Lamb Hair Mc Daniel 2011 -2012 Chapter 6

Learning Outcomes LO 1 Explain why marketing managers should understand consumer behavior LO 2 Analyze the components of the consumer decisionmaking process LO 3 Explain the consumer’s postpurchase evaluation process LO 4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 2

Learning Outcomes LO 5 Identify and understand the cultural factors that affect consumer buying decisions LO 6 Identify and understand the social factors that affect consumer buying decisions LO 7 Identify and understand the individual factors that affect consumer buying decisions LO 8 Identify and understand the psychological factors that affect consumer buying decisions Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 3

I. The Importance of Understanding Consumer Behavior Explain why marketing managers should understand consumer

Understanding Consumer Behavior consumers make purchase decisions Consumer behavior = HOW consumers use and dispose of product LO 1 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 5

The Consumer Decision-Making Process Analyze the components of the consumer decision-making process LO 2

Consumer Decision-Making Process A five-step process used by consumers when buying goods or services.

Exhibit 6. 1 Consumer Decision. Making Process LO 2 Chapter 6 Copyright © 2012

1. Need Recognition Result of an imbalance between actual and desired states. LO 2

1. Need Recognition Int e Sti rnal mu li l na ter uli Ex tim S Present Status Preferred State Marketing helps consumers recognize an imbalance between present status and preferred state. LO 2 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 10

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

Recognition of Unfulfilled Wants • When a current product isn’t performing properly • When the consumer is running out of a product • When another product seems superior to the one currently used LO 2 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 12

2. Information Search Internal Information Search • Recall information in memory External Information search • Seek information in outside environment • • Nonmarketing controlled Marketing controlled LO 2 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 13

External Information Searches Need Less Information Less Risk More knowledge More product experience Low level of interest Confidence in decision Need More Information More Risk Less knowledge Less product experience High level of interest Lack of confidence LO 2 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 14

Evoked Set Group of brands, resulting from an information search, from which a buyer

3. Evaluation of Alternatives and 4. Purchase Evoked Set Analyze product attributes Use cutoff criteria Rank attributes by importance LO 2 Chapter 6 Purchase! Copyright © 2012 by Cengage Learning Inc. All rights reserved 16

Purchase To buy or not to buy. . . Determines which attributes are most

5. Postpurchase Behavior Explain the consumer’s postpurchase evaluation process LO 3 Chapter 6 Copyright

Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. LO 3 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 19

Postpurchase Behavior Consumers can reduce dissonance by: q Seeking information that reinforces positive ideas about the purchase q Avoiding information that contradicts the purchase decision q Revoking the original decision by returning the product Marketing can minimize dissonance through effective communication with purchasers. LO 3 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 20

II. Types of Consumer Buying Decisions and Consumer Involvement Identify the types of consumer buying decisions and discuss the significance of consumer involvement LO 4 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 21

Consumer Buying Decisions and Consumer Involvement Routine Response Behavior Limited Decision Making Extensive Decision Making Less Involvement More Involvement LO 4 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 22

Involvement is… the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior. LO 4 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 23

Exhibit 6. 2 Continuum of Consumer Buying Decisions LO 4 Chapter 6 Copyright ©

Routine Response Behavior § § May stick with one brand § Chapter 6 Frequently purchased low cost goods § LO 4 Little involvement in selection process Buy first/evaluate later § Quick decision Copyright © 2012 by Cengage Learning Inc. All rights reserved 25

Limited Decision Making § Low levels of involvement § Low to moderate cost goods § Evaluation of a few alternative brands § Short to moderate time to decide LO 4 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 26

Extensive Decision Making § § Evaluation of many brands § Long time to decide § Chapter 6 High cost goods § LO 4 High levels of involvement May experience cognitive dissonance Copyright © 2012 by Cengage Learning Inc. All rights reserved 27

Factors Determining the Level of Consumer Involvement Previous Experience Interest Perceived Risk of Negative Consequences Situation Social Visibility LO 4 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 28

Marketing Implications of Involvement High-involvement purchases require: Extensive and informative promotion to target market Low-involvement purchases require: In-store promotion, eye-catching package design, and good displays. Coupons, cents-off, 2 -for-1 offers LO 4 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 29

III. Cultural Influences on Consumer Buying Decisions Identify and understand the cultural factors that affect consumer buying decisions LO 5 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 30

Factors Influencing Buying Decisions Cultural Factors Individual Factors Social Factors Psychological Factors CONSUMER DECISIONMAKING PROCESS BUY / DON’T BUY LO 5 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 31

Components of Culture Values Language Myths Customs Rituals Laws LO 5 Chapter 6 Material

Culture is. . . Pervasive Functional Learned Dynamic LO 5 Chapter 6 Copyright ©

Value Enduring belief that a specific mode of conduct is personally or socially preferable

Understanding Cultural Differences • A firm has little chance of selling products in a culture that it does not understand. • Like people, products have cultural value. In China Color of In U. S. mourning Brides wear LO 5 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 35

Subculture A homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group. LO 5 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 36

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. LO 5 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 37

Social Class Measurements Occupation Income Education Wealth LO 5 Chapter 6 Other Variables Copyright

The Impact of Social Class on Marketing § Indicates which medium to use for advertising § Helps determine the best distribution for products LO 5 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 39

IV. Social Influences on Consumer Buying Decisions Identify and understand the social factors that affect consumer buying decisions LO 6 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 40

Social Influences Reference Groups Opinion Leaders Family Members LO 6 Chapter 6 Copyright ©

Exhibit 6. 5 Types of Reference Groups LO 6 Chapter 6 Copyright © 2012

Influences 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. LO 6 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 43

Opinion Leaders An individual who influences the opinion of others. LO 6 Chapter 6

Opinion Leaders… …are the first to try new products and services out of pure curiosity. …can be challenging to locate. Marketers are increasingly using blogs, social networking, and other online media to determine and attract opinion leaders. LO 6 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 45

Family Purchase Process Roles in the Family • Initiators • Influencers • Decision Makers

VI. Individual Influences on Consumer Buying Decisions Identify and understand the individual factors that affect consumer buying decisions LO 7 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 47

Individual Influences Gender Age Life Cycle Personality Self-Concept Lifestyle LO 7 Chapter 6 Copyright

Age and Family Life Cycle Stage • Consumer tastes in food, clothing, cars, furniture, and recreation are often age related. • Marketers define target markets according to life cycle stages such as “young singles” or “young married with children. ” LO 7 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 49

Personality, Self-Concept, and Lifestyle • Personality combines psychological makeup and environmental forces. • Human behavior depends largely on selfconcept. • Self-concept combines ideal self-image and real self-image. LO 7 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 50

VII. Psychological Influences on Consumer Buying Decisions Identify and understand the psychological factors that affect consumer buying decisions LO 8 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 51

Psychological Influences Perception Motivation Learning Beliefs & Attitudes LO 8 Chapter 6 Copyright ©

Perception Selective Exposure Consumer notices certain stimuli and ignores others Selective Distortion Consumer changes or distorts information that conflicts with feelings or beliefs Selective Retention Consumer remembers only that information that supports personal beliefs LO 8 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 53

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 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 54

Motivation Maslow’s Hierarchy of Needs A method of classifying human needs and motivations into five categories in ascending order of importance. LO 8 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 55

Exhibit 6. 6 Maslow’s Hierarchy of Needs LO 8 Chapter 6 Copyright © 2012

Types of Learning Experiential An experience changes behavior Conceptual Not learned through direct experience

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. LO 8 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 58

Changing Beliefs • Change beliefs about the brand’s attributes • Change the relative importance of these beliefs • Add new beliefs LO 8 Chapter 6 Copyright © 2012 by Cengage Learning Inc. All rights reserved 59

Beyond the Book Chapter 6 Videos Chapter 6 Ready. Made – Consumer Decision Making How does the cover of Ready. Made magazine reflect the principles of packaging design as influenced by the known behaviors of its consumers? http: //www. cengage. com/marketing/boo k_content/1439039429_lamb/company_c lips/ch 06. html Copyright © 2012 by Cengage Learning Inc. All rights reserved 60