1. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 6 Consumer Decision Making © Nonstock/Jupiterimages

2. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 2 Understanding Consumer Behavior Consumer behavior consumers make purchase decisions consumers use and dispose of product = HOW LO 1

3. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 3 LO 2 Consumer Decision-Making Process A five-step process used by consumers when buying goods or services.

4. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 4 Need Recognition Result of an imbalance between actual and desired states. Need Recognition Need Recognition LO 2

5. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 5 Consumers Scale Back A Pew Research Center poll suggests consumers are more focused on basic necessities. 63 percent of women and 51 percent of men report buying cheaper brands and increased shopping at discount stores. An increased number of respondents reported internet as a necessity, while a decreased number reported television. Source: Dick Silverman."Luxury and Necessity: Redefining Values." WWD. Wednesday, June 10, 2009. 8. Beyond the Book

6. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 6 Need Recognition Marketing helps consumers recognize an imbalance between present status and preferred state. Present Status Present Status Preferred State Internal Stimuli External Stimuli LO 2

7. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 7 Information Search Internal Information Search Recall information in memory External Information search Seek information in outside environment Nonmarketing controlled Marketing controlled LO 2

8. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 8 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 LO 2

9. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 9 Evoked Set Group of brands, resulting from an information search, from which a buyer can choose Evoked Set LO 2

10. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 10 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 LO 2

11. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 11 Purchase To buy or not to buy... Determines which attributes are most important in influencing a consumer’s choice LO 2

12. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 12 Cognitive Dissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. LO 3

13. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 13 Postpurchase Behavior Consumers can reduce dissonance by:  Seeking information that reinforces positive ideas about the purchase  Avoiding information that contradicts the purchase decision  Revoking the original decision by returning the product Marketing can minimize dissonance through effective communication with purchasers. LO 3

14. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 14 More Involvement Less Involvement Routine Response Behavior Routine Response Behavior Limited Decision Making Limited Decision Making Extensive Decision Making Extensive Decision Making Consumer Buying Decisions and Consumer Involvement LO 4

15. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 15 Involvement LO 4 the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior. Involvement is…

16. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 16 LO 4 Continuum of Consumer Buying Decisions

17. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 17 Factors Determining the Level of Consumer Involvement Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience LO 4

18. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 18 Marketing Implications of Involvement High-involvement purchases require: Extensive and informative promotion to target market Low-involvement purchases require: In-store promotion, eye-catching package design, and good displays. Coupons, cents-off, 2-for-1 offers LO 4

19. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 19 Biz Flix LO 7 Family Man

20. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 20 Factors Influencing Buying Decisions Social Factors Individual Factors Psycho- logical Factors Cultural Factors CONSUMER DECISION- MAKING PROCESS BUY / DON’T BUY LO 5

21. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 21 Components of Culture Myths Language Values Customs Rituals Laws Material artifacts LO 5

22. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 22 Culture is... Learned Functional Pervasive Dynamic LO 5

23. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 23 Understanding Cultural Differences LO 5 A firm has little chance of selling products in a culture that it does not understand. Like people, products have cultural value. In ChinaIn U.S. Color of mourning Brides wear

24. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 24 Subculture A homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group. LO 5

25. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 25 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. LO 5

26. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 26 U.S. Social Classes SOURCE: Adapted from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, December 1983, 267; Dennis Gilbert and Joseph A. Kahl, The American Class Structure: A Synthesis (Homewood, IL: Dorsey Press, 1982), ch. 11. LO 5

27. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 27 Social Influences Reference Groups Opinion Leaders Family Members LO 6

28. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 28 LO 6 Types of Reference Groups

29. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 29 Opinion Leaders LO 6 …are an individual who influences the opinion of others. …are the first to try new products and services out of pure curiosity. …can be challenging to locate. Marketers are increasingly using blogs, social networking, and other online media to determine and attract opinion leaders.

30. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 30 Family Initiators Influencers Decision Makers Purchasers Consumers Purchase Process Roles in the Family LO 6

31. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 31 Individual Influences Gender Age Life Cycle Personality Self-Concept Lifestyle Personality Self-Concept Lifestyle LO 7

32. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 32 Age and Family Life Cycle Stage Consumer tastes in food, clothing, cars, furniture, and recreation are often age related. Marketers define target markets according to life cycle stages such as “young singles” or “young married with children.” LO 7

33. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 33 Personality, Self-Concept, and Lifestyle Personality combines psychological makeup and environmental forces. Human behavior depends largely on self- concept. Self-concept combines ideal self-image and real self-image. LO 7

34. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 34 Psychological Influences Perception Motivation Learning Beliefs & Attitudes LO 8

35. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 35 Perception Selective Exposure Selective Distortion Selective Retention Consumer notices certain stimuli and ignores others 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 LO 8

36. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 36 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 LO 8

37. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 37 LO 8 Maslow’s Hierarchy of Needs

38. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 38 Types of Learning Experiential Conceptual An experience changes behavior Not learned through direct experience LO 8

39. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 39 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. LO 8 Beliefs and Attitudes

40. Chapter 6 Copyright ©2012 by Cengage Learning Inc. All rights reserved 40 Assignment Consumer Behavior Consumption Journal See Assignment Handout for Specific Instructions Get in groups of 5-7 and compare the results of your consumption journal with the rest of your group