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Chapter 05 MKT120 Consumer Behavior

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Chapter 05 MKT120 Consumer Behavior

  1. 1. © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
  2. 2. Learning Objectives LEARNING OBJECTIVES How do firms adjust their product lines to changing market conditions? Why are brands valuable to firms? How do firms implement different branding strategies? How do a product’s packaging and label contribute to a firm’s overall strategy? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-2
  3. 3. Prius 09 1,000,000 units sold and demand still growing Introducing 9 new models by 2011 © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-3
  4. 4. The Consumer Decision Process© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-4
  5. 5. Adding Value: H.O.G. Heaven How does Harley Davidson add value? Who is a typical Harley owner? Harley Davidson Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-5
  6. 6. Need Recognition Functional needs Functional needsPsychological needsPsychological needs© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-6
  7. 7. “It’s hard to find your litter box if you can’t smell it”© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-7
  8. 8. Search for Information© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-8
  9. 9. Factors Affecting Consumers’ Search ProcessPerceived Perceived Benefits Benefits © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-9
  10. 10. The Locus of Control Internal Locus of Control = Internal Locus of Control = more search activities more search activitiesExternal Locus of Control =External Locus of Control = Fate, external factors Fate, external factors© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-10
  11. 11. Actual or Perceived Risk© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-11
  12. 12. Type of Product or Service© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-12
  13. 13. Evaluation of Alternatives: Attribute Sets© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-13
  14. 14. Evaluation of Alternatives: Evaluate CriteriaWhat are some of the features of a vacation that would be in your evaluative criteria?© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-14
  15. 15. Evaluation of Alternatives: Consumer Decision Rules© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-15
  16. 16. Evaluation of Alternatives: Decision Heuristics © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-16
  17. 17. Purchase and Consumption Ritual consumption© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-17
  18. 18. Post-purchase: Customer Satisfaction Customer contact Encourage feedback Provide money back guarantee Build realistic expectations Demonstrate correct product use© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-18
  19. 19. Post-purchase: Dissonance  Firm’s attempt to reduce dissonance by reinforcing the decision  Thank you letters, congratulations letters, quality ratings© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-19
  20. 20. Factors Influencing the Consumer Decision Process © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-20
  21. 21. Psychological Factors: Motives© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-21
  22. 22. Psychological Factors: Attitude© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-22
  23. 23. Psychological Factors: Perception © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-23
  24. 24. Psychological Factors: Learning and Lifestyle© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-24
  25. 25. Social Factors: FamilyDecision makers Influencers © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-25
  26. 26. Social Factors: Reference Groups © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-26
  27. 27. Reference Group GEICO Commercial© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-27
  28. 28. Social Factors: Culture© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-28
  29. 29. Situational Factors© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-29
  30. 30. Involvement and Consumer Buying Decisions© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-30
  31. 31. Types of Buying Decisions• Limited Problem Solving• Habitual Decision Making• Extended Problem Solving• Impulse Buying Skittles Commercial © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-31
  32. 32. Check Yourself 1. What are the types of needs suggested by Maslow’s Hierarchy of Needs? 2. Which social factors likely have the most influence on: a. The purchase of a new outfit for going out dancing? b. The choice of a college to attend? 3. List some of the tactics stores can use to influence consumers’ decision processes.© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-32
  33. 33. Check Yourself 1. Name the five stages in the consumer decision process. 2. What differences mark the way a highly involved versus a less involved consumer likely looks at the information provided in an advertisement? 3. What is the difference between compensatory and non-compensatory decision rules?© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-33
  34. 34. Check Yourself 1. How do low versus high involvement consumers process information in an advertisement? 2. What is the difference between extended versus limited problem solving?© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-34
  35. 35. GlossaryAn attitude is a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-35
  36. 36. GlossaryConsumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-36
  37. 37. GlossaryDeterminant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-37
  38. 38. GlossaryEvaluative criteria consist of a set of salient, or important, attributes about a particular product. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-38
  39. 39. GlossaryA consumer’s evoked set comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-39
  40. 40. GlossaryExtended problem solving occurs during a purchase decision that calls for a lot of effort and time. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-40
  41. 41. GlossaryFunctional needs pertain to the performance of a product or service. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-41
  42. 42. GlossaryHabitual decision making describes a purchase decision process in which consumers engage little conscious effort. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-42
  43. 43. GlossaryImpulse buying is a buying decision made by customers on the spot when they see the merchandise. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-43
  44. 44. GlossaryInvolvement is the consumer’s degree of interest in the product or service. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-44
  45. 45. GlossaryLimited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-45
  46. 46. GlossaryPsychological needs pertain to the personal gratification consumers associate with a product and/or service. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-46
  47. 47. GlossaryRetrieval sets are the brands or stores that can be readily brought forth from memory. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-47
  48. 48. GlossaryRitual consumption is a pattern of behaviors tied to life events that affect what and how we consume. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-48
  49. 49. GlossaryShopping goods/services are products or services for which consumers will spend time comparing alternatives. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-49
  50. 50. GlossarySituational factors are factors specific to the situation. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-50
  51. 51. GlossarySpecialty goods/services are products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-51
  52. 52. GlossaryUniversal sets include all possible choices for a product category. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 5-52

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