MKTG 5 CHAPTER Consumer Decision Making. Understanding Consumer Behavior Consumer behavior consumers make purchase decisions consumers use and dispose.

MKTG

5CHAPTERConsumer

Decision Making

Understanding Consumer Behavior

Consumer behavior

Consumer behavior

consumers make purchase decisionsconsumers make

purchase decisions

consumers use anddispose of product

consumers use anddispose of product

= HOW

Importance of Consumer Behavior• Why study consumer behavior?

– Complex: personality is a poor predictor of purchasing.

– Purchasing agent is variable (no longer wife, husband, etc…)

– May have + attitude without intent to buy (I like Jennifer Anniston v.s. I plan to see Anniston’s new movie; Mercedes)– Routine or involved decisions

An Involved Choice?

1. Time (convenience stores a good value vs grocery?)

3. Atmospherics (how stores makes you feel)

– What are some of the other things that makes you purchase a particular product?

2. Reason for purchase (gift vs personal use; restaurant choice)

• Previous experience, interest, risk, social visibility and purchase situation

• Purchase situation includes:

Purchase Situation by Gender

Consumer Decision-Making Process

Postpurchase Behavior

(satisfaction, cognitive dissonance)

Postpurchase Behavior

(satisfaction, cognitive dissonance)

PurchasePurchase

Evaluation of Alternatives

(evoked set)

Evaluation of Alternatives

(evoked set)

Information Search (internal/external)

Information Search (internal/external)

Need Recognition (vs.want)

Need Recognition (vs.want)

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological

Factors Factors affect affect

all stepsall steps

Cognitive Dissonance

Dissonance• Buyer’s remorse• Ex: Neiman Marcus, United Airlines, and

what else??

Other Influences• Social factors (reference groups, opinion leaders, family)• Cultural factors (values, subcultures, class)• Individual factors (demographics, psychographics)• Psychological factors (perception,

motivation, learning, and beliefs)

Social Factors

Reference groups– Those you look to for guidance. What are some

reference groups that you can think of??– Marketers: opinion leaders, influence others, usually

type of product– Most influential for visible products (car vs mattress –

function)

Cultural Influences• Subcultures and values• Social Class is defined as people with

the same status in a society.• It is NOT simply a function of income

a. Factors U.S.: usually measuredi. Occupationii. Educationiii. Housing

b. U.S. is fluid (change)c. People over rank themselves

Individual Influences

1936

current

1965 1972

1980

1986

Betty Crocker pictures change as consumer attitudes and lifestyles also change.

• Demographic change

• Change in lifestyles and attitudes

Oil of Olay Ads

AfterBefore

People did not see the positive association between oil and beauty. As such, the second logo for Olay was changed and oil was taken out.

Psychological InfluencesPerception

– Gathering & interpreting of information from the world around us.

– The process involves:a. Selective exposure

– Seek what interests us, ignore others– Ex: political information and what else??

b. Selective distortion– Screen/modify ideas we disagree with– Ex: power of suggestion, Bugs Bunny, and what else??

c. Selective retention– Remember what you want– Ex: forget homework, photo memory

Selective Distortion

Motivation

A method of classifying human

needs and motivations into five

categories in ascending order

of importance.

Maslow’s Hierarchyof Needs

Maslow’s Hierarchyof Needs

Maslow’s Hierarchy of Needs

LO7

Exhibit 5.5Maslow’s Hierarchy of Needs

Safety Ad Appeal

XBOX 360: Address what “needs?”

Summary

• Why study consumer behavior?

• Involvement factors– Social, cultural, individual, psychological

• Hierarchy of needs

• Any questions?