1. 1 Understanding Consumer Behavior Consumer behavior consumers make purchase decisions consumers use and dispose of product = HOW

2. 2 The Consumer Decision- Making Process A five-step process used by consumers when buying goods or services.

3. 3 Need Recognition Marketing helps consumers recognize an imbalance between present status and preferred state. Present Status Present Status Preferred State Internal Stimuli External Stimuli

4. 4 Information Search Internal Information Search Recall information in memory External Information Search Seek information in outside environment Nonmarketing- controlled Marketing- controlled

5. 5 External Information Searches Need More Information More Risk Less knowledge Less product experience High level of interest Lack of confidence Less Risk More knowledge More product experience Low level of interest Confidence in decision Need Less Information Evoked Set Group of brands, resulting from an information search, from which a buyer can choose

6. 6 Evaluation of Alternatives and Purchase Evoked Set Purchase! Analyze product attributes Analyze product attributes Rank attributes by importance Rank attributes by importance Use cutoff criteria

7. 7 Postpurchase Behavior Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

8. 8 Postpurchase Behavior Seeking information that reinforces positive ideas about the purchase Avoiding information that contradicts the purchase decision Revoking the original decision by returning the product Consumers can reduce dissonance by:

9. More Involvement Less Involvement Routine Response Behavior Routine Response Behavior Limited Decision Making Limited Decision Making Extensive Decision Making Extensive Decision Making 9 Consumer Buying Decisions and Consumer Involvement Involvement The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

10. 10 RoutineLimitedExtensive InvolvementLowLow to Moderate High TimeShortShort to Moderate Long CostLow Low to Moderate High Information Search Internal OnlyMostly Internal Internal and External Number of Alternatives OneFewMany Continuum of Consumer Buying Decisions

11. 11 Factors Determining the Level of Consumer Involvement Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience

12. Not All Involvement Is The Same Enduring Involvement Emotional Involvement Situational Involvement Shopping Involvement Product Involvement 12

13. 13 Marketing Implications of Involvement High-involvement purchases require: Extensive and Informative promotion to target market Extensive and Informative promotion to target market Low-involvement purchases require: In-store promotion, eye-catching package design, and good displays. Coupons, and two-for-one offers In-store promotion, eye-catching package design, and good displays. Coupons, and two-for-one offers

14. 14 Factors Influencing Buying Decisions Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY or DON’T BUY

15. 15 Components of Culture Myths Language Values Customs Rituals Laws

16. 16 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. The Impact of Social Class on Marketing Indicates which medium to use for advertising Helps determine the best distribution for products

17. 17 Social Influences Reference Groups Opinion Leaders Family Members Information sources and influence perceptions Affect an individual’s aspiration levels Norms either constrain or stimulate consumer behavior First to try new products and services Most important social institution for many consumers Purchase decisions vary significantly among family members Children can have great influence

18. Individual Influences Gender Age/Family Life Cycle Personality, Self-Concept, and Lifestyle Personality, Self-Concept, and Lifestyle 18 Physiological differences between men and women result in different needs, such as health and beauty products. Trends in gender marketing are influenced by the changing roles of men and women in society. Tastes in food, clothing, cars, furniture, and recreation are often age-related Target markets according to life cycle stages such as “young singles” and “young married with children.” Personality combines psychological makeup and environmental forces Human behavior depends largely on self-concept Self-concept combines ideal self-image and real self-image.

19. Perception Motivation Learning Beliefs & Attitudes 19 Psychological Influences

20. Selective Exposure Selective Distortion Selective Retention Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Consumer changes or distorts information that conflicts with feelings or beliefs Consumer remembers only that information that supports personal beliefs Consumer remembers only that information that supports personal beliefs 20 Perception

21. 21 Important attributes Price Brand names Quality and reliability Threshold level of perception Product or repositioning changes Foreign consumer perception Subliminal perception Marketing Implications of Perception

22. 22 Maslow’s Hierarchy of Needs

23. Experiential Conceptual An experience changes behavior Not learned through direct experience 23 Types of Learning

24. 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. Beliefs and Attitudes 24

25. 6-1 6-1 Explain why marketing managers should understand consumer behavior 6-2 6-2 Analyze the components of the consumer decision-making process 6-3 6-3 Explain the consumer’s postpurchase evaluation process 25 LEARNING OUTCOMES

26. 6-4 6-4 Identify the types of consumer buying decisions and discuss the significance of consumer involvement 6-5 6-5 Identify and understand the cultural factors that affect consumer buying decisions 6-6 6-6 Identify and understand the social factors that affect consumer buying decisions 26 LEARNING OUTCOMES

27. 6-7 6-7 Identify and understand the individual factors that affect consumer buying decisions 6-8 6-8 Identify and understand the psychological factors that affect consumer buying decisions 6-9 6-9 Define the key terms listed in chapter prep 27 LEARNING OUTCOMES