Prepared by Deborah Baker Texas Christian University

1. 5 Consumer Decision Making Prepared by Deborah Baker Texas Christian University

2. Learning Objectives 1. Explain why marketing managers should understand consumer behavior 2. Analyze the components of the consumer decision-making process 3. Explain the consumer’s postpurchase evaluation process

3. Learning Objectives 4. Identify the types of consumer buying decisions and discuss the significance of consumer involvement 5. Identify and understand the cultural factors that affect consumer buying decisions

4. Learning Objectives (continued) 6. Identify and understand the social factors that affect consumer buying decisions 7. Identify and understand the individual factors that affect consumer buying decisions 8. Identify and understand the psychological factors that affect consumer buying decisions

5. consumers make purchase decisions Consumer behavior = HOW consumers use anddispose of product Consumer Behavior 1

6. Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior Consumer Decision-Making Process 2

7. Preferred State Present Status Need Recognition Internal Stimuli External Stimuli Marketing helps consumers recognize an imbalance between present status and preferred state 2

8. Information Searches Internal Information Search External Information search 2

9. Evoked Set Analyze product attributes Use cutoff criteria Rank attributes by importance Purchase! Evaluation of Alternatives 2

10. Cognitive Dissonance ? Marketing Did I make a good decision? Did I buy the right product? Did I get a good value? Can minimize through: Effective Communication Follow-up GuaranteesWarranties Postpurchase Behavior 3

11. Routine Response Behavior Limited Decision Making Extensive Decision Making Types of Consumer Buying Decisions Less Involvement More Involvement 4

12. Previous Experience Interest Perceived Risk of Negative Consequences Situation Social Visibility Level of Involvement Factors Determining Level of Involvement On Line http://www.apple.com 4

13. Cultural Factors Social Factors CONSUMERDECISION- MAKING PROCESS BUY / DON’T BUY Psycho-logical Factors Individual Factors Factors Influencing Buying Decisions 5

14. Values Components ofAmerican Culture Language Myths Customs Rituals Laws Material Artifacts Cultural Influences on Buying Decisions 5

15. Social Influences on Buying Decisions Reference Groups Opinion Leaders Family Members Social Influences 6

16. Primary Direct Secondary Reference Groups Aspirational Indirect Non-aspirational Reference Groups 6

17. Individual Influences Gender Age Life-Cycle Personality Self-Concept Lifestyle Individual Influences 7

18. Psychological Influences on Buying Decisions Perception Motivation Learning Beliefs & Attitudes Psychological Influences 8

19. Selective Exposure Selective Distortion Selective Retention Perception 8

20. Types of Learning Description Experiential An experience changes behavior Conceptual Not learned through direct experience Types of Learning 8