Lamb, Hair, McDaniel 2011-2012 CHAPTER 6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 © Nonstock/Jupiterimages Consumer Decision Making Learning Outcomes LO 1 Explain why marketing managers should understand consumer behavior LO 2 Analyze the components of the consumer decisionmaking process LO 3 Explain the consumer’s postpurchase evaluation process LO 4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2 Learning Outcomes LO 5 Identify and understand the cultural factors that affect consumer buying decisions LO 6 Identify and understand the social factors that affect consumer buying decisions LO 7 Identify and understand the individual factors that affect consumer buying decisions LO 8 Identify and understand the psychological factors that affect consumer buying decisions Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 3 The Importance of Understanding Consumer Behavior Explain why marketing managers should understand consumer behavior LO1 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 4 Understanding Consumer Behavior consumers make purchase decisions Consumer behavior = HOW consumers use and dispose of product LO1 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 5 The Consumer Decision-Making Process Analyze the components of the consumer decision-making process LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 6 Consumer Decision-Making Process Consumer Decision-Making Process A five-step process used by consumers when buying goods or services. LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 7 Exhibit 6.1 Consumer DecisionMaking Process LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 8 Need Recognition Need Recognition Result of an imbalance between actual and desired states. LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 9 Beyond the Book Consumers Scale Back • A Pew Research Center poll suggests consumers are more focused on basic necessities. • 63 percent of women and 51 percent of men report buying cheaper brands and increased shopping at discount stores. • An increased number of respondents reported internet as a necessity, while a decreased number reported television. Source: Dick Silverman."Luxury and Necessity: Redefining Values." WWD. Wednesday, June 10, 2009. 8. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 10 Need Recognition Present Status Preferred State Marketing helps consumers recognize an imbalance between present status and preferred state. LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Stimulus Stimulus Any unit of input affecting one or more of the five senses: •sight •smell •taste •touch •hearing LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 12 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 LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 13 Information Search Internal Information Search • Recall information in memory External Information search • Seek information in outside environment • • Nonmarketing controlled Marketing controlled LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 14 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 LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 15 Evoked Set Evoked Set Group of brands, resulting from an information search, from which a buyer can choose LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 16 Evaluation of Alternatives and Purchase Evoked Set Analyze product attributes Use cutoff criteria Rank attributes by importance LO2 Chapter 6 Purchase! Copyright ©2012 by Cengage Learning Inc. All rights reserved 17 Purchase To buy or not to buy... Determines which attributes are most important in influencing a consumer’s choice LO2 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 18 Postpurchase Behavior Explain the consumer’s postpurchase evaluation process LO3 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 19 Cognitive Dissonance Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. LO3 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 20 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 Marketing can minimize dissonance through effective communication with purchasers. LO3 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 21 Types of Consumer Buying Decisions and Consumer Involvement Identify the types of consumer buying decisions and discuss the significance of consumer involvement LO4 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 22 Consumer Buying Decisions and Consumer Involvement Routine Response Behavior Limited Decision Making Extensive Decision Making Less Involvement More Involvement LO4 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 23 Involvement Involvement is… the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior. LO4 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 24 Exhibit 6.2 Continuum of Consumer Buying Decisions LO4 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 25 Routine Response Behavior LO4 Chapter 6 Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision Copyright ©2012 by Cengage Learning Inc. All rights reserved 26 Limited Decision Making Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide LO4 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 27 Extensive Decision Making LO4 Chapter 6 High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance Copyright ©2012 by Cengage Learning Inc. All rights reserved 28 Factors Determining the Level of Consumer Involvement Previous Experience Interest Perceived Risk of Negative Consequences Situation Social Visibility LO4 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 29 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 LO4 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 30 Cultural Influences on Consumer Buying Decisions Identify and understand the cultural factors that affect consumer buying decisions LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 31 Factors Influencing Buying Decisions Cultural Factors Individual Factors Social Factors Psychological Factors CONSUMER DECISIONMAKING PROCESS BUY / DON’T BUY LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 32 Components of Culture Values Language Myths Customs Rituals Laws LO5 Chapter 6 Material artifacts Copyright ©2012 by Cengage Learning Inc. All rights reserved 33 Culture is. . . Pervasive Functional Learned Dynamic LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 34 Value Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct. LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 35 Understanding Cultural Differences • A firm has little chance of selling products in a culture that it does not understand. • Like people, products have cultural value. In China In U.S. Color of mourning Brides wear LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 36 Subculture Subculture A homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group. LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 37 Social Class 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. LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 38 LO5 Exhibit 6.4 U.S. Social Classes SOURCE: Adapted from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, December 1983, 267; Dennis Gilbert and Joseph A. Kahl, The American Class Structure: A Synthesis (Homewood, IL: Dorsey Press, 1982), ch. 11. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 39 Social Class Measurements Occupation Income Education Wealth LO5 Chapter 6 Other Variables Copyright ©2012 by Cengage Learning Inc. All rights reserved 40 The Impact of Social Class on Marketing Indicates which medium to use for advertising Helps determine the best distribution for products LO5 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 41 Social Influences on Consumer Buying Decisions Identify and understand the social factors that affect consumer buying decisions LO6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 42 Social Influences Reference Groups Opinion Leaders Family Members LO6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 43 Exhibit 6.5 Types of Reference Groups LO6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 44 Influences of Reference Groups They serve as information sources and influence perceptions. They affect an individual’s aspiration levels. Their norms either constrain or stimulate consumer behavior. LO6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 45 Opinion Leaders Opinion Leaders An individual who influences the opinion of others. LO6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 46 Opinion Leaders… …are the first to try new products and services out of pure curiosity. …can be challenging to locate. Marketers are increasingly using blogs, social networking, and other online media to determine and attract opinion leaders. LO6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 47 Family Purchase Process Roles in the Family • Initiators • Influencers • Decision Makers • Purchasers • Consumers LO6 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 48 Individual Influences on Consumer Buying Decisions Identify and understand the individual factors that affect consumer buying decisions LO7 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 49 Individual Influences Gender Age Life Cycle Personality Self-Concept Lifestyle LO7 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 50 Age and Family Life Cycle Stage • Consumer tastes in food, clothing, cars, furniture, and recreation are often age related. • Marketers define target markets according to life cycle stages such as “young singles” or “young married with children.” LO7 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 51 Personality, Self-Concept, and Lifestyle • Personality combines psychological makeup and environmental forces. • Human behavior depends largely on selfconcept. • Self-concept combines ideal self-image and real self-image. LO7 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 52 Psychological Influences on Consumer Buying Decisions Identify and understand the psychological factors that affect consumer buying decisions LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 53 Psychological Influences Perception Motivation Learning Beliefs & Attitudes LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 54 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 LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 55 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 LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 56 Motivation Maslow’s Hierarchy of Needs A method of classifying human needs and motivations into five categories in ascending order of importance. LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 57 Exhibit 6.6 Maslow’s Hierarchy of Needs LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 58 Types of Learning Experiential An experience changes behavior Conceptual Not learned through direct experience LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 59 Beliefs and Attitudes Belief Attitude An organized pattern of knowledge that an individual holds as true about his or her world. A learned tendency to respond consistently toward a given object. LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 60 Changing Beliefs • Change beliefs about the brand’s attributes • Change the relative importance of these beliefs • Add new beliefs LO8 Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 61 Beyond the Book Chapter 6 Videos Chapter 6 ReadyMade – Consumer Decision Making How does the cover of ReadyMade magazine reflect the principles of packaging design as influenced by the known behaviors of its consumers? http://www.cengage.com/marketing/boo k_content/1439039429_lamb/company_c lips/ch06.html Copyright ©2012 by Cengage Learning Inc. All rights reserved 62