Why are we all so bad at shopping? https://youtu.be/BhKuPFu-sUU Choices of product (good/service) Pet Car Tablet/Laptop Health club membership

Consumer Decision Making chapter Chapter 5 Version 6e

Consumer Decision-Making Process A ____________ process used by consumers when buying goods or services.

Consumer Decision-Making Process _____________ ______________ __________________ Factors affect all steps Chapter 5 Version 6e

Need Recognition Present Status Preferred State Marketing helps consumers recognize an imbalance between present status and preferred state Chapter 5 Version 6e

Recognition of Unfulfilled Wants When a current product _______________________________ When the consumer _______________________________ When another product seems superior to the one currently used _______________________________ Chapter 4 Version 3e

Information Searches Internal External Process of ____________________ stored in the memory. Internal Process of __________________ in the outside environment. External

Information Search External Information search Internal Information Search Recall information in memory External Information search Seek information in outside environment ________________ controlled

External Information Searches Need More Information Need Less Information

Evaluation of Alternatives Evoked Set Purchase! Evaluation of Products Analyze _______________ Use cutoff criteria _______________ by importance

Purchase To buy or not to buy... Marketing Determines which attributes are most important in influencing a consumer’s choice

Postpurchase Behavior ___________________ ? Did I make a ___________? Did I buy the ___________? Did I get a ______________? Can minimize through: Marketing

Cognitive ______________ ________________ that a consumer experiences after recognizing an inconsistency between _________________________.

Need Recognition Just got a phone call . . . I have a job interview  Oh NO! I have nothing to wear! 

Go into store and talk to salesperson Information Search Go into store and talk to salesperson Go to the website Advice from friends

Evaluation of Options

Purchase

Post-Purchase Evaluation

Types of Consumer Buying Decisions _________ Response Behavior _________ Decision Making __________ Decision Making Less Involvement More Involvement

Five Factors influencing Decisions 1. Level of ______________________ 2. ________________ to make decision 3. _______________of good or service 4. Degree of ____________________ 5. Number of ___________________

Routine Response Behavior ________________in selection process ______________ purchased ______ cost goods May stick with ______________ ______________________ _______________ decision

Limited Decision Making _______________ of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide

Extensive Decision Making High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance

Level of Involvement Factors Determining Level of Involvement Situation Social Visibility Interest Perceived Risk of Negative Consequences Previous Experience Factors Determining Level of Involvement

Marketing Implications of Involvement High-involvement purchases require: extensive promotion to target market and good advertisement Low-involvement purchases require: in-store promotion and eye-catching package design

Culture Set of values norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next.

Cultural Influences on Buying Decisions Values Language Myths Customs Rituals Laws Components of American Culture Material Artifacts

Learning Objective Identify and understand the individual factors that affect consumer buying decisions.

Individual Influences Gender Personality Self-Concept Lifestyle Age Family Life Cycle

Psychographics The analytical technique used to examine consumer lifestyles and to categorize consumers.

“Strong Shoulders” Moms “Mothers of Invention” Moms “Types of Moms” “June Cleaver” Moms “Tug-of-War” Moms “Strong Shoulders” Moms “Mothers of Invention” Moms

Learning Objective Identify and understand the psychological factors that affect consumer buying decisions.

Psychological Influences Psychological Influences on Buying Decisions Perception Motivation Learning Beliefs & Attitudes

Perception Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture. Chapter 4 Version 3e

8 Perception Selective Exposure Selective Distortion Selective Retention Chapter 4 Version 3e

8 Perception Selective Exposure Selective Distortion Consumer notices certain stimuli and ignores others Consumer changes or distorts information that conflicts with feelings or beliefs Selective Retention Consumer remembers only that information that supports personal beliefs Chapter 4 Version 3e

A Consumer’s Selective Exposure 8 A Consumer’s Selective Exposure Exposure to over 250 advertisement messages per day Notices only 11 to 20 ads Chapter 4 Version 3e

Marketing Implications of Perception 8 Important attributes Higher price Brand names Quality and reliability Threshold level of perception Product changes Chapter 4 Version 3e

Maslow’s Hierarchy of Needs 8 Maslow’s Hierarchy of Needs A method of classifying human needs and motivations into five categories in ascending order of importance. Chapter 4 Version 3e

Maslow’s Hierarchy of Needs 8 Motivation Physiological Safety Social Esteem Self- Actualization Maslow’s Hierarchy of Needs Chapter 4 Version 3e

8 Learning A process that creates changes in behavior, immediate or expected, through experience and practice. Chapter 4 Version 3e

An experience changes behavior Not learned through direct experience 8 Types of Learning Types of Learning Description Experiential Conceptual An experience changes behavior Not learned through direct experience Chapter 4 Version 3e

Stimulus Generalization 8 Stimulus Generalization A form of learning that occurs when one response is extended to a second stimulus similar to the first. Chapter 4 Version 3e

8 Beliefs and Attitudes Belief Attitude An organized pattern of knowledge that an individual holds as true about his or her world. Belief A learned tendency to respond consistently toward a given object. Attitude Chapter 4 Version 3e