1.1.1.1.1.1.1.1 Powerpoint Slides With Teaching Notes
Power Point Slide Teaching Notes
6-1: Consumer Behavior Chapter Five – Consumer Behavior
6-2: Learning Objecves These questions are the learning
objectives guiding the chapter and
will be explored in more detail in the
following slides.
6-3: Google Glass Google Glass has so appealed to
consumers that they have competed
to pay around $1,500, just to be able
to among the first to try out the new
technological gadget.
Ask students What makes people
shell out so much to try a virtually
untested technology? What keeps
others from giving them a go? And
why are so many companies
introducing some version of wearable
technology, despite some warnings
that the trend will never take off
among regular consumers?
6-4: The Consumer Decision Process This slide illustrates the entire
consumer decision process.
This model represents the steps that
consumers go through before, during,
and after making purchasing
decisions.
6-5: Need Recognion The consumer decision process
begins when consumers recognize
they have an unsatisfied need.
Consumer needs can be functional,
which pertain to the performance of a
product or service or consumer needs
can be psychological, which pertain
to the personal gratification
consumers associate with a product
or service.
Ask students about needs they have
and whether they are functional or
psychological?
6-6: “It’s hard to *nd your li,er box if you can’t
smell it”
Kitty litter marketers know that cat
owners have a need for litter boxes
that do not smell.
Ask students: Why is this ad
effective? First of all, animals are
usually highly effective at attracting
attention – in this ad they are in
unusual positions which attracts
additional attention.
This campaign is effective because
the humor (the cat “holding it”) ties
to the product benefit of not being
able to find (smell) the litter box.
6-7: Search for Informaon After a consumer recognizes a need,
he or she must search for information
about the various options that exist to
satisfy that need.
In an internal search for information,
the buyer examines his or her own
memory and knowledge about the
product or service. In an external
search for information, the buyer
seeks information outside his or her
personal knowledge base to help
make the buying decision.
Ask students where they looked for
external information when
conducting a search for colleges?
6-8: Factors A5ecng Consumers’ Search
Process
One important factor that affects
consumers’ search process is
perceived benefits versus perceived
costs.
Is it worth the time and effort to
search for information about a
product or service?
6-9: The Locus of Control Another factor affecting the
consumer search process is locus of
control.
Locus of control actually indicates
how much control people think they
have over the outcomes of various
activities, such as purchasing a
product or service.
Some people sense their own internal
control, whereas others feel virtually
powerless. The former engage in
more search activities.
6-10: Actual or Perceived Risk There are three types of risk
associated with purchase decisions
that can delay or discourage a
purchase.
Performance risk involves the
perceived danger inherent in a poorly
performing product or service.
Financial risk is associated with a
monetary outlay and includes the
initial cost of the purchase, as well as
the costs of using the item or service.
Social risk involves the fears that
consumers suffer when they worry
others might not regard their
purchases positively.
Psychological risks are those risks
associated with the way people will
feel if the product or service does not
convey the right image.
Ask students about the search for a
college and have them classify
examples of the three types of risks.
6-11: Designing For Women Ask students: What type of product
are home improvement and tools?
Students will notice that they are
shopping goods. How might women
search for this type of information
differently than men?
Note: Please make sure that the video
file is located in the same folder as
the PowerPoint slides.
6-12: Evaluaon of Alternaves: A,ribute Sets Research has shown that a
consumer’s mind organizes and
categorizes alternatives to aid his or
her decision-making process.
Universal sets include all possible
choices for a product category.
A subset of the universal set is the
retrieval set, which are those brands
or stores that can be readily brought
forth from memory.
Another is an evoked set, which
comprises the alternative brands or
stores that the consumer states he or
she would consider when making a
purchase decision.
Ask students to name cookie brands
– this is their retrieval set. They may
be surprised at how few brands they
retrieve.
6-13: Evaluaon of Alternaves: Evaluate
Criteria
Evaluative criteria consist of a set of
important attributes about a particular
product.
Determinant attributes are product or
service features that are important to
the buyer and on which competing
brands or stores are perceived to
differ. The students will respond to
the question on this slide with
weather, beach, friends, price, and
outdoor activities.
6-14: Evaluaon of Alternaves: Consumer
Decision Rules
Consumer decision rules are a set of
criteria that consumers use
consciously or subconsciously to
quickly and efficiently select among
several alternatives.
Compensatory decision rules assume
that the consumer, when evaluating
alternatives, trades off one
characteristic against another, such
that good characteristics compensate
for bad characteristics.
Sometimes consumers use
non-compensatory decision rules in
which they choose a product or
service on the basis of a subset of its
characteristics, regardless of the
values of its other attributes.
6-15: Purchase and Consumpon Retailers use the conversion rate to
measure how well they convert
purchase intentions into actual
purchases.
6-16: Post-purchase: Customer Sasfacon Setting unrealistically high consumer
expectations of the product can lead
to dissatisfaction when the product
fails to achieve high performance
expectations.
Marketers can take several steps to
ensure post-purchase satisfaction
such as demonstrating correct
product use, building realistic
expectations, providing a money
back guarantee, encouraging
feedback, and periodically making
contact with customers.
6-17: Post-purchase: Dissonance Post-purchase dissonance, also
known as buyer’s remorse, is the
psychologically uncomfortable state
produced by an inconsistency
between beliefs and behaviors that in
turn evokes a motivation to reduce
the dissonance.
Ask students how firms attempt to
reduce dissonance. They may
mention that firms send thank you
letters advertise awards and quality
follow up with phone calls.
6-18: Post-purchase: Customer loyalty Loyal customers will buy only
certain brands and shop at certain
stores, and they include no other
firms in their evoked set.
Ask students Why they are loyal to
their favorite brands?
6-19: Post-purchase: Undesirable Consumer
Behavior
A more serious and potentially
damaging issue is negative consumer
behavior, such as negative word of
mouth and rumors.
Ask students How do they respond
to negative word of mouth?
6-20: Purchase and Consumpon 1. Need Recognion, Informaon
Search, Alternave Evaluaon,
Purchase, and Post Purchase.
2. Wants are goods or services that
are not necessarily needed but
are desired.
3. Funconal needs pertain to the
performance of a product or
service. Psychological needs
pertain to the personal
gra*caon consumers associate
with a product and/or service.
4. Performance, *nancial, social,
physiological, and psychological.
5. A compensatory decision rule
assumes that the consumer,
when evaluang alternaves,
trades o5 one characterisc
against another. On the other
hand, in a non-compensatory
decision rule, choose a product
or service on the basis of one or
a subset of its characteriscs,
regardless of the values of its
other a,ributes.
6-21: Factors InAuencing the Consumer Decision
Process
This slide lists the factors influencing
the consumer decision process, which
are discussed in more detail in the
following slides.
6-22: Psychological Factors: Moves A motive is a need or want that is
strong enough to cause the person to
seek satisfaction. People have several
types of motives, such as those
illustrated in the PSSP hierarchy of
needs.
Ask students if there are any
products that fulfill several levels of
needs? They will mention products
like an expensive fur coat given as a
gift is physiological, love, and
esteem.
6-23: Psychological Factors: ACtude An attitude is a person’s enduring
evaluation of his or her feelings about
behavioral tendencies toward an
object or idea.
An attitude consists of three
components: The cognitive aspect
reflects what we believe to be true,
the affective component involves
what we feel about the issue at hand,
and the behavioral component
comprises the actions we undertake
with regard to that issue.
6-24: Psychological Factors: Percepon Perception is the process by which
we select, organize, and interpret
information to form a meaningful
picture of the world. Societies’
perceptions can change.
For example, tattoos used to be only
considered acceptable for unsavory
individuals.
They were clearly NOT mainstream,
yet today people from a variety of
demographic backgrounds get
tattooed. Many celebrities have
tattoos, even some parents and
children have matching tattoos.
6-25: Psychological Factors: Learning and
Lifestyle
Learning refers to a change in a
person’s thought process or behavior
that arises from experience and takes
place throughout the consumer
decision process.
Learning affects both attitudes and
perceptions. A person’s perceptions
and ability to learn are affected by
their social experiences.
6-26: Social Factors: Family Many purchase decisions are made
about products or services that the
entire family will consume or use.
Thus, firms must consider how
families make purchase decisions and
understand how various family
members might influence these
decisions.
Ask students about a purchase that
their family recently made and have
them determine the decision makers
and the influencers.
6-27: Social Factors: Reference Groups A reference group is one or more
persons whom an individual uses as a
basis for comparison regarding
beliefs, feelings, and behaviors.
A consumer might have various
reference groups including family,
friends, coworkers, or famous people.
These reference groups affect buying
decisions by offering information,
providing rewards for specific
purchasing behaviors, and enhancing
a consumer’s self-image.
6-28: Reference Group Celebrities are often used in
advertising because they have
expertise, power, glamour and
consumer’s want to have these same
qualities.
This web link (always check links
before class) goes to an ad in the
GEICO campaign in which they use
celebrities (actors) to tell real
people’s stories.
6-29: Social Factors: Culture Culture is defined as the shared
meanings, beliefs, morals, values,
and customers of a group of people.
Like reference groups, cultures
influence consumer behavior.
6-30: Could You Go Without Tech for a Week Ask students: why does this tie into
cultural factors?
Do they think they could go one
week?
How does technology influence us as
workers, friends, and family
members?
Note: Please make sure that the video
file is located in the same folder as
the PowerPoint slides.
6-31: Situaonal Factors Situational factors are factors specific
to the situation that override, or at
least influence, psychological and
social issues.
These situational factors are related
to the purchase and shopping
situation, as well as to the temporal
state as illustrated in this slide.
Ask students what certain
restaurants or stores do to make the
shopping situation more pleasant and
conducive to purchasing?
6-32: Check Yourself 1. Physiological (e.g., food, water,
shelter), safety (e.g., secure
employment, health), love (e.g.,
friendship, family), and esteem
(e.g., con*dence, respect), and
self-actualizaon (people engage
in personal growth acvies and
a,empt to meet their
intellectual, aesthec, creave,
and other such needs).
a. Reference groups and culture
b. Family
2. Store atmosphere, crowding,
in-store demonstraons,
promoons and packaging
6-33: Involvement and Consumer Buying
Decisions
Ask students: What was the last
thing you purchased?
Based on their answers, get them to
determine whether they used limited
problem solving, extensive problem
solving, or whether it was a habitual
purchase or impulse purchase.
6-34: Types of Buying Decisions Students will mostly likely identify
the orange juice as habitual, Subway
as limited, and the car as extended
problem solving.
This is a YouTube link (always check
before class) for a skittles ad.
Ask students why there is so much
advertising with these types of
products. It is in part because they
are often impulse purchases.
6-35: Check Yourself 1. The high involvement consumer
will scrunize all the informaon
provided and process the key
elements of the message more
deeply. As a consequence, an
involved consumer is likely to
either end up judging the
message to be truthful and will
form a favorable impression for
the product being adversed or
alternavely view the message as
super*cial in nature and develop
negave product thoughts
2. Limited problem solving occurs
during a purchase decision that
calls for, at most, a moderate
amount of e5ort and me.
Customers engage in this type of
buying process when they have
had some prior experience with
the product or service and the
perceived risk is moderate.
Limited problem solving usually
relies on past experience more
than on external informaon.
Extended problem solving, which
is common when the customer
perceives that the purchase
decision entails a lot of risk,
entails much external
informaon.