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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

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Presentation on theme: "McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved."— Presentation transcript:

1 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2 Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving. LO2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO: LO1 Describe the stages in the consumer purchase decision process. Identify major sociocultural influences on consumer behavior. LO3 LO4 Identify major psychological influences on consumer behavior. 4-2

3 ENLIGHTENED CARMAKERS KNOW WHAT CUSTOM(H)ERS VALUE  The Sense of Styling  The Need for Speed  The Substance of Safety  The Shopping Experience 4-3

4 FIGURE 4-1 FIGURE 4-1 The purchase decision process consists of five stages 4-4

5  Consumer Behavior Consumer Behavior CONSUMER PURCHASE DECISION PROCESS PROBLEM RECOGNITION LO1  Purchase Decision Process Purchase Decision Process 4-5

6  Internal Search CONSUMER PURCHASE DECISION PROCESS INFORMATION SEARCH LO1  External Search Personal Sources Public Sources Marketer-Dominated Sources 4-6

7 FIGURE 4-2 FIGURE 4-2 Consumer Reports’ evaluation of smart phones 4-7

8 CONSUMER PURCHASE DECISION PROCESS ALTERNATIVE EVALUATION LO1  Evaluative Criteria  Consideration Set 4-8

9  Decide When to Buy CONSUMER PURCHASE DECISION PROCESS PURCHASE DECISION LO1  Decide from Whom to Buy 4-9

10 CONSUMER PURCHASE DECISION PROCESS POSTPURCHASE BEHAVIOR LO1  Customer Satisfaction Studies Satisfied Customers Tell 3 People Dissatisfied Customers Tell 9 People  Cognitive Dissonance 4-10

11 MARKETING MATTERS The Value of a Satisfied Customer to the Company LO1 4-11

12 CONSUMER PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT & PROBLEM SOLVING LO2  Involvement Involvement Extended Problem Solving Limited Problem Solving Routine Problem Solving 4-12

13 FIGURE 4-3 FIGURE 4-3 Comparison of problem-solving variations: extended, limited, and routine 4-13

14 CONSUMER PURCHASE DECISION PROCESS INVOLVEMENT & MARKETING STRATEGY LO2  Low Involvement Maintain Product Quality Avoid Stockouts Reduce Cognitive Dissonance with Ads  High Involvement Use Comparative Ads Use Personal Selling 4-14

15 CONSUMER PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES LO2  Situational Influences Purchase Task Social Surroundings Physical Surroundings Temporal Effects Antecedent States 4-15

16 FIGURE 4-4 FIGURE 4-4 Influences on the consumer purchase decision process from both internal and external sources 4-16

17 CONSUMER PURCHASE DECISION PROCESS HOW CONSUMERS PURCHASE SERVICES LO2  The Purchase Process Search Properties Experience Properties Credence Properties 4-17

18 FIGURE 4-A FIGURE 4-A Consumers use search, experience, and credence properties to evaluate services 4-18

19 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR MOTIVATION LO3  Motivation Motivation Physiological Needs Safety Needs Social Needs Personal Needs Self-Actualization Needs  Hierarchy of Needs 4-19

20 FIGURE 4-5 FIGURE 4-5 Hierarchy of needs Match.com 4-20

21 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERSONALITY LO3  Personality Personality  Traits  Self-Concept 4-21

22 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERCEPTION LO3  Perception Perception Selective Perception Selective Exposure Selective Comprehension Selective Retention  Subliminal Perception 4-22

23 MAKING RESPONSIBLE DECISIONS The Ethics of Subliminal Messages LO3 4-23

24 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERCEIVED RISK LO3  Strategies to Reduce Perceived Risk Strategies to Reduce Perceived Risk Secure Endorsements Provide Free Trials/Samples Give Extensive Instructions Provide Warranties/Guarantees Obtain Seals of Approval 4-24

25 Fresh Step and Mary Kay Velocity What strategy is used to reduce perceived risk? LO3 4-25

26 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR LEARNING LO3  Learning Learning Cue Response Reinforcement  Behavioral Learning Drive (Hunger) 4-26

27 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR LEARNING LO3 Stimulus Discrimination Stimulus Generalization  Cognitive Learning  Brand Loyalty Brand Loyalty  Behavioral Learning 4-27

28 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR VALUES, ATTITUDES AND BELIEFS LO3 Beliefs Values Attitude  Attitude Formation 4-28

29 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR VALUES, ATTITUDES AND BELIEFS LO3 Add New Product Attributes Change Perceived Importance of Attributes Change Beliefs About a Brand’s Attributes  Attitude Change 4-29

30 Colgate and Hellmann's How did these ads change attitudes? LO3 4-30

31 PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER LIFESTYLE LO3  Lifestyle  Psychographics 4-31

32 FIGURE 4-B FIGURE 4-B VALS™ identifies eight consumer segments Copyright © 2010 by Strategic Business Insights. All rights reserved. INNOVATORS Sophisticated, Change Leading, Active, Take Charge THINKERS Information Seeking, Satisfied, Reflective BELIEVERS Conservative, Conventional, Traditional STRIVERS Trendy, Approval, Seeking, Disenfranchised ACHIEVERS Successful, Career & Family Oriented, Moderate EXPERIENCERS Risk Seeking, Enthusiastic, Impulsive MAKERS Homegrown, Self Sufficient, Macho, Family Oriented SURVIVORS Passive, Risk Averse, Constrained 4-32

33 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR PERSONAL INFLUENCE LO4  Opinion Leaders Opinion Leaders  Word of Mouth Word of Mouth Buzz Dove Video 4-33

34 MARKETING MATTERS BZZAgent—The Buzz Experience LO4 4-34

35 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR REFERENCE GROUPS LO4 Dissociative Group  Reference Groups Reference Groups Aspiration Group Membership Group 4-35

36 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR FAMILY INFLUENCE LO4  Consumer Socialization  Family Life Cycle Family Life Cycle Traditional Family 4-36

37 FIGURE 4-6 FIGURE 4-6 Modern family life cycle stages and flows 4-37

38 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR FAMILY INFLUENCE LO4  Information Gatherer  Influencer  Decision Maker  Purchaser  User  Family Decision-Making Styles  Spouse-Dominant  Joint Family Member Roles 4-38

39 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR CULTURE AND SUBCULTURE LO4  Culture Hispanic Buying Patterns  Subcultures Subcultures African American Buying Patterns Asian American Buying Patterns Nissan Ad 4-39

40 SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS LO4  Social Class Working/Lower Class Middle Class Upper Class 4-40

41 GROUPON: HELPING CONSUMERS WITH PURCHASE DECISIONS VIDEO CASE

42 VIDEO CASE 4 GROUPON 1. How has an understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today? 4-42

43 VIDEO CASE 4 GROUPON 2. What is the Groupon Promise? How does the Promise affect a consumer’s perceived risk and cognitive dissonance? 4-43

44 VIDEO CASE 4 GROUPON 3. Describe the five-stage purchase decision process for a typical Groupon user. 4-44

45 4. What are possible psychological and sociological influences on the Groupon consumer purchase decision process? VIDEO CASE 4 GROUPON 4-45

46 5. What challenges does Groupon face in the future? What actions would you recommend related to each challenge? VIDEO CASE 4 GROUPON 4-46

47 Consumer Behavior Consumer behavior consists of the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions. 4-47

48 Purchase Decision Process The purchase decision process consists of the five stages a buyer passes through in making choices about which products and services to buy: (1) problem recognition, (2) information search, (3) alternative evaluation, (4) purchase decision, and (5) postpurchase behavior. 4-48

49 Involvement Involvement is the personal, social, and economic significance of the purchase to the consumer. 4-49

50 Motivation Motivation is the energizing force that stimulates behavior to satisfy a need. 4-50

51 Personality Personality is a person’s consistent behaviors or responses to recurring situations. 4-51

52 Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. 4-52

53 Perceived Risk Perceived risk is the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. 4-53

54 Learning Learning consists of those behaviors that result from (1) repeated experience and (2) reasoning. 4-54

55 Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. 4-55

56 Attitude An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. 4-56

57 Beliefs Beliefs are a consumer’s subjective perception of how a product or brand performs on different attributes based on personal experience, advertising, and discussions with other people. 4-57

58 Opinion Leaders Opinion leaders are individuals who exert direct or indirect social influence over others. 4-58

59 Word of Mouth Word of mouth involves the influencing of people during conversations. 4-59

60 Reference Groups Reference groups consists of people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. 4-60

61 Family Life Cycle A family life cycle consists of the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. 4-61

62 Subcultures Subcultures are the subgroups within the larger, or national, culture with unique values, ideas, and attitudes. 4-62


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