1. MKTG 5 CHAPTER Consumer Decision Making

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

3. Importance of Consumer Behavior Why study consumer behavior? –Complex: personality is a poor predictor of purchasing. –Purchasing agent is variable (no longer wife, husband, etc…) –May have + attitude without intent to buy (I like Jennifer Anniston v.s. I plan to see Anniston’s new movie; Mercedes) –Routine or involved decisions

4. An Involved Choice? 1.Time (convenience stores a good value vs grocery?) 3. Atmospherics (how stores makes you feel) –What are some of the other things that makes you purchase a particular product? 2. Reason for purchase (gift vs personal use; restaurant choice) Previous experience, interest, risk, social visibility and purchase situation Purchase situation includes:

5. Purchase Situation by Gender

6. Consumer Decision-Making Process Postpurchase Behavior (satisfaction, cognitive dissonance) Postpurchase Behavior (satisfaction, cognitive dissonance) Purchase Evaluation of Alternatives (evoked set) Evaluation of Alternatives (evoked set) Information Search (internal/external) Information Search (internal/external) Need Recognition (vs.want) Need Recognition (vs.want) Cultural, Social, Individual and Psychological Factors affect all steps Cultural, Social, Individual and Psychological Factors affect all steps

7. Cognitive Dissonance Dissonance Buyer’s remorse Ex: Neiman Marcus, United Airlines, and what else??

8. Other Influences Social factors (reference groups, opinion leaders, family) Cultural factors (values, subcultures, class) Individual factors (demographics, psychographics) Psychological factors (perception, motivation, learning, and beliefs)

9. Social Factors Reference groups –Those you look to for guidance. What are some reference groups that you can think of?? –Marketers: opinion leaders, influence others, usually type of product –Most influential for visible products (car vs mattress – function)

10. Cultural Influences Subcultures and values Social Class is defined as people with the same status in a society. It is NOT simply a function of income a.Factors U.S.: usually measured i.Occupation ii.Education iii.Housing b.U.S. is fluid (change) c.People over rank themselves

11. Individual Influences 1936 current 1965 1972 1980 1986 Betty Crocker pictures change as consumer attitudes and lifestyles also change. Demographic change Change in lifestyles and attitudes

12. Oil of Olay Ads AfterBefore People did not see the positive association between oil and beauty. As such, the second logo for Olay was changed and oil was taken out.

13. Psychological Influences Perception –Gathering & interpreting of information from the world around us. –The process involves: a.Selective exposure –Seek what interests us, ignore others –Ex: political information and what else?? b.Selective distortion –Screen/modify ideas we disagree with –Ex: power of suggestion, Bugs Bunny, and what else?? c.Selective retention –Remember what you want –Ex: forget homework, photo memory

14. Selective Distortion

15. Motivation A method of classifying human needs and motivations into five categories in ascending order of importance. Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs

16. Maslow’s Hierarchy of Needs LO 7 Exhibit 5.5 Maslow’s Hierarchy of Needs

17. Safety Ad Appeal

18. XBOX 360: Address what “needs?”

20. Summary Why study consumer behavior? Involvement factors –Social, cultural, individual, psychological Hierarchy of needs Any questions?