Consumer Decision Making

4
chapter

Prepared by
Deborah Baker
Texas Christian University

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

4 2. Analyze the components of the consumer

decision-making process.
chapter

3. Explain the consumer’s postpurchase

evaluation process.

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 Learning Objectives (continued)
4. Identify the types of consumer buying
decisions and discuss the significance of
consumer involvement.
4
5. Identify and understand the cultural factors
that affect consumer buying decisions.
chapter

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 Learning Objectives (continued)
6. Identify and understand the social factors
that affect consumer buying decisions.

4 7. Identify and understand the individual

factors that affect consumer buying
decisions.
chapter

8. Identify and understand the psychological

factors that affect consumer buying
decisions.
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 1
Learning Objective

Explain why marketing managers

should understand
consumer behavior.

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 1
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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 2
Learning Objective

Analyze the components

of the consumer
decision-making process.

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Consumer Decision-Making 2
Process

A five-step process used

by consumers when buying
goods or services.

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Consumer Decision-Making 2
Process
Need
Need Recognition
Recognition

Information
Information Search
Search
Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological Evaluation
Evaluation
Psychological of
Factors
Factors of Alternatives
Alternatives
affect
affect
all
all steps
steps Purchase
Purchase

Postpurchase
Postpurchase
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Behavior
Behavior 9
 2
Need Recognition

Result of an imbalance
between actual and
desired states.

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 2
Need Recognition

Marketing helps Internal Stimuli

consumers
and
recognize an
External Stimuli
imbalance between
present status and
preferred state Preferred State

Present Status

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 2
Stimulus
Any unit of input affecting one or more of the five
senses:
 sight
 smell
 taste
 touch
 hearing

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 2
Want

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

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 2
Recognition of Unfulfilled Wants
 When a current product isn’t
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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 2
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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 2
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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 2
External Information Searches
Need Less Need More
Information Information

Less Risk More Risk

More knowledge Less knowledge
More product Less product
experience experience
Low level of interest High level of interest

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 2
Evoked Set

Group of brands,
resulting from an information search,
from which a buyer
can choose.

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 2
Evaluation of Alternatives
Evoked Set Evaluation of Products

Analyze product attributes

Use cutoff criteria

Rank attributes by
importance

Purchase!
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 2
Purchase

To buy
or not to buy... Determines which attributes
are most important
in influencing a
consumer’s choice

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 3
Learning Objective

Explain the consumer’s

postpurchase evaluation process.

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 3
Cognitive Dissonance

Inner tension that a consumer

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

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 3
Postpurchase Behavior

?
Cognitive Dissonance

Can minimize through:

Effective Communication
Did I make a good decision? Follow-up
Guarantees
Did I buy the right product? Warranties

Did I get a good value?

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 4
Learning Objective

Identify the types of

consumer buying decisions
and discuss the significance
of consumer involvement.

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 Types of Consumer Buying 4
Decisions

Routine
Routine Limited
Limited Extensive
Extensive
Response
Response Decision
Decision Decision
Decision
Behavior
Behavior Making
Making Making
Making

Less More
Involvement Involvement

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 4
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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 4
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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 4
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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 4
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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 4
Level of Involvement
Previous
Previous
Experience
Experience Interest
Interest

Factors
Factors Perceived
Perceived Risk
Risk of
of
Determining
Determining Negative
Negative
Level
Level of
of Consequences
Consequences
Involvement
Involvement
Situation
Situation
Social
Social Visibility
Visibility
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Marketing Implications of 4
Involvement

High-involvement Low-involvement
purchases require: purchases require:
extensive promotion in-store promotion
to target market and and eye-catching
good advertisement package design

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Factors Influencing Buying 4
Decisions

Cultural Social
Factors Factors CONSUMER BUY /
DECISION-
MAKING DON’T BUY
Psycho- PROCESS
Individual logical
Factors Factors

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 5
Learning Objective

Identify and understand the

cultural factors that affect
consumer buying decisions.

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 5
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 5
Decisions
Values
Values

Language
Language

Myths
Myths
Customs
Customs

Components Rituals
Rituals
Components of
of
American
American Laws
Laws
Culture
Culture
Material
Material Artifacts
Artifacts
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 5
Culture is...

Pervasive
Pervasive

Functional
Functional

Learned
Learned

Dynamic
Dynamic
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 5
Value

Enduring belief that a

specific mode of conduct
is personally or socially
preferable to another
mode of conduct.

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 5
Core American Values
Success
Success

Materialism
Materialism

Freedom
Freedom

Progress
Progress
Core
Core
American
American Youth
Youth
Values
Values
Capitalism
Capitalism
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 5
Global Language Blunders
 Chevrolet’s “Nova” translated to “No Go”

 Coors “Turn it Loose” became

“Suffer from Diarrhea”

 Toyota’s MR2 sounded like a

swearword in French

 Coca-Cola in Chinese means

“bite the wax tadpole”

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 5
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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 5
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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 6
Learning Objective

Identify and understand the

social factors that affect
consumer buying decisions.

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 6
Social Influences

Social
Social Influences
Influences on
on
Buying
Buying Decisions
Decisions

Reference
Reference Family
Family Members
Members
Groups
Groups

Opinion
Opinion Leaders
Leaders

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 6
Reference Group

A group in society that

influences an individual’s
purchasing behavior.

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 6
Reference Groups
Primary

Direct
Secondary
Types of
Reference
Groups
Aspirational

Indirect
Non-aspirational
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 6
Implications 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

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 6
Opinion Leaders

An individual who
influences the opinion
of others.

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 6
Family
 Instigators

 Influencers
Purchase
Purchase Roles
Roles  Decision-Makers
in
in the
the Family
Family
 Purchasers
 Consumers
Children
Influence
Purchase
Decisions
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 7
Learning Objective

Identify and understand the

individual factors that affect
consumer buying decisions.

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 7
Individual Influences

Individual
Individual
Influences
Influences

Personality
Personality
Gender
Gender Self-Concept
Self-Concept
Lifestyle
Lifestyle
Age
Age
Family
Family Life
Life Cycle
Cycle

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 7
Psychographics

The analytical technique used

to examine consumer lifestyles
and to categorize consumers.

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 7
“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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 8
Learning Objective

Identify and understand the

psychological factors that affect
consumer buying decisions.

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 8
Psychological Influences
Perception
Perception

Motivation
Motivation

Learning
Learning
Psychological
Psychological
Influences
Influences on
on
Buying
Buying Decisions
Decisions Beliefs
Beliefs &
& Attitudes
Attitudes

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 8
Perception

Process by which people select,

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

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 8
Perception

Selective
Selective Selective
Selective
Exposure
Exposure Distortion
Distortion

Selective
Selective
Retention
Retention

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 8
Perception

Selective
Selective Consumer
Consumer notices
notices certain
certain stimuli
stimuli
Exposure
Exposure and
and ignores
ignores others
others

Consumer
Consumer changes
changes or
or distorts
distorts
Selective
Selective information
information that
that conflicts
conflicts
Distortion
Distortion with
with feelings
feelings or
or beliefs
beliefs
Consumer
Consumer remembers
remembers only
only
Selective
Selective that
that information
information that
that
Retention
Retention supports
supports personal
personal beliefs
beliefs

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 8
A Consumer’s 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 8
Perception

 Important attributes

 Higher price

 Brand names

 Quality and reliability

 Threshold level of perception

 Product changes
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 8
Maslow’s Hierarchy of Needs

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

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 8
Motivation
Self-
Maslow’s
Maslow’s Actualization
Hierarchy
Hierarchy of
of
Needs
Needs Esteem

Social

Safety

Physiological
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 8
Learning

A process that creates

changes in behavior,
immediate or expected,
through experience
and practice.

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 8
Types of Learning

Types
Types of
of Description
Description
Learning
Learning

Experiential
Experiential An
An experience
experience changes
changes behavior
behavior

Not
Not learned
learned through
through direct
direct
Conceptual
Conceptual experience
experience

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 8
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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 8
Beliefs and Attitudes
An organized pattern of
Belief knowledge that an individual
holds as true about his
or her world.

A learned tendency to respond

Attitude consistently
toward a given object.

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