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

2. Describe the stages in the consumer purchase decision process.
LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 4, YOU SHOULD BE ABLE TO:
LO1
Describe the stages in the consumer purchase decision process.
LO2
Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving.
LO3
Identify major psychological influences on consumer behavior.
LO4
Identify major sociocultural influences on consumer behavior.
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3. ENLIGHTENED CARMAKERS KNOW WHAT CUSTOM(H)ERS VALUE
The Sense of Styling
The Need for Speed
The Substance of Safety
The Shopping Experience
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4. FIGURE 4-1 The purchase decision process consists of five stages
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5. CONSUMER PURCHASE DECISION PROCESS
PROBLEM RECOGNITION
LO1
Consumer Behavior
Purchase Decision Process
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6. CONSUMER PURCHASE DECISION PROCESS
INFORMATION SEARCH
LO1
Internal Search
External Search
Personal Sources
Public Sources
Marketer-Dominated Sources
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7. FIGURE 4-2 Consumer Reports’ evaluation of smart phones
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8. CONSUMER PURCHASE DECISION PROCESS ALTERNATIVE EVALUATION
LO1
Evaluative Criteria
Consideration Set
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9. CONSUMER PURCHASE DECISION PROCESS
LO1
Decide from Whom to Buy
Decide When to Buy
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10. CONSUMER PURCHASE DECISION PROCESS POSTPURCHASE BEHAVIOR
LO1
Customer Satisfaction Studies
Satisfied Customers Tell 3 People
Dissatisfied Customers Tell 9 People
Cognitive Dissonance
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11. MARKETING MATTERS The Value of a Satisfied Customer to the Company
LO1
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12. Involvement Extended Problem Solving Limited Problem Solving
CONSUMER PURCHASE DECISION PROCESS
CONSUMER INVOLVEMENT & PROBLEM SOLVING
LO2
Involvement
Extended Problem Solving
Limited Problem Solving
Routine Problem Solving
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13. FIGURE 4-3 Comparison of problem-solving variations: extended, limited, and routine
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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
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15. CONSUMER PURCHASE DECISION PROCESS SITUATIONAL INFLUENCES
LO2
Situational Influences
Purchase Task
Social Surroundings
Physical Surroundings
Temporal Effects
Antecedent States
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16. FIGURE 4-4 Influences on the consumer purchase decision process from both internal and external sources
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17. CONSUMER PURCHASE DECISION PROCESS HOW CONSUMERS PURCHASE SERVICES
LO2
The Purchase Process
Search Properties
Experience Properties
Credence Properties
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18. FIGURE 4-A Consumers use search, experience, and credence properties to evaluate services
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19. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
MOTIVATION
LO3
Motivation
Hierarchy of Needs
Physiological Needs
Safety Needs
Social Needs
Personal Needs
Self-Actualization Needs
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20. FIGURE 4-5 Hierarchy of needs
Match.com
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21. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
PERSONALITY
LO3
Personality
Traits
Self-Concept
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22. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
PERCEPTION
LO3
Perception
Selective Perception
Selective Exposure
Selective Comprehension
Selective Retention
Subliminal Perception
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23. MAKING RESPONSIBLE DECISIONS The Ethics of Subliminal Messages
LO3
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24. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
PERCEIVED RISK
LO3
Strategies to Reduce Perceived Risk
Obtain Seals of Approval
Secure Endorsements
Provide Free Trials/Samples
Give Extensive Instructions
Provide Warranties/Guarantees
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25. Fresh Step and Mary Kay Velocity What strategy is used to reduce perceived risk?
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26. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
LEARNING
LO3
Learning
Behavioral Learning
Drive (Hunger)
Response
Cue
Reinforcement
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27. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
LEARNING
LO3
Behavioral Learning
Stimulus Generalization
Stimulus Discrimination
Cognitive Learning
Brand Loyalty
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28. Attitude Formation PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
VALUES, ATTITUDES AND BELIEFS
LO3
Attitude Formation
Attitude
Values
Beliefs
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29. Attitude Change PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
VALUES, ATTITUDES AND BELIEFS
LO3
Attitude Change
Change Beliefs About a Brand’s Attributes
Change Perceived Importance of Attributes
Add New Product Attributes
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30. Colgate and Hellmann's How did these ads change attitudes?
LO3
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31. PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR
CONSUMER LIFESTYLE
LO3
Lifestyle
Psychographics
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32. FIGURE 4-B VALS™ identifies eight consumer segments
INNOVATORS Sophisticated, Change Leading, Active, Take Charge
ACHIEVERS Successful, Career & Family Oriented, Moderate
THINKERS Information Seeking, Satisfied, Reflective
EXPERIENCERS Risk Seeking, Enthusiastic, Impulsive
BELIEVERS Conservative, Conventional, Traditional
MAKERS Homegrown, Self Sufficient, Macho, Family Oriented
STRIVERS Trendy, Approval, Seeking, Disenfranchised
SURVIVORS Passive, Risk Averse, Constrained
Copyright © 2010 by Strategic Business Insights. All rights reserved.
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33. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
PERSONAL INFLUENCE
LO4
Opinion Leaders
Dove Video
Word of Mouth
Buzz
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34. MARKETING MATTERS BZZAgent—The Buzz Experience
LO4
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35. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
REFERENCE GROUPS
LO4
Reference Groups
Membership Group
Aspiration Group
Dissociative Group
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36. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
FAMILY INFLUENCE
LO4
Consumer Socialization
Family Life Cycle
Traditional Family
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37. FIGURE 4-6 Modern family life cycle stages and flows
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38. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
FAMILY INFLUENCE
LO4
Family Decision-Making
Styles
Spouse-Dominant
Joint
Family Member Roles
Information Gatherer
Purchaser
Influencer
User
Decision Maker
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39. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR CULTURE AND SUBCULTURE
LO4
Nissan Ad
Culture
Subcultures
Hispanic Buying Patterns
African American Buying Patterns
Asian American Buying Patterns
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40. SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR
SOCIAL CLASS
LO4
Social Class
Upper Class
Middle Class
Working/Lower Class
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41. GROUPON: HELPING CONSUMERS WITH PURCHASE DECISIONS
VIDEO CASE 4
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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?
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43. VIDEO CASE 4
GROUPON
2. What is the Groupon Promise? How does the Promise affect a consumer’s perceived risk and cognitive dissonance?
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44. VIDEO CASE 4
GROUPON
3. Describe the five-stage purchase decision process for a typical Groupon user.
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45. VIDEO CASE 4
GROUPON
4. What are possible psychological and sociological influences on the Groupon consumer purchase decision process?
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46. VIDEO CASE 4
GROUPON
5. What challenges does Groupon face in the future? What actions would you recommend related to each challenge?
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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.
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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.
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49. Involvement
Involvement is the personal, social, and economic significance of the purchase to the consumer.
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50. Motivation
Motivation is the energizing force that stimulates behavior to satisfy a need.
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51. Personality
Personality is a person’s consistent behaviors or responses to recurring situations.
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52. Perception
Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.
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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.
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54. Learning
Learning consists of those behaviors that result from (1) repeated experience and (2) reasoning.
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55. Brand Loyalty
Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.
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56. Attitude
An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.
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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.
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58. Opinion Leaders
Opinion leaders are individuals who exert direct or indirect social influence over others.
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59. Word of mouth involves the influencing of people during conversations.
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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.
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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.
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62. Subcultures
Subcultures are the subgroups within the larger, or national, culture with unique values, ideas, and attitudes.
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