Consumer Decision Making

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Consumer Decision Making
4
chapter
Created by Deborah Baker Texas Christian
UniversityRevised by Dr. BaurAgricultural
Technical Institute
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Chapter 3 Review

• 1. Importance of global marketing.
• Impact of multinational firmson the world
  economy.
• External environment factors facing global
  marketers.
• Various ways of entering theglobal marketplace.
• Basic elements involved in developing a global
  marketing mix.
• Discover how the Internet is affectingglobal
  marketing.

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chapter
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Chapter Four Learning Objectives
1. Explain why marketing managers should
understand consumer behavior. 2. Analyze the
components of the consumer decision-making
process. 3. Explain the consumers postpurchase
evaluation process. 4. Identify the types of
consumer buying decisions and discuss the
significance of consumer involvement.
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Learning Objectives (continued)

• 5. Identify and understand the cultural factors
  that affect consumer buying decisions.
• 6. Identify and understand the social factors
  that affect consumer buying decisions.
• Identify and understand the individual factors
  that affect consumer buying decisions.
• Identify and understand the psychological factors
  that affect consumer buying decisions.

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chapter
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Consumer Behavior
118
Explain why marketing managers should understand
consumer behavior.
Learning Objective
1
Is the processes a consumer uses to make purchase
decisions, and includes factors that influence
purchase decisions and the product use.
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Consumer Decision-Making Process
Analyze the components of the consumer
decision-making process.
Learning Objective
118
2
A. Need Recognition
Wifes Car That Was Totaled
B. Information Search
Cultural, Social, Individual and Psychological
Factors affect all steps
Check Consumers Reports
C. Evaluation of Alternatives
Test Drive Taurus Century
D. Purchase
Buy Buick Century
E. Post Purchase Behavior
Oil Problems
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A. Need Recognition
Analyze the components of the consumer
decision-making process.
Learning Objective
118
2
Result of an imbalance between actual desired
states.
Preferred State
Marketing helps consumers recognize an imbalance
between present status and preferred state
My Wife Driving Herself To Work
Internal Stimuli and External Stimuli
Present Status
Driving My Wife To Work
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Stimulus
Analyze the components of the consumer
decision-making process.
Learning Objective
118
2
Any unit of input promoting action
Want
Recognition of an unfulfilled need a product
(or attribute or feature) that will satisfy it.
Hunger
Internal
External
Living Room Furniture
sight
smell
Candle Shop
Ice Cream Samples
taste
touch
Fur Coat
hearing
Grand Father Clock
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Recognition of Unfulfilled Wants
Analyze the components of the consumer
decision-making process.
Learning Objective
119
2

• When a current product isnt performing properly

Car is Unreliable
Gas Gaugeon Empty

• When the consumer is running out of an product

• When another product seems superior to current
  one

Gas Grill vsCharcoal

• When I need to keep up with fads or the Jones

SUVHybrid
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B. Information Search
Analyze the components of the consumer
decision-making process.
Learning Objective
120
2

• 1. Internal Information Search
• Recall information in memory

Remembering Magazine Articles

• 2. External Information search
• Seek information in outside environment

• Non-marketing controlled

Consumers Reports

• Marketing controlled

Brochures from the Car Dealer
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External Information Searches
Analyze the components of the consumer
decision-making process.
Learning Objective
121
2
Need More Ext Information
Need Less Ext Information
Less Risk More current knowledge More product
experience Low level of interest
More Risk Less current knowledge Less product
experience High level of interest
Buying a Car
Buying a Hoe
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Analyze the components of the consumer
decision-making process.
Learning Objective
122
2
Group of products, resulting from an information
search, from which a buyer can choose.
C.Evoked Set
Evoked Set of Alternatives
Evaluation of ProductsAnalyze product
attributesUse cutoff criteriaRank attributes
by importance
Purchase!
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D. Purchase
Analyze the components of the consumer
decision-making process.
Learning Objective
122
2
Marketing
Determines which attributes are most important
in influencing a consumers choice
To buy or not to buy...
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E. Cognitive Dissonance
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Learning Objective
123
Explain consumers postpurchase evaluation
process
Inner tension that a consumer experiences after
recognizing an inconsistency between behavior and
values or opinions.
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Postpurchase Behavior
Learning Objective
3
124
Explain consumers postpurchase evaluation
process
Cognitive Dissonance

• Did I make a good decision?
• Did I buy the right product?
• Did I get a good value?

Car Letter
Guarantees
Lands End
Warranties
Hyundai
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Five Factors influencing Decisions
Identify types of consumer buying decisions
discuss significance of consumer involvement.
Learning Objective
124
4

• 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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A. Routine Response Behavior
Identify types of consumer buying decisions
discuss significance of consumer involvement.
Learning Objective
124
4
Types of Consumer Buying Decisions

• 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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B. Limited Decision Making
Identify types of consumer buying decisions
discuss significance of consumer involvement.
Learning Objective
124
4

• 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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C. Extensive Decision Making
Identify types of consumer buying decisions
discuss significance of consumer involvement.
Learning Objective
125
4

• High levels of involvement
• High cost goods
• Evaluation of many brands
• Long time to decide
• May experience cognitive dissonance

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Identify types of consumer buying decisions
discuss significance of consumer involvement.
Learning Objective
125
4
Factors Determining Level of Involvement
Previous Experience
Interest
FINANCIALSOCIALPSYCHOLOGICAL
Perceived Risk of Negative Consequences
Situation
Social Visibility
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Marketing Implications of Involvement
Identify types of consumer buying decisions
discuss significance of consumer involvement.
Learning Objective
126
4

• Low-involvement purchases require

• High-involvement purchases require

extensive promotion to target market and good
advertisement
in-store promotion and eye-catching package
design
LINKING LOW INVOLMENT PRODUCTS TO
HIGH-INVOLMENT ISSUES
Fat/Cholesterol
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Factors Influencing Buying Decisions
Identify types of consumer buying decisions
discuss significance of consumer involvement.
Learning Objective
127
4
Social Factors
Cultural Factors
CONSUMERDECISION- MAKING PROCESS
Family
Ethnic, Class
BUY / DONT BUY
Individual Factors
Psychological Factors
Motivation
Life Style
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A. Culture
Identify understand cultural factors that
affect consumer buying decisions.
Learning Objective
128
5
Set of values norms, attitudes, and other symbols
that shape human behavior and the products, of
that behavior as they are transmitted from one
generation to the next.
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B. Culture is...
Identify understand cultural factors that
affect consumer buying decisions.
Learning Objective
128
5
INFLUENCES EVERYTHING
1. Pervasive
EAT, DRESS, ACT
PRESCRIBES ACCEPTABLEBEHAVIOR
2. Functional
FAMILY, CHURCH, SCHOOL, PEERS, SOCIETY
3. Learned
4. Dynamic
CHANGING
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Identify understand cultural factors that
affect consumer buying decisions.
Learning Objective
129
5
1. Values
Hard Work

2. Language
Official Language
3. Myths
Santa Claus
4. Customs
Tips
C. Cultural Influences on Buying Decisions
5. Rituals
Thanksgiving
6. Laws
Blue Laws
7. Artifacts
Engagement Rings
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Identify understand cultural factors that
affect consumer buying decisions.
Learning Objective
130
5
1. Value
A belief that a specific conduct is personally or
socially preferable to another
a. Success
Core American Values
Up by Boot Straps
B. Gates
b. Materialism
Possessions
Biggest
c. Freedom
Own Boss
Bill of Rights
d. Progress
Technology
MP3
e. Youth
Feel Lk Young
f Capitalism
Competition
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2. Global Language Blunders
Identify understand cultural factors that
affect consumer buying decisions.
Learning Objective
132
5

• 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
Identify understand cultural factors that
affect consumer buying decisions.
Learning Objective
132
5
Social Class
A homogeneous group of people who share elements
of the overall culture as well as unique
elements of their own group.
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.
African Americans
Middle Class
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A. Reference Groups
Identify understand social factors that affect
consumer buying decisions.
Learning Objective
135
6
A group in society that influences an
individuals purchasing behavior.
(1) Primary Daily
STUDENT
a. Direct
(2) Secondary
CLUBS
1. Types ofReference Groups
(1) AspirationalWant-to-Be
IDOLS
b. Indirect
(2) Non-inspirational DONT Want to Be
MICHEAL JACKSON
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2. Implications of Reference Groups
Identify understand social factors that affect
consumer buying decisions.
Learning Objective
136
6

• They serve as information sources and influence
  perceptions What is Cool

• They affect an individuals aspiration levels
  Right vs Wrong Crowd

• Their norms either constrain or stimulate
  consumer behavior

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Identify understand social factors that affect
consumer buying decisions.
Learning Objective
137
0
6
B. Opinion Leaders
An individual who influences the opinion
behavior of others.
Often first to try a new product
Causal, face to face, inconspicuous
Group endorsements
Celebrity endorsements
300
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C. Family Members
Identify understand social factors that affect
consumer buying decisions.
Learning Objective
138
6
Purchase Roles in the Family

• Instigators Initiate
• Influencers Opinions Count
• Decision-Makers Buy/Not Buy
• Purchasers Pays the Money
• Consumers Actual User

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Learning Objective
Identify understand the individual factors
that affect consumer buying decisions.
140
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Individual Influences
A. Gender
Personality Self-Concept Lifestyle
Age Family Life Cycle
Health BeautyAids
UltraMake Over
Sports Car vsStation Wagon
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Perception
Learning Objective
Identify understand psychological factors that
affect consumer buying decisions.
144
8
How people select, organize, interpret stimuli
into a meaningful coherent picture.
Selective Exposure
Consumer notices certain stimuli and ignores
othersExposure 2500 Notice 11-20
SelectiveDistortion
Consumer changes or distorts information that
conflicts with feelings or beliefs
Selective Retention
Consumer remembers only that information that
supports personal beliefs
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Marketing Implications of Perception
Identify understand psychological factors that
affect consumer buying decisions.
Learning Objective
145
8
Labels, Freshness

• Important attributes
• Higher price
• Brand names
• Quality and reliability
• Threshold level of perception
• Product changes

Cadillac
Eveready Batteries
Yugo vs Honda
20 Change
Tide 300oz Jug
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B. Motivation
Learning Objective
Identify understand psychological factors that
affect consumer buying decisions.
146
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5. Self-Actualization
Maslows Hierarchy of Needs
4. EsteemStatus
3. SocialBelonging
A method of classifying human needs motivations
into five categories in order of importance.
2. SafetySecurity
1. Physiological Hunger/Thirst
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C. Learning
Learning Objective
Identify understand psychological factors that
affect consumer buying decisions.
148
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A process that creates changes in behavior,
immediate or expected, through experience and
practice.
Types of Learning
Description
Conceptual
Not learned from direct experience Head
knowledge
Experiential
An experience changes behaviorHands on Learning
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D. Beliefs and Attitudes
Learning Objective
Identify understand psychological factors that
affect consumer buying decisions.
149
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An organized pattern of knowledge that an
individual holds as true about his/her world.
Belief
Based on knowledge, faith, hearsay.
Brand Image beliefs about a certain brand
A learned tendency to respond consistently toward
a given object.
Attitude
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D. Beliefs and Attitudes
Learning Objective
Identify understand psychological factors that
affect consumer buying decisions.
150
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Changing Beliefs about Attributes
Changing the Importance of Beliefs
Adding New Beliefs
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Chapter Four Summary

• 1. Why marketing managers should understand
  consumer behavior.
• 2. Components of consumers decision process.
• 3. Consumers postpurchase evaluation process.
• 4. Types of consumer buying decisions
  significance of consumer involvement
• 5. Cultural factors affecting consumers
  decisions.
• Social factors that affecting consumers
  decisions.
• Individual factors affecting consumers
  decisions.
• Psychological factors affecting consumers
  decisions.

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chapter
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CHAPTER FIVE
Bus-2-Bus Marketing

• MARKETING TO OTHER BUSINESSES