1. McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. Understanding Consumer Behaviour 1-2 LEARNING OBJECTIVES (LO) After reading Chapter 5, you should be able to : LO1 LO3 LO2 LO4 Describe the stages in the consumer purchase decision process. Distinguish among three variations of the consumer purchase decision process: routine, limited, and extended problem solving. Identify major psychological influences on consumer behavior. Identify the major sociocultural influences on consumer behavior.

3. Luxury Goods Why Brand Consumers? Opening Story –Luxury Goods in China 1-3

4. The Purchase Decision Process Problem Recognition Stages in Consumer Purchase Decision 1-4 LO1  Consumer Behavior Consumer Behavior  Purchase Decision Process Purchase Decision Process

5. Stages in Consumer Purchase Decision 1-5 LO1 FIGURE 5-1 FIGURE 5-1 The purchase decision process consists of five stages

6. The Purchase Decision Process Information Search Stages in Consumer Purchase Decision 1-6 LO1  Internal Search  External Search Personal Sources Public Sources Market-Dominated Sources

7. Stages in Consumer Purchase Decision 1-7 LO1 FIGURE 5-2 FIGURE 5-2 Consumer Reports’ evaluation of portable smartphones (abridged, 2011)

8. The Purchase Decision Process Alternative Evaluation Stages in Consumer Purchase Decision 1-8 LO1  Evaluative Criteria Evaluative Criteria  Consideration Set Consideration Set

9. The Purchase Decision Process Purchase Decision Stages in Consumer Purchase Decision 1-9 LO1  Decide from Whom to Buy  Decide When to Buy

10. The Purchase Decision Process Postpurchase Beaviour Stages in Consumer Purchase Decision 1-10 LO1  Cognitive Dissonance Cognitive Dissonance  Marketing Matters: The Value of a Satisfied Customer

11. The Purchase Decision Process Consumer Involvement & Problem Solving Routine, Limited & Extended Problem Solving 1-11  Involvement Involvement Extended Problem Solving Limited Problem Solving Routine Problem Solving LO2

12. Routine, Limited & Extended Problem Solving 1-12 FIGURE 5-3 FIGURE 5-3 Comparison of problem-solving variations: extended, limited, and routine LO2

13. The Purchase Decision Process Involvement & Marketing Strategy Routine, Limited & Extended Problem Solving 1-13  Low Involvement Maintain Product Quality Avoid Stockouts Reduce Cognitive Dissonance with Ads  High Involvement: Use Ads and Personal Selling LO2

14. The Purchase Decision Process Situational Influences Routine, Limited & Extended Problem Solving 1-14 LO2  Situational Influences Situational Influences Purchase Task Social Surroundings Physical Surroundings Temporal Effects Antecedent States

15. Routine, Limited & Extended Problem Solving 1-15 LO2 FIGURE 5-4 FIGURE 5-4 Influences on the consumer purchase decision process from both internal and external sources

16. Psychological Influences Motivation Major Influences on Consumer Behaviour 1-16 LO3  Motivation Motivation Psychological Needs Safety Needs Social Needs Personal Needs Self-Actualization Needs  Hierarchy of Needs Hierarchy of Needs

17. Major Influences on Consumer Behaviour 1-17 LO3 FIGURE 5-5 FIGURE 5-5 Hierarchy of needs

18. Major Influences on Consumer Behaviour 1-18 LO3 Psychological Influences Personality  Personality Personality  Traits Traits  National Character  Self-Concept Self-Concept

19. Major Influences on Consumer Behaviour 1-19 LO3 Psychological Influences Perception  Perception Perception Selective Perception Selective Exposure Selective Comprehension Selective Retention  Subliminal Perception Subliminal Perception

20. Major Influences on Consumer Behaviour 1-20 LO3 Psychological Influences Perceived Risk  Strategies to Reduce Perceived Risk Strategies to Reduce Perceived Risk Secure Endorsements Provide Free Trials/Samples Give Extensive Instructions Provide Warranties/Guarantees Obtain Seals of Approval

21. Major Influences on Consumer Behaviour 1-21 LO3 Sunora Haircare Products Halal

22. Major Influences on Consumer Behaviour 1-22 LO3 Psychological Influences Learning  Learning Learning Cue Response Reinforcement  Behavioral Learning Drive (Hunger)

23. Major Influences on Consumer Behaviour 1-23 LO3 Psychological Influences Learning Stimulus Discrimination  Behavioral Learning Stimulus Generalization  Cognitive Learning  Brand Loyalty Brand Loyalty

24. Major Influences on Consumer Behaviour 1-24 LO3 Psychological Influences Attitudes & Beliefs Beliefs  Attitude Formation Values Attitude

25. Major Influences on Consumer Behaviour 1-25 LO3 Psychological Influences Attitudes & Beliefs Add New Product Attributes  Attitude Change Changes Perceived Importance of Attributes Change Beliefs About a Brand’s Attributes

26. Major Influences on Consumer Behaviour 1-26 LO3 Changing Attitudes Colgate & Bayer

27. Major Influences on Consumer Behaviour 1-27 LO3 Psychological Influences Consumer Lifestyle  Lifestyle Lifestyle  Psychographics

28. Socio-Cultural Influences on Consumer Behaviour 1-28 LO4 Socio-Cultural Influences Personal Influence  Opinion Leaders Opinion Leaders  Word of Mouth Word of Mouth Buzz

29. Socio-Cultural Influences on Consumer Behaviour 1-29 LO4 Socio-Cultural Influences Reference Groups Dissociative Group  Reference Groups Reference Groups Aspiration Group Membership Group

30. Socio-Cultural Influences on Consumer Behaviour 1-30 LO4 Socio-Cultural Influences Family Influence  Consumer Socialization Consumer Socialization  Family Life Cycle Family Life Cycle Traditional Family  Family Decision Making Information Gatherer Influencer Decision Maker Purchaser User

31. Socio-Cultural Influences on Consumer Behaviour 1-31 LO4 FIGURE 5-6 FIGURE 5-6 Modern family life cycle stages and flows

32. Socio-Cultural Influences on Consumer Behaviour 1-32 LO4 Socio-Cultural Influences Social Class  Social Class Social Class Working/Lower Class Middle Class Upper Class

33. Socio-Cultural Influences on Consumer Behaviour 1-33 LO4 Socio-Cultural Influences Personal Influence  Culture Racial / Ethnic  Subculture Subculture Sexual Orientation Activities