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Lamb, Hair, and McDaniel

Chapter 6

Consumer Decision Making

Chapter 6 Consumer Decision Making

Explain why marketing managers

should understand
consumer behavior

The Importance of Understanding

Consumer Behavior

6-1

Chapter 6 Consumer Decision Making

Understanding Consumer Behavior

Understanding consumer behavior can help marketing managers adapt the marketing mix to influence consumer purchasing decisions.

consumers make purchase decisions

consumers use and
dispose of product

Consumer behavior

= HOW

Chapter 6 Consumer Decision Making

Notes:

For example, if a manager knows through research that gas mileage is the most important attribute for a certain target market, the manufacturer can redesign the product, and create the appropriate marketing mix, to meet that criterion.

Value

Value is a personal assessment of the net worth one obtains from making a purchase

Purchases are made based upon perceived value, which is what you expect to get

Utilitarian value is derived from a product or service that helps the consumer solve problems and accomplish tasks

Hedonic value is an end in itself rather than as a means to an end

Chapter 6 Consumer Decision Making

Analyze the components
of the consumer decision-making process

The Consumer
Decision-Making Process

6-2

Chapter 6 Consumer Decision Making

Consumer
Decision-Making Process

The consumer decision-making process represents a general five-step process that moves the consumer from recognition of a need to the evaluation of a purchase decision. It is a guideline for studying how consumers make decisions.
Note that consumer decisions may not proceed in order through all the processes, and in fact, may end at any time without a purchase decision.

Chapter 6 Consumer Decision Making

6.1

The Consumer Decision-Making Process

Chapter 6 Consumer Decision Making

Notes:

The consumer decision-making process is shown here and described on subsequent slides.

Need Recognition

Need recognition is the first stage in the decision-making process

Result of an imbalance between actual and desired states.

Chapter 6 Consumer Decision Making

Notes:

The first stage in the decision-making process is need recognition.

When “Need” Turns to Greed

In 2011, a woman allegedly pepper sprayed a crowd of shoppers reaching for discounted Xbox 360s.
Black Friday:
Retailers offer their best bargains of the year
Consumers camp out for days at stores’ front doors
Violent incidents were reported in at least seven states during the 2011 Black Friday sales, most occurring at or near Walmart stores.

Michael Martinez, “Woman Surrenders in Black Friday Pepper Spray Incident,” CNN, November 26, 2011, http://articles.cnn.com/2011-11-26/us/us_california-pepper-spray-suspect_1_pepper-spray-woman-surrenders-video-game?_s=PM:US (Accessed May 3, 2012).

Chapter 6 Consumer Decision Making

Need Recognition

Want-got gap is the difference

Present

Status

Preferred State

Marketing helps consumers recognize
an imbalance between present status and preferred state. Often this is advertising and sales.

Internal

Stimuli

External

Stimuli

Chapter 6 Consumer Decision Making

Stimulus

Any unit of input affecting one or more of the five senses:

Sight
Smell
Taste
Touch
Hearing

Chapter 6 Consumer Decision Making

Understanding Needs and Wants

If marketers don’t understand the target market’s needs, the right good or service may not be produced.

An excellent way to understand needs is to view them as job statements or outcome statements.

Marketers selling their products in global markets must observe the needs and wants of consumers in various regions.

Chapter 6 Consumer Decision Making

Notes:

As Ted Levitt said, “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.”

Information Search

Internal Information Search

Recall information in memory

This includes prior experience or prior knowledge about a product.

External Information search

Seek information in outside environment

Nonmarketing controlled sources include personal experience, personal sources, and public sources such as Underwriters Laboratories.

Marketing-controlled information is biased toward a specific product because it originates with marketers promoting that product. These sources include mass-media advertising, sales promotion, salespeople, product labels and packaging, and the Internet.

Chapter 6 Consumer Decision Making

External Information Searches

Need More
Information

More Risk

Less knowledge

Less product experience

High level of interest

Lack of confidence

Less Risk

More knowledge

More product experience

Low level of interest

Confidence in decision

Need Less
Information

Chapter 6 Consumer Decision Making

Notes:

The extent to which an individual conducts an external source depends on such factors as the perceived risk of purchasing a product, knowledge, prior experience, and level of interest in the good or service. The external search is also influenced by the consumer’s confidence in her decision-making ability. If a consumer has prior experience, he/she will spend less time searching.

Discussion/Team Activity:

Discuss information searches conducted for products or services recently evaluated or purchased. Characterize this discussion based on the factors described on this slide.

Evoked or Consideration Set

Chapter 6 Consumer Decision Making

Evaluation of Alternatives and Purchase

Purchase!

Analyze product

attributes

Rank attributes by

importance

Use cutoff criteria

Evoked Set

Chapter 6 Consumer Decision Making

Notes:

Once the evoked set is constructed, the consumer is ready to make a decision.
One way to make a choice is to pick product attributes that are important to him/her, then exclude all products in the set that do not have that attribute.
Another way to narrow the number of choices is to use cutoffs, or minimum or maximum levels of an attribute that an alternative must have. Many times, price is an important cutoff attribute.
The goal of the marketing manager is to determine which attributes have the most influence on a consumer’s choice, and design a marketing mix that stresses those attributes to the consumer.
A single attribute, such as price, may not always explain a consumer’s evaluation of products. Attributes that the marketer may consider important are not always important to the consumer.
Brand names, such as Johnson & Johnson, have a significant impact over the choice of products.

Evaluation of Alternatives and Purchase

Once the evoked set is constructed, the consumer is ready to make a decision.

One way to make a choice is to pick product attributes that are important to him/her, then exclude all products in the set that do not have that attribute.

Another way to narrow the number of choices is to use cutoffs, or minimum or maximum levels of an attribute that an alternative must have. Many times, price is an important cutoff attribute.

Chapter 6 Consumer Decision Making

Evaluation of Alternatives and Purchase

The goal of the marketing manager is to determine which attributes have the most influence on a consumer’s choice, and design a marketing mix that stresses those attributes to the consumer.

A single attribute, such as price, may not always explain a consumer’s evaluation of products. Attributes that the marketer may consider important are not always important to the consumer.

Brand names, such as Johnson & Johnson, have a significant impact over the choice of products.

Chapter 6 Consumer Decision Making

Purchase

To buy
or not to buy...

Ultimately, the consumer has to decide whether to buy or not to buy.

Chapter 6 Consumer Decision Making

Notes:

Following the evaluation of alternatives, the consumer decides which product to buy or decides not to buy at all.
Ultimately, the consumer must specifically decide:

• Whether to buy

• When to buy

• What to buy (product type and brand)

• Where to buy (type of retailer, specific retailer, online or in store)

• How to pay

Purchase

Following the evaluation of alternatives, the consumer decides which product to buy or decides not to buy at all.

Ultimately, the consumer must specifically decide:

• Whether to buy

• When to buy

• What to buy (product type and brand)

• Where to buy (type of retailer, specific retailer, online or in store)

• How to pay

Chapter 6 Consumer Decision Making

Notes:

As Ted Levitt said, “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.”

Purchase

3. The Great Recession has affected peoples’ willingness to make unplanned purchases:

• 54 percent of consumers said they were buying fewer items on impulse.

• 59 percent reported that more than half of their purchases were bought on sale.

• 65 percent reported that they would wait to purchase an item until it went on sale.

Chapter 6 Consumer Decision Making

Notes:

As Ted Levitt said, “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole.”

Explain the consumer’s postpurchase evaluation process

Postpurchase Behavior

6-3

Chapter 6 Consumer Decision Making

Cognitive Dissonance

When buying products, consumers expect certain outcomes from the purchase. Once a purchase decision is made, the next step in the process is the evaluation of the product after purchase. Consumers expect certain outcomes from the purchase, and how well these expectations are met determines the level of customer satisfaction.
For the marketer, an important element of any postpurchase evaluation is reducing any lingering doubts that the decision was sound.
Consumers try to reduce dissonance by justifying their decision.

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

Chapter 6 Consumer Decision Making

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

Chapter 6 Consumer Decision Making

Notes:

In some instances, people deliberately seek contrary information in order to refute it and reduce dissonance.

Discussion/Team Activity:

Discuss any of your purchases that generated cognitive dissonance and what was done to address the situation. What role, if any, did marketing play in minimizing cognitive dissonance? What was the outcome? Discuss ways in which the provider of the products/services might have reduced this inner tension.

Identify the types of consumer buying decisions and discuss the significance of consumer involvement

Types of Consumer Buying Decisions

and Consumer Involvement

6-4

Chapter 6 Consumer Decision Making

Consumer Buying Decisions
and Consumer Involvement

Routine

Response

Behavior

Limited

Decision

Making

Extensive

Decision

Making

Involvement

Less

Involvement

Chapter 6 Consumer Decision Making

Notes:

Consumer buying decisions fall along a continuum of three broad categories: Routine response behavior, limited decision making, and extensive decision making.

Routine response behavior: Frequently purchased, low-cost goods and services, with low involvement on search and decisions by consumers before making the purchase. Consumers buy first and evaluate later.
Limited decision making: Consumer has previous product experience but is unfamiliar with the current brands available. A moderate effort is spent searching for information or in considering alternatives.
Extensive decision making: Applies to unfamiliar, expensive products, or an infrequently bought item. The most complex type of consumer buying decisions, and is associated with high involvement on the part of the consumer.

Discussion/Team Activity:

Name products that fall into each of the decision making descriptions, and describe the decision making process for each.

Consumer Buying Decisions

Routine response behavior: Frequently purchased, low-cost goods and services, with low involvement on search and decisions by consumers before making the purchase. Consumers buy first and evaluate later.

Limited decision making: Consumer has previous product experience but is unfamiliar with the current brands available. A moderate effort is spent searching for information or in considering alternatives.

Extensive decision making: Applies to unfamiliar, expensive products, or an infrequently bought item. The most complex type of consumer buying decisions, and is associated with high involvement on the part of the consumer.

Chapter 6 Consumer Decision Making

The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

Involvement

Chapter 6 Consumer Decision Making

6.2

Continuum of Consumer Buying Decisions

Routine	Limited	Extensive
Involvement	Low	Low to Moderate	High
Time	Short	Short to Moderate	Long
Cost	Low	Low to Moderate	High
Information Search	Internal Only	Mostly Internal	Internal and External
Number of Alternatives	One	Few	Many

Chapter 6 Consumer Decision Making

Notes:

Exhibit 6.2 illustrates the continuum of consumer buying decisions.

Routine Response Behavior

Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision

Chapter 6 Consumer Decision Making

Limited Decision Making

Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide

Chapter 6 Consumer Decision Making

Extensive Decision Making

High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance

Chapter 6 Consumer Decision Making

Factors Determining the Level of Consumer Involvement

Social Visibility

Interest

Perceived Risk of Negative Consequences

Previous Experience

Chapter 6 Consumer Decision Making

Notes:

The level of involvement in the purchase depends on the following factors:

Previous experience: When consumers have had previous experience with a product or repeat trials, the level of involvement typically decreases and quick choices are made.
Interest: Involvement is directly related to consumer interests, such as cars, motorcycles, or electronics.
Perceived risk of negative consequences: As the risk increases, so does the consumer level of involvement. Risks include financial risks, social risks, and psychological risk.
Social visibility: Involvement increases as the social visibility of a product increases. These products that make a statement about the user may include cars, jewelry, furniture, and clothing.

Determinants of Involvement

Product involvement means that a product category has high personal relevance.

Situational involvement means that the circumstances of a purchase may temporarily transform a low-involvement decision into a high-involvement one.

Shopping involvement represents the personal relevance of the process of shopping. Modern shoppers tend to browse less and make fewer impulse buys because they shop on a mission.

Enduring involvement represents an ongoing interest in some product or activity. The consumer is always searching for opportunities to consume the product or participate in the activity.

Emotional involvement represents how emotional a consumer gets during some specific consumption activity.

Chapter 6 Consumer Decision Making

Not All Involvement Is The Same

Enduring Involvement

Emotional Involvement

Situational Involvement

Shopping Involvement

Product Involvement

Chapter 6 Consumer Decision Making

Types of Involvement

Product involvement means that a product category has high personal relevance.

Situational involvement means that the circumstances of a purchase may temporarily transform a low-involvement decision into a high-involvement one.

Shopping involvement represents the personal relevance of the process of shopping. Modern shoppers tend to browse less and make fewer impulse buys because they shop on a mission.

Enduring involvement represents an ongoing interest in some product or activity. The consumer is always searching for opportunities to consume the product or participate in the activity.

Emotional involvement represents how emotional a consumer gets during some specific consumption activity.

Chapter 6 Consumer Decision Making

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,

and two-for-one offers

Chapter 6 Consumer Decision Making

Notes:

For high involvement products, a good ad gives consumers the information they need for making the purchase decision, as well as specifying the benefits and advantages of owning the product.
For low-involvement purchases, customers may not recognize their wants until they are in the store. In-store promotion and package design are important tools for catching the customer’s attention. Good displays can help explain a product’s purpose and create recognition of a want.

Identify and understand the cultural factors that affect consumer
buying decisions

Cultural Influences on
Consumer Buying Decisions

6-5

Chapter 6 Consumer Decision Making

Factors Influencing Buying Decisions

Social
Factors

Individual
Factors

Psycho-logical
Factors

Cultural
Factors

CONSUMER
DECISION-

MAKING

PROCESS

BUY or
DON’T BUY

Chapter 6 Consumer Decision Making

Notes:

The consumer decision-making process is strongly influenced by cultural, social, individual, and psychological factors.

Components of Culture

Myths

Language

Values

Customs

Rituals

Laws

Chapter 6 Consumer Decision Making

Notes:

1. This list contains the defining components of culture. Push students to think about American cultural elements for each category.

Culture is. . .

Learned

Functional

Pervasive

Dynamic

Chapter 6 Consumer Decision Making

Notes:

Culture is:

Pervasive: Cultural values influence individual life, yet most are completely unaware of its presence. What people eat, how they dress, and what language they speak are all cultural dimensions.
Functional: By establishing expectations, culture gives order to society, such as laws.
Learned: Culture is not genetic. Instead, consumers must learn what is acceptable from family and friends.
Dynamic: It adapts to changing needs and an evolving environment. The rapid growth of technology has accelerated the rate of cultural change.

Culture is…

Pervasive: Cultural values influence individual life, yet most are completely unaware of its presence. What people eat, how they dress, and what language they speak are all cultural dimensions.

Functional: By establishing expectations, culture gives order to society, such as laws.

Learned: Culture is not genetic. Instead, consumers must learn what is acceptable from family and friends.

Dynamic: It adapts to changing needs and an evolving environment. The rapid growth of technology has accelerated the rate of cultural change.

Chapter 6 Consumer Decision Making

Value

The most defining element of a culture is its values.
People with similar value systems tend to react alike to prices and other marketing-related inducements.
Values also correspond to consumption patterns.

An enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct.

Chapter 6 Consumer Decision Making

Subculture

A homogeneous group
of people who share elements of the overall culture as well as cultural elements unique to their own group.

Chapter 6 Consumer Decision Making

Notes:

In the United States alone, countless subcultures can be identified, and many are concentrated geographically. The United States’ growing Hispanic population has made South and Central American subcultures a prime focus for many companies with large marketing budgets.

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.

Chapter 6 Consumer Decision Making

Notes:

One view of contemporary U.S. status structure is shown in Exhibit 6.4.

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.

6.4

U.S. Social Classes

Upper Classes
Capitalist Class	1%	People whose investment decisions shape the national economy; income mostly from assets, earned or inherited; university connections
Upper Middle Class	14%	Upper-level managers, professionals, owners of medium-sized businesses; well-to-do, stay-at-home homemakers who decline occupational work by choice; college educated; family income well above national average
Middle Classes
Middle Class	33%	Middle-level white-collar, top-level blue-collar; education past high school typical; income somewhat above national average; loss of manufacturing jobs has reduced the population of this class
Working Class	32%	Middle-level blue-collar, lower-level white-collar; income below national average; largely working in skilled or semi-skilled service jobs
Lower Classes
Working Poor	11-12%	Low-paid service workers and operatives; some high school education; below mainstream in living standard; crime and hunger are daily threats
Underclass	8-9%	People who are not regularly employed and who depend primarily on the welfare system for sustenance; little schooling; living standard below poverty line

Notes:

1. As you can see from Exhibit 6.4, the upper and upper middle classes comprise the small segment of affluent and wealthy Americans.

2. In terms of consumer buying patterns, the affluent are more likely to own their own home and purchase new cars and trucks and are less likely to smoke.

Social Class Measurements

Wealth

Other Variables

Income

Education

Occupation

Chapter 6 Consumer Decision Making

The Impact of
Social Class on Marketing

Indicates which medium to use for advertising

Helps determine the best distribution for products

Chapter 6 Consumer Decision Making

Notes:

Marketers are interested in social class for the reasons of determining which medium to use for advertising, and for determining where best to distribute their products.

Identify and understand the social factors that affect consumer buying decisions

Social Influences on
Consumer Buying Decisions

6-6

Chapter 6 Consumer Decision Making

Social Influences

Reference Groups

Opinion Leaders

Family Members

Chapter 6 Consumer Decision Making

Notes:

Consumers interact socially with reference groups, opinion leaders, and family members to obtain product information and decision approval.

6.5

Types of Reference Groups

Chapter 6 Consumer Decision Making

Reference Groups

Reference groups are characterized as either direct or indirect.

Direct reference groups may be primary or secondary. Primary membership groups include all groups with which people interact regularly in an informal way, such as family, friends, and coworkers. People associate with secondary membership groups less consistently and more formally. This includes clubs, professional groups, and religious groups.

Indirect reference groups include aspirational reference groups, such as organizations that a person would like to join. On the other hand, a nonaspirational reference group is one that someone wants to avoid being identified with.

Chapter 6 Consumer Decision Making

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.

Chapter 6 Consumer Decision Making

Notes:

For marketers, reference groups have three implications, as stated on this slide.
However, marketers must also consider that people with well-formed networks of somewhat overlapping reference groups and those with strong personal values are less susceptible to reference group influences.

The first to try new products and services out of pure curiosity.

May be challenging to locate.

Marketers are increasingly using social media to determine and attract opinion leaders.

Opinion Leaders

Chapter 6 Consumer Decision Making

Notes:

Opinion leaders are often the first to try new products. Technology companies have found that teenagers, because of their willingness to experiment, are key opinion leaders for the success of new technologies.
Opinion leadership is a casual, face-to-face phenomenon. Locating opinion leaders can be a challenge. Marketers may try to create opinion leaders, such as cheerleaders or civic leaders.
On a national level, companies sometimes use prominent public figures, such as movie stars, sports figures, and celebrities to promote products.

Discussion/Team Activity:

Name examples of opinion leaders, and the promoted products/services, in each of the categories shown on this slide.

Opinion Leaders

Opinion leaders are often the first to try new products. Technology companies have found that teenagers, because of their willingness to experiment, are key opinion leaders for the success of new technologies.

Opinion leadership is a casual, face-to-face phenomenon. Locating opinion leaders can be a challenge. Marketers may try to create opinion leaders, such as cheerleaders or civic leaders.

On a national level, companies sometimes use prominent public figures, such as movie stars, sports figures, and celebrities to promote products.

Chapter 6 Consumer Decision Making

Family

Initiators

Influencers

Decision Makers

Purchasers

Consumers

Purchase Process Roles in the Family

Chapter 6 Consumer Decision Making

Notes:

The family is the most important social institution for many consumers, influencing values, attitudes, and buying behavior.
Purchase decisions vary significantly among family members, who assume a variety of roles in the purchase process.
Initiators are the ones who suggest or initiate the purchase process.
Influencers are those members whose opinions are valued.
Decision makers actually makes the decision to buy or not to buy.
The purchaser is the one who exchanges money for the product.
The consumer is the one who uses the product.
Children can have great influence over the purchase decision.

Family

The family is the most important social institution for many consumers, influencing values, attitudes, and buying behavior.

Purchase decisions vary significantly among family members, who assume a variety of roles in the purchase process.

Initiators are the ones who suggest or initiate the purchase process.
Influencers are those members whose opinions are valued.
Decision makers actually makes the decision to buy or not to buy.
The purchaser is the one who exchanges money for the product.
The consumer is the one who uses the product.

Children can have great influence over the purchase decision.

Chapter 6 Consumer Decision Making

Identify and understand the individual factors that affect consumer buying decisions

Individual Influences on
Consumer Buying Decisions

6-7

Chapter 6 Consumer Decision Making

Individual Influences

Gender

Age/Family
Life Cycle

Personality,

Self-Concept, and Lifestyle

Chapter 6 Consumer Decision Making

Notes:

A person’s buying decisions are also influenced by unique personal characteristics, such as gender; age and life cycle stage; and personality, self-concept, and lifestyle.

The physiological differences in men and women result in the need for different products. Trends in gender marketing are influenced by the changing roles of men and women.
The age and family life cycle can have a significant impact on consumer behavior. Consumer tastes in clothes, food, cars, and recreation are often age related. Related to age is the family life cycle, an orderly series of stages through which consumers’ attitudes and behavior evolve through maturity, experience, and changing income and status.
Personality is a broad concept combining psychological makeup and environmental forces. Self-concept combines the ideal self-image and the real self-image. Consumers seldom buy products that jeopardize their self-image. A lifestyle is a mode of living as identified by a person’s activities, interests, and opinions.

Gender

Physiological differences between men and women often result in different needs, such as health and beauty products.
Trends in gender marketing are influenced by the changing roles of men and women in society.

Chapter 6 Consumer Decision Making

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.”
How old a consumer is generally indicates what products he or she may be interested in purchasing.
Related to a person’s age is his or her place in the family life cycle. The family life cycle is an orderly series of stages through which consumers’ attitudes and behavioral tendencies evolve through maturity, experience, and changing income and status.

Chapter 6 Consumer Decision Making

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.

Chapter 6 Consumer Decision Making

Identify and understand the psychological factors that affect consumer buying decisions

Psychological Influences on
Consumer Buying Decisions

6-8

Chapter 6 Consumer Decision Making

Psychological Influences

Perception

Motivation

Learning

Chapter 6 Consumer Decision Making

Notes:

The psychological influences are the factors consumers use to interact with their world. They are the tools used to recognize feelings, gather and analyze information, formulate thoughts and opinions, and take action.

Perception

Selective
Exposure

Selective
Distortion

Selective
Retention

Consumer notices certain stimuli and ignores others

Consumer changes or distorts information that conflicts

with feelings or beliefs

Consumer remembers only

that information that

supports personal beliefs

Chapter 6 Consumer Decision Making

Notes:

People cannot perceive every stimulus in their environment. They use selective exposure, along with the closely related concepts of selective distortion and retention, to decide which stimuli to notice and which to ignore.

Discussion/Team Activity:

Discuss examples representing each of the described perception states.

Marketing Implications

of Perception

Important attributes

Price

Brand names

Quality and reliability

Threshold level of perception

Product or repositioning changes

Foreign consumer perception

Subliminal perception

Chapter 6 Consumer Decision Making

Notes:

Marketers must recognize the importance of cues or signals in a consumers perception of products.
Marketing managers first identify the important attributes such as those listed on this slide, then design signals to communicate these attributes to consumers.

Motivation

A motive is the driving force that causes a person to take action to satisfy specific needs

Physiological
Safety
Social
Esteem
Self-actualization

Chapter 6 Consumer Decision Making

6.6

Maslow’s Hierarchy of Needs

Chapter 6 Consumer Decision Making

Notes:

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, shown in Exhibit 6.6 and here, arranges needs in ascending order of importance.
By studying motivation, marketers can analyze the major forces influencing consumers’ purchase decisions. When a product is purchased a need is usually fulfilled. These needs become motives when aroused sufficiently. Motives are the driving forces that cause a person to take action to satisfy those needs.

Learning

Experiential

Conceptual

An experience changes behavior

Not learned through direct experience

Chapter 6 Consumer Decision Making

Online:

Center for Science in the Public Interest (CSPI)

The CSPI regularly campaigns to change consumers’ beliefs about products it perceives as dangerous or harmful. What products are of interest to the CSPI at present? How should companies respond if their products become targets of the CSPI?

http://www.cspinet.org

Notes:

Almost all consumer behavior results from learning, the process that creates changes in behavior through experience and practice.
There are two types of learning: experiential and conceptual.
Reinforcement and repetition boost learning. This is a key strategy in promotional campaigns because it can lead to increased learning. Generally, to enhance learning, advertising messages should be spread over time rather than clustered together.

Learning

Almost all consumer behavior results from learning, the process that creates changes in behavior through experience and practice.

There are two types of learning: experiential and conceptual.

Reinforcement and repetition boost learning. This is a key strategy in promotional campaigns because it can lead to increased learning. Generally, to enhance learning, advertising messages should be spread over time rather than clustered together.

Chapter 6 Consumer Decision Making

Beliefs and Attitudes

Belief

Attitude

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

A learned tendency to respond consistently toward a given object.

Chapter 6 Consumer Decision Making

Beliefs and Attitudes

Beliefs and attitudes are closely linked to values.

If a product is meeting its profit goals, positive attitudes toward the product need to be reinforced. If the brand is not succeeding, the marketing manager must work to change the consumers’ attitudes toward it.

Changes in attitudes can be accomplished in three ways:
• Changing beliefs about the brand’s attributes
• Changing the relative importance of these beliefs
• Adding new beliefs

Chapter 6 Consumer Decision Making

Changing Beliefs

A marketer may want to…

turn a neutral, negative, or incorrect belief about a product attribute into a positive one.
change the relative importance of a belief.
add a new belief.

Chapter 6 Consumer Decision Making