Lamb, Hair, McDaniel MKTG

2007-2008

Designed by
Amy McGuire, B-books, Ltd.
CHAPTER
5 Consumer
Decision
MakingPrepared by
Deborah Baker, Texas Christian University
The Importance of Understanding
Consumer Behavior

Explain why
marketing managers
should understand
consumer behavior
 The Consumer Market

“Ultimate” consumers who buy goods

and services for their own personal or
household use.
 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
 Consumer Behavior

Consumer Processes a consumer uses to

Behavior 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.
 REVIEW LEARNING OUTCOME

Understanding Consumer Behavior

consumers
consumers make
make
purchase
purchase decisions
decisions

Consumer
Consumer
behavior = HOW
behavior

consumers
consumers useuse and
and
dispose
dispose of
of product
product
 The Consumer
Decision-Making Process

Analyze the
components
of the consumer
decision-making
process
 Consumer
Decision-Making Process
Consumer
Decision-Making
Process A five-step process used
by consumers when
buying goods or services.
 Consumer
Decision-Making Process
Need
Need Recognition
Recognition

Information
Information Search
Search
Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological Evaluation
Evaluation
Psychological
Factors of
of Alternatives
Alternatives
Factors
affect
affect
all
all steps
steps Purchase
Purchase

Postpurchase
Postpurchase
Behavior
Behavior
 Need Recognition

Need
Recognition

Result of an imbalance between

actual and desired states.
 Need Recognition

Int
e
Sti rnal
mu
li

Preferred
Preferred
Present
Present State
State
Status
n al Status
t e r li
Ex timu
S Marketing helps consumers recognize
an imbalance between
present status and preferred state.
 Stimulus

Stimulus

Any unit of input affecting

one or more of the five senses:
sight
smell
taste
touch
hearing
 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
 Information Search

Internal Information Search

 Recall information in memory

External Information search

 Seek information in outside

environment
 Nonmarketing controlled
 Marketing controlled
STAGE 2 – INFORMATION SEARCHIS INFLUENCED BY:

 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
 Evoked Set

Evoked Set

Group of brands, resulting from

an information search, from
which a buyer can choose
Evaluation of Alternatives
and Purchase
Evoked Set
Analyze
Analyze product
product
attributes
attributes

Use
Use cutoff
cutoff criteria
criteria

Rank
Rank attributes
attributes by
by
importance
importance
Purchase!
 Purchase

To buy
or not to buy...

Determines which attributes

are most important
in influencing a
consumer’s choice
Cognitive Dissonance

Cognitive Inner tension that a

Dissonance consumer experiences after
recognizing an
inconsistency between
behavior and values or
opinions.
Postpurchase Behavior
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
Marketing can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
 Cultural Influences on
Consumer Buying Decisions

Identify and
understand the
cultural factors that
affect consumer
buying decisions
 Factors Influencing
Buying Decisions

Cultural Social
Factors Factors CONSUMER
DECISION- BUY /
MAKING DON’T BUY
PROCESS
Psycho-
Individual
logical
Factors
Factors
Culture

Set of values, norms,

Culture 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.
Components of Culture
Values
Values

Language
Language

Tradition
Tradition

Customs
Customs

Rituals
Rituals (religious
(religious ceremonies)
ceremonies)

Laws
Laws

Material
Material artifacts
artifacts
Culture is. . .

Pervasive
Pervasive

Functional
Functional

Learned
Learned

Dynamic
Dynamic
Value

Value Enduring belief that a

specific mode of conduct
is personally or socially
preferable to another
mode of conduct.
Core American Values

Success
Success

Materialism
Materialism

Freedom
Freedom

Progress
Progress

Youth
Youth

Capitalism
Capitalism
Subculture

Subculture A homogeneous group

of people who share
elements of the overall
culture as well as unique
elements of their own
group.
Social Class

A group of people in a
Social Class 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
Measurements
Occupation
Occupation

Income
Income

Education
Education

Wealth
Wealth

Other
Other Variables
Variables
 Social Influences on
Consumer Buying Decisions

Identify and
understand the
social factors that
affect consumer
buying decisions
Social Influences

Reference
Reference
Groups
Groups

Opinion
Opinion
Leaders
Leaders

Family
Family
Members
Members
LO5 Reference Group

Reference Group

A group in society that

influences an individual’s
purchasing behavior.
 Influences of Reference Groups

 They serve as information sources and

influence perceptions.

 They affect an individual’s aspiration levels.

 Their norms either

constrain or stimulate
consumer behavior.
Opinion Leaders

Opinion Leaders
An individual who influences
the opinion of others.
 Reference Group Impact Example
 Social Environment usually much more influential
 Opinion Leaders Important
– Rich’s runners’ group example...
Family

Purchase Process Roles

in the Family
 Initiators

 Influencers

 Decision Makers

 Purchasers

 Consumers
 Individual Influences on
Consumer Buying Decisions

Identify and
understand the
individual factors that
affect consumer
buying decisions
 Individual Influences

Personality
Personality
Age
Age
Gender
Gender Self-Concept
Self-Concept
Life
Life Cycle
Cycle Lifestyle
Lifestyle
Psychological Influences on
Consumer Buying Decisions

Identify and
understand the
psychological factors
that affect consumer
buying decisions
Psychological Influences

Perception
Perception

Motivation
Motivation

Learning
Learning

Beliefs
Beliefs &
& Attitudes
Attitudes
 Perception

Perception

Process by which people select,

organize, and interpret stimuli into
a meaningful and coherent picture.
 Perception

Selective
Selective Selective
Selective
Exposure
Exposure Distortion
Distortion

Selective
Selective
Retention
Retention
 Perception

Selective
Selective Consumer
Consumer notices
notices certain
certain stimuli
stimuli
Exposure
Exposure and
and ignores
ignores others
others

Consumer
Consumer changes
changes oror distorts
distorts
Selective
Selective information
information that
that conflicts
conflicts
Distortion
Distortion with
with feelings
feelings or
or beliefs
beliefs
Consumer
Consumer remembers
remembers only
only
Selective
Selective that
that information
information that
that
Retention
Retention supports
supports personal
personal beliefs
beliefs
 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.
Stimulus Discrimination vs.

Stimulus Generalization
 Interpretation: Meaning consumer attaches to a
stimulus

 NAMES
 Signal Power /Quality (Toro Snow Pup/Master)
 Cars: Mustang / Barracuda / Viper
 Donkey / Weasel?
 NUMBERS
– 370 Z / WD-40 / Acura CL?
 COLORS
– Different for different cultures
 Interpretation: Meaning consumer attaches to a
 COLOR stimulus
– Signal Newness or Quality (Black Label)
– Signal Product Contents (Sodas)
 Motivation

Maslow’s
Hierarchy
of Needs
A method of classifying human
needs and motivations into five
categories in ascending order
of importance.
Maslow’s Hierarchy of Needs
Safety Appeal toward
Children...
 Types of Learning

An
An experience
experience changes
changes
Experiential
Experiential behavior
behavior

Not
Not learned
learned through
through direct
direct
Conceptual
Conceptual experience
experience
 Beliefs and Attitudes

An organized pattern of
Belief knowledge that an individual
holds as true about his or her
world.

A learned tendency to
Attitude respond consistently toward a
given object.
 Changing Attitudes

 Change beliefs about the brand’s attributes

 Change the relative importance of these beliefs
 Add new beliefs
 Chapter 5
Consumer Markets and
Buying Behavior
COMPENSATORY VS.
NON-COMPENSAGTORY CHOICE MODELS
 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)