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C H A P T E R S I X . CONSUMER BEHAVIOR. Irwin/McGraw-Hill. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:. Outline the stages in the consumer decision process. Distinguish among three variations of the consumer decision process: routine, limited, and extended problem solving.

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slide1
C H A P T E R S I X

CONSUMER BEHAVIOR

Irwin/McGraw-Hill

after reading this chapter you should be able to
AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:
  • Outline the stages in the consumer decision process.
  • Distinguish among three variations of the consumer decision process: routine, limited, and extended problem solving.
  • Explain how psychological influences affect consumer behavior, particularly purchase decision processes.
  • Identify major sociocultural influences on consumer behavior and their effects on purchase decisions.
  • Recognize how marketers can use knowledge of consumer behavior to better understand and influence individual and family purchases.
pp6 aa the female automobile customer
PP6-AA The Female Automobile Customer

Females:

  • will buy 60% of all new cars in 2001
  • spend $81 billion+ on new & used cars
  • prefer inexpensive sporty vehicles
  • buy American 75% of the time
  • often utilize internet-based information
  • place a higher value on low price & safety than men
  • 2/3 of whom dislike the car-buying process
slide4
PP6-1 Purchase Decision Process

Problem recognition:

Perceiving need

Information search:Seeking value

Alternative evaluation:

Assessing value

Purchase decision: Buying value

Post-purchase behavior: Value in consumption of user

pp6 bb the evoked set
PP6-BB The Evoked Set

The evoked set is the group of brands, based on

one’s evaluative criteria, that a consumer would

consider acceptable from all the brands in the

product class which he or she is aware of.

pp6 2 consumer reports evaluation of portable compact disk players
PP6-2 Consumer Reports’ Evaluation of Portable Compact Disk Players

Error Locate

Brand Model Price Headphones Correction Bumps Speed

Panasonic

SL-SX500

$

150

Phillips

AZ7383

100

Rating:

(A CR best buy)

Phillips

AZ7583

120

Excellent

Sony

D-E409CK

140

Aiwa

XP-SP1200

145

Very

Good

Sony

D-E401

100

Panasonic

SL-SW505

150

Good

JVC

XL-P34

80

Fair

Sony

D-ES55

200

Panasonic

SL-S230

80

Poor

Aiwa

XP-570

75

slide7
PP6-A What New Car Buyers Consider Most Important in

Deciding What New Car To Buy

Factor Percent Saying Factor is Most Important

Warranty/guarantee 64%

Ease of maintenance/repair 61%

Quality compared to other brands 61%

Price compared to other brands 58%

High-quality brand 54%

Style/look of brand 46%

pp6 cc computer mediated buying
PP6-CC Computer-Mediated Buying

Consumer computer-mediated buying, or online

buying, is the use of Internet technology to:

a. Seek information

b. Evaluate alternatives &

c. Make purchase decisions

This technology also allows marketers to customize

their offering to the specific needs of individuals,

thereby increasing customer value and satisfaction.

pp6 dd cognitive dissonance
PP6-DD Cognitive Dissonance

Cognitive Dissonance is a

feeling of post-purchase

psychological tension or

anxiety. To alleviate

cognitive dissonance,

consumers often search for information to

reinforce their purchase decision.

pp6 eea high versus low involvement
PP6-EEa High versus Low Involvement

High Involvement purchase occasions can be

expensive, have serious personal consequences,

and/or reflect one’s social image. These

occasions typically involve extensive information

search, consideration of several product

attributes and brands, the formation of

attitudes, and word-of-mouth communication.

An example would be the purchase of an

automobile or stereo system.

(continued)

pp6 eeb high versus low involvement
PP6-EEb High versus Low Involvement

Low Involvement purchase occasions

typically involve little information search

or consideration of various brands, except

on the basis of price. They usually don’t

involve any personal consequences. They

tend to be privately consumed. An

example would be the purchase of soap or

toothpaste.

slide12
High Low

Characteristics of Extended Limited Routine

purchase decision problem problem problem

process solving solving solving

Consumer Involvement

Number of brands Many Several One

examined

Number of sellers Many Several Few

concerned

Number of productMany Moderate One

attributes evaluated

Number of external Many Few None

information sources used

Time spent searchingConsiderable Little Minimal

PP6-3 Comparison of problem-solving variations

slide13
PP6-B Consumer involvement, knowledge, and problem-solving variations

Low

Routine problem solving

(e.g., milk and bread)

Limited problem solving

(e.g., small appliances)

Consumer involvement

Extended problem solving

(e.g., stocks and bonds)

High

High

Low

Consumer knowledge

pp6 4 influences on the consumer purchase decision process
PP6-4 Influences on the consumer purchase decision process

Marketing mix influences

  • Product
  • Price
  • Promotion
  • Place

PsychologicalInfluences

SocioculturalInfluences

Consumer Decision Process

  • Motivation
  • Personality
  • Perception
  • Learning
  • Values, beliefsand attitude
  • Lifestyle

Problem recognition

Information search

Alternative evaluation

Purchase decision

Postpurchase behavior

  • Personalinfluence
  • Reference groups
  • Family
  • Social class
  • Culture
  • Subculture

Promotion Influences

  • Purchase task
  • Social surroundings
  • Physical surroundings
  • Temporal effects
  • Antecedent states
pp6 ff concept check
PP6-FF Concept Check

1. What is the first step in the consumer

decision process?

2. The brands a consumer considers

buying out of the set of brands in a

product class of the consumer is aware is called the ____________.

3. What is the term for post-purchase anxiety?

pp6 5 hierarchy of needs
PP6-5 Hierarchy of Needs

Self-Actualization Needs

Self-Fulfillment

Personal Needs

Status, respect, prestige

Social Needs

Friendship, belonging, love

Safety Needs

Freedom from harm, financial security

Physiological Needs

Food, water, sex, oxygen

pp6 gg psychological influences on consumer behavior
PP6-GG Psychological Influences on Consumer Behavior
  • motivation and personality
  • perception
  • learning
  • values, beliefs, and attitudes
  • lifestyle
slide18
Messages

Selective exposure

Selective comprehension

Selective retention

PP6-C Selective perception filters

pp6 hh subliminal perception
PP6-HH Subliminal Perception

Subliminal perception means that you see or hear

messages without being aware of them. The presence

and effect of subliminal perception on behavior is a

hotly debated issue, with more popular appeal than

scientific support.

Evidence suggests that subliminal messages have some

effect on behavior. If so, is their use an ethical

practice? See the accompanying Ethics and

Responsibility Alert.

pp6 ii perceived risk
PP6-II Perceived Risk

Perceived Risk represents anxieties felt because the

consumer cannot anticipate the outcomes of a purchase

but believes that there may be negative consequences.

Perceptions of greater perceived risk are usually

accompanied by a more extensive external information

search concerning a purchase.

Types of Perceived Risk:

  • financial
  • physical
  • psychosocial
pp6 jj learning
PP6-JJ Learning

Learning refers to those behaviors that result from:

1. repeated experience

2. thinking

Behavioral Learning is the process of developing

automatic responses to a situation built up through

repeated exposure to it.

Cognitive Learning is learning via thinking, reasoning,

and mental problem solving without direct experience.

pp6 kk brand loyalty
PP6-KK Brand Loyalty

Brand Loyalty is a favorable attitude toward and consistent

purchase of a single brand over time.

  • It results from positive reinforcement of previous actions.
  • There is evidence of brand loyalty in many commonly purchased products in the U.S. and the global marketplace.
  • However, the incidence of brand loyalty appears to be declining in North American, Mexico, European Union nations, and Japan.
slide23
PP6-D Brand loyalty tendency by product category

(Percent of U.S. consumers with strong brand preference)

70

Mayonnaise

Soft drinks

Bar soap

Canned soup

Cigarettes

Baked macaroni & cheese

Dry cereals

Spaghetti sauce

Pain relievers

Toilet paper

Facial tissue

Cold remedies

Dog food

Cake mix

Paper towels

Frozen vegetables

Frozen entries

Cat food

67

66

62

60

59

57

57

56

54

53

51

49

45

43

43

41

41

0 10 20 30 40 50 60 70 80

pp6 ll attitudes values and beliefs
PP6-LL Attitudes, Values and Beliefs

An attitude is a learned predisposition to respond to an

object or class of objects in a consistently favorable or

unfavorable way. Attitudes are shaped by our values and

beliefs.

Beliefs are a consumer’s subjective perception of how well

a product or brand performs on different attributes.

Beliefs are based on personal experience, advertising, and

discussions with other people.

Values are deeply held attitudes and beliefs, which are

resistant to change, but which may change over time.

pp6 mm lifestyle vals
PP6-MM Lifestyle & VALS

Lifestyle is a mode of living that is identified by how

people spend their time and resources (activities), what

they consider important in their environment

(interests), and what they think of themselves and the

world around them (opinions).

Lifestyle analysis focuses on identifying consumer

profiles. The most prominent example of this type of

analysis is the Values and Lifestyles (VALS) Program

developed by SRI International.

pp6 6 vals2 psychographic segments
PP6-6 VALS2 Psychographic Segments

ACTUALIZERS

Most resources

Enjoy the "finer things."

Receptive to new products,

technologies, distribution.

Skeptical of advertising.

Frequent readers of wide

variety of publications

Light TV viewers.

Principle

Oriented

Status

Oriented

Action

Oriented

FULFILLEDS

ACHIEVERS

EXPERIENCERS

Follow fashion and fads.

Little interest in image

or prestige

Attracted to premium products

Spend much of disposableincome on socializing.

Prime target for variety of products

Above-average consumers of

products for the home

Buy on impulse.

Average TV watchers, read business, news, and self-help publications

Like educational and public

affairs programming

Attend to advertising.

Listen to rock music.

Read widely

and often

MAKERS

BELIEVERS

STRIVERS

Buy American.

Image conscious.

Shop for comfort,durability, value.

Slow to change habits.

Limited discretionary incomes, but carry credit balances.

Unimpressed by luxuries.

Look for bargains.

Buy the basics, listen to radio.

Watch TV more than average.

Spend on clothing and personal care products.

Read auto, home mechanics,fishing, outdoormagazines.

Read retirement, home and garden, and general

interest magazines.

Prefer TV to reading.

Least resources

STRUGGLERS

Brand loyal.

Use coupons and watch for sales.

Trust advertising.

Watch TV often.

Read tabloids and

women’s magazines.

pp6 nn concept check
PP6-NN Concept Check

1. The problem with Toro Snow Pup was

an example of selective ____________.

2. What three attitude change approaches

are most common?

3. What does lifestyle mean?

pp6 oo sociocultural influences
PP6-OO Sociocultural Influences

Sociocultural influences, which evolve from a

consumer’s formal and informal relationships with

other people, can exert significant impact on consumer

behavior. Sociocultural influences include:

1. Personal influence

2. Reference groups

3. The Family

4. Social Class

5. Culture

6. Subculture

pp6 pp personal influence
PP6-PP Personal Influence

Personal Influence includes two aspects

that are very important to marketers:

1. Opinion Leadership

2. Word of Mouth

slide30
49%

50%

40%

30%

20%

10%

40%

39%

38%

28%

26%

24%

Women

22%

Men

Women

15%

Women

Men

10%

Women

Women

Men

Men

Car

mechanic

Where to

eat out

What movies

to see

What carto buy

Where to get

hair cut

PP6-E Word of mouth influence

(Percent of men and women who seek advice regarding selected products and services)

Men

pp6 qq reference groups
PP6-QQ Reference Groups

Reference groups are people to whom an individual

looks as a basis for self-appraisal or as a source of

personal standards. Three kinds of reference groups

that have clear marketing implications are:

1. Membership group

2. Aspiration group

3. Dissociative group

slide32
PP6-F Where children between the ages of 4 and 12 spend spend their money

11%

Other

8%

Movies

&

sports

15%

Clothes

6%

Video

arcades

33%

Food and

beverages

27%

Play items

pp6 rr the family life cycle
PP6-RR The Family Life Cycle

The family life cycle concept describes

the distinct phases that a family

progresses through from formation to

retirement, each phase bringing with

it identifiable purchasing behaviors.

slide34
Young

single

Young divorced without children

Middle-aged divorced without children

Young marriedwithout children

Middle-aged married without children

Young marriedwith

children

Middle-aged marriedwith

children

Young divorcedwith

children

Middle-aged married without dependent children

Middle-aged divorcedwith

children

Older

married

Older

unmarried

Middle-aged divorced without dependent children

Usual flow

Recycled flow

Traditional family flow

PP6-7 Modern family life cycle

pp6 ss social class
PP6-SS Social Class

Social Class may be defined as the relatively

permanent, homogeneous divisions in a society

into which people sharing similar values,

interests, and behavior can be grouped. Social

class is determined by:

1. Occupation

2. Source of income (not level)

3. Educational attainment

pp6 tt culture subculture
PP6-TT Culture & Subculture

Culture refers to the set of values, ideas,

and attitudes that are accepted by a

homogeneous group of people and

transmitted to the next generation.

Subcultures are subgroups within a larger,

or national culture with unique values,

ideas, and attitudes.

slide37
PP6-G Ownership of consumer electronics among African- Americans, Hispanics, and Asian-Americans

Percent owning among . . . .

Product

African-

Americans

Hispanics

Asian-

Americans

VCR

Answering machine

Compact disk player

Personal computer

Camcorder

Cellular telephone

73.5%

47.2

31.9

19.8

15.0

10.3

73.1%

27.5

26.7

9.6

17.1

6.7

89.4%

50.0

45.5

30.5

35.6

24.4

pp6 uu concept check
PP6-UU Concept Check

1. What are the two primary forms of personal influence?

2. Marketers are concerned with which types of reference groups?

3. What two challenges must marketers overcome when marketing to Hispanics?

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