1. Consumer Decision Making
Chapter 4
Consumer Decision Making
Prepared by
Deborah Baker
Texas Christian University
Chapter 4 Ver 2e
©2000 South-Western College Publishing

2. Chapter 4 Objectives (continued)
1. Explain why marketing managers should understand consumer behavior.
2. Analyze the components of the consumer decision-making process.
3. Explain the consumer’s post-purchase evaluation process.
(continued)
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©2000 South-Western College Publishing

3. Chapter 4 Objectives (continued)
4. Identify the types of consumer buying decisions and discuss the significance of consumer involvement.
5. Identify and understand the cultural factors that affect consumer buying decisions.
6. Identify and understand the social factors that affect consumer buying decisions.
(continued)
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©2000 South-Western College Publishing

4. Chapter 4 Objectives
7. Identify and understand the individual factors that affect consumer buying decisions.
8. Identify and understand the psychological factors that affect consumer buying decisions.
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©2000 South-Western College Publishing

5. Understanding Consumer Behavior
Describes how consumers make purchase decisions
Describes how they use and dispose of goods/services
Reduces uncertainty when creating the marketing mix
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©2000 South-Western College Publishing

6. Consumer Decision-Making Process
Need Recognition
Cultural, Social, Individual and
Psychological Factors affect all steps
Information Search
Evaluation
of Alternatives
Purchase
Postpurchase
Behavior
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7. Need Recognition Stimuli
Internal
External
Marketing helps consumers recognize an imbalance between present status and preferred state
Preferred State
Present Status
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8. Information Search Internal Information Search
Recall information in memory
External Information search
Seek information in outside environment
Non-marketing controlled source
Marketing controlled source
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9. More product experience Less product experience
Information Search
Need Less Information
Need More Information
Less Risk
More knowledge
More product experience
Low level of interest
More Risk
Less knowledge
Less product experience
High level of interest
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©2000 South-Western College Publishing

10. Evaluation of Alternatives
Evoked Set
Evaluation of Products
Analyze product attributes
Use cutoff criteria
Rank attributes by importance
Purchase!
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11. Purchase To buy or not to buy... Marketing
Determines which attributes are most important in influencing a consumer’s choice
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12. Effective Communication Guarantees Warranties
Postpurchase Behavior
Cognitive Dissonance ?
Can minimize through:
Effective Communication
Follow-up
Guarantees Warranties
Marketing
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
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©2000 South-Western College Publishing

13. Types of Consumer Buying Decisions
Routine
Response
Behavior
Limited
Decision
Making
Extensive
Less
Involvement
More
Involvement
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©2000 South-Western College Publishing

14. Types of Consumer Buying Decisions
Routine
Response
Behavior
Little involvement in selection process
Frequently purchased low cost goods
May stick with one brand
Buy first/evaluate later
Quick decision
Limited
Decision
Making
Low levels of involvement
Low to moderate cost goods
Evaluation of a few alternative brands
Short to moderate time to decide
Extensive
Decision
Making
High involvement in selection process
High cost goods
Evaluation of many brands
Long time to decide
May experience cognitive dissonance
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©2000 South-Western College Publishing

15. Factors Determining Level of Involvement
Level of Consumer Involvement
Previous Experience
Interest
Factors Determining Level of Involvement
Perceived Risk of Negative Consequences
Social Visibility
Situation
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16. Psycho- logical Factors
Factors Influencing Buying Decisions
Social Factors
Individual Factors
Psycho- logical Factors
Cultural Factors
CONSUMER DECISION-
MAKING
PROCESS
BUY /
DON’T BUY
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17. Components of American
Cultural Factors
Components of American
Culture
Values
Language
Myths
Customs
Rituals
Laws
Material Artifacts
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©2000 South-Western College Publishing

18. Cultural Factors Core American Values Success Materialism Freedom
Consumer Decision Making
Cultural Factors
Core
American
Values
Success
Materialism
Freedom
Progress
Youth
Capitalism
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©2000 South-Western College Publishing
Chapter 4

19. Social Factors Social Influences Reference Groups Family Members
Opinion Leaders
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20. Types of Reference Groups
Direct
Indirect
Primary
Secondary
Aspirational
Non-aspirational
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21. Purchase Roles in the Family
Instigators
Influencers
Decision-Makers
Purchasers
Consumers
Purchase Roles in the Family
Children
Influence
Purchase
Decisions
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©2000 South-Western College Publishing

22. Individual Influences Self-Concept Lifestyle
Individual Factors
Individual Influences
Gender
Personality
Self-Concept Lifestyle
Age Life Cycle Stage
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23. Psychological Influences on Buying Decisions
Psychological Factors
Psychological Influences on Buying Decisions
Perception
Motivation
Learning
Beliefs & Attitudes
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24. Perception Selective Exposure Distortion Retention
Decide which stimuli to notice and which to ignore
Distortion
Distort information that conflicts with beliefs
Retention
Remember only information that supports feelings and beliefs
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25. Self- Actualization Needs
Motivation
Physiological Needs
Safety Needs
Social Needs
Esteem Needs
Self- Actualization Needs
Maslow’s Hierarchy of Needs
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©2000 South-Western College Publishing

26. An experience changes behavior Not learned through direct experience
Learning
Types of
Learning
Description
Experiential
Conceptual
An experience changes behavior
Not learned through direct experience
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27. Beliefs and Attitudes Description Belief Attitude
An organized pattern of knowledge that an individual holds as true.
Attitude
Learned tendency to respond consistently toward an object
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