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C-6 CONSUMER DECISION MAKING
CONSUMER BEHAVIOR
A. Model of Consumer Behavior
Stimulus Marketing Mixes All other Stimuli
? Decision Making Process
Response Purchase (No Purchase)
Economic Person Theory
1. Describes the decision process as: Rationally evaluating alternative terms of cost and value received, in an effort to maximize utility or satisfaction while spending always scarce resources of time, energy and money
2. Rarely the master of motivation
3. Utility maximization is just a part of the multidimensional person
Review #1
Characteristics Affecting Consumer Behavior – Cultural , Social, Personal, Psychological, and Buyer
1. Cultural
a. Culture – The set of basic values, perceptions, wants, and behavior learned by a member of
society from family and other important institutions (The set of values, norms, attitude, 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)*
b. Subculture – A group of people with shared value systems based on common life experiences and situations (a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group)
c. Social Class – Relatively permanent and ordered divisions in a society whose members share
similar values, interests and behaviors (a group of people in 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)
1) Based on W. Lloyd Warner’s scheme
2) Socio-economic classes based on a combination of occupation, income, education, wealth and other variables
3) Seven U.S. social classes (Cited reference: “The Continuing Significance of Social Class to Marketing”, Journal of Consumer Research, Richard P. Coleman)
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Reference |
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Text Format |
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Upper Upper |
<1% |
1Capitalist |
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Lower Upper |
2% |
2 Upper- |
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Upper Middle |
12% |
Middle |
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Middle |
32% |
3 Middle |
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Working |
38% |
4 Working |
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Upper Lower |
9% |
5 Under |
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Lower-Lower |
7% |
class |
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Review #2
Intermission
2. Psychological
a. Motivation
1) Hard to pin down
a)
b)
2) Basic model (both biogenic and psychogenic)
Tension
Drive (Sufficient Tension)
Satisfaction
3) Motivation Theories
a) Herzberg’s Theory of Motivation
b) Freud’s Theory of Motivation
c) A. H. Maslow’s Theory of Motivation - Need Hierarchy
Self Actualization
Esteem
Social
Safety
Physiological
Review #3
b. Perception – The process by which people select, organize, and interpret information to form a meaningful picture of the world
1) Make sense of received stimuli
2) Selectivity
a) Selective Exposure
b) Selective Distortion
c) Selective Retention
3) Subliminal perception
c. Learning – Changes in an individual’s behavior arising from experience
Drive
Cues
Reinforcement
Response
d. Attitudes and Beliefs
Review #4
1) Reveal thought patterns
2) Change
e. Habit – A powerful behavioral force
1) Fear of the unfamiliar
2) Avoidance of additional effort
f. Voluntary vs. Involuntary Attention
3. Buyer
a. The Consumer Decision-Making Process
1) Need recognition, information seeking, evaluation of alternatives, purchase, and postpurchase behavior
2) Postpurchase behavior
a) Affirming behavior
b) Abandoning behavior
b. Types of Decision-Making Processes
1) Extensive decision making
2) Limited decision making
3) Routine response behavior
Review #5
Considering the Types of Decision-Making Processes, which type enjoys the highest level of marketing opportunity
CONFLICT RATIONALIZATION REVIEW FOR EXERCISE FIVE
Concept – a blending of rational motives with emotional motives to resolve the conflict between pragmatic considerations and incipient emotional motives. The process is rarely apparent to the individual consumer.
Example – a CSUF student’s laptop computer was stolen and a maximum of $500 of very limited savings was allocated to purchase a replacement. During the search process, an exquisite, name-brand unit with all the features long desired by the student was found on sale for $1,499. The student justified the more expensive laptop on the grounds of durability and advanced construction and purchased emotionally desired laptop.
Review #6
END
Review #1
Rationally evaluating alternative terms of cost and value received, in an effort to maximize utility or satisfaction while spending always scarce resources of time, energy and money best describes?
1. Economic Person Theory
2. Engels Law
3. Principle of diminishing Utility
4. Multidimensional Person
Review #2
Eager for respect and status, must keep up appearances and SAVE, most conforming group, clerical workers and small business owners, strive to be neat and clean best describes which U. S. Social class?
1. Upper Upper
2. Lower Upper
3. Upper Middle
4. Middle
5. Working
6. Upper Lower
7. Lower-Lower
Intermission
Review #3
The Motivation Theory best described as a two factor theory of the Role of needs consisting of Dissatisfiers/Satisfiers is?
1. A. H. Maslow’s Theory of Motivation
2. Economic Person Theory
3. Freud’s Theory of Motivation
4. Herzberg’s Theory of Motivation
Review #4
An emotionalized predisposition to respond, positively or negatively, to an object or class of objects best describes best describes?
1. Abandoning behavior
2. Affirming behavior
3. Attitude
4. Belief
Review #5
Considering the Types of Decision-Making Processes, which type enjoys the highest level of marketing opportunity?
1. Extensive decision making
2. Prolonged decision making
3. Limited decision making
4. Routine response behavior
Review #6
You confirmed reservations at a very important social event on the last Saturday of the month. Most of the people you attended high school with will be at the event. You have saved $300 for a new outfit. On the Friday before the event you spend the afternoon shopping and end up purchasing an outfit costing well over $600. Which of the following best explains your action?
1. Attitude
2. Belief
3. Conflict Rationalization
4. Emotionalized response
Ending
?