Student Notes Pages Marketing

Chapter 6: Consumer Decision Making

Introduction

Marketing
• What is consumer behaviour (CB)?
Second S A edition – purchasing, use and disposal of products
Charles W. Lamb, Jr.
Joseph F. Hair, Jr. • The importance of consumer behaviour
Carl McDaniel (CB) to marketers
Christo Boshoff
Nic S. Terblanche – understand and predict buying behaviour
– needs and need satisfaction
Chapter – product design
Chapter 3:
3:
Consumer
Consumer Decision-
Decision- • Behavioural sciences
Making
Making
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Introduction (cont) Consumer’

Consumer’s Decision-
Decision-Making
Process FACTORS INFLUENCING THE CONSUMER’S
DECISION-MAKING PROCESS
Individual Factors
• Economic buyer theory: All consumers Perception
Motivation
– have full information Learning
Values, beliefs, and attitudes
– make comparisons Personality, self-concept, lifestyle

– are rational
Consumer Decision-Making Process Buy/Don’t Buy
– have limited resources to satisfy limitless
needs
Social Factors The Purchase Situation
– want to maximise satisfaction
Culture Purchase reason
Subculture Time
Reference groups Physical surroundings
Opinion leaders
Family
Family life cycle
Social class
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The Consumer Decision-

Decision-Making Problem Recognition & Information
Process Search
Problem Recognition

• Problem recognition:
Information Search – discrepancy
Individual
Individual and
and – sometimes unaware
Social
Social Factors
Factors Evaluation • Information search:
and
and Buying
Buying of Alternatives – internal vs external
Situation
Situation – marketing vs non-marketing controlled
Purchase – extent determined by:
» risk, knowledge, prior experience, type of
product
Post-purchase
Behaviour
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© 1997 South-Western College Publishing

Student Notes Pages Marketing
Chapter 6: Consumer Decision Making

Evaluation, Purchase and Post-

Post-Purchase Behaviour (cont)
Post-
Post-Purchase

• Evaluation of alternatives • Typical Post-Purchase Behaviour

– evoked set, product features, assign – justify their decision
importance – seek new information to reinforce
• Purchase – avoid contradictory information
• Post-purchase – revoke the decision by returning the product
– cognitive dissonance – deliberately seek contrary information to refute
» typical consumer behaviour (next slide) – engage in WOM
» marketing strategies to overcome (next
slide)

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Post-
Post-Purchase Behaviour (cont) Types of Consumer Buying
Decisions

• Strategies to overcome cognitive Routine

Routine Limited
Limited Extensive
Extensive
dissonance Response
Response Decision
Decision Decision
Decision
– post-purchase letter, card Behaviour
Behaviour Making
Making Making
Making
– instruction booklets
– advertising
– refunds Low High
involvement Involvement
– guarantees, warrantees
– “cooling off” periods

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Decision categorised in terms of: Routine Response Behaviour

• level of involvement • Routine response behaviour

• length of time taken –the ultimate objective from a marketer’s
• cost perspective
• degree of information search –experiences è learning è attitude
• number of alternatives considered –long term relationships
–frequent buyer incentives

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© 1997 South-Western College Publishing

Student Notes Pages Marketing
Chapter 6: Consumer Decision Making

Factors Affecting Involvement More on Types of Risk

Levels
Previous
Previous
Experience
Experience • Financial risk
Interest
Interest
– the higher price the higher the involvement
• Social risk
Factors
Factors Perceived
– social opinion of others
Perceived Risk
Risk
Influencing
Influencing • Psychological risk
Involvement
Involvement – concern or anxiety

Situation
Situation
Social
Social Visibility
Visibility
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Marketing Implications of Individual Factors: Perception

Involvement
Selective
Selective
• High involvement Exposure
Distortion
– susceptible to cognitive dissonance
– promotion extensive and informative
– provide information and specify benefits
• Low involvement: consumers not aware of
need until in shop
– in-store promotions and packaging important.
– must be eye-catching and easily recognisable
– tactics such as 2-for-the-price-of-1, coupons Selective
and special offers often used Retention
– link to high-involvement issue e.g. health
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Individual Factors: Perception The Marketing Implications of

(cont) Perception

• Selective exposure: see what they want to • Helps marketers understand CB

see • The importance of cues and stimuli
• Selective distortion: they change or distort – five senses
info that conflicts with their feelings or
• branding
beliefs
– labels, prices, product features
• Selective retention: remembers what fits
with existing beliefs • just noticeable difference
– do consumer notice (perceive) changes in
• It explains differing perceptions products

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© 1997 South-Western College Publishing

Student Notes Pages Marketing
Chapter 6: Consumer Decision Making

Individual Factors: Motivation The Marketing Implications of

Motivation

• Motivation: the forces that drive behaviour • Firms target different market segments
to satisfy needs with different motivations using different
• Helps marketers to understand CB products or brands
• Maslow’s hierarchy of needs • Examples from text
– five levels – physiological: Energade
– hierarchical – safety: Mercedes Benz
– social: Benson and Hedges
– esteem: Mont Blanc pens
– self actualisation: American Express

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Maslow’
Maslow’s Hierarchy of Needs Individual Factors: Learning

Self-Actualisation Needs
(self-development, • Processes that change behaviour
self-realisation)
– experience, practice, information
Esteem Needs – positive experiences repeated: learning
(self-esteem,
recognition, status) • Two types of learning:
Social Needs – experiential learning
(sense of belonging,
love) – conceptual learning
Safety Needs • Learning tools
(security, protection) – reinforcement and repetition
– stimulus generalisation and stimulus
Physiological Needs discrimination
(hunger, thirst)

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Individual Factors: Values & Beliefs Individual Factors: Attitudes

• Learning è values è self concept, • consumers have different attitudes of

personality, lifestyle è buyer behaviour different strengths
• values vary across cultures • focus of research
• beliefs shape attitude to product or brand • positive attitude is necessary but not
sufficient
• beliefs can be changed
• acquired: experience and interaction
– change beliefs about attributes
– change importance of beliefs • difficult to change
– add new beliefs

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© 1997 South-Western College Publishing

Student Notes Pages Marketing
Chapter 6: Consumer Decision Making

Individual Factors: Personality, Social Factors: Culture and

Self-
Self-concept and Lifestyle Sub-
Sub-culture
• Culture is the set of values, norms
• Personality, Self-concept and Lifestyle all attitudes that shape behaviour and CB
influence CB – reasonably homogeneous
• Self-concept – it’s learned over time and passed on
– it’s dynamic
– ideal self-image and real self-image
– careful not to offend
• Lifestyle
– psychographics used to describe and predict
• Cultural values in SA
the CB of different segments – collectivist (ubuntu) vs individualism
– activities, interests, opinions • Sub-cultures
– often determine advertising themes • Sub-cultures in SA

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Social Factors: Reference Groups Marketing Importance of Reference

Groups
Primary
Small, informal group

Direct • Reference groups:

Face to face

Secondary – activities and values influence the CB of others

Large, formal group
– they are information sources
Reference
Groups – they influence others’ aspiration levels
– their norms constrain/stimulate others’ CB
Aspirational
Desired to be a member

Indirect

Non-aspirational
Avoids membership

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Social Factors: Reference Groups Social Factors: Reference Groups

(cont) (cont)

• Reference group: conspicuous

consumption: • Opinion leaders: important target market
– membership – first to try new products
– aspirational – typically self-indulgent and influential
– disassociative – often casual and personal, socially active
• Reference groups’ sources of power – early adopters - experience
– information – expert power - convincing
– legitimate – difficult to find or create
– referent
– expert

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© 1997 South-Western College Publishing

Student Notes Pages Marketing
Chapter 6: Consumer Decision Making

Social Factors: Family and Family Social Factors: Social class

Life-
Life-Cycle

• Family: different roles • Social class: a group with similar status

– initiator, influencer, decision-maker, purchaser, and behavioural norms
user – upper class
• Family life-cycle – middle class
– a series of stages – working class
– attitudes, behaviour and particularly buyer – lower class
behaviour change over time

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The Purchase Situation Buying New Products

• Purchase reason • buying “new to the market” products is a

– why is the product or brand bought? process
• Available time • Six steps in the adoption process
– time pressure or not? Find, familiarise, shop – awareness
• Physical environment – interest
– can enhance or decrease the likelihood of – evaluation
purchase – trial
– appeals to the five senses – decision
– also issues such as privacy, neatness – confirmation

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© 1997 South-Western College Publishing