Lamb, Hair, McDaniel

Learning Outcomes Explain why marketing managers should understand consumer behavior Analyze the components of the consumer decision-making process Explain the consumer’s postpurchase evaluation process Identify the types of consumer buying decisions and discuss the significance of consumer involvement 1 2 3 4 © 2013 by Cengage Learning Inc. All Rights Reserved.

Learning Outcomes Identify and understand the cultural factors that affect consumer buying decisions Identify and understand the social factors that affect consumer buying decisions Identify and understand the individual factors that affect consumer buying decisions Identify and understand the psychological factors that affect consumer buying decisions 5 6 7 8 © 2013 by Cengage Learning Inc. All Rights Reserved.

Understanding Consumer Behavior consumers make purchase decisions Consumer behavior = HOW consumers use anddispose of product Help government make public decisions 1 © 2013 by Cengage Learning Inc. All Rights Reserved.

Consumers Scale Back • A Pew Research Center poll suggests consumers are more focused on basic necessities. • 63 percent of women and 51 percent of men report buying cheaper brands and increased shopping at discount stores. • An increased number of respondents reported internet as a necessity, while a decreased number reported television. Source: Dick Silverman."Luxury and Necessity: Redefining Values." WWD. Wednesday, June 10, 2009. 8. © 2013 by Cengage Learning Inc. All Rights Reserved.

Need Recognition Internal Stimuli Preferred State Present Status External Stimuli Marketing helps consumers recognize an imbalance between present status and preferred state. 2 © 2013 by Cengage Learning Inc. All Rights Reserved.

Recognition of Unfulfilled Wants 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 2 © 2013 by Cengage Learning Inc. All Rights Reserved.

Information Search Internal Information Search • Recall information in memory External Information search • Seek information in outside environment • Nonmarketing controlled • Marketing controlled 2 © 2013 by Cengage Learning Inc. All Rights Reserved.

ExternalInformation Searches Need Less Information Need More Information Less Risk More knowledge More product experience Low level of interest Confidence in decision More Risk Less knowledge Less product experience High level of interest Lack of confidence 2 © 2013 by Cengage Learning Inc. All Rights Reserved.

Cognitive Dissonance CognitiveDissonance Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions. 3 © 2013 by Cengage Learning Inc. All Rights Reserved.

Postpurchase Behavior Marketing can minimize dissonance through effective communication with purchasers. 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 3 © 2013 by Cengage Learning Inc. All Rights Reserved.

Types of Consumer Buying Decisions and Consumer Involvement Identify the types of consumer buying decisions and discuss the significance of consumer involvement 4 22 © 2013 by Cengage Learning Inc. All Rights Reserved.

Consumer Buying Decisions and Consumer Involvement Routine Response Behavior Limited Decision Making Extensive Decision Making Less Involvement More Involvement 4 © 2013 by Cengage Learning Inc. All Rights Reserved.

Routine Response Behavior Little involvement in selection process Frequently purchased low cost goods May stick with one brand Buy first/evaluate later Quick decision 4 © 2013 by Cengage Learning Inc. All Rights Reserved.

Limited Decision Making Low levels of involvement Low to moderate cost goods Evaluation of a few alternative brands Short to moderate time to decide 4 © 2013 by Cengage Learning Inc. All Rights Reserved.

Extensive Decision Making High levels of involvement High cost goods Evaluation of many brands Long time to decide May experience cognitive dissonance 4 © 2013 by Cengage Learning Inc. All Rights Reserved.

Factors Determining the Level of Consumer Involvement Previous Experience Interest Perceived Risk of Negative Consequences Situation Social Visibility 4 © 2013 by Cengage Learning Inc. All Rights Reserved.

Marketing Implications of Involvement High-involvement purchases require: Extensive and informative promotion to target market Low-involvement purchases require: In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers 4 © 2013 by Cengage Learning Inc. All Rights Reserved.

Factors Influencing Buying Decisions Cultural Factors Social Factors CONSUMERDECISION- MAKING PROCESS BUY / DON’T BUY Psycho-logical Factors Individual Factors 5 © 2013 by Cengage Learning Inc. All Rights Reserved.

Subculture Subculture A homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group. 5 © 2013 by Cengage Learning Inc. All Rights Reserved.

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. 5 © 2013 by Cengage Learning Inc. All Rights Reserved.

Exhibit 6.4U.S. Social Classes SOURCE: Adapted from Richard P. Coleman, “The Continuing Significance of Social Class to Marketing,” Journal of Consumer Research, December 1983, 267; Dennis Gilbert and Joseph A. Kahl, The American Class Structure: A Synthesis (Homewood, IL: Dorsey Press, 1982), ch. 11.

Influences ofReference Groups They serve as information sources and influence perceptions. They affect an individual’s aspiration levels. Their norms either constrain or stimulate consumer behavior. 6 © 2013 by Cengage Learning Inc. All Rights Reserved.

Opinion Leaders… …are the first to try new products and services out of pure curiosity. …can be challenging to locate. Marketers are increasingly using blogs, social networking, and other online media to determine and attract opinion leaders. 6 © 2013 by Cengage Learning Inc. All Rights Reserved.

Age and Family Life Cycle Stage Consumer tastes in food, clothing, cars, furniture, and recreation are often age related. Marketers define target markets according to life cycle stages such as “young singles” or “young married with children.” 7 © 2013 by Cengage Learning Inc. All Rights Reserved.

Personality, Self-Concept, and Lifestyle Personality combines psychological makeup and environmental forces. Human behavior depends largely on self-concept. Self-concept combines ideal self-image and real self-image. LO7 7 © 2013 by Cengage Learning Inc. All Rights Reserved.

Lamb, Hair, McDaniel