Major Influences on Consumer Behaviour

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
Describe the stages in the consumer
purchase decision process.
LO2
Distinguish among three variations of the
consumer purchase decision process:
routine, limited, and extended problem
solving.
LO3
Identify major psychological influences on
consumer behavior.
LO4
Identify the major sociocultural influences on
consumer behavior.
1-2
Understanding Consumer Behaviour
Luxury Goods
Why Brand Consumers?
1-3
Opening Story –Luxury Goods in China
The Purchase Decision Process
Problem Recognition
LO1

Consumer Behavior

Purchase
Decision Process
1-4
Stages in Consumer Purchase Decision
FIGURE 5-1 The purchase decision process
consists of five stages
LO1
1-5
Stages in Consumer Purchase Decision
The Purchase Decision Process
Information Search

Internal Search

External Search
• Personal Sources
• Public Sources
• Market-Dominated Sources
LO1
1-6
Stages in Consumer Purchase Decision
FIGURE 5-2 Consumer Reports’ evaluation
of portable smartphones (abridged, 2011)
LO1
1-7
Stages in Consumer Purchase Decision
The Purchase Decision Process
Alternative Evaluation
LO1

Evaluative Criteria

Consideration Set
1-8
Stages in Consumer Purchase Decision
The Purchase Decision Process
Purchase Decision
LO1

Decide from Whom to Buy

Decide When to Buy
1-9
Stages in Consumer Purchase Decision
The Purchase Decision Process
Postpurchase Beaviour
LO1

Cognitive Dissonance

Marketing Matters: The Value
of a Satisfied Customer
1-10
Stages in Consumer Purchase Decision
The Purchase Decision Process
Consumer Involvement & Problem Solving

Involvement
• Extended Problem Solving
• Limited Problem Solving
• Routine Problem Solving
LO2
1-11
Routine, Limited & Extended Problem Solving
FIGURE 5-3 Comparison of problem-solving
variations: extended, limited, and routine
LO2
1-12
Routine, Limited & Extended Problem Solving
The Purchase Decision Process
Involvement & Marketing Strategy

Low Involvement
• Maintain Product Quality
• Avoid Stockouts
• Reduce Cognitive Dissonance with Ads

LO2
High Involvement:
Use Ads and
Personal Selling
1-13
Routine, Limited & Extended Problem Solving
The Purchase Decision Process
Situational Influences

Situational Influences
• Purchase Task
• Social Surroundings
• Physical Surroundings
• Temporal Effects
• Antecedent States
LO2
1-14
Routine, Limited & Extended Problem Solving
FIGURE 5-4 Influences
on the consumer
purchase decision
process from both
internal and external
sources
LO2
1-15
Routine, Limited & Extended Problem Solving
Psychological Influences
Motivation

Motivation

Hierarchy of Needs
• Psychological Needs
• Safety Needs
• Social Needs
• Personal Needs
• Self-Actualization Needs
LO3
1-16
Major Influences on Consumer Behaviour
FIGURE 5-5 Hierarchy of needs
LO3
1-17
Major Influences on Consumer Behaviour
Psychological Influences
Personality
LO3

Personality

Traits

National Character

Self-Concept
1-18
Major Influences on Consumer Behaviour
Psychological Influences
Perception

Perception
• Selective Perception
• Selective Exposure
• Selective Comprehension
• Selective Retention

LO3
Subliminal Perception
1-19
Major Influences on Consumer Behaviour
Psychological Influences
Perceived Risk

Strategies to Reduce Perceived Risk
• Obtain Seals of Approval
• Secure Endorsements
• Provide Free Trials/Samples
• Give Extensive Instructions
• Provide Warranties/Guarantees
LO3
1-20
Major Influences on Consumer Behaviour
Sunora Haircare Products
Halal
LO3
1-21
Major Influences on Consumer Behaviour
Psychological Influences
Learning
LO3

Learning

Behavioral Learning
• Drive (Hunger)
• Response
• Cue
• Reinforcement
1-22
Major Influences on Consumer Behaviour
Psychological Influences
Learning

Behavioral Learning
• Stimulus Generalization
• Stimulus Discrimination
LO3

Cognitive Learning

Brand Loyalty
1-23
Major Influences on Consumer Behaviour
Psychological Influences
Attitudes & Beliefs

Attitude Formation
• Attitude
• Values
• Beliefs
LO3
1-24
Major Influences on Consumer Behaviour
Psychological Influences
Attitudes & Beliefs

Attitude Change
• Change Beliefs About a Brand’s Attributes
• Changes Perceived Importance
of Attributes
• Add New Product Attributes
LO3
1-25
Major Influences on Consumer Behaviour
Changing Attitudes
Colgate & Bayer
LO3
1-26
Major Influences on Consumer Behaviour
Psychological Influences
Consumer Lifestyle
LO3

Lifestyle

Psychographics
1-27
Major Influences on Consumer Behaviour
Socio-Cultural Influences
Personal Influence

Opinion Leaders

Word of Mouth
• Buzz
LO4
1-28
Socio-Cultural Influences on Consumer Behaviour
Socio-Cultural Influences
Reference Groups

Reference Groups
• Membership Group
• Aspiration Group
• Dissociative Group
LO4
1-29
Socio-Cultural Influences on Consumer Behaviour
Socio-Cultural Influences
Family Influence

Consumer Socialization

Family Life Cycle
• Traditional Family

Family Decision Making
• Information Gatherer
• Purchaser
• Influencer
• User
• Decision Maker
LO4
1-30
Socio-Cultural Influences on Consumer Behaviour
FIGURE 5-6 Modern family life cycle stages
and flows
LO4
1-31
Socio-Cultural Influences on Consumer Behaviour
Socio-Cultural Influences
Social Class

Social Class
• Upper Class
• Middle Class
• Working/Lower Class
LO4
1-32
Socio-Cultural Influences on Consumer Behaviour
Socio-Cultural Influences
Personal Influence

Culture

Subculture
• Racial / Ethnic
• Sexual Orientation
• Activities
LO4
1-33
Socio-Cultural Influences on Consumer Behaviour