Wk 15 Consumer Decision Making

  Wk 15 Wk 15

  Consumer Consumer

  Decision Making Decision Making

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• Explain why marketing managers should understand consumer behavior

• • Analyze the components of the consumer decision-making

  process
• Explain the consumer’s postpurchase evaluation process
• Identify the types of consumer buying decisions and discuss the significance of consumer involvement
• Identify and understand the cultural factors that affect consumer buying decisions
• Identify and understand the social factors that affect consumer buying decisions
• Identify and understand the individual factors that affect consumer buying decisions
• Identify and understand the psychological factors that affect consumer buying decisions

  © 2015 by Cengage Learning Inc. All Rights Reserved.

  3 Why a marketer should Why a marketer should understand consumer understand consumer behavior behavior

  Consumer behavior Consumer behavior consumers make purchase decisions consumers make purchase decisions consumers use and dispose of product consumers use and dispose of product = HOW

  1

  

Consumer Behavior

Consumer Behavior Processes a consumer uses to Consumer Consumer make purchase decisions, as Behavior Behavior well as to use and dispose of purchased goods or services; also includes factors that Consumer Behavior Consumer Behavior is the Study of influence purchase decisions is the Study of Consumer Decision Consumer Decision and the product use. Making Process Making Process

  © 2015 by Cengage Learning Inc. All Rights Reserved.

  5 Exhibit 6.1 Exhibit 6.1

  Consumer Decision-Making Consumer Decision-Making

  Process Process

  2

  

Consumer Decision Making

Consumer Decision Making

  Process Process

  

Situational Influences on the

Buying Decision Process

• Situational Influences
• – Factors that can influence a buyer’s purchase decision and may cause the buyer to shorten, lengthen, or terminate the process.
• Situational Factors Include
• – Physical surroundings
• – Social surroundings
• – Time perspective
• – Reason for purchase
• – Buyer’s momentary mood and condition

Psychological Influences on the Buying Decision Process

• Psychological Influences
• – Factors that in part determine people’s general behavior, thus influencing their behavior as consumers
• Psychological Influences Include
• – Perception – Motives – Learning – Attitudes – Personality and self concept
• – Lifestyles

Social Influences on the Buying Decision Process

• Social Influences
• – The forces other people exert on one’s buying behavior
• Social Influences
• – Roles – Family – Reference groups
• – Opinion leaders
• – Social class
• – Culture and subcultures

  Cognitive Dissonance and Postpurchase Behavior

  

Cognitive Dissonance: Inner tension that a

consumer experiences after recognizing an inconsistency between behavior and values or opinions.

  Consumers can reduce dissonance by:

• Seeking information that reinforces positive ideas about the purchase
• Avoiding information that contradicts the purchase decision
• Revoking the original decision by returning the product

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  10

  More Involvement Less Involvement

  Routine Response Behavior Routine Response Behavior Limited Decision Making Limited Decision Making Extensive Decision Making Extensive Decision Making © 2015 by Cengage Learning Inc. All Rights Reserved.

  11 Consumer Buying Consumer Buying

  Decisions Decisions and Consumer and Consumer

  Involvement Involvement

  4

  Exhibit 6.2 Exhibit 6.2

  Continuum of Consumer Buying Decisions Continuum of Consumer Buying Decisions

Routine Limited Extensive

  Involvemen t

Low Low to

Moderate

  High Time Short Short to Moderate Long

  Cost Low Low to Moderate High Information

  Search Internal Only Mostly

  Internal Internal and External

  Number of Alternative One Few Many

  4

  Routine Response Routine Response

  Behavior

Behavior

   Little involvement in selection process

 Frequently purchased low cost goods

 May stick with one brand  Buy first/evaluate later  Quick decision

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  13 Limited Decision Making Limited Decision Making

   Low levels of involvement  Low to moderate cost goods

 Evaluation of a few alternative

brands  Short to moderate time to decide

  4 © 2015 by Cengage Learning Inc. All Rights Reserved.

  14 Extensive Decision Extensive Decision

  Making

Making

   High levels of involvement  High cost goods  Evaluation of many brands  Long time to decide

 May experience cognitive dissonance

  4 © 2015 by Cengage Learning Inc. All Rights Reserved.

  15

Extensive and Informative promotion to target market Extensive and Informative promotion to target market

  © 2015 by Cengage Learning Inc. All Rights Reserved.

  16 Marketing Implications Marketing Implications of Involvement of Involvement

  High-involvement purchases require: High-involvement purchases require:

  Low-involvement purchases require: Low-involvement purchases require:

  In-store promotion, eye-catching package design, and good displays. Coupons, and two-for-one offers In-store promotion, eye-catching package design, and good displays. Coupons, and two-for-one offers

  4

  Exhibit 6.4 Exhibit 6.4

Upper Classes

  1 .

  Working Poor 11- 12% Low-paid service workers and operatives; some high school education; below mainstream in living standard; crime and hunger are daily threats

  Working Class 32% Middle-level blue-collar, lower-level white-collar; income below national average; largely working in skilled or semi- skilled service jobs

  Middle Classes Middle Class 33% Middle-level white-collar, top-level blue-collar; education past high school typical; income somewhat above national average; loss of manufacturing jobs has reduced the population of this class

  Class 14% Upper-level managers, professionals, owners of medium- sized businesses; well-to-do, stay-at-home homemakers who decline occupational work by choice; college educated; family income well above national average

  Capitalist Class 1% People whose investment decisions shape the national economy; income mostly from assets, earned or inherited; university connections Upper Middle

  

© 2015 by Cengage Learning Inc. All Rights

  1

  U.S. Social Classes U.S. Social Classes

  98 2) , c h.

  (H om ew oo d , I L : D or se y P re ss , 1

  6 7; D en nis G ilb er t a n d Jo se p h A . K ah l, T h e A m e ric an C la ss S tru ctu re : A S yn th es is

  2

  98 3,

  1

  C o ns um er R es e ar ch , D ec em b er

  S O U R C E : A d ap te d fro m R ic ha rd P . C ole m an , “ T he C on tin uin g S ig n ific a nc e of S oc ia l C la ss to M ar ke tin g ,” Jo ur na l o f

Lower Classes

  Exhibit 6.5 Exhibit 6.5

  Types of Reference Groups Types of Reference Groups © 2015 by Cengage Learning Inc. All Rights Reserved.

  18

  6

  Opinion Leaders Opinion Leaders

The first to try new products and services out of pure curiosity. May be challenging to locate

  Marketers are increasingly using blogs, social networking, and other online media to determine and attract opinion leaders.

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  19 Family Family

Purchase Process Roles in the Family

• Initiators • Influencers • Decision Makers • Purchasers • Consumers

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  20 Personality, Self- Concept, and Lifestyle

• Personality combines psychological makeup and environmental forces
• Human behavior depends

  largely on self-concept

• Self-concept combines ideal

  self-image and real self- image .

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  21 Perception Perception

  Selective Exposure Selective Exposure Selective Distortion Selective Distortion Selective Retention Selective Retention Consumer notices certain stimuli and ignores others Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Consumer changes or distorts information that conflicts with feelings or beliefs Consumer remembers only that information that supports personal beliefs Consumer remembers only that information that supports personal beliefs © 2015 by Cengage Learning Inc. All Rights Reserved.

  22

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Ch 6 Discussion Questions

  1. What is consumer decision making process? Take

automobile as an example and explain each step of

the consumer decision making process.

  2. Explain the influence of Situational, Psychological

and Social Influences on consumer decision making

process. I may ask you to explain one of the Influences in consumer decision making process.

  3. What is culture and subculture? Why do marketing managers need to understand culture and subculture in a society?

  5. What is postpurchase cognitive dissonance? How a marketer can reduce cognitive dissonance?