1. MKTG 6 CHAPTeR Consumer Decision Making

2. Understanding Consumer Behavior Consumer behavior Consumers ………purchase decisions consumers ………and ………of product = HOW

3. Importance of Consumer Behavior Why study consumer behavior? –Complex: personality is a poor predictor of purchasing. –Purchasing agent is variable (no longer wife, husband, etc…) –May have + attitude without intent to buy (I like Jennifer Anniston v.s. I plan to see Anniston’s new movie; Mercedes) –Routine or involved decisions

4. The Consumer Decision Process

5. Need Recognition ………. ………. stimuli ………. ………. stimuli ……..……..stimuli ……..……..stimuli

6. Search for Information ………………… …for Information

7. Factors Affecting Consumers’ Search Process Perceived Benefits Perceived Benefits

8. Actual or Perceived Risk _________ __ risk

9. Actual or Perceived Risk Performance risk Psychological risk Financial risk

10. An Involved Choice? 1.Time (convenience stores a good value vs grocery?) 3. Atmospherics (how stores makes you feel) –What are some of the other things that makes you purchase a particular product? 2. Reason for purchase (gift vs personal use; restaurant choice) Previous experience, interest, social visibility and purchase situation Purchase situation includes:

11. Purchase Situation by Gender

12. The Consumer Decision Process

13. Evaluation of Alternatives: Attribute Sets/ Evaluative criteria Universal Retrieval Evoked Set

14. Post purchase Post-purchase outcomes Customer satisfaction Post-purchase dissonance Customer loyalty

15. Cognitive Dissonance Dissonance Buyer’s remorse How do companies try to reduce it??

16. Other Influences Social factors (reference groups, opinion leaders, family) Cultural factors (values, subcultures, class) Individual factors (demographics, psychographics) Psychological factors (perception, motivation, learning, and beliefs)

17. Social Factors Reference groups –Those you look to for guidance. What are some reference groups that you can think of?? –Marketers: opinion leaders, influence others, usually type of product –Most influential for visible products (car vs mattress – function)

18. Cultural Factors Subcultures and values Social Class is defined as people with the same status in a society. It is NOT simply a function of income a.Factors U.S.: usually measured i.Occupation ii.Education iii.Housing b.U.S. is fluid (change) c.People over rank themselves

19. Individual Factors 1936 current 1965 1972 1980 1986 Betty Crocker pictures change as consumer attitudes and lifestyles also change. Demographic change Change in lifestyles and attitudes

20. Oil of Olay Ads AfterBefore People did not see the positive association between oil and beauty. As such, the second logo for Olay was changed and oil was taken out.

21. Psychological Factors Perception –Gathering & interpreting of information from the world around us. –The process involves: a.Selective exposure –Seek what interests us, ignore others –Ex: political information and what else?? b.Selective distortion –Screen/modify ideas we disagree with –Ex: power of suggestion, Bugs Bunny, and what else?? c.Selective retention –Remember what you want –Ex: forget homework, photo memory

22. Selective Distortion

23. 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 Motivation

24. Maslow’s Hierarchy of Needs Exhibit 5.5 Maslow’s Hierarchy of Needs

25. Safety Ad Appeal

26. InvolvementInvolvement and Consumer Buying Decisions