CHAPTER

1. 6 CHAPTER Consumer Decision Making

2. The Importance of UnderstandingConsumer Behavior LO1 Explain why marketing managers should understand consumer behavior

3. “Ultimate” consumers who buy goods and services for their own personal or household use. The ConsumerMarket

4. Needs vs. Wants(Typical Textbook Def.) • Needs • Unsatisfactory conditions of the consumer that lead him or her to actions that will make the conditions better • Wants • Desires to obtain more satisfaction than is absolutely necessary to improve unsatisfactory conditions

5. ConsumerBehavior Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use. Consumer Behavior LO1

6. A five-step process used by consumers when buying goods or services. Consumer Decision-Making Process ConsumerDecision-MakingProcess LO2

7. Need Recognition Information Search Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives Purchase Postpurchase Behavior Consumer Decision-Making Process LO2

8. Result of an imbalance between actual and desired states. Need Recognition Need Recognition LO2

9. Internal Stimuli Preferred State Present Status External Stimuli Marketing helps consumers recognize an imbalance between present status and preferred state. Need Recognition LO2

10. Any unit of input affecting one or more of the five senses: • sight • smell • taste • touch • hearing Stimulus Stimulus LO2

11. When a current product isn’t performing properly When the consumer is running out of a product When another product seems superior to the one currently used Recognition of Unfulfilled Wants LO2

12. Information Search Internal Information Search • Recall information in memory External Information search • Seek information in outside environment • Nonmarketing controlled • Marketing controlled LO2

13. EVOKED SET: Group of brands that come to mind around time of purchase CONSIDERATION SET: Group of brands a consumer will consider buying after search is complete Car Tire Brands? Typically 3-5 Brands in Consideration Set STAGE 2 – INFORMATION SEARCHIS INFLUENCED BY:

14. To buy or not to buy... Marketing Determines which attributes are most important in influencing a consumer’s choice Purchase LO2

15. Cognitive Dissonance CognitiveDissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. LO3

16. Postpurchase Behavior Marketing can minimize through: Effective Communication Follow-up GuaranteesWarranties LO3 Consumers can reduce dissonance by: • Seeking information that reinforces positive ideas about the purchase • Avoiding information that contradicts the purchase decision • Revoking the original decision by returning the product

17. 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. Culture Culture LO4

18. Values Language Myths Customs Rituals Laws Material artifacts Components of Culture LO4

19. Pervasive Functional Learned Dynamic Culture is. . . LO4

20. Value Enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct. Value LO4

21. Success Materialism Freedom Progress Youth Capitalism Core American Values LO4

22. Subculture A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group. Subculture LO4

23. 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. SocialClass Social Class LO4

24. Occupation Income Education Wealth Other Variables Social Class Measurements LO4

25. Social Influences Reference Groups Opinion Leaders Family Members LO5

26. Reference Group A group in society that influences an individual’s purchasing behavior. LO5 Reference Group

27. They serve as information sources and influence perceptions. They affect an individual’s aspiration levels. Their norms either constrain or stimulate consumer behavior. Influences of Reference Groups LO5

28. Opinion Leaders An individual who influences the opinion of others. LO5 Opinion Leaders

29. Reference Group Impact Example • Social Environment usually much more influential • Opinion Leaders Important • Rich’s runners’ group example...

30. Family LO5 Purchase Process Roles in the Family • Initiators • Influencers • Decision Makers • Purchasers • Consumers

31. Gender Age Life Cycle Personality Self-Concept Lifestyle Individual Influences LO6

32. Psychological Influences Perception Motivation Learning Beliefs & Attitudes LO7

33. Process by which people select, organize, and interpret stimuli into a meaningful and coherent picture. Perception Perception LO7

34. Selective Exposure Selective Distortion Selective Retention Perception LO7

35. Selective Exposure Consumer notices certain stimuli and ignores others SelectiveDistortion Consumer changes or distorts information that conflicts with feelings or beliefs Selective Retention Consumer remembers only that information that supports personal beliefs Perception LO7

36. Marketing Implications of Perception • Important attributes • Price • Brand names • Quality and reliability • Threshold level of perception • Product or repositioning changes • Foreign consumer perception LO7

37. The “F” Test Count the number of Fs in the following sentence: FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF MANY YEARS.

38. Stimulus Discrimination vs. Stimulus Generalization

39. Interpretation: Meaning consumer attaches to a stimulus • NAMES • Signal Power /Quality (Toro Snow Pup/Master) • Cars: Mustang / Barracuda / Viper • Donkey / Weasel? • NUMBERS • 350 Z / WD-40 / Acura CL? • COLORS • Different for different cultures

40. Interpretation: Meaning consumer attaches to a stimulus • COLOR • Signal Newness or Quality (Black Label) • Signal Product Contents (Sodas)

41. A method of classifying human needs and motivations into five categories in ascending order of importance. Motivation Maslow’s Hierarchy of Needs LO7

42. Maslow’s Hierarchy of Needs LO7

43. Safety Appeal toward Women... Safe-T-Man

44. Safety Appeal toward Children...

45. An organized pattern of knowledge that an individual holds as true about his or her world. Belief A learned tendency to respond consistently toward a given object. Attitude Beliefs and Attitudes LO7

46. Changing Attitudes • Change beliefs about the brand’s attributes • Change the relative importance of these beliefs • Add new beliefs LO7

47. COMPENSATORY VS. NON-COMPENSAGTORY CHOICE MODELS 3 Chapter Consumer Markets and Buying Behavior

48. Compensatory vs. Non-Compensatory Decision-Making Models • Compensatory: Strong attributes can compensate for Weak ones. • (These shoes are ugly, but they’re cheap, and they are extremely comfortable) • Non-Compensatory: Attributes don’t compensate for each other. Select or dismiss based on key attribute or lack thereof. • (Many different types of NC Models)