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Consumer Decision Making. 4. chapter. Prepared by Deborah Baker Texas Christian University. Learning Objectives. 1. Explain why marketing managers should understand consumer behavior. 2. Analyze the components of the consumer decision-making process.

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consumer decision making

Consumer Decision Making

4

chapter

Prepared by

Deborah Baker

Texas Christian University

Chapter 4 Version 3e

learning objectives
Learning Objectives

1. Explain why marketing managers should understand consumer behavior.

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

3. Explain the consumer’s postpurchase evaluation process.

4

chapter

Chapter 4 Version 3e

learning objectives continued
Learning Objectives (continued)

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.

4

chapter

Chapter 4 Version 3e

learning objectives continued4
Learning Objectives (continued)

6. 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.

4

chapter

Chapter 4 Version 3e

learning objective

1

Learning Objective

Explain why marketing managers should understand

consumer behavior.

Chapter 4 Version 3e

consumer behavior

1

Consumer Behavior

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.

Chapter 4 Version 3e

learning objective7

2

Learning Objective

Analyze the components of the consumer decision-making process.

Chapter 4 Version 3e

consumer decision making process

2

Consumer Decision-Making Process

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

Chapter 4 Version 3e

consumer decision making process9

Need Recognition

Information Search

Cultural, Social, Individual and

Psychological Factors affect all steps

Evaluation

of Alternatives

Purchase

Postpurchase

Behavior

2

Consumer Decision-Making Process

Chapter 4 Version 3e

need recognition

2

Need Recognition

Result of an imbalance between actual and

desired states.

Chapter 4 Version 3e

need recognition11

Marketing helps consumers recognize an imbalance between present status and preferred state

Internal Stimuli

and

External Stimuli

Preferred State

Present Status

2

Need Recognition

Chapter 4 Version 3e

stimulus

2

Stimulus

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

  • sight
  • smell
  • taste
  • touch
  • hearing

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slide13

2

Want

Recognition of an

unfulfilled need and

a product

(or attribute or feature)

that will satisfy it.

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recognition of unfulfilled wants

2

Recognition of Unfulfilled Wants
  • When a current product isn’t performing properly
  • When the consumer is running out of an product
  • When another product seems superior to the one currently used

Chapter 4 Version 3e

information searches

2

Information Searches

Process of recalling past information stored

in the memory.

Internal

Process of seeking information in the

outside environment.

External

Chapter 4 Version 3e

information search

Internal Information Search

  • Recall information in memory

2

Information Search

External Information search

  • Seek information in outside environment
    • Non-marketing controlled
    • Marketing controlled

Chapter 4 Version 3e

external information searches

Need Less Information

Need More Information

Less Risk

More knowledge

More product experience

Low level of interest

More Risk

Less knowledge

Less product experience

High level of interest

2

External Information Searches

Chapter 4 Version 3e

evoked set

2

Evoked Set

Group of brands,

resulting from an information search,

from which a buyer

can choose.

Chapter 4 Version 3e

evaluation of alternatives

Evoked Set

Evaluation of ProductsAnalyze product attributesUse cutoff criteriaRank attributes by importance

Purchase!

2

Evaluation of Alternatives

Chapter 4 Version 3e

purchase

2

Purchase

To buy or not to buy...

Marketing

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

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learning objective21

3

Learning Objective

Explain the consumer’s

postpurchase evaluation process.

Chapter 4 Version 3e

cognitive dissonance

3

Cognitive Dissonance

Inner tension that a consumer experiences

after recognizing an inconsistency between behavior and values

or opinions.

Chapter 4 Version 3e

postpurchase behavior

Cognitive Dissonance

?

Marketing

Did I make a good decision?

Did I buy the right product?

Did I get a good value?

Can minimize through:

Effective Communication

Follow-up

GuaranteesWarranties

3

Postpurchase Behavior

Chapter 4 Version 3e

learning objective24

4

Learning Objective

Identify the types of

consumer buying decisions

and discuss the significance

of consumer involvement.

Chapter 4 Version 3e

types of consumer buying decisions

4

Types of Consumer Buying Decisions

Routine

Response

Behavior

Limited

Decision

Making

Extensive

Decision

Making

Less

Involvement

More

Involvement

Chapter 4 Version 3e

five factors influencing decisions

4

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

Chapter 4 Version 3e

routine response behavior

4

Routine Response Behavior
  • Little involvement in selection process
  • Frequently purchased low cost goods
  • May stick with one brand
  • Buy first/evaluate later
  • Quick decision

Chapter 4 Version 3e

limited decision making

4

Limited Decision Making
  • Low levels of involvement
  • Low to moderate cost goods
  • Evaluation of a few alternative brands
  • Short to moderate time to decide

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extensive decision making

4

Extensive Decision Making
  • High levels of involvement
  • High cost goods
  • Evaluation of many brands
  • Long time to decide
  • May experience cognitive dissonance

Chapter 4 Version 3e

level of involvement

Previous Experience

Interest

Perceived Risk of Negative Consequences

Factors Determining Level of Involvement

Situation

Social Visibility

4

Level of Involvement

Chapter 4 Version 3e

marketing implications of involvement
High-involvement purchases require:

extensive promotion to target market and

good advertisement

Low-involvement purchases require: in-store promotion and eye-catching package design

4

Marketing Implications of Involvement

Chapter 4 Version 3e

factors influencing buying decisions

Cultural Factors

Social Factors

CONSUMERDECISION-

MAKING

PROCESS

BUY /

DON’T BUY

Psycho-logical Factors

Individual Factors

4

Factors Influencing Buying Decisions

Chapter 4 Version 3e

learning objective33

5

Learning Objective

Identify and understand the

cultural factors that affect

consumer buying decisions.

Chapter 4 Version 3e

culture

5

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.

Chapter 4 Version 3e

cultural influences on buying decisions

Values

Components ofAmerican

Culture

Language

Myths

Customs

Rituals

Laws

Material Artifacts

5

Cultural Influences on Buying Decisions

Chapter 4 Version 3e

culture is

5

Culture is...

Pervasive

Functional

Learned

Dynamic

Chapter 4 Version 3e

value

5

Value

Enduring belief that a specific mode of conduct

is personally or socially preferable to another

mode of conduct.

Chapter 4 Version 3e

core american values

Core

American

Values

Success

Materialism

Freedom

Progress

Youth

Capitalism

5

Core American Values

Chapter 4 Version 3e

global language blunders

5

Global Language Blunders
  • Chevrolet’s “Nova” translated to “No Go”
  • Coors “Turn it Loose” became “Suffer from Diarrhea”
  • Toyota’s MR2 sounded like a swearword in French
  • Coca-Cola in Chinese means “bite the wax tadpole”

Chapter 4 Version 3e

subculture

5

Subculture

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

Chapter 4 Version 3e

social class

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.

Chapter 4 Version 3e

learning objective42

6

Learning Objective

Identify and understand the

social factors that affect

consumer buying decisions.

Chapter 4 Version 3e

social influences

6

Social Influences

Social Influences on Buying Decisions

Reference Groups

Family Members

Opinion Leaders

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reference group

6

Reference Group

A group in society that influences an individual’s purchasing behavior.

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reference groups

Primary

Secondary

Types ofReference Groups

Aspirational

Non-aspirational

6

Reference Groups

Direct

Indirect

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implications of reference groups

6

Implications of Reference Groups
  • They serve as information sources and influence perceptions
  • They affect an individual’s aspiration levels
  • Their norms either constrain or stimulate consumer behavior

Chapter 4 Version 3e

opinion leaders

6

Opinion Leaders

An individual who

influences the opinion

of others.

Chapter 4 Version 3e

family

6

Family
  • Instigators
  • Influencers
  • Decision-Makers
  • Purchasers
  • Consumers

Purchase Roles in the Family

Children

Influence

Purchase

Decisions

Chapter 4 Version 3e

learning objective49

7

Learning Objective

Identify and understand the

individual factors that affect

consumer buying decisions.

Chapter 4 Version 3e

individual influences

7

Individual Influences

Individual Influences

Gender

Personality

Self-Concept Lifestyle

Age Family Life Cycle

Chapter 4 Version 3e

psychographics

7

Psychographics

The analytical technique used to examine consumer lifestyles and to categorize consumers.

Chapter 4 Version 3e

types of moms

7

“Types of Moms”

“June Cleaver” Moms

“Tug-of-War” Moms

“Strong Shoulders” Moms

“Mothers of Invention” Moms

Chapter 4 Version 3e

learning objective53

8

Learning Objective

Identify and understand the

psychological factors that affect

consumer buying decisions.

Chapter 4 Version 3e

psychological influences

Perception

Psychological Influences on Buying Decisions

Motivation

Learning

Beliefs & Attitudes

8

Psychological Influences

Chapter 4 Version 3e

perception

8

Perception

Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.

Chapter 4 Version 3e

perception56

8

Perception

Selective

Exposure

Selective

Distortion

Selective

Retention

Chapter 4 Version 3e

perception57

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

8

Perception

Chapter 4 Version 3e

a consumer s selective exposure

8

A Consumer’s Selective Exposure

Exposure to over 250 advertisement messages per day

Notices only 11 to 20 ads

Chapter 4 Version 3e

marketing implications of perception

8

Marketing Implications of Perception
  • Important attributes
  • Higher price
  • Brand names
  • Quality and reliability
  • Threshold level of perception
  • Product changes

Chapter 4 Version 3e

maslow s hierarchy of needs

8

Maslow’s Hierarchy of Needs

A method of classifying human needs and motivations into five categories in ascending order of importance.

Chapter 4 Version 3e

motivation

Self-Actualization

Esteem

Social

Safety

Physiological

8

Motivation

Maslow’s Hierarchy of Needs

Chapter 4 Version 3e

learning

8

Learning

A process that creates changes in behavior, immediate or expected, through experience and practice.

Chapter 4 Version 3e

types of learning

Types of

Learning

Description

Experiential

An experience changes behavior

Conceptual

Not learned through direct experience

8

Types of Learning

Chapter 4 Version 3e

stimulus generalization

8

Stimulus Generalization

A form of learning that occurs when one response is extended to a second stimulus similar to the first.

Chapter 4 Version 3e

beliefs and attitudes

8

Beliefs and Attitudes

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

Chapter 4 Version 3e