Consumer behavior

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chapter Consumer Decision Making
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Prepared by
Deborah Baker
Texas Christian University

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chapter
Learning Objectives
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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.

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Learning Objectives (continued)
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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.

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Learning Objectives (continued)
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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.

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Learning Objective
1
Explain why marketing managers
should understand
consumer behavior.

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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.
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Learning Objective
2
Analyze the components
of the consumer
decision-making process.

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Consumer Decision-Making
Process
A five-step process used
by consumers when buying
goods or services.
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Consumer Decision-Making
Process
Postpurchase
Behavior
Purchase
Evaluation
of Alternatives
Information Search
Need Recognition
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
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Need Recognition
Result of an imbalance
between actual and
desired states.
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Need Recognition
Internal Stimuli
and
External Stimuli
Present Status
Preferred State
Marketing helps
consumers
recognize an
imbalance between
present status and
preferred state
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Stimulus
Any unit of input affecting
one or more of the five
senses:
sight
smell
taste
touch
hearing
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Want
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.
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Recognition of Unfulfilled Wants
 When a current product isn’t
performing properly
 When the consumer is running
out of an product
 When another product seems
superior to the one currently used
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Information Searches
Process of recalling past
information stored
in the memory.
Internal
Process of seeking
information in the
outside environment.
External
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Information Search
Internal Information Search
 Recall information in memory
External Information search
 Seek information in outside
environment
 Non-marketing controlled
 Marketing controlled
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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
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Evoked Set
Group of brands,
resulting from an
information search,
from which a buyer
can choose.
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Evoked Set
Purchase!
Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance
Evaluation of Alternatives
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Purchase
Determines which attributes
are most important
in influencing a
consumer’s choice
To buy
or not to buy...
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Learning Objective
Explain the consumer’s
postpurchase evaluation process.
3

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Cognitive Dissonance
Inner tension that a
consumer experiences
after recognizing an
inconsistency between
behavior and values
or opinions.
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Postpurchase Behavior
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Can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Cognitive Dissonance
?
Did I make a good decision?
Did I buy the right product?
Did I get a good value?

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Learning Objective
Identify the types of
consumer buying decisions
and discuss the significance
of consumer involvement.
4

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Types of Consumer Buying
Decisions
More
Involvement
Less
Involvement
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making
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Five Factors influencing Decisions
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
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Routine Response Behavior
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 Little involvement in selection process
 Frequently purchased low cost goods
 May stick with one brand
 Buy first/evaluate later
 Quick decision

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Limited Decision Making
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 Low levels of involvement
 Low to moderate cost goods
 Evaluation of a few alternative
brands
 Short to moderate time to decide

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Extensive Decision Making
 High levels of involvement
 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance

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Level of Involvement
Situation
Social Visibility
Interest
Perceived Risk of
Negative
Consequences
Previous
Experience
Factors
Determining
Level of
Involvement
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Marketing Implications of
Involvement
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High-involvement
purchases require:
extensive promotion
to target market and
good advertisement
Low-involvement
purchases require:
in-store promotion
and eye-catching
package design

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Factors Influencing Buying
Decisions
Social
Factors
Individual
Factors
Psycho-
logical
Factors
Cultural
Factors CONSUMER
DECISION-
MAKING
PROCESS
BUY /
DON’T BUY
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Learning Objective
Identify and understand the
cultural factors that affect
consumer buying decisions.
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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.
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Cultural Influences on Buying
Decisions
Values
Language
Myths
Customs
Rituals
Laws
Components of
American
Culture
Material Artifacts
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Culture is...
Learned
Functional
Pervasive
Dynamic
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Value
Enduring belief that a
specific mode of conduct
is personally or socially
preferable to another
mode of conduct.
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Core American Values
Success
Materialism
Freedom
Progress
Youth
Capitalism
Core
American
Values
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Global Language Blunders
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 Chevrolet’s “Nova” translated to “No Go”
 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”

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Subculture
A homogeneous group
of people who share
elements of the overall
culture as well as
unique elements of
their own group.
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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.
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Learning Objective
6
Identify and understand the
social factors that affect
consumer buying decisions.

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Social Influences
Reference
Groups
Opinion Leaders
Family Members
Social Influences on
Buying Decisions
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Reference Group
A group in society that
influences an individual’s
purchasing behavior.
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Reference Groups
Types of
Reference
Groups
Direct
Indirect
Primary
Secondary
Aspirational
Non-aspirational
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Implications of Reference Groups
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 They serve as information sources
and influence perceptions
 They affect an individual’s
aspiration levels
 Their norms either constrain or
stimulate consumer behavior

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Opinion Leaders
An individual who
influences the opinion
of others.
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Family
Purchase Roles
in the Family
 Instigators
 Influencers
 Decision-Makers
 Purchasers
 Consumers
Children
Influence
Purchase
Decisions
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Learning Objective
Identify and understand the
individual factors that affect
consumer buying decisions.
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Individual Influences
Gender
Age
Family Life Cycle
Personality
Self-Concept
Lifestyle
Individual
Influences
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Psychographics
The analytical technique
used to examine consumer
lifestyles and to categorize
consumers.
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“Types of Moms”
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“Strong Shoulders” Moms
“Tug-of-War” Moms
“June Cleaver” Moms
“Mothers of Invention” Moms

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Learning Objective
Identify and understand the
psychological factors that affect
consumer buying decisions.
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Psychological Influences
Psychological
Influences on
Buying Decisions
Perception
Motivation
Learning
Beliefs & Attitudes
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Perception
Process by which people
select, organize, and
interpret stimuli into
a meaningful and
coherent picture.
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Perception
Selective
Exposure
Selective
Distortion
Selective
Retention
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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
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Notices only
11 to 20 ads
Exposure to over 250
advertisement messages per day
A Consumer’s Selective Exposure
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Marketing Implications of
Perception
 Important attributes
 Higher price
 Brand names
 Quality and reliability
 Threshold level of perception
 Product changes
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Maslow’s Hierarchy of Needs
A method of classifying
human needs and
motivations into five
categories in ascending
order of importance.
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Motivation
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Maslow’s
Hierarchy of
Needs
Physiological
Safety
Social
Esteem
Self-
Actualization

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Learning
A process that creates
changes in behavior,
immediate or expected,
through experience
and practice.
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Types of Learning
Types of
Learning
Description
Experiential
Conceptual
An experience changes behavior
Not learned through direct
experience
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Stimulus Generalization
A form of learning that
occurs when one response
is extended to a second
stimulus similar to the first.
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Beliefs and Attitudes
An organized pattern of
knowledge that an individual
holds as true about his
or her world.
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Belief
Attitude
A learned tendency to
respond consistently
toward a given object.