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Chapter 5. Learning Outcomes/Objectives. 1. Explain why marketing managers should understand consumer behavior 2. Analyze the components of the consumer decision-making process Explain the consumer’s postpurchase evaluation process

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1. Explain why marketing managers should understand consumer behavior 2. Analyze the components of the consumer decision-making process

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1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Chapter 5

Learning Outcomes/Objectives

1. Explain why marketing managers should understand consumer behavior

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

  • Explain the consumer’s postpurchase evaluation process

    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

  • 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


Consumer behavior

ConsumerBehavior

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.

Consumer Behavior

LO1


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

consumers make purchase decisions

Consumer behavior

= HOW

consumers use anddispose of product

Understanding Consumer Behavior Is Important because it Tells Us How and Why consumers purchase and consume products

LO1


Consumer decision making process

A five-step process used by consumers when buying goods or services.

Consumer Decision-Making Process

ConsumerDecision-MakingProcess

LO2


Consumer decision making process1

1. Need Recognition

2. Information Search

Cultural, Social, Individual and

Psychological Factors affect all steps

3. Evaluation

of Alternatives

4. Purchase

5. Postpurchase

Behavior

Consumer Decision-Making Process

LO2


Stimulus causes 1 step one need recognition

Any unit of input affecting one or more of the five senses:

LIKE: Sight smell taste touch hearing, seeing

Stimulus causes [1] step one need recognition

Stimulus

Internal stimulus – thinking, feeling et.

External stimulus – any aspect of the marketing mix,

such as product package, advertising, special price,

window display in a retail store.

LO2


Step 2 information search

Step 2 Information Search

Internal Information Search

  • Recall information in memory

External Information search

  • Seek information in outside environment

    • Non-marketing controlled talk to a friend

    • Marketing controlled – the marketing mix

LO2


Step 3 evaluation of alternatives and purchase

Evoked Set

Analyze product

attributes

Use cutoff criteria

Rank attributes by

importance

Purchase!

Step 3. Evaluation of Alternativesand Purchase

LO2


Step 4 purchase

To buy or not to buy...

Marketing

Determines which attributes are most important in influencing a consumer’s choice

Step 4 Purchase

LO2


Step 5 postpurchase behavior

Step 5 Postpurchase Behavior

Marketing can minimize through:

Effective Communication

Follow-up

GuaranteesWarranties

LO3

In the purchasing or consumer decision marketing process many Consumers experience cognitive dissonance. Ways to reduce it are:

  • Seeking information that reinforces positive ideas about the purchase

  • Avoiding information that contradicts the purchase decision

  • Revoking the original decision by returning the product


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

Five Factors Influencing Decisions

LO3


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Routine

Response

Behavior

Limited

Decision

Making

Extensive

Decision

Making

Less

Involvement

More

Involvement

Identify the types of consumer buying decisions and discuss the significance a of consumer involvement – factor 1 to consider in the process

Lo 4


Continuum of consumer buying decisions

Continuum of Consumer Buying Decisions

LO 4


Factors determining the level of consumer involvement

Previous Experience

Interest

Perceived Risk of Negative Consequences

Situation

Social Visibility

Factors Determining the Level of Consumer Involvement

LO 4


Four external factors affecting consumer buying decisions

Cultural Factors- learning outcome 5

Social Factors – learning outcome 6

Individual Factors – learning outcome 7

Psychological Factors – learning outcome 8

Four External Factors Affecting Consumer Buying Decisions


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.

Culture

Culture

LO5


Components of culture

Values

Language

Myths

Customs

Rituals

Laws

Material artifacts

Components of Culture

LO 5


Culture is

Pervasive

Functional

Learned

Dynamic

Culture is. . .

LO5


Value

Value

Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

Value

LO5


Core american values

Success

Materialism

Freedom

Progress

Youth

Capitalism

Core American Values.

LO5

Enduring beliefs that a specific mode of conduct is personally or socially preferable to another mode of conduct. Core American values are


Subculture

Subculture

A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.

http://www.dead.net

Online

Subculture

LO 5


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.

SocialClass

Social Class

LO6


Social class measurements

Occupation

Income

Education

Wealth

Other Variables

Social Class Measurements

LO6


The impact of social class on marketing

The Impact of Social Class on Marketing

LO6

  • Indicates which medium to use for advertising

  • Helps determine the best distribution for products


Social influences

Social Influences

Reference Groups

Opinion Leaders

Family Members

LO 6


Relationships among purchasers and consumers in the family

Relationships among Purchasers and Consumers in the Family

LO5


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Gender

Age Life Cycle

Personality

Self-Concept Lifestyle

Individual Influences

LO7


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Psychological Influences

Perception

Motivation

Learning

Beliefs & Attitudes

LO8


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Selective Exposure

Consumer notices certain stimuli

and ignores others

SelectiveDistortion

Consumer changes or distorts information that conflicts

with feelings or beliefs

Selective Retention

Consumer remembers only

that information that

supports personal beliefs

Perception - Process by which people select, organize,

and interpret stimuli into a meaningful and coherent picture.

LO7


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

LO8

Marketing Implications

of Perception

  • Important and strong attributes and stimuli

  • Price that get attention

  • Brand names to remember

  • Quality and reliability of products

  • Threshold level of perception

  • Product or repositioning changes

  • Foreign consumer perception “made in USA”


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Maslow’s Hierarchy of Needs

LO7


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Experiential

An experience changes behavior

Conceptual

Not learned through direct experience

Types of Learning

LO8


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

An organized pattern of knowledge that an individual holds as true about his or her world.

Belief

A learned tendency to respond consistently toward a given object.

Attitude

Beliefs and Attitudes

LO8


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

A unique positioning designed to create a positive attitude toward this German wine.


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

Positioning Foster Beer Billboard


1 explain why marketing managers should understand consumer behavior 2 analyze the components of the consumer decision making process

In Summary – We are Familiar with

1. Why marketing managers should understand consumer behavior

2. The components of the consumer decision-making process

3. The consumer’s postpurchase evaluation process

4. Types of consumer buying decisions and discuss the significance of consumer involvement

5. Cultural factors that affect consumer buying decisions

6. The social factors that affect consumer buying decisions

7. Individual factors that affect consumer buying decisions

8. The psychologicalfactors that affect consumer buying decisions


Now go to

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