MKT 340 Ch04 ppt

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LO 4-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:
LO 4-1
Describe the stages in the consumer
purchase decision process.
Distinguish among three variations of
the consumer purchase decision
process: routine, limited, and extended
problem solving.

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LO 4-4
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:
LO 4-3
Identify the major psychological
influences on consumer behavior.
Identify the major sociocultural
influences on consumer behavior.

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ENLIGHTENED CARMAKERS KNOW
WHAT CUSTOM(H)ERS VALUE
 The Sense
of Styling
 The Need
for Speed
 The Substance
of Safety
 The Shopping
Experience

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FIGURE 4-1 The purchase decision process
consists of five stages

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CONSUMER PURCHASE DECISION PROCESS
PROBLEM RECOGNITION
LO 4-1
 Consumer Behavior
 Purchase Decision Process

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INFORMATION SEARCH
LO 4-1
 Internal Search
 External Search
• Personal Sources
• Public Sources
• Marketer-Dominated Sources

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FIGURE 4-2 Common consumer selection
criteria for evaluation of smartphones

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ALTERNATIVE EVALUATION
LO 4-1
 Evaluative Criteria
 Consideration Set

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PURCHASE DECISION
LO 4-1
 Decide When to Buy
 Decide from Whom to Buy

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POSTPURCHASE BEHAVIOR
LO 4-1
• Satisfied Customers
Tell 3 People
• Dissatisfied Customers
Tell 9 People
 Cognitive Dissonance: Post-purchase
anxiety or tension
 Customer Satisfaction Studies

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MARKETING MATTERS
How Much is a Satisfied Customer Worth?
LO 4-1
• A 5% improvement in
customer retention can
increase profits by 70-
80%

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CONSUMER INVOLVEMENT & PROBLEM SOLVING
LO 4-2
 Involvement
• Extended Problem Solving (High involvement)
• Limited Problem Solving (Moderate)
• Routine Problem Solving (Low involvement)

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FIGURE 4-3 Comparison of problem-solving
variations: extended, limited, and routine

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CONSUMER INVOLVEMENT & PROBLEM SOLVING
LO 4-2
 Low Involvement
• Maintain Product Quality
• Avoid Stockouts
• Reduce Cognitive
Dissonance with Ads
 High Involvement
• Use Comparative Ads
• Use Personal Selling

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SITUATIONAL INFLUENCES
LO 4-2
 Situational Influences
• Purchase Task (purpose)
• Social Surroundings (other people)
• Physical Surroundings (décor)
• Temporal Effects (time)
• Antecedent States (mood)

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FIGURE 4-4 Influences on the consumer
purchase decision process from both internal
and external sources

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PSYCHOLOGICAL INFLUENCES ON
CONSUMER BEHAVIOR
MOTIVATION
LO 4-3
 Motivation
 Maslow’s Hierarchy of Needs:
 Based on the idea that
motivation comes from a need.
 Once need is met, a higher-
level need becomes the
motivator.

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FIGURE 4-5 Hierarchy of needs
Match.com

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CONSUMER BEHAVIOR
PERSONALITY
LO 4-3
 Personality
 Key Traits: Enduring
characteristics
 Self-Concept

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CONSUMER BEHAVIOR
CONSUMER PERCEPTION
LO 4-3
 Perception
• Selective Perception: Filtering
• Selective Exposure: Paying attention
• Selective Comprehension: Interpreting
• Selective Retention: Remembering
 Subliminal Perception

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MAKING RESPONSIBLE DECISIONS
The Ethics of Subliminal Messages
LO 4-3

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 Strategies to Reduce Perceived Risk
• Secure Endorsements
• Provide Free Trials/Samples
• Give Extensive Instructions
• Provide Warranties/Guarantees
• Obtain Seals of Approval
CONSUMER BEHAVIOR
CONSUMER PERCEPTION
LO 4-3

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COLGATE
What strategy is used to reduce perceived risk?
LO 4-3

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CONSUMER BEHAVIOR
CONSUMER LEARNING
LO 4-3
 Learning
• Cue
(Stimulus)
• Response
(Action)
• Reinforcement
(Reward)
 Behavioral Learning: Automatic
responses
• Drive (Need)

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CONSUMER BEHAVIOR
CONSUMER LEARNING
LO 4-3
 Behavioral Learning
• Stimulus Discrimination
• Stimulus Generalization
 Cognitive Learning: Thinking,
reasoning, problem solving
 Brand Loyalty

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CONSUMER BEHAVIOR
CONSUMER VALUES, BELIEFS, AND ATTITUDES
LO 4-3
 Attitude Formation
• Attitudes are shaped by values and beliefs
• Attitude
• Beliefs

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CONSUMER BEHAVIOR
CONSUMER VALUES, BELIEFS, AND ATTITUDES
LO 4-3
 Attitude Change done by:
• Adding New Product Attributes
• Changing Perceived Importance
of Attributes
• Changing Beliefs About a Brand’s Attributes

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CONSUMER BEHAVIOR
CONSUMER LIFESTYLE
LO 4-3
 Lifestyle
 Psychographics:
Combines
psychology,
lifestyle,
demographics

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FIGURE 4-A VALS™ identifies eight consumer
segments
Copyright © 2010 by Strategic Business Insights. All rights reserved.
INNOVATORS
Sophisticated,
Change Leading,
Active, Take Charge
THINKERS
Information Seeking,
Satisfied,
Reflective
BELIEVERS
Conservative,
Conventional,
Traditional
STRIVERS
Trendy, Approval,
Seeking,
Disenfranchised
ACHIEVERS
Successful, Career &
Family Oriented,
Moderate
EXPERIENCERS
Risk Seeking,
Enthusiastic,
Impulsive
MAKERS
Homegrown, Self
Sufficient, Macho,
Family Oriented
SURVIVORS
Passive,
Risk Averse,
Constrained

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SOCIOCULTURAL INFLUENCES ON
CONSUMER BEHAVIOR
PERSONAL INFLUENCE
LO 4-4
 Opinion Leaders
 Word of Mouth
• Buzz: Popularity created by WOM Dove Ad

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MARKETING MATTERS
BzzAgent—The Buzz Experience
LO 4-4
BzzAgent Video

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CONSUMER BEHAVIOR
REFERENCE GROUPS
LO 4-4
 Reference Groups
• Associative Group: Group someone belongs to
• Aspiration Group: Group we want to belong to
• Dissociative Group: Group we distance from
 Brand Community

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CONSUMER BEHAVIOR
FAMILY INFLUENCE
LO 4-4
 Consumer Socialization:
Process of acquiring skills,
knowledge, and attitudes
 Family Life Cycle
 Marital status, age, children…

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FIGURE 4-6 Modern family life cycle stages
and flows

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CONSUMER BEHAVIOR
FAMILY INFLUENCE
LO 4-4
 Information Gatherer
 Influencer
 Decision Maker
 Purchaser
 User
 Family Decision-Making
• Styles
 Spouse-Dominant
 Joint
• Family Member Roles

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CONSUMER BEHAVIOR
CULTURE AND SUBCULTURE INFLUENCES
LO 4-4
 Culture: Set of values, ideas,
attitudes shared among a group
• Hispanic
Buying
Patterns
 Subcultures
• African
American
Buying
Patterns
• Asian
American
Buying
Patterns
Nissan Ad

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GROUPON: HELPING CONSUMERS WITH
PURCHASE DECISIONS
VIDEO CASE 4
Groupon Video Case

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VIDEO CASE 4
Groupon
1. How has an understanding of
consumer behavior helped
Groupon grow from 400
subscribers in Chicago in 2008
to 200 million subscribers in
48 countries today?

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VIDEO CASE 4
Groupon
2. What is the Groupon Promise?
How does the Groupon Promise
affect a consumer’s perceived
risk and cognitive dissonance?

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VIDEO CASE 4
Groupon
3. Describe the five-stage purchase
decision process for a typical
Groupon user.

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VIDEO CASE 4
Groupon
4. What are possible psychological
and sociological influences on the
Groupon consumer purchase
decision process?

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VIDEO CASE 4
Groupon
5. What challenges does Groupon
face in the future? What actions
would you recommend related to
each challenge?

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BUYING PROCESS FOR
STARBUCKS VIA™ READY
BREW INSTANT COFFEE
IN-CLASS ACTIVITY 4-1

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ICA 4-1
Buying Process
Video
Website
Example:
Starbucks Via™
Ready Brew Instant Coffee

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FIGURE 4-1 Purchase Decision Process

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Consumer Behavior
Consumer behavior consists of
the actions a person takes in
purchasing and using products
and services, including the mental
and social processes that come
before and after these actions.

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Purchase Decision Process
The purchase decision process
consists of the five stages a buyer
passes through in making choices
about which products and services
to buy: (1) problem recognition,
(2) information search, (3) alternative
evaluation, (4) purchase decision,
and (5) postpurchase behavior.

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Evaluative Criteria
Evaluative criteria are the factors
that represent both the objective
attributes of a brand and the
subjective ones a consumer uses
to compare different products and
brands.

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Consideration Set
A consideration set is the group
of brands that a consumer would
consider acceptable from among
all the brands in the product class
of which he or she is aware.

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Cognitive Dissonance
Cognitive dissonance is the
feeling of postpurchase
psychological tension or anxiety
consumers may experience when
faced with two or more highly
attractive alternatives.

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Involvement
Involvement is the personal,
social, and economic significance
of the purchase to the consumer.

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Situational Influences
Situational influences are the five
aspects of the purchase situation
that impact the consumer’s purchase
decision process: (1) the purchase
task, (2) social surroundings,
(3) physical surroundings,
(4) temporal effects, and
(5) antecedent states.

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Motivation
Motivation is the energizing force
that stimulates behavior to satisfy
a need.

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Personality
Personality is a person’s
consistent behaviors or responses
to recurring situations.

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Self-Concept
Self-concept is the way people
see themselves and the way they
believe others see them.

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Perception
Perception is the process by
which an individual selects,
organizes, and interprets
information to create a
meaningful picture of the world.

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Subliminal Perception
Subliminal perception involves
seeing or hearing messages
without being aware of them.

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Perceived Risk
Perceived risk is the anxiety
felt because the consumer cannot
anticipate the outcomes of a
purchase but believes that there
may be negative consequences.

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Learning
Learning consists of those
behaviors that result from
(1) repeated experience and
(2) reasoning.

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Brand Loyalty
Brand loyalty is a favorable
attitude toward and consistent
purchase of a single brand over
time.

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Attitude
An attitude is a learned
predisposition to respond to an
object or class of objects in a
consistently favorable or
unfavorable way.

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Beliefs
Beliefs are a consumer’s
subjective perception of how a
product or brand performs on
different attributes based on
personal experience, advertising,
and discussions with other people.

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Lifestyle
Lifestyle is a mode of living that
is identified by how people spend
their time and resources, what
they consider important in their
environment, and what they think
of themselves and the world
around them.

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Opinion Leaders
Opinion leaders are individuals
who exert direct or indirect social
influence over others.

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Word of Mouth
Word of mouth involves the
influencing of people during
conversations.

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Reference Groups
Reference groups consists of
people to whom an individual
looks as a basis for self-appraisal
or as a source of personal
standards.

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Brand Community
A brand community is a
specialized group of consumers
with a structured set of
relationships involving a particular
brand, fellow customers of that
brand, and the product in use.

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Consumer Socialization
Consumer socialization is the
process by which people acquire
the skills, knowledge, and
attitudes necessary to function
as consumers.

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Family Life Cycle
A family life cycle consists of
the distinct phases that a family
progresses through from
formation to retirement, each
phase bringing with it identifiable
purchasing behaviors.

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Social Class
Social class is the relatively
permanent, homogeneous
divisions in a society into which
people sharing similar values,
interests, and behavior can be
grouped.

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Subcultures
Subcultures are the subgroups
within the larger, or national,
culture with unique values, ideas,
and attitudes.

MKT 340 Ch04 ppt

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MKT 340 Ch04 ppt