Learning Objectives 1. Explain why marketing managers should understand consumer behavior. 2. Analyze the components of the consumer decision-making process. 3. Explain the consumer’s postpurchase evaluation process.
Learning Objectives (continued) 4. Identify the types of consumer buying decisions and discuss the significance of consumer involvement. 5. Identify and understand the cultural factors that affect consumer buying decisions.
Learning Objectives (continued) 6. Identify and understand the social factors that affect consumer buying decisions. 7. Identify and understand the individual factors that affect consumer buying decisions. 8. Identify and understand the psychological factors that affect consumer buying decisions.
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.
Learning Objective Analyze the components of the consumer decision-making process.
Consumer Decision-Making Process A five-step process used by consumers when buying goods or services.
Consumer Decision-Making Process Postpurchase Behavior Purchase Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps
Need Recognition Result of an imbalance between actual and desired states.
Need Recognition Internal Stimuli and External Stimuli Present Status Preferred State Marketing helps consumers recognize an imbalance between present status and preferred state
External Information Searches Need More Information More Risk Less knowledge Less product experience High level of interest Less Risk More knowledge More product experience Low level of interest Need Less Information
Evoked Set Group of brands, resulting from an information search, from which a buyer can choose.
Evaluation of Alternatives Evoked Set Purchase! Evaluation of Products Analyze product attributes Use cutoff criteria Rank attributes by importance
Purchase Determines which attributes are most important in influencing a consumer’s choice To buy or not to buy... Marketing
Learning Objective Explain the consumer’s postpurchase evaluation process.
Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.
Postpurchase Behavior Can minimize through: Effective Communication Follow-up Guarantees Warranties Marketing Cognitive Dissonance ? Did I make a good decision? Did I buy the right product? Did I get a good value?
Learning Objective Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
Types of Consumer Buying Decisions More Involvement Less Involvement Routine Response Behavior Limited Decision Making Extensive Decision Making
Low-involvement purchases require: in-store promotion and eye-catching package design
Factors Influencing Buying Decisions Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY
Learning Objective Identify and understand the cultural factors that affect consumer buying decisions.
Culture Set 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.
Cultural Influences on Buying Decisions Values Language Myths Customs Rituals Laws Components of American Culture Material Artifacts
Coors “Turn it Loose” became “Suffer from Diarrhea”
Toyota’s MR2 sounded like a swearword in French
Coca-Cola in Chinese means “bite the wax tadpole”
Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.
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.
Learning Objective Identify and understand the social factors that affect consumer buying decisions.
Social Influences Reference Groups Opinion Leaders Family Members Social Influences on Buying Decisions
Reference Group A group in society that influences an individual’s purchasing behavior. 6
Reference Groups Direct Indirect Types of Reference Groups Primary Secondary Aspirational Non-aspirational
Perception Selective Exposure Selective Distortion Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Selective Retention Consumer remembers only that information that supports personal beliefs
A Consumer’s Selective Exposure Notices only 11 to 20 ads Exposure to over 250 advertisement messages per day