CHAPTER CONSUMER BEHAVIOR Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-1 AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 1. Describe the stages in the consumer decision process. 2. Distinguish among three variations of the consumer decision process: routine, limited, and extended problem solving. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-2 AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO: 3. Identify major psychological influences on consumer behavior. 4. Identify major sociocultural influences on consumer behavior. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-3 GETTING TO KNOW THE AUTOMOBILE CUSTOM(H)ER AND INFLUENC(H)ER Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-4 CONSUMER PURCHASE DECISION PROCESS • Consumer Behavior • Purchase Decision Process • Problem Recognition: Perceiving a Need Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-5 FIGURE 5-1 Purchase decision process Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-6 CONSUMER PURCHASE DECISION PROCESS • Information Search: Seeking Value Internal Search External Search • Personal Sources • Public Sources • Market-Dominated Sources Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-7 FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-8 CONSUMER PURCHASE DECISION PROCESS • Alternative Evaluation: Assessing Value Evaluative Criteria Consideration Set • Purchase Decision: Buying Value • Postpurchase Behavior: Value in Consumption or Use Cognitive Dissonance Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-9 FIGURE 5-A What new car buyers consider most important in deciding what new car to buy Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-10 Consumer Purchase Decision Why is post purchase behavior important? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-11 CONSUMER PURCHASE DECISION PROCESS • Involvement and Problem-Solving Variations Extended Problem Solving Limited Problem Solving Routine Problem Solving Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-12 CONSUMER PURCHASE DECISION PROCESS • Situational Influences Purchase Task Social Surroundings Physical Surroundings Temporal Effects Antecedent States Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-13 FIGURE 5-3 Comparison of problem-solving variations Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-14 FIGURE 5-4 Influences on the consumer purchase decision process Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-15 Concept Check 1. What is the first stage in the consumer purchase decision process? A: problem recognition Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-16 Concept Check 2. The brands a consumer considers buying out of the set of brands in a product class of which the consumer is aware is called the ______________. consideration set Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-17 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Motivation and Personality Motivation Personality • Physiological Needs • Self-Concept • Safety Needs • Social Needs • Personal Needs • Self-Actualization Needs Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-18 FIGURE 5-5 Hierarchy of needs Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-19 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception Selective Perception • Selective Perception • Selective Exposure • Selective Comprehension • Selective Retention Subliminal Perception Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-20 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Perception Perceived Risk • Obtain Seals of Approval • Secure Endorsements from Influential People • Provide Free Trials of the Product • Give Extensive Usage Instructions • Provide Warranties and Guarantees Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-21 Fresh Step Crystals Cat Litter Why use the Good Housekeeping Seal? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-22 Mary Kay’s Velocity Fragrance Why offer a free sample through a website? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-23 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Learning Behavioral Learning • Drive • Stimulus Generalization • Response • Stimulus Discrimination • Reinforcement Cognitive Learning Brand Loyalty Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-24 FIGURE 5-B Brand loyalty tendency by product category Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-25 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Values, Beliefs, and Attitudes Attitude Formation • Attitude • Beliefs Attitude Change • Change Beliefs About a Brand’s Attributes • Change Perceived Importance of Attributes • Add New Attributes to the Product Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-26 Colgate Total Toothpaste and Bayer Extra Strength Aspirin How did these ads change attitudes? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-27 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR • Lifestyle Psychographics VALS™ • Thinkers • Experiencers • Believers • Makers • Achievers • Innovators • Strivers • Survivors Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-28 VALS™ Consumer Segments How do consumers make purchase decisions? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-29 Concept Check 1. The problem with the Toro Snow Pup was an example of selective _____________. comprehension Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-30 Concept Check 2. 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. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-31 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Personal Influence Opinion Leadership • Opinion Leaders • Word of Mouth • Buzz Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-32 Pierce Brosnan and Anna Kournikova Why use celebrity spokespersons? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-33 FIGURE 5-C Word of mouth influence Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-34 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Reference Groups Membership Group Aspiration Group Dissociative Group Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-35 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Family Influence Consumer Socialization Family Life Cycle Family Decision Making • Information Gatherer • Purchaser • Influencer • User • Decision Maker Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-36 Haggar Clothing What role do women play in this purchase? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-37 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR • Culture and Subculture African American Buying Patterns Hispanic Buying Patterns Asian American Buying Patterns • Assimulated • Nonassimulated Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-38 Bonne Bell Cosmetics Why target the African American women market? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-39 Hershey’s Kisses Why use Spanish language ads in the U.S.? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-40 Concept Check 1. What are the two primary forms of personal influence? A: opinion leadership; word of mouth Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-41 Concept Check 2. What two challenges must marketers overcome when marketing to Hispanics? A: diversity of this subculture; the language barrier Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-42 GOING ONLINE TRACKING BUYING POWER OF MULTICULTURAL CONSUMERS Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-43 Going Online 1. What is the most recent estimate of the buying power of African Americans, Hispanics, and Asian Americans in the United States? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-44 Going Online 2. In which states is African American buying power the highest? Which states have the highest Hispanic and Asian American buying power? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-45 VIDEO CASE 5 KEN DAVIS PRODUCTS, INC.: SAUCES FOR ALL TASTES Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-46 VIDEO CASE 5 Ken Davis Products Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-47 VIDEO CASE 5 Ken Davis Products Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-48 VIDEO CASE 5 Ken Davis Products 1. In what ways have American eating habits changed over the past decade that affect a barbecue sauce manufacturer? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-49 VIDEO CASE 5 Ken Davis Products 2. What are the two or three main (a) objective evaluative criteria and (b) subjective evaluative criteria consumers of Ken Davis Bar-B-Q Sauces might use? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-50 VIDEO CASE 5 Ken Davis Products 3. How can Ken Davis Products do marketing research on consumers to find out what they eat, to learn how they use barbecue sauces, and to get ideas for new products? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-51 VIDEO CASE 5 Ken Davis Products 4. (a) Do you think a small, regional company such as Ken Davis Products should have entered the market as a premium-priced product or a lowpriced product? (b) What should be its pricing strategy be today? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-52 VIDEO CASE 5 Ken Davis Products 5. What do you see are the (a) satisfactions and (b) concerns of being in business for yourself? Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-53 SUPPLEMENTAL LECTURE NOTE 5-1 MISTAKES MUY GRANDE Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-54 IN-CLASS ACTIVITY 5-1 BUYING PROCESS FOR STARBUCKS COFFEE Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-55 Starbucks House Blend Coffee Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-56 FIGURE 11-D Purchase decision process Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-57 IN-CLASS ACTIVITY 5-2 MAKING DECISIONS WITH THE PRESIDENT OF KEN DAVIS PRODUCTS, INC. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-58 Ken Davis Jazz it Up Marinade Sauce Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-59 Ken Davis News Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-60 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. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-61 Purchase Decision Process The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-62 Involvement Involvement consists of the personal, social, and economic significance of the purchase to the consumer. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-63 Motivation Motivation is the energizing force that stimulates behavior to satisfy a need. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-64 Personality Personality refers to a person’s consistent behaviors or responses to recurring situations. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-65 Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-66 Perceived Risk Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-67 Learning Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-68 Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-69 Attitude An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.” Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-70 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. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-71 Opinion Leaders Opinion leaders are individuals who exert direct or indirect social influence over others. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-72 Word of Mouth Word of mouth is the influencing of people during conversations. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-73 Reference Groups Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-74 Family Life Cycle The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-75 Subcultures Subcultures are subgroups within the larger, or national, culture with unique values, ideas, and attitudes. Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-76