Consumer Decision Making

chapter

Chapter 4 Version 3e

Prepared by
Deborah Baker
Texas Christian University
2003 South-Western

Learning Objectives
1. Explain why marketing managers should
understand consumer behavior.

chapter

2. Analyze the components of the consumer

decision-making process.
3. Explain the consumers postpurchase
evaluation process.

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Learning Objectives (continued)

chapter

4. Identify the types of consumer buying

decisions and discuss the significance of
consumer involvement.
5. Identify and understand the cultural factors
that affect consumer buying decisions.

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Learning Objectives (continued)

6. Identify and understand the social factors
that affect consumer buying decisions.

chapter

7. Identify and understand the individual

factors that affect consumer buying
decisions.
8. Identify and understand the psychological
factors that affect consumer buying
decisions.

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Learning Objective

Explain why marketing managers

should understand
consumer behavior.

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Consumer Behavior

Processes a consumer uses

to make purchase decisions,
as well as to use and
dispose of purchased goods
or services; also includes
factors that influence
purchase decisions and
the product use.
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Learning Objective

Analyze the components

of the consumer
decision-making process.

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Consumer Decision-Making
Process

A five-step process used

by consumers when buying
goods or services.

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Consumer Decision-Making
Process

Need
Need Recognition
Recognition

Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological
Factors
Factors
affect
affect
all
all steps
steps

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Information
Information Search
Search
Evaluation
Evaluation
of
of Alternatives
Alternatives
Purchase
Purchase
Postpurchase
Postpurchase
Behavior
Behavior
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Need Recognition

Result of an imbalance
between actual and
desired states.

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Need Recognition
Marketing helps
consumers
recognize an
imbalance between
present status and
preferred state

Internal Stimuli
and
External Stimuli
Preferred State

Present Status
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Stimulus

Any unit of input affecting one or more of the five

senses:

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sight

smell

taste

touch

hearing

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Want
Recognition of an
unfulfilled need and
a product
(or attribute or feature)
that will satisfy it.

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Recognition of Unfulfilled Wants

When a current product isnt

performing properly
When the consumer is running
out of an product
When another product seems
superior to the one currently used
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Information Searches
Internal

Process of recalling past

information stored
in the memory.

External

Process of seeking
information in the
outside environment.

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Information Search

Internal Information Search

Recall information in memory

External Information search

Seek information in outside
environment
Non-marketing controlled
Marketing controlled
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External Information Searches

Need Less
Information
Less Risk
More knowledge
More product
experience
Low level of interest

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Need More
Information
More Risk
Less knowledge
Less product
experience
High level of interest

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Evoked Set
Group of brands,

resulting from an information search,

from which a buyer
can choose.

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Evaluation of Alternatives
Evoked Set

Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by
importance

Purchase!

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Purchase
To buy
or not to buy...

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Determines which attributes

are most important
in influencing a
consumers choice

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Learning Objective
Explain the consumers
postpurchase evaluation process.

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Cognitive Dissonance

Inner tension that a consumer

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

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Postpurchase Behavior
Cognitive Dissonance

Did I make a good decision?

Did I buy the right product?

Can minimize through:

Effective Communication
Follow-up
Guarantees
Warranties

Did I get a good value?

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Learning Objective
Identify the types of
consumer buying decisions
and discuss the significance
of consumer involvement.

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Types of Consumer Buying

Decisions

Routine
Routine
Response
Response
Behavior
Behavior

Limited
Limited
Decision
Decision
Making
Making

Less
Involvement
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Extensive
Extensive
Decision
Decision
Making
Making

More
Involvement
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Five Factors influencing Decisions

1. Level of consumer involvement

2. Length of time to make decision
3. Cost of good or service
4. Degree of information search
5. Number of alternatives considered
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Routine Response 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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Limited Decision Making

Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative
brands
Short to moderate time to decide
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Extensive Decision Making

High levels of involvement
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
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Level of Involvement
Previous
Previous
Experience
Experience

Factors
Factors
Determining
Determining
Level
Level of
of
Involvement
Involvement

Interest
Interest
Perceived
Perceived Risk
Risk of
of
Negative
Negative
Consequences
Consequences
Situation
Situation

Social
Social Visibility
Visibility
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Marketing Implications of
Involvement
High-involvement
purchases require:
extensive promotion
to target market and
good advertisement

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Low-involvement
purchases require:
in-store promotion
and eye-catching
package design

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Factors Influencing Buying

Decisions

Cultural
Factors

Social
Factors

Individual
Factors

Psychological
Factors

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CONSUMER
DECISIONMAKING
PROCESS

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BUY /
DONT BUY

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Learning Objective

Identify and understand the

cultural factors that affect
consumer buying decisions.

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Culture

Set of values norms,

attitudes, and other
meaningful symbols that
shape human behavior and
the artifacts, or products, of
that behavior as they are
transmitted from one
generation to the next.
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Cultural Influences on Buying

Decisions

Values
Values
Language
Language
Myths
Myths
Customs
Customs

Components
Components of
of
American
American
Culture
Culture

Rituals
Rituals
Laws
Laws
Material
Material Artifacts
Artifacts

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Culture is...
Pervasive
Pervasive
Functional
Functional
Learned
Learned
Dynamic
Dynamic
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Value
Enduring belief that a
specific mode of conduct
is personally or socially
preferable to another
mode of conduct.

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Core American Values

Success
Success
Materialism
Materialism
Freedom
Freedom

Core
Core
American
American
Values
Values

Progress
Progress
Youth
Youth
Capitalism
Capitalism

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Global Language Blunders

Chevrolets Nova translated to No Go
Coors Turn it Loose became
Suffer from Diarrhea
Toyotas MR2 sounded like a
swearword in French
Coca-Cola in Chinese means
bite the wax tadpole
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Subculture
A homogeneous group
of people who share
elements of the overall
culture as well as
unique elements of
their own group.

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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.
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Learning Objective

Identify and understand the

social factors that affect
consumer buying decisions.

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Social Influences
Social
Social Influences
Influences on
on
Buying
Buying Decisions
Decisions
Reference
Reference
Groups
Groups

Family
Family Members
Members
Opinion
Opinion Leaders
Leaders

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Reference Group

A group in society that

influences an individuals
purchasing behavior.

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Reference Groups
Primary
Direct
Secondary
Types of
Reference
Groups

Aspirational
Indirect
Non-aspirational

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Implications of Reference Groups

They serve as information sources
and influence perceptions
They affect an individuals
aspiration levels
Their norms either constrain or
stimulate consumer behavior
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Opinion Leaders

An individual who
influences the opinion
of others.

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Family
Instigators
Influencers
Purchase
Purchase Roles
Roles
in
in the
the Family
Family

Decision-Makers
Purchasers

Children
Influence
Purchase
Decisions
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Consumers

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Learning Objective

Identify and understand the

individual factors that affect
consumer buying decisions.

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Individual Influences
Individual
Individual
Influences
Influences

Personality
Personality
Self-Concept
Self-Concept
Lifestyle
Lifestyle

Gender
Gender
Age
Age
Family
Family Life
Life Cycle
Cycle

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Psychographics

The analytical technique used to

examine consumer lifestyles
and to categorize consumers.

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Types of Moms
June
June Cleaver
Cleaver Moms
Moms
Tug-of-War
Tug-of-War Moms
Moms
Strong
Strong Shoulders
Shoulders Moms
Moms

Mothers
Mothers of
of Invention
Invention Moms
Moms
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Learning Objective

Identify and understand the

psychological factors that affect
consumer buying decisions.

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Psychological Influences
Perception
Perception

Motivation
Motivation

Psychological
Psychological
Influences
Influences on
on
Buying
Buying Decisions
Decisions
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Learning
Learning

Beliefs
Beliefs &
& Attitudes
Attitudes
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Perception

Process by which people select,

organize, and interpret stimuli into
a meaningful and
coherent picture.

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Perception

Selective
Selective
Exposure
Exposure

Selective
Selective
Distortion
Distortion

Selective
Selective
Retention
Retention
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Perception
Selective
Selective
Exposure
Exposure

Consumer
Consumer notices
notices certain
certain stimuli
stimuli
and
and ignores
ignores others
others

Selective
Selective
Distortion
Distortion

Consumer
Consumer changes
changes or
or distorts
distorts
information
information that
that conflicts
conflicts
with
with feelings
feelings or
or beliefs
beliefs

Selective
Selective
Retention
Retention

Consumer
Consumer remembers
remembers only
only
that
that information
information that
that
supports
supports personal
personal beliefs
beliefs

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A Consumers Selective Exposure

Exposure
Exposure to
to over
over 250
250
advertisement
advertisement messages
messages per
per day
day

Notices only
11 to 20 ads

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Marketing Implications of
Perception

Important attributes
Higher price
Brand names
Quality and reliability
Threshold level of perception
Product changes
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Maslows Hierarchy of Needs

A method of classifying
human needs and
motivations into five
categories in ascending
order of importance.

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Motivation
Maslows
Maslows
Hierarchy
Hierarchy of
of
Needs
Needs

SelfActualization
Esteem
Social
Safety
Physiological

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Learning
A process that creates
changes in behavior,
immediate or expected,
through experience
and practice.

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Types of Learning
Types
Types of
of
Learning
Learning

Description
Description

Experiential
Experiential An
An experience
experience changes
changes behavior
behavior
Conceptual
Conceptual

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Not
Not learned
learned through
through direct
direct
experience
experience
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Stimulus Generalization

A form of learning that

occurs when one response
is extended to a second
stimulus similar to the first.

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Beliefs and Attitudes

Belief

An organized pattern of
knowledge that an individual
holds as true about his
or her world.

Attitude

A learned tendency to
respond consistently
toward a given object.

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