MKTG 13th Ed Chapter 6.pptx

M K T G, 13 e Chapter 6: Consumer...

M K T G, 13 e Chapter 6: Consumer Decision Making ©2021 Cengage Learning. ©2021 Cengage All Rights Learning. Reserved. All Rights May not Reserved. Maybe notscanned, copied be scanned, or or copied duplicated, duplicated,ororposted posted to a publicly publiclyaccessible accessible website, website, in whole in whole or inorpart. in part. 1  Learning Objectives By the end of this chapter you should be able to: 1. Analyze the components of the consumer decision-making process 2. Explain the consumer’s postpurchase evaluation process 3. Identify the types of consumer buying decisions and discuss the significance of consumer involvement 4. Identify and understand the cultural factors that affect consumer buying decisions 5. Identify and understand the social factors that affect consumer buying decisions 6. Identify and understand the individual factors that affect consumer buying decisions 7. Identify and understand the psychological factors that affect consumer buying decisions ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2  Exhibit 6.1 The Consumer Decision-Making Process ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3  The Traditional Consumer Decision-Making Process Need Recognition (1st stage in the decision-making process) Need recognition – result of an imbalance between actual and desired states Want – recognition of an unfulfilled need and a product that will satisfy it Stimulus – any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing A marketing manager’s objective is to get consumers to recognize the “want–got gap.” ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4  The Traditional Consumer Decision-Making Process Information Search (2nd stage in the decision-making process) Internal information search – the process of recalling information stored in the memory External information search – the process of seeking information in the outside environment − Non-marketing-controlled information source – a product information source that is not associated with advertising or promotion − Marketing-controlled information source – a product information source that originates with marketers promoting the product ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5  The Traditional Consumer Decision-Making Process THE EXTENT OF INFORMATION SEARCH The extent to which an individual conducts an external search depends on his or her: − Perceived risk − Knowledge − Prior experience − Level of interest in the good or service Searching yields an evoked set – a group of brands resulting from an information search from which a buyer can choose ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6  The Traditional Consumer Decision-Making Process PLANNED VERSUS IMPULSE PURCHASE Three types of purchases: − Planned purchase – typically made after the consumer has collected a large amount of information (home, car) − Partially planned purchase – typically made when the consumer knows the product category but waits until shopping to choose a specific style or brand (clothing, furniture) − Impulse or unplanned purchase – often low-priced items or items on sale or purchased with a coupon, sometimes triggered by a nudge (food or snack item) ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7  The Traditional Consumer Decision-Making Process PSYCHOLOGICAL OWNERSHIP When consumers feel a sense of ownership of a product, they are willing to pay more for it and are more likely to tell other consumers about it. Consumers develop this kind of relationship with a product when they are able to control it, when they invest themselves in it, or when they come to know it intimately. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8  Postpurchase Behavior COGNITIVE DISSONANCE Cognitive dissonance – inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions Marketers can reduce any lingering doubts about the purchase decision in the mind of the buyer by: − Engaging in postpurchase communications − Providing excellent postpurchase customer service ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9  Exhibit 6.2 Continuum of Consumer Buying Decisions ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10  Types of Consumer Buying Decisions and Consumer Involvement Factors Determining the Level of Consumer Involvement When consumers have had previous experience with a good or service, the level of involvement typically decreases. Involvement is directly related to consumer interests and the degree of interest. As the perceived risk (loss of wealth or status, or increased anxiety) in purchasing a product increases, so does a consumer’s level of involvement. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11  Types of Consumer Buying Decisions and Consumer Involvement Marketing Implications of Involvement For high-involvement product purchases, marketing managers should engage in extensive and informative promotions. For low-involvement product purchases, in-store promotion and targeted mobile ads are important tools. Offering products on a “limited availability” basis is one way marketers can increase involvement. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12  Cultural Influences on Consumer Buying Decisions Culture and Values Culture – the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next Cultural factors exert the broadest and deepest influence on purchase decisions. Underlying elements of culture are the values, language, myths, customs, rituals, and laws that guide consumer behavior. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13  Cultural Influences on Consumer Buying Decisions Culture is: − Pervasive – so ingrained that we are unaware of it − Functional – giving order to society − Learned – handed down through generations − Dynamic – adaptive and evolving ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14  Cultural Influences on Consumer Buying Decisions Subculture Subculture – a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group By understanding subcultures, marketers can design special marketing strategies to serve the needs of a subculture. Subcultures are distinguished by identifiable attitudes, values, and needs. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15  Cultural Influences on Consumer Buying Decisions Social Class Social class – a group of people in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms Social class is typically measured as a combination of occupation, income, education, wealth, and other variables. Social class is important to marketers for two main reasons: − Often indicates which medium to use for promotion − Helps determine where to best distribute products ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16  Social Influences on Consumer Buying Decisions Reference Groups Many consumers seek out the opinions of direct reference groups to reduce their search and evaluation effort or uncertainty. − Reference group – all of the formal and informal groups in society that influence an individual’s purchasing behavior − Primary membership group – a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and coworkers − Secondary membership group – a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17  Social Influences on Consumer Buying Decisions Indirect reference groups include: − Aspirational reference group – a group that someone would like to join  Norm – a value or attitude deemed acceptable by a group − Nonaspirational reference group – a group with which an individual does not want to associate For marketers, reference groups have three important implications: − They serve as information sources and influence perceptions. − They affect an individual’s aspiration levels. − Their norms either constrain or stimulate consumer behavior. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18  Social Influences on Consumer Buying Decisions Opinion Leaders Opinion leader – an individual who influences the opinions of others People often rely on each other’s opinions more than marketing messages when making purchase decisions. Thus, marketing managers must persuade opinion leaders to purchase their goods or services. Given the volume of online content, it can be challenging to identify true opinion leaders. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19  Social Influences on Consumer Buying Decisions Family For many consumers, the family projects the strongest influence on values, attitudes, self-concept, and buying behavior. Children learn by observing their parents’ consumption patterns, so they tend to shop in similar patterns. Socialization process – how cultural values and norms are passed down to children ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20  Social Influences on Consumer Buying Decisions Marketers should consider family purchase situations along with the distribution of consumer and decision-maker roles among family members: − Initiator – suggests or initiates the purchase process − Influencer – offers valued opinions − Decision maker – the family member who actually makes the decision to buy or not to buy − Purchaser – the one who exchanges money for the product − Consumer – the end user ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21  Individual Influences on Consumer Buying Decisions Marketers should be aware of special situations: NONTRADITIONAL LIFE CYCLES Many nontraditional life-cycle paths are common today, such as divorced parents, lifelong singles, and childless couples. SINGLE PARENTS LIFE EVENTS Life-changing events, such as the death of a spouse, moving, birth or adoption of a child, retirement, job loss, divorce, and marriage, may mean new consumption patterns. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22  Individual Influences on Consumer Buying Decisions Personality, Self-Concept, and Life Cycle By influencing the degree to which consumers perceive a good or service to be self-relevant, marketers can affect consumers’ motivation to learn about, shop for, and buy a certain brand. Personality – a way of organizing and grouping the consistencies of an individual’s reactions to situations Self-concept – how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations − Through self-concept, people define their identity, which in turn provides for consistent and coherent behavior. ©2021 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23