1. Chapter 1 An Overview of Marketing
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2. Learning Outcomes
Explain why marketing managers should understand consumer behavior
Analyze the components of the consumer decision-making process
Explain the consumer’s postpurchase evaluation process
Identify the types of consumer buying decisions and discuss the significance of consumer involvement
Describe how some marketers are reconceptualizing the consumer decision- making process

3. Learning Outcomes (continued)
Identify and understand the cultural factors that affect consumer buying decisions
Identify and understand the social factors that affect consumer buying decisions
Identify and understand the individual factors that affect consumer buying decisions
Identify and understand the psychological factors that affect consumer buying decisions

4. Understanding Consumer Behavior
Chapter 6 Consumer Decision Making
LO 1
Consumer behavior
Consumers make purchase decisions
Consumers use and dispose of purchased goods and services
= HOW
Example - If the product development manager for Trek bicycles learns through research that a more comfortable seat is a key attribute for purchasers of mountain bikes, Trek can redesign the seat to meet that criterion.

5. 6.1 The Consumer Decision-Making Process
Chapter 6 Consumer Decision Making
LO 2
The Consumer Decision-Making Process
The consumer decision-making process is a five-step process used by consumers when buying goods or services.
It is used as a guide for studying how consumers make decisions. Note that consumer decisions may not proceed in order through all the processes, and in fact, may end at any time without a purchase decision.

6. Consumers reduce dissonance by:
Cognitive Dissonance
Chapter 6 Consumer Decision Making
LO 3
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
Consumers reduce dissonance by:
Seeking information that reinforces the purchase decision
Avoiding information that contradicts the purchase decision
Revoking the original decision by returning the product
Consumers expect certain outcomes from the purchase, and how well these expectations are met determines the level of customer satisfaction.
For a marketer, an important element of any postpurchase evaluation is reducing any lingering doubts that the decision was sound.
Consumers try to reduce dissonance by justifying their decision. Marketing managers reduce dissonance through effective communication with purchasers.
Marketing-oriented companies perceive a contact center as an opportunity to engage customers and reinforce the brand promise.
Discussion/Team Activity
Discuss any of your purchases that generated cognitive dissonance and what was done to address the situation. What role, if any, did marketing play in minimizing cognitive dissonance? What was the outcome? Discuss ways in which the provider of the products/services might have reduced this inner tension.

7. 6.2 Continuum of Consumer Buying Decisions
Chapter 6 Consumer Decision Making
LO 4
6.2 Continuum of Consumer Buying Decisions
Consumer buying decisions fall along a continuum of three broad categories.
Routine response behavior: Type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services requiring low search.
Limited decision making: Consumer has previous product experience but is unfamiliar with the current brands available. A moderate effort is spent searching for information or in considering alternatives.
Extensive decision making: Applies to unfamiliar, expensive products, or an infrequently bought item
Discussion/Team Activity
Name products that fall into each of the decision making descriptions, and describe the decision-making process for each.

8. Factors Determining the Level of Consumer Involvement
Chapter 6 Consumer Decision Making
LO 4
Previous experience
Interest
Perceived risk of negative consequences
Social visibility
Involvement: Amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
The level of involvement in the purchase depends on the following factors:
Previous experience - When consumers have had previous experience with a product or repeated product trials, the level of involvement typically decreases and quick choices are made.
Interest - Involvement is directly related to consumer interests, such as cars, motorcycles, or electronics.
Perceived risk of negative consequences - As the risk increases, so does the consumer's level of involvement. Risks include financial risks, social risks, and psychological risks.
Social visibility - Involvement increases as the social visibility of a product increases. The products that make a statement about the user may include cars, jewelry, furniture, and clothing.
High involvement can take a number of different forms. It can be product involvement, situational involvement, shopping involvement, enduring involvement, and emotional involvement.

9. Marketing Implications of Involvement
Chapter 6 Consumer Decision Making
LO 4
High-involvement purchases
Require extensive and informative promotion to the target market
Low-involvement purchases
Require in-store promotion, eye-catching package design, and good displays
Coupons and two-for-one offers promote low-involvement items
For high-involvement products, a good ad gives consumers the information they need for making the purchase decision, as well as specifying the benefits and advantages of owning the product.
For low-involvement purchases, consumers may not recognize their wants until they are in the store. In-store promotion and package design are important tools for catching the customer’s attention. Good displays can help explain a product’s purpose and create recognition of a want.

10. 6.3 The Consumer Decision Journey
LO 5
The Consumer Decision Journey

11. 6.4 Factors That Affect the Consumer Decision Journey
LO 5
Factors That Affect the Consumer Decision Journey

12. Subculture and Social Class
Chapter 6 Consumer Decision Making
LO 6
Subculture: Homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group
Social class: Group of people in a society
Considered nearly equal in status or community esteem
Regularly socialize among themselves both formally and informally
Share behavioral norms
In the United States alone, countless subcultures can be identified, and many are concentrated geographically. The United States’ growing Hispanic population has made South and Central American subcultures a prime focus for many companies with large marketing budgets.
Social class is typically measured as a combination of occupation, income, education, wealth, and other variables.

13. 6.5 U.S. Social Classes LO 6 Chapter 6 Consumer Decision Making
As you can see from Exhibit 6.5, the upper and upper middle classes comprise the small segment of affluent and wealthy Americans. In terms of consumer buying patterns, the affluent are more likely to own their own home and purchase new cars and trucks and are less likely to smoke.

14. Impact of Social Class on Marketers
Chapter 6 Consumer Decision Making
LO 6
Social class indicates which medium to use for advertising
Knowing what products appeal to which social classes help marketers determine where to best distribute their products

15. Reference groups Opinion leaders Family members
Social Influences
Chapter 6 Consumer Decision Making
LO 7
Reference groups
Opinion leaders
Family members
Consumers interact socially with reference groups, opinion leaders, and family members to obtain product information and decision approval.

16. 6.6 Types of Reference Groups
Chapter 6 Consumer Decision Making
LO 7
Types of Reference Groups
Reference groups are characterized as either direct or indirect.
Direct reference groups may be primary or secondary. Primary membership groups include all groups with which people interact regularly in an informal way, such as family, friends, and coworkers. People associate with secondary membership groups less consistently and more formally. This includes clubs, professional groups, and religious groups.
Indirect reference groups include aspirational reference groups, such as organizations that a person would like to join. On the other hand, a nonaspirational reference group is one that someone wants to avoid being identified with.

17. Influences of Reference Groups
Chapter 6 Consumer Decision Making
LO 7
Serve as information sources and influence perceptions
Affect an individual’s aspiration levels
Constrain or stimulate consumer behavior through their norms
The activities, values, and goals of reference groups directly influence consumer behavior.

18. Individual Differences in Susceptibility to Social Influences
Chapter 6 Consumer Decision Making
LO 7
Not all persons are equally influenced in their purchase decisions
Consumers differ in their feelings of connectedness to other consumers
Separated self-schema
Connected self-schema
A consumer with a separated self-schema perceives himself as distinct and separate from others.
A person with a connected self-schema sees himself as an integral part of a group.

19. Individual Influences
Chapter 6 Consumer Decision Making
LO 8
Gender
Age
Life cycle
Personality
Self-concept
Lifestyle
A person’s buying decisions are influenced by unique personal characteristics, such as gender, age and life cycle stage, and personality, self-concept, and lifestyle.
The physiological differences in men and women result in the need for different products. Trends in gender marketing are influenced by the changing roles of men and women.
The age and family life cycle can have a significant impact on consumer behavior. Consumer tastes in clothes, food, cars, and recreation are often age related. Related to a person’s age is his or her place in the family life cycle, an orderly series of stages through which consumers’ attitudes and behavior evolve through maturity, experience, and changing income and status.
Personality is a broad concept combining psychological makeup and environmental forces.
Self-concept combines the ideal self-image and the real self-image. Consumers seldom buy products that jeopardize their self-image.
A lifestyle is a mode of living as identified by a person’s activities, interests, and opinions.

20. Psychological Influences
Chapter 6 Consumer Decision Making
LO 9
Perception
Motivation
Learning
The psychological influences are the factors consumers use to interact with their world. They are the tools used to recognize feelings, gather and analyze information, formulate thoughts and opinions, and take action.
Perception
Marketers use perception to identify important attributes
Price
Brand names
Quality and reliability
Motivation
Maslow’s hierarchy of needs: Method of classifying human needs and motivations into five categories in ascending order of importance
Physiological, safety, social, esteem, and self-actualization
Learning
Types
Experiential - Occurs when an experience changes behavior
Conceptual - Not learned through direct experience but based upon reasoning
Stimulus generalization is a form of learning that occurs when one response is extended to a second stimulus similar to the first
Stimulus discrimination is a learned ability to differentiate among similar products

21. Key Terms Consumer behavior Nonmarketing-controlled information source
Value
Perceived value
Utilitarian value
Hedonic value
Consumer decision-making process
Need recognition
Want
Stimulus
Internal information search
External information search
Nonmarketing-controlled information source
Marketing-controlled information source
Evoked set (consideration set)
Cognitive dissonance
Involvement
Routine response behavior
Limited decision making
Extensive decision making
Showrooming
Culture
Subculture

22. Key Terms (continued 1) Social class Connected self-schema
Chapter 6 Consumer Decision Making
Key Terms (continued 1)
Social class
Reference group
Primary membership group
Secondary membership group
Aspirational reference group
Norm
Nonaspirational reference group
Opinion leader
Socialization process
Separated self-schema
Connected self-schema
Personality
Self-concept
Ideal self-image
Real self-image
Perception
Selective exposure
Selective distortion
Selective retention
Motive
Maslow’s hierarchy of needs
Learning
Stimulus generalization
Stimulus discrimination

23. Summary
Consumers follow the consumer decision-making process while making a purchase
Consumer decisions fall under a continuum of three categories
Marketers are reconceptualizing the consumer decision-making process
Consumers seek out the opinions of others to reduce their search and evaluation effort