1. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-2 CONSUMER BEHAVIOR C HAPTER

2. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin CONSUMER PURCHASE DECISION PROCESS Slide 5-6 Consumer Behavior Purchase Decision Process Problem Recognition: Perceiving a Need

3. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-7 FIGURE 5-1 FIGURE 5-1 Purchase decision process

4. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin CONSUMER PURCHASE DECISION PROCESS Slide 5-8 Information Search: Seeking Value  Internal Search  External Search Personal Sources Public Sources Market-Dominated Sources

5. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-9 FIGURE 5-2 FIGURE 5-2 Consumer Report’s evaluation of portable MP3-capable CD players

6. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin CONSUMER PURCHASE DECISION PROCESS Slide 5-10 Alternative Evaluation: Assessing Value  Evaluative Criteria Evaluative Criteria  Consideration Set Consideration Set Purchase Decision: Buying Value

7. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-11 FIGURE 5-A FIGURE 5-A What new car buyers consider most important in deciding what new car to buy

8. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin CONSUMER PURCHASE DECISION PROCESS Slide 5-12 Purchase Decision: Buying Value  Cognitive Dissonance Cognitive Dissonance Postpurchase Behavior: Value in Consumption or Use

9. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-13 Consumer Purchase Decision Why is post purchase behavior important?

10. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin MARKETING NEWSNET Slide 5-14 The Value of a Satisfied Customer

11. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin CONSUMER PURCHASE DECISION PROCESS Slide 5-15 Involvement and Problem-Solving VariationsInvolvement and Problem-Solving Variations  Routine Problem Solving  Limited Problem Solving Situational Influences  Extended Problem Solving  Involvement and Marketing Strategy

12. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-16 FIGURE 5-3 FIGURE 5-3 Comparison of problem-solving variations

13. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-18 FIGURE 5-4 FIGURE 5-4 Influences on the consumer purchase decision process

14. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-22 Motivation and Personality  Motivation Motivation Physiological Needs Safety Needs Social Needs Personal Needs Self-Actualization Needs  Personality Personality Self-Concept Self-Concept

15. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-23 FIGURE 5-5 FIGURE 5-5 Hierarchy of needs

16. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-24 Perception  Selective Perception Selective Perception Selective Exposure Selective Comprehension Selective Retention  Subliminal Perception Subliminal Perception

17. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin ETHICS AND SOCIAL RESPONSIBILITY ALERT Slide 5-25 The Ethics of Subliminal Messages

18. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-26 Perception  Perceived Risk Perceived Risk Obtain Seals of Approval Secure Endorsements from Influential People Provide Free Trials Give Extensive Usage Instructions Provide Warranties and Guarantees

19. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-27 Fresh Step Crystals Cat Litter Why use the Good Housekeeping Seal?

20. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-28 Mary Kay’s Velocity Fragrance Why offer a free sample through a website?

21. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-29 Learning  Behavioral Learning Drive Response Reinforcement Negative Reinforcement Stimulus Generalization Stimulus Discrimination  Cognitive Learning  Brand Loyalty Brand Loyalty

22. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-30 FIGURE 5-B FIGURE 5-B Brand loyalty tendency by product category

23. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-31 Values, Beliefs, and Attitudes  Attitude Formation Attitude Attitude Beliefs Beliefs  Attitude Change Change Beliefs About a Brand’s Attributes Change Perceived Importance of Attributes Add New Attributes to the Product

24. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-32 Colgate Total Toothpaste and Bayer Extra Strength Aspirin How did these ads change attitudes?

25. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin PSYCHOLOGICAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-33 Lifestyle  Psychographics  VALS ™ Thinkers Believers Achievers Strivers Experiencers Makers Innovators Survivors

26. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-35 VALS™ Consumer Segments How do consumers make purchase decisions?

27. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-39 Personal Influence  Opinion Leadership Opinion Leaders Opinion Leaders Word of Mouth Word of Mouth

28. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-40 Pierce Brosnan and Anna Kournikova Why use celebrity spokespersons?

29. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-41 FIGURE 5-C FIGURE 5-C Word of mouth influence

30. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-43 Reference Groups  Membership Group  Aspiration Group  Dissociative Group

31. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-44 Family Influence  Consumer Socialization Consumer Socialization  Family Life Cycle Family Life Cycle  Family Decision Making Information Gatherer Influencer Decision Maker Purchaser User

32. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-45 FIGURE 5-6 FIGURE 5-6 Modern family life cycle

33. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-46 Haggar Clothing What role do women play in this purchase?

34. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin SOCIOCULTURAL INFLUENCES ON CONSUMER BEHAVIOR Slide 5-47 Social Class  African American Buying Patterns  Hispanic Buying Patterns Assimulated Nonassimulated Culture and SubcultureCulture and Subculture  Asian American Buying Patterns

35. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-48 Bonne Bell Cosmetics Why target the African American women market?

36. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-49 Target Why use Spanish language ads in the U.S.?

37. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-71 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.

38. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-72 Purchase Decision Process The purchase decision process is the stages a buyer passes through in making choices about which products and services to buy.

39. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-73 Evaluative Criteria Evaluative criteria are the factors which represent both the objective attributes of a brand and the subjective ones a consumer uses to compare different products and brands.

40. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-74 Consideration Set A consideration set is the group of brands that a consumer would consider acceptable from among all the brands in the product class of which he or she is aware.

41. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-75 Cognitive Dissonance Cognitive dissonance is the feeling of postpurchase psychological tension or anxiety consumers may experience when faced with two or more highly attractive alternatives.

42. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-76 Involvement Involvement consists of the personal, social, and economic significance of the purchase to the consumer.

43. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-77 Situational Influences Situational influences consist of the five aspects of the purchase situation that impacts the consumer’s purchase decision process: (1) the purchase task, (2) social surroundings, (3) physical surroundings, (4) temporal effects, and (5) antecedent states.

44. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-78 Motivation Motivation is the energizing force that stimulates behavior to satisfy a need.

45. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-79 Personality Personality refers to a person’s consistent behaviors or responses to recurring situations.

46. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-80 Self-Concept Self-concept is the way people see themselves and the way they believe others see them.

47. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-81 Perception Perception is the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.

48. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-82 Subliminal Perception Subliminal perception is seeing or hearing messages without being aware of them.

49. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-83 Perceived Risk Perceived risk represents the anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences.

50. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-84 Learning Learning refers to those behaviors that result from (1) repeated experience and (2) reasoning.

51. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-85 Brand Loyalty Brand loyalty is a favorable attitude toward and consistent purchase of a single brand over time.

52. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-86 Attitude An attitude is a “learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way.”

53. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-87 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.

54. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-88 Lifestyle is a mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them. Lifestyle

55. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-89 Opinion leaders are individuals who exert direct or indirect social influence over others. Opinion Leaders

56. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-90 Word of mouth is the influencing of people during conversations. Word of Mouth

57. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-91 Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Reference Groups

58. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-92 Consumer socialization is the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers. Consumer Socialization

59. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-93 The family life cycle describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors. Family Life Cycle

60. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-94 Social class is the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. Social Class

61. © 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 5-95 Subcultures are subgroups within the larger, or national, culture with unique values, ideas, and attitudes. Subcultures