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