evaluating brands and these criteria establish the consideration set – the group of brands that a consumer would consider acceptable from among all brands in the product class Slide 5-6 FIGURE 5-2 Consumer Reports’ evaluation of flash-memory MP3 players (abridged) 5-18 FIGURE 5-A What new car buyers consider most important in deciding what new car to buy Slide 5-11 LO1 PURCHASE DECISION PROCESS PURCHASE DECISION Decide from Whom to Buy Decide When to Buy 5-20 CONSUMER PURCHASE DECISION PROCESS 4. Purchase Decision: Buying Value – Having examined the alternatives, two choices remain: – From whom to buy, which is determined by the seller’s terms of sales, past purchase experience return policy, etc. – When to buy, which is determined by whether the product is on sale, coupon/rebate, store’s atmosphere, shopping experience, salesperson persuasiveness, time pressure, financial terms, etc. Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 4. Purchase Decision: Buying Value – The internet adds technological dimension by allowing consumers to: • Gather information, • Evaluate alternatives, and • Make buying decisions Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 5. Post Purchase Behavior: Value in Consumption or Use – After buying a product, the consumer compares it expectations and is either satisfied or dissatisfied. Slide 5-6 Consumer Purchase Decision Why is post purchase behavior important? Slide 5-13 CONSUMER PURCHASE DECISION PROCESS 5. Post Purchase Behavior, cont. • Customer’s satisfaction or dissatisfaction with the consumption or use experience affects their value perceptions and repeated purchase behavior – Satisfied buyers tell three other people about their experience, while dissatisfied buyers tell nine people – Satisfied buyers tend to buy from the same seller each time a purchase decision arises, creating a huge financial impact Slide 5-6 CONSUMER PURCHASE DECISION PROCESS 5. Post Purchase Behavior, cont. – If dissatisfied, marketers must decide whether: • The product was deficient, leading to a design change • Consumer expectations were too high if company’s advertising or salesperson oversold product’s features. Slide 5-6 LO1 PURCHASE DECISION PROCESS POSTPURCHASE BEHAVIOR Cognitive Dissonance 5-28 CONSUMER PURCHASE DECISION PROCESS ● Cognitive Dissonance (Buyer’s Remorse) ● Situation when a consumer experiences some post purchase psychological tension or anxieties ● Results from an imbalance among purchaser’s knowledge, beliefs, and attitudes ● “Should I have purchased this?” ● Likely to increase in one of three cases: ● The dollar vale of the purchase increases ● Rejected alternatives have desirable features that chosen alternative does not ● When purchase decision has major effect on buyer CONSUMER PURCHASE DECISION PROCESS ● ● After a purchase, consumers seek to affirm their choice – often seeking information or approval from others or reading ads or reviews about the brand chosen Marketers can help buyers reduce cognitive dissonance by providing information that supports the chosen alternative, e.g., followup calls CONSUMER PURCHASE DECISION PROCESS 5. Post Purchase Behavior: Value in Consumption or Use – Many firms focus attention on post purchase behavior to maximize customer satisfaction and retention by offering toll-free numbers, liberalized return policies, and providing staff training in handling customer complaints Slide 5-6 PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT & PROBLEM SOLVING Involvement and Problem-Solving Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations • Consumers may skip or minimize one or more steps in the decision process depending on the level of involvement – the personal, social, and economic significance of the purchase to the consumer Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations • For High-Involvement Purchases: – Item typically has at least one of three characteristics: 1) is expensive; 2) can have serious personal consequences; or, 3) could reflect on one’s image – Consumers engage in extensive information search, consider many product attributes and brands, and use word of mouth Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations • For Low-Involvement Purchases: – The product has little impact Slide 5-15 PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT & PROBLEM SOLVING • Involvement and Problem-Solving Variations – Three general problem-solving variations in the consumer purchase decision process: 1. Routine Problem Solving 2. Limited Problem Solving 3. Extended Problem Solving Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations 1. Routine Problem Solving – The purchase process is habitual and involves little effort seeking external information and evaluating alternatives – Typically used for low-priced, frequently purchased products Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations • Limited Problem Solving – Consumers seek some information to evaluate alternative brands and attributes – Used when buyer has little time or effort to spend Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations • Extended Problem Solving – Each stage of the consumer buying process is used, including considerable time and effort on external information search to identify and evaluate the attributes of several brands in the consideration set – High-involvement purchases Slide 5-15 FIGURE 5-3 Comparison of problem-solving variations: extended, limited, and routine 5-40 CONSUMER PURCHASE DECISION PROCESS • Involvement and Marketing Strategy • For low-involvement products whose brands are market-share leaders, marketers should – Maintain product quality – Avoid stockouts so buyers would not substitute a competing brand – Develop ads that reinforce consumers’ knowledge or assure buyers that they made the right choice Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Marketing Strategy • For low-involvement products whose brands are market challengers, marketers should: – Use free samples, coupons, and rebates to encourage trial of their product to break a buying habit – Develop ads that get their brand into a consumer’s consideration set – Link brand attributes with high involvement issues Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Marketing Strategy • For high-involvement products whose brands are market-share leaders, marketers should: – Use advertising – Use personal selling Slide 5-15 CONSUMER PURCHASE DECISION PROCESS • Involvement and Marketing Strategy • For high-involvement products whose brands are market challengers, marketers should: – Use comparative ads and novel evaluative criteria for judging competing brands Slide 5-15 FIGURE 5-4 Influences on the consumer purchase decision process from both internal and external sources 5-45 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Motivation – Energizing force that stimulates behavior to satisfy a need – Marketers try to arouse these needs which are hierarchical – Range from basic to learned needs Slide 5-22 LO3 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR MOTIVATION AND PERSONALITY Hierarchy of Needs • Psychological Needs • Safety Needs • Social Needs • Personal Needs • Self-Actualization Needs 5-47 FIGURE 5-5 Hierarchy of needs 5-48 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception – process by which individuals select, organize, and interpret information to create a meaningful picture of the world Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Selective Perception – process of filtering of exposure, comprehension, and retention by the human brain to organize and interpret information Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Selective Exposure occurs – When people pay attention to messages that are consistent with their own attitudes and beliefs and ignore messages that are inconsistent – At the post purchase stage when consumers read ads for the brand they just bought – When a need exists, such as being hungry Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Selective Comprehension – involves interpreting information so that it is consistent with a person’s attitudes and beliefs Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Selective Retention – means that consumers do not remember all the information they see, read, or hear, even minutes after exposure to it – This affects the internal and external information search stages of the consumer decision process Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Subliminal Perception – means that people see or hear messages without being aware of them – Hotly debated issue with more popular appeal than scientific support – Research suggests that such messages have limited effects on behavior Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Subliminal advertising is aimed at the subconscious level of awareness. • Almost 50 years ago, a New Jersey movie theater tried to boost concession sales by flashing the words Eat Popcorn and Drink Coca-Cola. • Research has shown that subliminal messages cannot force receivers to purchase goods that they would not consciously want. • Subliminal advertising has been universally condemned as manipulative, most experts believe that it is exceedingly unlikely to induce purchasing except by people already inclined to buy Slide 5-24 ETHICS AND SOCIAL RESPONSIBILITY ALERT The Ethics of Subliminal Messages Slide 5-25 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perceived Risk – represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that their may be a negative consequence Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Negative consequences of Perceived Risk include: – Size of financial outlay for product – Risk of physical harm – Performance of the product – Psychosocial – what will other people think or say Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perceived Risk affects the information stage of the consumer purchase decision process – The greater the perceived risk, the more extensive the external search is likely to be Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Marketers try to reduce consumer’s perceived risk and encourage purchases by using one or more strategies: • Obtain Seals of Approval • Secure Endorsements from Influential People • Provide Free Trials • Give Extensive Usage Instructions • Provide Warranties and Guarantees Slide 5-26 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Learning Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Learning – refers to those behaviors that result from 1) Repeated experience 2) Reasoning Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Learning – refers to those behaviors that result from • • • Behavioral Cognitive Brand Loyalty Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Behavioral Learning – process of developing automatic responses to a type of situation built up through repeated exposure to it Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Four variables are key to how to how consumers learn from repeated experience: 1. Drive: need that moves an individual to action 2. Cue: stimulus or symbol that one perceives 3. Response: action taken to satisfy a drive 4. Reinforcement: the reward Slide 5-26 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Marketers use two concepts from behavioral learning theory: 1) Stimulus generalization – when a response elicited by one stimulus (cue) is generalized to another – e.g., using the same brand name for different products 2) Stimulus discrimination – refers to one’s ability to perceive differences among similar products Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Cognitive Learning – involves making connections between two or more ideas or simply observing the outcomes of others’ behaviors and adjusting one’s own behavior accordingly through thinking, reasoning, and problem solving Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Brand Loyalty – a favorable attitude toward, and a consistent purchase of a single brand over time • • Results from positive reinforcement of previous actions Reduces risk and saves time due to favorable results Slide 5-24 FIGURE 5-B Brand loyalty tendency by product category Slide 5-30 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Values, Beliefs, and Attitudes Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Values, Beliefs, and Attitudes – play a central role in – Consumer decision making, and – Related marketing actions Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Values, Beliefs, and Attitudes – Attitude Formation • Attitudes – learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way • Shaped by values and beliefs • Marketers are concerned with personal values, which affect attitudes by influencing the importance assigned to specific product attributes Slide 5-31 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Values, Beliefs, and Attitudes – Attitude Formation, cont. • Beliefs – consumer's subjective perception of how a product or brand performs on different attributes • Based on personal experience, advertising, and discussions with other people • Beliefs about product attributes create favorable or unfavorable attitudes the consumer has toward certain products, services, and brands Slide 5-31 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Values, Beliefs, and Attitudes – Attitude Change • Changing beliefs about the extent to which a brand has certain attributes • Changing the perceived importance of attributes • Adding new attributes to the product Slide 5-31 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Lifestyle – mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Psychographics – analysis of consumer lifestyles a. Combines consumer psychology, lifestyle, and demographics to uncover motivations for buying and using products b. Provides insights into customer needs and wants and is useful in segmenting and targeting consumers for new and existing products and services Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • VALS – psychographic system developed by SRIC-BI that identifies eight consumer segments based on; 1) The consumer’s primary motivation for buying and having certain products and services, and 2) The consumer’s resources Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • VALS 1) Consumers are inspired by one of three primary motivations – ideals, achievements, and self expression – that give meaning to their self and govern their activities 2) Consumers’ resources include psychological, physical, demographic, and material capacities; such as income, self-confidence, and risk-taking Slide 5-24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR VALS™ • Thinkers • Experiencers • Believers • Makers • Achievers • Innovators • Strivers • Survivors Slide 5-33 WEB LINK Identify Your VALS Profile Slide 5-34 VALS™ Consumer Segments How do consumers make purchase decisions? Slide 5-35 Concept Check 1. What three attitude-change approaches are most common? A: (1) Change beliefs about the extent to which a brand has certain attributes. (2) Change the perceived importance of attributes. (3) Add new attributes. Slide 5-37 Concept Check 2. What does lifestyle mean? A: Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them . Slide 5-38 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-39 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Personal Influence – Opinion Leaders – are individuals who exert direct or indirect social influence over others • Thought to be knowledgeable • their opinions influence other’s choices • Only about 10 percent of U.S. adults • reaching them is a challenge • Celebrities as spokespersons to represent products Slide 5-39 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Word of Mouth – People influencing each other during conversations and is powerful information source as it involves friends viewed as trustworthy • 67 percent of U.S. product sales are directly based on word-of-mouth activity among friends, family, etc. • Companies recruit and deploy people to produce buzz – popularity created by consumer word-of-mouth Slide 5-39 FIGURE 5-C Word of mouth influence Slide 5-41 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Reference Groups – People to whom an individual looks as a basis for self-appraisal or as a source of personal standards • Have important influence on the purchase of luxury products, but not of necessities Slide 5-39 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Reference Groups • • • • • Groups whose value structures and standards influence a person’s behavior Need not be a member to be influenced by it Consumers often try to coordinate their purchase behavior with their perception of the values of their reference groups Children are especially vulnerable Appear in other countries Slide 5-39 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Reference Groups—Member’s Purchases Requires two conditions: 1. The purchased product must be one that others can see and identify. 2. The purchased item must be conspicuous; it must stand out as something unusual, a brand or product that not everyone owns. Slide 5-39 LO4 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR REFERENCE GROUPS Reference Groups • Membership Group • Aspiration Group • Dissociative Group 5-92 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Reference Groups – Three groups have marketing implications: 1. Membership Group – one that a person actually belongs, such as fraternities and sororities, social clubs, etc. 2. Aspiration group – one that a person wishes to be a member of or identified with, such as a professional society Slide 5-39 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Reference Groups – Three groups have marketing implications: 3. Dissociative Group – one that a person wishes to maintain a distance from due to differences in values or behaviors Slide 5-39 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Family Influence – family influence on consumer behavior results from three sources: 1. Consumer Socialization 2. Family Life Cycle 3. Family Decision Making Slide 5-43 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences Most people are members of two families during their lifetimes: 1. the one they are born into, and 2. the one they form later in life Slide 5-43 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences • • The family group is perhaps the most important determinant of consumer behavior Each family has norms of expected behavior and different roles and status relationships for its members Slide 5-43 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences • Consumer Socialization Process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers Slide 5-43 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences • Consumer Socialization Children learn to purchase by: a. Interacting with adults in purchasing situations b. Engaging in their own purchasing and usage experiences Slide 5-43 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences • – Family Life Cycle Describes the distinct phases that a family progresses through from formation to retirement – each phase bringing identifiable purchasing behaviors Slide 5-43 FIGURE 5-6 Modern family life cycle Slide 5-45 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences • Family Decision Making Three decision styles exist: 1. Partner-dominant decisions – either partner is individually responsible 2. Joint decision-making style – both partners jointly make decisions 3. Partners independently make equal numbers of decisions Slide 5-43 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences • Family Decision Making • Five roles of individual family members exist in the purchase process: 1. 2. 3. 4. 5. Information gatherer Influencer Decision maker Purchaser User Slide 5-43 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Family Influences • Family Decision Making • Family members assume different roles for different products and services 1. 89 percent of wives either influence or make outright purchase of men’s clothing 2. Men spend 40 percent of all food shopping dollars 3. Children under 12 directly influence more than $300B in annual family purchases 4. Teenagers influence another $500B and spend another $175M of their own money annually Slide 5-43 Haggar Clothing What role do women play in this purchase? Slide 5-46 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Social Class The relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Social Class a. A person’s occupation, source of income (not level of income) determine his or her social class b. Three major social class categories exist –upper, middle, and lower – with subcategories within each c. Persons within social classes exhibit common values, attitudes, and buying behaviors Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Social Class d. Lower class people are more emotional than rational, think in concrete, not abstract terms, and see fewer opportunities e. Members of the upper class focus on achievements and the future and think in abstract terms f. Companies use social class to identify and reach prospects for their products and services and also recognize differences in media preferences among the classes Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Culture and Subculture – Culture refers to the set of ideas, and attitudes that are learned and shared among members of a group – Subculture are groups within the larger, or national, culture with unique values, ideas, and attitudes – The three largest racial/ethnic subcultures in the U.S. are African Americans, Hispanics, and Asian Americans Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Culture and Subculture African American Buying Patterns Hispanic Buying Patterns Asian American Buying Patterns Assimulated Nonassimulated Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Subcultures • Although not homogeneous, each has identifiable consumer behavior profiles • More important than national origin are differences in acculturation – degree in which newcomers have adapted to U.S. culture Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR African-American Consumers • Buying power rose faster over last decade than average consumer • Family structure may differ – median age younger; greater percentage headed by women • As with all subcultures, avoid approaching all African-American consumers same way Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Hispanic Consumers • Not homogeneous group – cultural differences among segments affect consumer preferences • Marketing research reveals some homogeneous tendencies: conservative buyers, brand loyal, family oriented • Largely unacculturated, partially unacculturated, and highly acculturated Slide 5-47 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Asian-American Consumers • • • Very diverse group – more than two dozen language groups and often several dialects of each language Each also has its own religion and value system Like Hispanic consumers, Asian-American subgroups differ depending on their level of acculturation Slide 5-47 LO3 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR LEARNING Learning Behavioral Learning • Drive (Hunger) • Response • Cue • Reinforcement 5-117 LO4 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS Social Class • Upper Class • Middle Class • Working/Lower Class 5-118 Consumer Behavior Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. 5-119 Purchase Decision Process The purchase decision process consists of the five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior. 5-120 Evaluative Criteria Evaluative criteria consist of Factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands. 5-121 Consideration Set A consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. 5-122 Cognitive Dissonance Cognitive dissonance is the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives. 5-123 Involvement Involvement is the personal, social, and economic significance of the purchase to the consumer. 5-124 Situational Influences Situational influences consist of the five aspects of the purchase situation that impacts the consumer’s purchase decision process: (1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states. 5-125 Motivation Motivation is the energizing force that stimulates behavior to satisfy a need. 5-126 Personality Personality is a person’s consistent behaviors or responses to recurring situations. 5-127 Self-Concept Self-concept is the way people see themselves and the way they believe others see them. 5-128 Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. 5-129 Subliminal Perception Subliminal perception involves seeing or hearing messages without being aware of them. 5-130 Perceived Risk Perceived risk is the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. 5-131 Learning Learning consists of those behaviors that result from (1) repeated experience and (2) reasoning. 5-132 Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. 5-133 Attitude An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. 5-134 Beliefs Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people. 5-135 Lifestyle Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them. 5-136 Opinion Leaders Opinion leaders are individuals who exert direct or indirect social influence over others. 5-137 Word of Mouth Word of mouth involves the influencing of people during conversations. 5-138 Reference Groups Reference groups consists of people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. 5-139 Consumer Socialization Consumer socialization is the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. 5-140 Family Life Cycle A family life cycle consists of the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. 5-141 Social Class Social class consists of the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. 5-142 Subcultures Subcultures are the subgroups within the larger, or national, culture with unique values, ideas, and attitudes. 5-143