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Chapter 6: Consumer Decision
Making
Prepared & Designed by Laura Rush, B-books, Ltd.
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Learning Outcomes
Explain why marketing managers should understandconsumer behavior
Analyze the components of the consumer decision-
making process
Explain the consumers postpurchase evaluation
process
Identify the types of consumer buying decisions anddiscuss the significance of consumer involvement
LO1
LO2
LO3
LO4
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Learning Outcomes
Identify and understand the cultural factors that affectconsumer buying decisions
Identify and understand the social factors that affect
consumer buying decisions
Identify and understand the individual factors thataffect consumer buying decisions
Identify and understand the psychological factors thataffect consumer buying decisions
LO5
LO6
LO8
LO7
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The Importance of Understanding
Consumer Behavior
Explain why marketingmanagers should understand
consumer behavior.
LO
1
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Consumer Behavior
Processes a consumer uses to make
purchase decisions, as well asto use and dispose of purchasedgoods or services, also includesfactors that influence purchasedecisions and the product use.
LO1
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Review Learning OutcomeUnderstanding Consumer Behavior
Consumerbehavior
consumers makepurchase decisions
consumers use anddispose of product
= HOW
LO
1
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The Consumer Decision-Making
Process
Analyze the componentsof the consumer
decision-making process.
LO
2
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Consumer Decision-Making Process
PostpurchaseBehavior
Purchase
Evaluationof Alternatives
Information Search
Need Recognition
Cultural, Social,Individual andPsychological
Factorsaffect
all steps
LO
2
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Need Recognition
Market ing helps consumers recogn ize
an imbalance between
present s tatus and preferred state.
LO
2
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Recognition of Unfulfilled Wants
When a current product isnt performing
properly
When the consumer isrunning out of a product
When another product seems superior tothe one currently used
LO2
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Information Search
Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment
Nonmarketing controlled
Marketing controlled
LO2
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External Information Searches
Need Mo re
Informat ion
More RiskLess knowledge
Less product experienceHigh level of interestLack of confidence
Less RiskMore knowledge
More product experienceLow level of interest
Confidence in decision
Need Less
Informat ion
LO2
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Evaluation of Alternatives
and Purchase
Evoked Set
Purchase!
Analyze product attributes
Rank attributes byimportance
Use cutoff criteria
LO2
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Purchase
Determines whichattributesare most important
in influencing aconsumers choice
LO2
i i
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Review Learning OutcomeConsumer Decision-Making Process
CULTURAL S
OCIAL
PSYCHOLOGICAL
INDIVIDUAL
NeedRecognition
1 InformationSearch
2 EvaluateAlternatives
3 Purchase 4
LO
2
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Postpurchase Behavior
Explain the consumers
postpurchase evaluation
process.
LO
3
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Postpurchase Behavior
Consumers can reduce cognitive dissonance by:
Seeking information that reinforces positive ideas about thepurchase
Avoiding information that contradicts the purchase decision Revoking the original decision by returning the product
Marketers can m inimize through:Effective Communication
Follow-upGuaranteesWarranties
Service during and after the sale
LO3
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Review Learning OutcomeConsumer postpurchase evaluation process
LO
3
To Reduce Dissonance
Consumer can:
Justify decision
Seek new information
Avoid contradictoryinformation
Return product
Marketer can:
Send postpurchase thank
you or letter
Display product superiority
in ads
Offer guarantees
Cognitive
DissonanceSatisfied
Customer
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Consumer Buying Decisions and
Consumer Involvement
Identify the types of consumer buying
decisions and discuss the
significance of consumer involvement.
LO
4
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Consumer Buying Decisions and
Consumer Involvement
MoreInvolvement
LessInvolvement
RoutineResponseBehavior
LimitedDecisionMaking
ExtensiveDecisionMaking
LO
4
C i f C B i
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Continuum of Consumer Buying
Decisions
LO
4
F D i i
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Factors Determining
the Level of Consumer Involvement
Situation
Social Visibility
Interest
Perceived Risk of NegativeConsequences
Previous Experience
LO4
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Marketing Implications of Involvement
High-involvementpurchases require:
Extensive and informative
promotion to target market
Low-involvementpurchases require:
In-store promotion,
eye-catching packagedesign, and good displays.Coupons, cents-off,2-for-1 offers
LO4
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Factors Influencing Buying Decisions
SocialFactors
IndividualFactors
Psycho-logicalFactors
CulturalFactors
CONSUMER
DECISION-MAKING
PROCESS
BUY /
DONT BUY
LO4
R i L i O
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Review Learning OutcomeConsumer Buying Decisions and Consumer Involvement
Routine
Limited
Extensive
Previous experience
Interest
Perceived risk of
negative consequences
Situation
Social visibility
LO4
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Cultural Influences on
Consumer Buying Decisions
Identify and understandthe cultural factors
that affect consumerbuying decisions.
LO5
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Components of Culture
Myths
Language
Values
Customs
Rituals
Laws
Material artifacts
LO5
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Culture is. . .
Learned
Functional
Pervasive
Dynamic
LO5
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Values
1. The most defining element of a culture is its values.2. People with similar value systems tend to react alike to
prices and other marketing-related inducements.
3. Values also correspond to consumption patterns.
Success
Materialism
Freedom
Progress
Youth
Capitalism
LO5
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Social Class
A group of people in a societywho are considered nearly
equal in status or communityesteem, who regularly socialize
among themselves both formallyand informally, and who share
behavioral norms.
LO5
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Social Class Measurements
Wealth
Other Variables
Income
Education
Occupation
LO5
R i L i O
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Review Learning OutcomeCultural Factors
LO5
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Social Influences on
Consumer Buying Decisions
Identify and understand
the social factors that affect
consumer buying decisions.
LO6
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Social Influences
ReferenceGroups
OpinionLeaders
FamilyMembers
LO6
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Reference Groups
ReferenceGroups
Direct
Indirect
Primary
Secondary
Aspirational
Nonaspirational
LO6
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Influences of Reference Groups
1. They serve as information sources andinfluence perceptions.
2. They affect an individuals aspirationlevels.
3. Their norms either constrain or stimulate
consumer behavior.
LO6
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Opinion Leaders
Marketers are looking to Web logs,
or blogs, to find opinion leaders Teenagers
Movie stars
Sports figures
Celebrities
LO6
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Family
Purchase Process Roles in the Family
Initiators
Influencers
Decision Makers
Purchasers
Consumers
LO6
Relationships among Purchasers and
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Relationships among Purchasers and
Consumers in the Family
LO6
Review Learning Outcome
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Review Learning OutcomeSocial Factors
Direct IndirectReference
Groups Primary Secondary Aspirational Nonaspirational
Opinion
LeadersPeople
you know
Socialization ProcessFamily
Celebrities
Initiators Decision Makers Consumers
Influencers Purchasers
LO6
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Individual Influences on
Consumer Buying Decisions
Identify and understandthe individual factors
that affectconsumer buying decisions.
LO7
Review Learning Outcome
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Review Learning OutcomeIndividual Influences on Consumer Buying Decisions
GenderAge
Life Cycle
PersonalitySelf-Concept
Lifestyle
LO
7
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Psychological Influences on
Consumer Buying Decisions
Identify and understand the
psychological factors that affect
consumer buying decisions.
LO8
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Psychological Influences
Perception
Motivation
Learning
Beliefs & Attitudes
LO
8
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Perception
SelectiveExposure
SelectiveDistortion
SelectiveRetention
Consumer notices certain stimuliand ignores others
Consumer changes or distortsinformation that conflicts
with feelings or beliefs
Consumer remembers only
that information thatsupports personal beliefs
LO8
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Marketing Implications of Perception
Important attributes
Price
Brand names
Quality and reliability
Threshold level of perception
Product or repositioning changes
Foreign consumer perception
Subliminal perception
LO
8
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Types of Learning
Experiential
Conceptual
An experience changesbehavior
Not learned through directexperience
LO8
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Beliefs and Attitudes
Belief
Attitude
An organized pattern of
knowledge that an individual
holds as true about his or her
world.
A learned tendency to
respond consistently toward a
given object.
LO8
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Changing Attitudes
Change beliefs about thebrands attributes
Change the relative importanceof these beliefs
Add new beliefs
LO8
Review Learning Outcome
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Review Learning OutcomePsychological Factors
LearningStimulus
Generalization
Stimulus
Discrimination
Selective ExposurePerception
Selective Retention Selective Exposure
NeedsMotivation
Psychological EsteemSafety SocialSelf-
Actualization
Beliefs &
Attitudes
Changing
Beliefs about
Attributes
Changing
Importance of
Beliefs
Adding
New Beliefs
Ch t C Cli
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Chapter 6 Company Clip
ReadyMade, a unique do-it-yourself (DIY)magazine uses its knowledge of its loyalconsumer base to tailor its product.
http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.html
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http://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.htmlhttp://www.cengage.com/marketing/book_content/9781111821647_lamb/videos/ch06.html