Chapter 6: Consumer Decision Making
Prepared by David Ferrell, B-books, Ltd.
Designed by Eric Brengle, B-books, Ltd.
Copyright 2012 by Cengage Learning Inc. 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
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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
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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
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4
The Importance of Understanding
Consumer Behavior
LO1
Explain why marketing
managers should understand
consumer behavior.
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5
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.
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LO1
Review Learning Outcome
Understanding Consumer Behavior
consumers make
purchase decisions
Consumer
behavior
= HOW
consumers use and
dispose of product
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The Consumer Decision-Making Process
LO2
Analyze the components
of the consumer
decision-making process.
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Consumer Decision-Making Process
A five-step process used by
consumers when buying
goods or services.
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Consumer Decision-Making Process
Need Recognition
Information Search
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
Evaluation
of Alternatives
Purchase
Postpurchase
Behavior
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Need Recognition
Result of imbalance
between actual
and desire states.
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Need Recognition
Present
Status
Preferred
State
Marketing helps consumers recognize
an imbalance between
present status and preferred state.
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Stimulus
Any unit of input affecting one or
more of the five senses:
sight
smell
taste
touch
hearing
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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
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Information Search
Internal Information Search
 Recall information in memory
External Information search
 Seek information in outside
environment


Nonmarketing controlled
Marketing controlled
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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
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Evoked Set
Group of brands resulting from an
information search, from which a
buyer can choose.
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Evaluation of Alternatives
and Purchase
Evoked Set
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Purchase!
18
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Purchase
To buy
or not to buy...
Determines which attributes
are most important
in influencing a
consumer’s choice
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LO2
Review Learning Outcome
Consumer Decision-Making Process
Need
1
Recognition
Information
Search
2
Evaluate
3
Alternatives
Purchase
4
PSYCHOLOGICAL
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20
SOCIAL
CULTURAL
INDIVIDUAL
Postpurchase Behavior
LO3
Explain the consumer’s
postpurchase evaluation
process.
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Cognitive Dissonance
Inner tension
that a consumer experiences after
recognizing an inconsistency
between behavior and values or
opinions.
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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
Marketers can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Service during and after the sale
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LO3
Review Learning Outcome
Consumer postpurchase evaluation process
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24
Consumer Buying Decisions and
Consumer Involvement
LO4
Identify the types of consumer buying
decisions and discuss the
significance of consumer involvement.
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25
Consumer Buying Decisions and
Consumer Involvement
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making
Less
Involvement
More
Involvement
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Five Factors of Consumer Involvement
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
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Continuum of Consumer Buying Decisions
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Routine Response Behavior
• Little involvement in selection process
• Frequently purchased low cost goods
• May stick with one brand
• Buy first/evaluate later
• Quick decision
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Limited Decision Making
•
Low levels of involvement
•
Low to moderate cost goods
•
Evaluation of a few alternative brands
•
Short to moderate time to decide
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Extensive Decision Making
•
High levels of involvement
•
High cost goods
•
Evaluation of many brands
•
Long time to decide
•
May experience cognitive dissonance
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31
Factors Determining
the Level of Consumer Involvement
Previous Experience
Interest
Perceived Risk of Negative
Consequences
Situation
Social Visibility
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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
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Factors Influencing Buying Decisions
Cultural
Factors
Individual
Factors
Social
Factors
Psychological
Factors
CONSUMER
DECISIONMAKING
PROCESS
BUY /
DON’T BUY
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LO4
Review Learning Outcome
Consumer Buying Decisions and Consumer Involvement
Previous experience
Interest
Perceived risk of
negative consequences
Situation
Social visibility
Extensive
Limited
Routine
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35
Cultural Influences on
Consumer Buying Decisions
LO5
Identify and understand
the cultural factors
that affect consumer
buying decisions.
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36
Culture
Sets 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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Components of Culture
Values
Language
Myths
Customs
Rituals
Laws
Material artifacts
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Culture is. . .
Pervasive
Functional
Learned
Dynamic
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Value
Enduring belief that a
specific mode of conduct is
personally or socially
preferable to another mode
of conduct.
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Core American Values
Success
Materialism
Freedom
Progress
Youth
Capitalism
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Subculture
Subculture- A homogeneous
group of people who share
elements of the overall culture
as well as unique elements of
their own group.
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Social 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.
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Social Class Measurements
Occupation
Income
Education
Wealth
Other Variables
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Social Class and Education
Source: U.S. Census, available at http://www.pbs.org/peoplelikeus/resources/stats.html, May 2005.
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The Impact of Social Class on Marketing
1. Indicates which medium to use for
advertising
2. Helps determine the best distribution
for products
46
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LO5
Review Learning Outcome
Cultural Factors
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47
Social Influences on
Consumer Buying Decisions
LO6
Identify and understand
the social factors that affect
consumer buying decisions.
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48
Social Influences
Reference
Groups
Opinion
Leaders
Family
Members
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Reference Group
A group in society that
influences an individual’s
purchasing behavior.
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Reference Groups
Primary
Direct
Secondary
Reference
Groups
Aspirational
Indirect
Nonaspirational
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Influences of Reference Groups
1. They serve as information sources
and influence perceptions.
2. They affect an individual’s
aspiration levels.
3. Their norms either constrain or
stimulate consumer behavior.
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Opinion Leaders
An individual who influences
the opinion of others.
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Opinion Leaders
Marketers are looking to Web logs,
or blogs, to find opinion leaders




Teenagers
Movie stars
Sports figures
Celebrities
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Family
Purchase Process Roles in the Family
 Initiators
 Influencers
 Decision Makers
 Purchasers
 Consumers
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Relationships among Purchasers and
Consumers in the Family
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LO6
Review Learning Outcome
Social Factors
Direct
Reference
Groups
Opinion
Leaders
Primary
Indirect
Secondary
Aspirational
People
you know
Nonaspirational
Celebrities
Socialization Process
Family
Initiators
Decision Makers
Influencers
Consumers
Purchasers
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57
Individual Influences on
Consumer Buying Decisions
LO7
Identify and understand
the individual factors
that affect
consumer buying decisions.
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58
Individual Influences
Gender
Age
Life Cycle
Personality
Self-Concept
Lifestyle
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Psychological Influences on
Consumer Buying Decisions
LO8
Identify and understand the
psychological factors that affect
consumer buying decisions.
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60
Psychological Influences
Perception
Motivation
Learning
Beliefs & Attitudes
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Perception
The process by which people
select, organize, and interpret
stimuli into a meaningful
and coherent picture.
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Perception
Selective
Exposure
Selective
Distortion
Selective
Retention
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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
64
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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
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Motivation
Maslow’s Hierarchy of NeedsA method of classifying human
needs and motivations into five
categories in ascending order
of importance.
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Maslow’s Hierarchy of Needs
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Types of Learning
Experiential
An experience changes
behavior
Conceptual
Not learned through direct
experience
http://www.cspinet.org
Online
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68
Stimulus Generation and Discrimination
Stimulus
Generalization
Stimulus
Discrimination
A form of learning that
occurs when one
response is extended to
a second stimulus
similar to the first.
A learned ability to
differentiate among
similar products.
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69
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.
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70
Changing Attitudes
 Change beliefs about the
brand’s attributes
 Change the relative importance
of these beliefs
 Add new beliefs
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LO8
Review Learning Outcome
Psychological Factors
Selective Exposure
Perception
Selective Retention
Selective Exposure
Needs
Motivation
Learning
Beliefs &
Attitudes
Psychological
Safety
Social
Esteem
Stimulus
Generalization
Changing
Beliefs about
Attributes
SelfActualization
Stimulus
Discrimination
Changing
Importance of
Beliefs
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Adding
New Beliefs
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