Lecture 5 -- 431 (Ch5 Behavior)-ForWeb

8/8/2019 Lecture 5 -- 431 (Ch5 Behavior)-ForWeb

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Chapter 5Chapter 5

Consumer Decision MakingConsumer Decision Making


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1. Analyze the components of the consumerdecision-making process.

2. Explain the consumers post-purchaseevaluation process.

3. Identify the types of consumer buyingdecisions and discuss the significance ofconsumer involvement.

Chapter 5 ObjectivesChapter 5 Objectives


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Identify and understand the

4. Cultural factors that affect consumerbuying decisions.

5. Social factors that affect consumer buyingdecisions.

6. Individual factors that affect consumerbuying decisions.

7. Psychological factors that affect consumerbuying decisions.

Chapter 5 Objectives (cont.)Chapter 5 Objectives (cont.)


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Understanding Consumer BehaviorUnderstanding Consumer Behavior

Describes how consumers makepurchase decisions

Describes how they use and dispose ofgoods/services

Reduces uncertainty when creating themarketing mix

ConsumerBehavior


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Consumer DecisionConsumer Decision--Making ProcessMaking Process

Need Recognition

Information Search

EvaluationofAlternatives

Purchase

PostpurchaseBehavior

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

factorsfactorsaffectaffect

all stepsall steps


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StimuliStimuli

Internal

Present Status

Preferred State

Consumers arefaced with an

imbalance between

present status andpreferred state

Need RecognitionNeed Recognition

External


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Present Status

Preferred State

A marketersobjective is to get

consumers to

recognize theimbalance

Need RecognitionNeed Recognition

Wants

Create wants:

Unfulfilled need anddetermination of

product/service tosatisfy it

Back


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Internal Information Search

Recall information in memory

External Information search

Seek information in outside environment

Non-marketing controlled Marketing controlled

Information SearchInformation Search


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Extent ofInformation SearchExtent ofInformation Search

Need More

Information

More RiskMore RiskLess knowledgeLess knowledge

Less prior experienceLess prior experienceHigh level of interestHigh level of interest

Less RiskLess RiskMore knowledgeMore knowledge

More prior experienceMore prior experienceLow level of interestLow level of interest

Need Less

Information

Back


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Evaluation ofAlternativesEvaluation ofAlternatives

EvokedSetEvokedSet

Pick specific product attributes

Use cutoff criteria

Rank attributes by importance

Purchase!Purchase!

Evaluation ofProducts by attributes

Back


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PurchasePurchase

Determines which attributesDetermines which attributes

are most importantare most importantin influencing ain influencing a

consumers choiceconsumers choice

To buyTo buyor not to buy...or not to buy...

Back


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Postpurchase BehaviorPostpurchase Behavior

Can minimize through:

Follow-upGuaranteesWarranties

Cognitive DissonanceCognitive Dissonance

Need to reduce dissonanceNeed to reduce dissonanceby justifying the purchaseby justifying the purchase

decisiondecision

Back


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Types of Consumer Buying DecisionsTypes of Consumer Buying Decisions

MoreInvolvement

LessInvolvement

Routine

ResponseBehavior

Limited

DecisionMaking

Extensive

DecisionMaking


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RoutineResponseBehavior

Little involvement in selection processFrequently purchased low cost goodsMay stick with one brand

Quick decision


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LimitedDecisionMaking

Previous product experienceLow levels of involvementLow to moderate cost goods

Evaluation of a few alternative brands Short to moderate time to decide


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ExtensiveDecisionMaking

High involvement in selection processHigh cost goods Evaluation of many brands

Long time to decideMay experience cognitive dissonance


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Situation

Social Visibility

Interest

Perceived Risk ofNegative

Consequences

PreviousExperience

FactorsDetermining

Level ofInvolvement

Level of ConsumerInvolvementLevel of ConsumerInvolvement


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SocialFactors

IndividualFactors

Psycho-logicalFactors

CulturalFactors CONSUMER

DECISION-MAKING

PROCESS

BUY

/

DONT BUY

Factors Influencing Buying DecisionsFactors Influencing Buying Decisions


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Cultural : functional, learned, dynamicCultural : functional, learned, dynamic

Components ofComponents ofAmericanAmericanCultureCulture

Values

Myths

Customs

Rituals

Laws

Language


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SubculturesSubculturesA subculture is a homogeneous group of people who share elementsA subculture is a homogeneous group of people who share elements

of the overall culture as well as cultural elements unique to their ownof the overall culture as well as cultural elements unique to their own

groupgroup

A subculture of consumption comes into existence as people identifyA subculture of consumption comes into existence as people identify

with certain objects or consumption activities and, through thosewith certain objects or consumption activities and, through those

activities or objects, identify with other peopleactivities or objects, identify with other people

Attitudes, values and purchase decisions aremore similar than broader cultureExample: The new bikers study in Journal ofConsumer Research, 1995

Hierarchies within subculture

Cycle Lords of the High Truth RUBies: Rich Urban Bikers

SEWERS: Suburban Weekend Riders

RIOTS: Retired Idiots On Tour

BASTARDS: Bought A Sportster, Therefore ARadical Dude


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ReferenceGroups

Opinion Leaders

Family Members

Social Influences

Social FactorsSocial Factors


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Types ofTypes ofReferenceReference

GroupsGroups

DirectFace to Face

IndirectNonmembership

Primary

Secondary

Aspirational

Non-aspirational

Reference Groups:Reference Groups:All formal and informal groups that influence buyingAll formal and informal groups that influence buying

behaviorbehavior


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Reference GroupsReference Groups

Serve as information sources & influenceperceptions

Aspiration levels

Norms constrain or stimulate purchase

behavior

Back


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Opinion LeadersOpinion LeadersEarly adopters, typically not innovatorsEarly adopters, typically not innovators

HardHard--core or highcore or high--status members of subcultures function as opinionstatus members of subcultures function as opinion

leadersleaders

Typically, face to face/word-of-mouth information

Endorsements Celebrity

Individual professionals

Group endorsements

American Heart Association

Back


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Purchase Rolesin the Family

Initiators

Influencers

Decision-Makers

Purchasers

Consumers

ChildrenChildren

InfluenceInfluencePurchasePurchaseDecisionsDecisions

FamilyFamilyResponsible for the socialization processResponsible for the socialization process

Back


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Gender

AgeFamily Life Cycle

Personality

Self-ConceptLifestyle

IndividualInfluences

Individual FactorsIndividual Factors


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Individual FactorsIndividual Factors

Personalitya broad concept that can be thought

of as a way of organizing and grouping how anindividual typically reacts to situations

Lifestyle a mode of living identified by a persons

activities, interest, and opinionsuseful for segmentation and targeting

Self-ConceptHow consumers perceive themselves, includingattitudes, perceptions, beliefs and self-evaluations

ideal self-image vs. real self-image


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PsychologicalPsychological

Influences onInfluences onBuying DecisionsBuying Decisions

Perception

Motivation

Learning

Beliefs & Attitudes

Psychological FactorsPsychological Factors


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SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure

Decide whichstimuli to notice

and which toignore

SelectiveSelectiveDistortionDistortion

Distort informationthat conflicts with beliefs

SelectiveSelectiveDistortionDistortion

Distort informationthat conflicts with beliefs

SelectiveSelectiveRetentionRetention

Remember onlyinformation

that supportsfeelings and beliefs

SelectiveSelectiveRetentionRetention

Remember onlyinformation

that supportsfeelings and beliefs

PerceptionPerceptionthe process by which an individual selects, organizes, and interpretsinformation inputs (stimuli) to create a meaningful picture of the world.


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Heuristics and Biases in JudgmentsHeuristics and Biases in Judgments

Representativeness

The letter R

Flipping a coin

Jack

Anchoring and Adjustment

Price endings

Framing

Example

$1.99 vs. $2.00


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MotivationMotivation

MaslowsMaslowsHierarchy ofHierarchy of

NeedsNeeds

PhysiologicalPhysiological

SafetySafety

SocialSocial

SelfSelf--EsteemEsteem

SelfSelf--ActualizationActualization

Lecture 5 -- 431 (Ch5 Behavior)-ForWeb

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