Consumer Decision Making Chapter Lamb, Hair, McDaniel 2014-2015 © Cengage Learning 2015 All Rights Reserved Explain why marketing managers should understand consumer behavior Analyze the components of the consumer decision-making process Explain the consumer’s postpurchase evaluation process Identify the types of consumer buying decisions and discuss the significance of consumer involvement © 2015 by Cengage Learning Inc All Rights Reserved Identify and understand the cultural factors that affect consumer buying decisions Identify and understand the social factors that affect consumer buying decisions Identify and understand the individual factors that affect consumer buying decisions Identify and understand the psychological factors that affect consumer buying decisions © 2015 by Cengage Learning Inc All Rights Reserved The Importance of Understanding Consumer Behavior Explain why marketing managers should understand consumer behavior © 2015 by Cengage Learning Inc All Rights Reserved Understanding Consumer Behavior consumers consumersmake make purchase purchasedecisions decisions Consumer Consumer behavior behavior = HOW consumers consumersuse useand and dispose disposeof of product product © 2015 by Cengage Learning Inc All Rights Reserved The Consumer Decision-Making Process Analyze the components of the consumer decisionmaking process © 2015 by Cengage Learning Inc All Rights Reserved Consumer Decision-Making Process © 2015 by Cengage Learning Inc All Rights Reserved Exhibit 6.1 Consumer Decision-Making Process © 2015 by Cengage Learning Inc All Rights Reserved Need Recognition Result of an imbalance between actual and desired states Need recognition is the first stage in the decisionmaking process © 2015 by Cengage Learning Inc All Rights Reserved When “Need” Turns to Greed • • • In 2011, a woman allegedly pepper sprayed a crowd of shoppers reaching for discounted Xbox 360s Black Friday: • Retailers offer their best bargains of the year • Consumers camp out for days at stores’ front doors Violent incidents were reported in at least seven states during the 2011 Black Friday sales, most occurring at or near Walmart stores Michael Martinez, “Woman Surrenders in Black Friday Pepper Spray Incident,” CNN, November 26, 2011, http://articles.cnn.com/2011-1126/us/us_california-pepper-spray-suspect_1_pepper-spray-woman-surrenders-video-game?_s=PM:US (Accessed May 3, 2012) 10 © 2015 by Cengage Learning Inc All Rights Reserved Family Purchase Process Roles in the Family • Initiators • Influencers • Decision Makers • Purchasers • Consumers © 2015 by Cengage Learning Inc All Rights Reserved 47 Individual Influences on Consumer Buying Decisions Identify and understand the individual factors that affect consumer buying decisions 48 © 2015 by Cengage Learning Inc All Rights Reserved Individual Influences Gender Gender Age Age Life Life Cycle Cycle Personality Personality Self-Concept Self-Concept Lifestyle Lifestyle © 2015 by Cengage Learning Inc All Rights Reserved 49 Gender • Physiological differences between men and women result in different needs, such as health and beauty products • Trends in gender marketing are influenced by the changing roles of men and women in society © 2015 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.” © 2015 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 self-concept • Self-concept combines ideal self-image and real self-image © 2015 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 53 © 2015 by Cengage Learning Inc All Rights Reserved Psychological Influences Perception Perception Motivation Motivation Learning Learning Beliefs Beliefs & & Attitudes Attitudes © 2015 by Cengage Learning Inc All Rights Reserved 54 Perception Selective Selective Exposure Exposure Consumer Consumer notices notices certain certain stimuli stimuli and and ignores ignores others others Selective Selective Distortion Distortion Consumer Consumer changes changes or or distorts distorts information information that that conflicts conflicts with with feelings feelings or or beliefs beliefs Selective Selective Retention Retention Consumer Consumer remembers remembers only only that that information information that that supports supports personal personal beliefs beliefs © 2015 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 © 2015 by Cengage Learning Inc All Rights Reserved 56 Exhibit 6.6 Maslow’s Hierarchy of Needs © 2015 by Cengage Learning Inc All Rights Reserved 57 Types of Learning Experiential Experiential An An experience experience changes changes behavior behavior Conceptual Conceptual Not Not learned learned through through direct direct experience experience © 2015 by Cengage Learning Inc All Rights Reserved 58 Beliefs and Attitudes Belief Belief Attitude 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 © 2015 by Cengage Learning Inc All Rights Reserved 59 Changing Beliefs A marketer may want to… •turn a neutral, negative, or incorrect belief about a product attribute into a positive one •change the relative importance of a belief •add a new belief © 2015 by Cengage Learning Inc All Rights Reserved 60 Chapter Video Ski Butternut Ski Butternut is a ski and snowboard mountain in the Berkshires Because the mountain is a “soft” mountain, Ski Butternut collects large amounts of data based on rentals and Web traffic to make sure that they understand who the customer is and to whom they need to market Matt Sawyer also discusses how they change the mountain itself to meet the needs of the customer CLICK TO PLAY VIDEO 61 © 2015 by Cengage Learning Inc All Rights Reserved [...]... level of interest Confidence in decision Need More Information More Risk Less knowledge Less product experience High level of interest Lack of confidence 2 © 2015 by Cengage Learning Inc All Rights Reserved 15 Evoked Set 2 © 2015 by Cengage Learning Inc All Rights Reserved 16 Evaluation of Alternatives and Purchase Evoked Set Analyze Analyze product product attributes attributes Use Use cutoff cutoff... goods Evaluation of a few alternative brands Short to moderate time to decide 4 © 2015 by Cengage Learning Inc All Rights Reserved 27 Extensive Decision Making High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance 4 © 2015 by Cengage Learning Inc All Rights Reserved 28 Factors Determining the Level of Consumer Involvement... i r n a l mu li al n r li e t Ex timu S 2 Present Present Status Status Preferre Preferre ddState State Marketing helps consumers recognize an imbalance between present status and preferred state © 2015 by Cengage Learning Inc All Rights Reserved 11 Stimulus Any unit of input affecting one or more of the five senses: • Sight • Smell • Taste • Touch • Hearing 2 © 2015 by Cengage Learning Inc All Rights... purchase decision Revoking the original decision by returning the product 3 © 2015 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 22 4 © 2015 by Cengage Learning Inc All Rights Reserved Consumer Buying Decisions and Consumer Involvement Routine... Making Making More Involvement 4 © 2015 by Cengage Learning Inc All Rights Reserved 23 Involvement The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior 4 © 2015 by Cengage Learning Inc All Rights Reserved 24 Exhibit 6.2 Continuum of Consumer Buying Decisions 4 25 Routine Limited Extensive Involvement Low Low to Moderate High Time Short Short... selling their products in global markets must observe the needs and wants of consumers in various regions 2 © 2015 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 2 © 2015 by Cengage Learning Inc All Rights Reserved... Internal and External Number of Alternatives One Few Many © 2015 by Cengage Learning Inc All Rights Reserved Routine Response Behavior Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision 4 © 2015 by Cengage Learning Inc All Rights Reserved 26 Limited Decision Making Low levels of involvement Low to moderate... dissonance 4 © 2015 by Cengage Learning Inc All Rights Reserved 28 Factors Determining the Level of Consumer Involvement Previous Previous Experience Experience Interest Interest Perceived Perceived Risk Risk of of Negative Negative Consequences Consequences Social Social Visibility Visibility 4 © 2015 by Cengage Learning Inc All Rights Reserved 29 Not All Involvement Is The Same Product Product Involvement... Involvement Shopping Shopping Involvement Involvement Enduring Enduring Involvement Involvement Emotional Emotional Involvement Involvement 4 © 2015 by Cengage Learning Inc All Rights Reserved 30 Marketing Implications of Involvement High-involvement High-involvement purchases purchases require: require: Extensive Extensiveand and Informative Informativepromotion promotion to totarget targetmarket market... require: require: In-store In-storepromotion, promotion, eye-catching eye-catching package package design, design,and and good good displays displays Coupons, Coupons, and and two-for-one two-for-oneoffers offers 4 © 2015 by Cengage Learning Inc All Rights Reserved 31 Cultural Influences on Consumer Buying Decisions Identify and understand the cultural factors that affect consumer buying decisions 32 ... consumersuse useand and dispose disposeof of product product © 2015 by Cengage Learning Inc All Rights Reserved The Consumer Decision-Making Process Analyze the components of the consumer decisionmaking... 2011, a woman allegedly pepper sprayed a crowd of shoppers reaching for discounted Xbox 360s Black Friday: • Retailers offer their best bargains of the year • Consumers camp out for days at stores’... 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 © 2015 by Cengage