Principles of Marketing
MKT3010
Chapter 6
Consumer Behavior
Patricia Knowles, Ph.D.
Associate Professor
Clemson University...
2
Principles of Marketing
MKT3010
2
Consumer Behavior
These are the learning objectives guiding the chapter and will be ex...
33
The Consumer Decision Process
This slide illustrates the entire consumer decision process. This model represents the st...
44
Need Recognition
Principles of Marketing
MKT3010
The consumer decision process begins when consumers recognize they hav...
55
Search for Information
After a consumer recognizes a need, he or she must search for information about the various
opti...
66
Factors Affecting Consumers’ Search Process
One important factor that affects consumers’ search process is perceived be...
77
The Locus of Control
Principles of Marketing
MKT3010
Another factor affecting the consumer search process is locus of c...
88
Actual or Perceived Risk
There are three types of risk associated with purchase decisions that can delay or discourage ...
99
Principles of Marketing
MKT3010
Evaluation of Alternatives: Attribute Sets
Research has shown that a consumer’s mind or...
1010
Principles of Marketing
MKT3010
Evaluation of Alternatives: Evaluate Criteria
Evaluative criteria consist of a set of...
1111
Purchase and Consumption
Principles of Marketing
MKT3010
Retailers use the conversion rate to measure how well they c...
1212
Post-Purchase
Marketers can take several steps to ensure post-purchase satisfaction such as demonstrating
correct pro...
1313
Check Yourself
Principles of Marketing
MKT3010
1. Name the five stages in the consumer decision
process.
2. What is t...
1414
Factors Influencing the Consumer Decision
Process
Principles of Marketing
MKT3010
• Product
• Price
• Place
• Promoti...
1515
Check Yourself
Principles of Marketing
MKT3010
1. What are the types of needs suggested by Maslow’s
Hierarchy of Need...
1616
Involvement and Consumer Buying Decisions
Principles of Marketing
MKT3010
High involvement Low involvement
Message (e...
1717
Types of Buying Decisions
Principles of Marketing
MKT3010
Many people will mostly likely identify the orange juice as...
1818
Check Yourself
Principles of Marketing
MKT3010
1. How do low versus high involvement consumers
process information in...
1919
Glossary
Principles of Marketing
MKT3010
Attitude is a person’s enduring evaluation of his or her feelings about and ...
2020
Glossary
Principles of Marketing
MKT3010
Habitual decision making describes a purchase decision process in which cons...
2121
Glossary
Principles of Marketing
MKT3010
Ritual consumption is a pattern of behaviors tied to life events that affect...
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Marketing (4th Edition) by Grewal & Levy, McGraw-Hill - Irwin, 2014.

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Ppt chapter 6

  1. 1. Principles of Marketing MKT3010 Chapter 6 Consumer Behavior Patricia Knowles, Ph.D. Associate Professor Clemson University 1
  2. 2. 2 Principles of Marketing MKT3010 2 Consumer Behavior These are the learning objectives guiding the chapter and will be explored in more detail in the following slides. Articulate the steps in the consumer buying process. Describe the difference between functional and psychological needs. Describe factors that affect information search. Discuss post-purchase outcomes. List the factors that affect the consumer decision process. Describe how involvement influences the consumer decision process. LO1 LO2 LO3 LO4 LO5 LO6
  3. 3. 33 The Consumer Decision Process This slide illustrates the entire consumer decision process. This model represents the steps that consumers go through before, during, and after making purchasing decisions. Principles of Marketing MKT3010 Post purchasePurchase Alternative evaluation Information search Need recognition
  4. 4. 44 Need Recognition Principles of Marketing MKT3010 The consumer decision process begins when consumers recognize they have an unsatisfied need. Consumer needs can be functional, which pertain to the performance of a product or service or consumer needs can be psychological, which pertain to the personal gratification consumers associate with a product or service. Functional Needs Psychological Needs Royalty-Free/CORBIS ©DigitalVision/PunchStock
  5. 5. 55 Search for Information After a consumer recognizes a need, he or she must search for information about the various options that exist to satisfy that need. In an internal search for information, the buyer examines his or her own memory and knowledge about the product or service. In an external search for information, the buyer seeks information outside his or her personal knowledge base to help make the buying decision. Principles of Marketing MKT3010 Internal Search for Information External Search for Information Courtesy of Refinery29.com.
  6. 6. 66 Factors Affecting Consumers’ Search Process One important factor that affects consumers’ search process is perceived benefits versus perceived costs. Is it worth the time and effort to search for information about a product or service? Principles of Marketing MKT3010 Perceived Benefits Perceived Costs
  7. 7. 77 The Locus of Control Principles of Marketing MKT3010 Another factor affecting the consumer search process is locus of control. Locus of control actually indicates how much control people think they have over the outcomes of various activities, such as purchasing a product or service. Some people sense their own internal control, whereas others feel virtually powerless. The former engage in more search activities. Internal Locus of Control = more search activities External Locus of Control = Fate, external factors Royalty-Free/CORBIS ©Comstock/JupiterImages
  8. 8. 88 Actual or Perceived Risk There are three types of risk associated with purchase decisions that can delay or discourage a purchase. Principles of Marketing MKT3010 Psychological risks are those risks associated with the way people will feel if the product or service does not convey the right image. Performance risk Financial risk Social risk Physiological risk Psychological risks Performance risk involves the perceived danger inherent in a poorly performing product or service. Financial risk is associated with a monetary outlay and includes the initial cost of the purchase, as well as the costs of using the item or service. Social risk involves the fears that consumers suffer when they worry others might not regard their purchases positively. Physiological (or safety) risk refers to the fear of an actual harm should the product not perform properly.
  9. 9. 99 Principles of Marketing MKT3010 Evaluation of Alternatives: Attribute Sets Research has shown that a consumer’s mind organizes and categorizes alternatives to aid his or her decision-making process. Universal sets include all possible choices for a product category. A subset of the universal set is the retrieval set, which are those brands or stores that can be readily brought forth from memory. Another is an evoked set, which comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision. Universal Retrieval Evoked
  10. 10. 1010 Principles of Marketing MKT3010 Evaluation of Alternatives: Evaluate Criteria Evaluative criteria consist of a set of important attributes about a particular product. Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. The students will respond to the question on this slide with weather, beach, friends, price, outdoor activities. Evaluative Criteria Determinant Attributes What are some of the features of a vacation that would be in your evaluative criteria? Digital Vision/Getty Images
  11. 11. 1111 Purchase and Consumption Principles of Marketing MKT3010 Retailers use the conversion rate to measure how well they convert purchase intentions into actual purchases. Increase Conversion rate Reduce real or virtual abandoned carts Merchandise in stock Reduce the actual wait time Handout/MCT/Newscom.
  12. 12. 1212 Post-Purchase Marketers can take several steps to ensure post-purchase satisfaction such as demonstrating correct product use, building realistic expectations, providing a money back guarantee, encouraging feedback, and periodically making contact with customers. Principles of Marketing MKT3010 Loyal customers will buy only certain brands and shop at certain stores, and they include no other firms in their evoked set. Customer Satisfaction Dissonance Customer Loyalty Post-purchase dissonance, also known as buyer’s remorse, is the psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance.
  13. 13. 1313 Check Yourself Principles of Marketing MKT3010 1. Name the five stages in the consumer decision process. 2. What is the difference between a need and a want? 3. Distinguish between functional and psychological needs. 4. What are the various types of perceived risk? 5. What are the differences between compensatory and non-compensatory decision rules?
  14. 14. 1414 Factors Influencing the Consumer Decision Process Principles of Marketing MKT3010 • Product • Price • Place • Promotion Marketing mix • Motives • Attitudes • Perceptions • Learning • Lifestyle Psychological factors • Purchase situation • Shopping situation • Temporal state Situational factors • Family • Reference groups • Culture Social factors Consumer Decision Process This slide lists the factors influencing the consumer decision process, which are discussed in more detail in the following slides.
  15. 15. 1515 Check Yourself Principles of Marketing MKT3010 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 a job interview and (b) the choice of a college to attend? 3. List some of the tactics stores can use to influence consumers’ decision processes.
  16. 16. 1616 Involvement and Consumer Buying Decisions Principles of Marketing MKT3010 High involvement Low involvement Message (e.g., Ad) • Greater attention • Deeper processing • Less attention • Peripheral processing Develops strong attitudes and purchase intentions Generates weak attitudes and increased use of cues
  17. 17. 1717 Types of Buying Decisions Principles of Marketing MKT3010 Many people will mostly likely identify the orange juice as habitual, Subway as limited, and the car as extended problem solving. • Extended Problem Solving • Limited Problem Solving – Impulse Buying – Habitual Decision Making Courtesy Wendy’s International, Inc.
  18. 18. 1818 Check Yourself Principles of Marketing MKT3010 1. How do low versus high involvement consumers process information in an advertisement? 2. What is the difference between extended versus limited problem solving?
  19. 19. 1919 Glossary Principles of Marketing MKT3010 Attitude is a person’s enduring evaluation of his or her feelings about and behavioral tendencies toward an object or idea. Consumer decision rules are the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives. Determinant attributes are product or service features that are important to the buyer and on which competing brands or stores are perceived to differ. Evaluative criteria consist of a set of salient, or important, attributes about a particular product. Evoked set comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision. Extended problem solving occurs during a purchase decision that calls for a lot of effort and time. Functional needs pertain to the performance of a product or service.
  20. 20. 2020 Glossary Principles of Marketing MKT3010 Habitual decision making describes a purchase decision process in which consumers engage little conscious effort. Impulse buying is a buying decision made by customers on the spot when they see the merchandise. Involvement is the consumer’s degree of interest in the product or service. Limited problem solving occurs during a purchase decision that calls for, at most, a moderate amount of effort and time. Perception is the process by which we select, organize, and interpret information to form a meaningful picture of the world. Psychological needs pertain to the personal gratification consumers associate with a product and/or service. Retrieval sets are the brands or stores that can be readily brought forth from memory.
  21. 21. 2121 Glossary Principles of Marketing MKT3010 Ritual consumption is a pattern of behaviors tied to life events that affect what and how we consume. Shopping goods/services are products or services for which consumers will spend time comparing alternatives. Situational factors are factors specific to the situation. Specialty 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. Universal sets include all possible choices for a product category.

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