Mankiw - Principles of Macroeconomics - Ch05 Ppt Basic
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Mankiw - Principles of Macroeconomics - Ch05 Ppt Basic Mankiw - Principles of Macroeconomics - Ch05 Ppt Basic Presentation Transcript

  • MKTG Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University Lamb, Hair, McDaniel 2008-2009 5 CHAPTER Consumer Decision Making
  • Learning Outcomes Explain why marketing managers should understand consumer behavior Analyze the components of the consumer decision-making process Explain the consumer’s postpurchase evaluation process LO 1 LO 2 LO 3
  • Learning Outcomes Identify the types of consumer buying decisions and discuss the significance of consumer involvement Identify and understand the cultural factors that affect consumer buying decisions Identify and understand the social factors that affect consumer buying decisions LO 4 LO 5 LO 6
  • Learning Outcomes Identify and understand the individual factors that affect consumer buying decisions Identify and understand the psychological factors that affect consumer buying decisions LO 7 LO 8
  • The Importance of Understanding Consumer Behavior Explain why marketing managers should understand consumer behavior LO 1
  • Consumer Behavior LO 1 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.
  • REVIEW LEARNING OUTCOME LO 1 Understanding Consumer Behavior Consumer behavior consumers make purchase decisions consumers use and dispose of product = HOW
  • The Consumer Decision-Making Process Analyze the components of the consumer decision-making process LO 2
  • Consumer Decision-Making Process LO 2 Consumer Decision-Making Process A five-step process used by consumers when buying goods or services.
  • Consumer Decision-Making Process LO 2 Postpurchase Behavior Purchase Evaluation of Alternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps
  • Need Recognition LO 2 Need Recognition Result of an imbalance between actual and desired states.
  • Need Recognition LO 2 Marketing helps consumers recognize an imbalance between present status and preferred state. Present Status Preferred State Internal Stimuli External Stimuli
  • Stimulus LO 2 Stimulus
    • Any unit of input affecting one or more of the five senses:
    • sight
    • smell
    • taste
    • touch
    • hearing
  • 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
    LO 2
  • Information Search LO 2
    • Internal Information Search
      • Recall information in memory
    • External Information search
      • Seek information in outside environment
        • Nonmarketing controlled
        • Marketing controlled
  • External Information Searches LO 2 Need More Information More Risk Less knowledge Less product experience High level of interest Lack of confidence Less Risk More knowledge More product experience Low level of interest Confidence in decision Need Less Information
  • Evoked Set LO 2 Evoked Set Group of brands, resulting from an information search, from which a buyer can choose
  • Evaluation of Alternatives and Purchase LO 2 Evoked Set Purchase! Analyze product attributes Rank attributes by importance Use cutoff criteria
  • Purchase LO 2 To buy or not to buy... Determines which attributes are most important in influencing a consumer’s choice Marketing
  • REVIEW LEARNING OUTCOME LO 2 Consumer Decision-Making Process CULTURAL SOCIAL PSYCHOLOGICAL INDIVIDUAL Need Recognition 1 Information Search 2 Evaluate Alternatives 3 Purchase 4
  • Cognitive Dissonance LO 3 Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.
  • Postpurchase Behavior LO 3
    • 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 through: Effective Communication Follow-up Guarantees Warranties
  • Consumer Buying Decisions and Consumer Involvement Identify the types of consumer buying decisions and discuss the significance a of consumer involvement LO 3
  • Consumer Buying Decisions and Consumer Involvement LO3 More Involvement Less Involvement Routine Response Behavior Limited Decision Making Extensive Decision Making
  • Five Factors Influencing Decisions LO 3 1. Level of consumer involvement 2. Length of time to make decision 3. Cost of good or service 4. Degree of information search 5. Number of alternatives considered
  • Continuum of Consumer Buying Decisions LO 3
  • Routine Response Behavior
    • Little involvement in selection process
    • Frequently purchased low cost goods
    • May stick with one brand
    • Buy first/evaluate later
    • Quick decision
    LO 3
  • Limited Decision Making
    • Low levels of involvement
    • Low to moderate cost goods
    • Evaluation of a few alternative brands
    • Short to moderate time to decide
    LO 3
  • Extensive Decision Making
    • High levels of involvement
    • High cost goods
    • Evaluation of many brands
    • Long time to decide
    • May experience cognitive dissonance
    LO 3
  • Factors Determining the Level of Consumer Involvement LO 3 Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience
  • Marketing Implications of Involvement LO 3 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
  • REVIEW LEARNING OUTCOME LO 3 Consumer Buying Decisions and Consumer Involvement Routine Limited Extensive Previous experience Interest Perceived risk of negative consequences Situation Social visibility
  • Cultural Influences on Consumer Buying Decisions Identify and understand the cultural factors that affect consumer buying decisions LO 4
  • Factors Influencing Buying Decisions LO 4 Social Factors Individual Factors Psycho-logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY
  • Culture LO 4 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.
  • Components of Culture LO 4 Myths Language Values Customs Rituals Laws Material artifacts
  • Culture is. . . LO 4 Learned Functional Pervasive Dynamic
  • Value LO 4 Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.
  • Core American Values LO 4 Success Materialism Freedom Progress Youth Capitalism http://www.thesource.com Online
  • Subculture LO 4 http://www.dead.net Online Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.
  • Social Class LO 4 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.
  • Social Class Measurements LO 4 Wealth Other Variables Income Education Occupation
  • Social Class and Education LO 4
  • The Impact of Social Class on Marketing
    • Indicates which medium to use for advertising
    • Helps determine the best distribution for products
    LO 4
  • REVIEW LEARNING OUTCOME LO 4 Cultural Factors
  • Social Influences on Consumer Buying Decisions Identify and understand the social factors that affect consumer buying decisions LO 5
  • Social Influences LO 5 Reference Groups Opinion Leaders Family Members
  • Reference Group LO 5 Reference Group A group in society that influences an individual’s purchasing behavior.
  • LO 5 Beyond the Book Reference Groups Supplemental content – not in book Reference Groups Direct Indirect Primary Secondary Aspirational Nonaspirational
  • 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.
    LO 5
  • Opinion Leaders LO 5 Opinion Leaders An individual who influences the opinion of others.
  • Opinion Leaders LO 5
    • Teenagers
    • Movie stars
    • Sports figures
    • Celebrities
    Marketers are looking to Web logs, or blogs, to find opinion leaders
    • Today’s college students make up one of this country’s most influential consumer groups, even though demographically it is one of the smallest. Here’s what a recent survey revealed about this reference group’s preferences:
          • Brand – Apple
          • Product(s) – iPod / iPhone
          • Store – Target
          • Online community – Facebook
          • Love/hate – Geico’s gecko
          • Down time – watch TV / surf the Web
    LO 5 Beyond the Book Reference Group SOURCE: Beth Snyder Bulik, “Apple, Target, Facebook Tops for College Students,” Advertising Age , 10/04/07
  • Family LO 5
    • Initiators
    • Influencers
    • Decision Makers
    • Purchasers
    • Consumers
    Purchase Process Roles in the Family
  • Relationships among Purchasers and Consumers in the Family LO 5
  • REVIEW LEARNING OUTCOME LO 6 Social Factors Opinion Leaders People You Know Socialization Process Family Celebrities Initiators Decision Makers Consumers Influencers Purchasers Reference Groups Information sources Affect aspiration levels Constrain or stimulate consumer behavior
  • Individual Influences on Consumer Buying Decisions Identify and understand the individual factors that affect consumer buying decisions LO 6
  • Individual Influences LO 6 Gender Age Life Cycle Personality Self-Concept Lifestyle
  • Psychological Influences on Consumer Buying Decisions Identify and understand the psychological factors that affect consumer buying decisions LO 7
  • Psychological Influences LO 7 Perception Motivation Learning Beliefs & Attitudes
  • Perception LO 7 Perception Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.
  • Perception LO 7 Selective Exposure Selective Distortion Selective Retention
  • Perception LO 7 Selective Exposure Selective Distortion Selective Retention Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Consumer remembers only that information that supports personal beliefs
    • Important attributes
    • Price
    • Brand names
    • Quality and reliability
    • Threshold level of perception
    • Product or repositioning changes
    • Foreign consumer perception
    Marketing Implications of Perception LO 7
  • Motivation LO 7 Maslow’s Hierarchy of Needs A method of classifying human needs and motivations into five categories in ascending order of importance.
  • Maslow’s Hierarchy of Needs LO 7 Exhibit 5 . 5 Maslow’s Hierarchy of Needs
  • Types of Learning LO 7 Experiential Conceptual An experience changes behavior Not learned through direct experience http://www.cspinet.org Online
  • Beliefs and Attitudes LO 7 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.
  • Changing Attitudes LO 7
    • Change beliefs about the brand’s attributes
    • Change the relative importance of these beliefs
    • Add new beliefs
  • REVIEW LEARNING OUTCOME LO 7 Psychological Factors Learning Experiential Conceptual Selective Exposure Perception Selective Retention Selective Exposure Needs Motivation Psychological Esteem Safety Social Esteem Beliefs & Attitudes Changing Beliefs about Attributes Changing Importance of Beliefs Adding New Beliefs