Marketing

1. Sensitivity: Internal
1
Lamb, Hair, McDaniel
Chapter 5
Consumer
Decision
Making
2012-2013

2. Sensitivity: Internal
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
2
1
2
3
4

3. Sensitivity: Internal
Explain why marketing
managers
should understand
consumer behavior
The Importance of Understanding
Consumer Behavior
3
1

4. Sensitivity: Internal
4
Understanding Consumer
Behavior
Consumer
behavior
consumers make
purchase decisions
consumers use and
dispose of product
= HOW
1

5. Sensitivity: Internal
Analyze the components
of the consumer decision-
making process
5
The Consumer
Decision-Making Process
2

6. Sensitivity: Internal
6
Consumer
Decision-Making Process
A five-step process used by consumers
when buying goods or services.
2

7. Sensitivity: Internal
7
Exhibit 6.1
Consumer Decision-Making Process
2

8. Sensitivity: Internal
8
Need Recognition
Result of an imbalance between actual and
desired states.
Need recognition is the first
stage in the decision-
making process
2

9. Sensitivity: Internal
9
Need Recognition
Marketing helps consumers recognize
an imbalance between present status
and preferred state.
Present
Status
Preferred
State
2

10. Sensitivity: Internal
10
Stimulus
Any unit of input affecting one or
more of the five senses:
•sight
•smell
•taste
•touch
•hearing
2

11. Sensitivity: Internal
11
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
2

12. Sensitivity: Internal
12
Information Search
Internal Information Search
• Recall information in memory
External Information search
• Seek information in outside
environment
• Nonmarketing controlled
• Marketing controlled
2

13. Sensitivity: Internal
13
External Information Searches
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
2

14. Sensitivity: Internal
14
Evoked Set
Group of brands, resulting from
an information search, from which
a buyer can choose
2

15. Sensitivity: Internal
15
Evaluation of Alternatives and Purchase
Evoked Set
Purchase!
Analyze product
attributes
Rank attributes by
importance
Use cutoff criteria
2

16. Sensitivity: Internal
16
Purchase
To buy
or not to buy...
Determines which
Attributes are most
in influencing a
consumer’s choice
2

17. Sensitivity: Internal
Explain the consumer’s post
purchase evaluation process
17
Post Purchase Behavior
3

18. Sensitivity: Internal
18
Cognitive Conflict
Inner tension that a consumer
experiences after recognizing
an inconsistency between
behavior and values or
opinions.
3

19. Sensitivity: Internal
19
Post-Purchase Behavior
Consumers can reduce conflict 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 conflict through
effective communication with purchasers.
3

20. Sensitivity: Internal
Identify the types of
consumer buying decisions
and discuss the significance
of consumer involvement
20
Types of Consumer Buying Decisions
and Consumer Involvement
4

21. Sensitivity: Internal
More
Involvement
Less
Involvement
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Decision
Making
21
Consumer Buying Decisions
and Consumer Involvement
4

22. Sensitivity: Internal
the amount of time and effort a buyer
invests in the search, evaluation, and
decision processes of consumer
behavior.
Involvement
22
4

23. Sensitivity: Internal
23
Exhibit 6.2
Continuum of Consumer Buying Decisions
Routine Limited Extensive
Involvement Low Low to
Moderate
High
Time Short Short to
Moderate
Long
Cost Low Low to
Moderate
High
Information
Search
Internal Only Mostly
Internal
Internal and
External
Number of
Alternatives
One Few Many
4

24. Sensitivity: Internal
24
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

25. Sensitivity: Internal
25
Limited Decision Making
 Low levels of involvement
 Low to moderate cost goods
 Evaluation of a few alternative
brands
 Short to moderate time to decide
4

26. Sensitivity: Internal
26
Extensive Decision Making
 High levels of involvement
 High cost goods
 Evaluation of many brands
 Long time to decide
 May experience cognitive dissonance
4

27. Sensitivity: Internal
27
Factors Determining the Level
of Consumer Involvement
Situation
Social Visibility
Interest
Perceived Risk of
Negative Consequences
Previous Experience
4

28. Sensitivity: Internal
Not All Involvement Is The
Same
28
Long-term Involvement
Emotional Involvement
Situational Involvement
Shopping Involvement
Product Involvement
4

29. Sensitivity: Internal
29
Marketing Implications
of Involvement
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
4

30. Sensitivity: Internal
Thank You
30