1. McGraw-Hill/Irwin Copyright © 2009 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 5, YOU SHOULD BE ABLE TO: LO1 Describe the stages in the consumer purchase decision process. 5-2

3. Identify the major sociocultural influences on consumer behavior. LO3 LO4 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO: Identify major psychological influences on consumer behavior. 5-3

4. WHO’S REALLY BUYING THAT NEW CAR? JUST ASK HER! 5-4

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

6. FIGURE 5-1 FIGURE 5-1 The purchase decision process consists of five stages 5-6

7.  Internal Search PURCHASE DECISION PROCESS INFORMATION SEARCH LO1  External Search Personal Sources Public Sources Market-Dominated Sources 5-7

8. FIGURE 5-2 FIGURE 5-2 Consumer Reports’ evaluation of flash-memory MP3 players (abridged) 5-8

9. PURCHASE DECISION PROCESS ALTERNATIVE EVALUATION LO1  Evaluative Criteria Evaluative Criteria  Consideration Set Consideration Set 5-9

10. PURCHASE DECISION PROCESS PURCHASE DECISION LO1  Decide from Whom to Buy  Decide When to Buy 5-10

11. PURCHASE DECISION PROCESS POSTPURCHASE BEHAVIOR LO1  Cognitive Dissonance Cognitive Dissonance  Marketing Matters: The Value of a Satisfied Customer 5-11

12. PURCHASE DECISION PROCESS CONSUMER INVOLVEMENT & PROBLEM SOLVING LO2  Involvement Involvement Extended Problem Solving Limited Problem Solving Routine Problem Solving 5-12

13. FIGURE 5-3 FIGURE 5-3 Comparison of problem-solving variations: extended, limited, and routine 5-13

14. PURCHASE DECISION PROCESS INVOLVEMENT & MARKETING STRATEGY LO2  Low Involvement Maintain Product Quality Avoid Stockouts Reduce Cognitive Dissonance with Ads  High Involvement: Use Ads and Personal Selling 5-14

15. PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES LO2  Situational Influences Situational Influences Purchase Task Social Surroundings Physical Surroundings Temporal Effects Antecedent States 5-15

16. FIGURE 5-4 FIGURE 5-4 Influences on the consumer purchase decision process from both internal and external sources 5-16

17. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR MOTIVATION AND PERSONALITY LO3  Motivation Motivation Psychological Needs Safety Needs Social Needs Personal Needs Self-Actualization Needs  Hierarchy of Needs Hierarchy of Needs 5-17

18. FIGURE 5-5 FIGURE 5-5 Hierarchy of needs 5-18

19. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR MOTIVATION AND PERSONALITY LO3  Personality Personality  Traits Traits  National Character  Self-Concept Self-Concept 5-19

20. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR PERCEPTION LO3  Perception Perception Selective Perception Selective Exposure Selective Comprehension Selective Retention  Subliminal Perception Subliminal Perception 5-20

21. 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 5-21

22. Fresh Step and Velocity What strategy to reduce risk? 5-22

23. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR LEARNING LO3  Learning Learning Cue Response Reinforcement  Behavioral Learning Drive (Hunger) 5-23

24. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR LEARNING LO3 Stimulus Discrimination  Behavioral Learning Stimulus Generalization  Cognitive Learning  Brand Loyalty Brand Loyalty 5-24

25. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR ATTITUDES AND BELIEFS LO3 Beliefs  Attitude Formation Values Attitude 5-25

26. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR ATTITUDES AND BELIEFS LO3 Add New Product Attributes  Attitude Change Changes Perceived Importance of Attributes Change Beliefs About a Brand’s Attributes 5-26

27. Colgate and Bayer How did the ads change attitudes for these products? 5-27

28. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR CONSUMER LIFESTYLE LO3  Lifestyle Lifestyle  Psychographics 5-28

29. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR PERSONAL INFLUENCE LO4  Opinion Leaders Opinion Leaders  Word of Mouth Word of Mouth Buzz 5-29

30. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR REFERENCE GROUPS LO4 Dissociative Group  Reference Groups Reference Groups Aspiration Group Membership Group 5-30

31. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR FAMILY INFLUENCE LO4  Consumer Socialization Consumer Socialization  Family Life Cycle Family Life Cycle Traditional Family  Family Decision Making Information Gatherer Influencer Decision Maker Purchaser User 5-31

32. FIGURE 5-6 FIGURE 5-6 Modern family life cycle stages and flows 5-32

33. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR SOCIAL CLASS LO4  Social Class Social Class Working/Lower Class Middle Class Upper Class 5-33

34. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR CULTURE AND SUBCULTURE LO4  Culture Hispanic Buying Patterns  Subculture Subculture African American Buying Patterns Asian American Buying Patterns 5-34

35. BEST BUY: USING CUSTOMER CENTRICITY TO CONNECT WITH CUSTOMERS VIDEO CASE 5 5-35

36. VIDEO CASE 5 BEST BUY 1. How has an understanding of consumer behavior helped Best Buy grow from a small specialty audio retailer to the world’s largest consumer electronics retailer? 5-36

37. VIDEO CASE 5 BEST BUY 2. What were the advantages and disadvantages of using “customer centricity” to create five segments of Best Buy customers. 5-37

38. VIDEO CASE 5 BEST BUY 3. How are men and women different in their consumer behavior when they are shopping in a Best Buy store? 5-38

39. 4. What are two or three (a) objective evaluative criteria and (b) subjective evaluative criteria female consumers use when shopping for electronics at Best Buy? VIDEO CASE 5 BEST BUY 5-39

40. 5. What challenges does Best Buy face in the future? VIDEO CASE 5 BEST BUY 5-40

41. MISTAKES MUY GRANDE SUPPLEMENTAL LECTURE NOTE 5-1 5-41

42. BUYING PROCESS FOR STARBUCKS COFFEE IN-CLASS ACTIVITY 5-1 5-42

43. Starbucks House Blend Coffee and Server 5-43

44. FIGURE 5-A FIGURE 5-A Purchase decision process 5-44

45. MAKING DECISIONS WITH THE PRESIDENT OF KEN DAVIS PRODUCTS, INC. IN-CLASS ACTIVITY 5-2 5-45

46. Ken Davis Jazz it Up Marinade Sauce 5-46

47. Ken Davis News 5-47

48. 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. 5-48

49. 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. 5-49

50. Evaluative Criteria Evaluative criteria consist of Factors that represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands. 5-50

51. Consideration Set A consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware. 5-51

52. Cognitive Dissonance Cognitive dissonance is the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives. 5-52

53. Involvement Involvement is the personal, social, and economic significance of the purchase to the consumer. 5-53

54. Situational Influences Situational influences consist of the five aspects of the purchase situation that impacts the consumer’s purchase decision process: (1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states. 5-54

55. Motivation Motivation is the energizing force that stimulates behavior to satisfy a need. 5-55

56. Personality Personality is a person’s consistent behaviors or responses to recurring situations. 5-56

57. Self-Concept Self-concept is the way people see themselves and the way they believe others see them. 5-57

58. Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world. 5-58

59. Subliminal Perception Subliminal perception involves seeing or hearing messages without being aware of them. 5-59

60. Perceived Risk Perceived risk is the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. 5-60

61. Learning Learning consists of those behaviors that result from (1) repeated experience and (2) reasoning. 5-61

62. Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time. 5-62

63. Attitude An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. 5-63

64. 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. 5-64

65. Lifestyle Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them. 5-65

66. Opinion Leaders Opinion leaders are individuals who exert direct or indirect social influence over others. 5-66

67. Word of Mouth Word of mouth involves the influencing of people during conversations. 5-67

68. 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. 5-68

69. Consumer Socialization Consumer socialization is the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. 5-69

70. 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. 5-70

71. Social Class Social class consists of the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. 5-71

72. Subcultures Subcultures are the subgroups within the larger, or national, culture with unique values, ideas, and attitudes. 5-72