Marketing Chapter 6 All Involvement The Same High Involvement Means

Chapter 6 ♦ Consumer Decision Making 6-1

CHAPTER 6 Consumer Decision Making

CHAPTER FEATURES

Chapter Features

Key Points

✓ Marketing & You



Students are given a survey to determine their buying habits.

✓ Marketing Metrics



Marketers at VersaceRetailer.com want to increase Web site traffic.

To do this, they will use five areas of SEO to evaluate the

effectiveness of keywords: CPC, clicks per purchase, revenue per

click, profit per click, and MROI.

USING THIS MANUAL

Chapter six includes eight learning outcomes that help students become more familiar with consumer decision making.

The chapter outline provides detailed analysis of these learning outcomes, listing PowerPoint slides and review questions

LEARNING OUTCOMES

1 Explain why marketing managers should understand consumer behavior

Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the products

formula for Costco in Taiwan.

consumer behavior concepts.

target key shopping demographics.

knowledge of its loyal consumer base to tailor its product.

6-2 Chapter 6 ♦ Consumer Decision Making

2 Analyze the components of the consumer decision-making process

The consumer decision-making process begins with need recognition, when stimuli trigger awareness of an unfulfilled

3 Explain the consumer’s postpurchase evaluation process

Consumer post-purchase evaluation is influenced by pre-purchase expectations, the pre-purchase information search, and

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

consumer involvement

Consumer decision making falls into three broad categories. First, consumers exhibit routine response behavior for

frequently purchased, low-cost items that require very little decision effort; routine response behavior is typically

5 Identify and understand the cultural factors that affect consumer buying decisions

Cultural influences on consumer buying decisions include culture and values, subculture, and social class. Culture is the

essential character of a society that distinguishes it from other cultural groups. The underlying elements of every culture

6 Identify and understand the social factors that affect consumer buying decisions

Social factors include external influences as reference groups, opinion leaders, and family. Consumers seek out others’

opinions for guidance on new products or services and products with image-related attributes or because attribute

7 Identify and understand the individual factors that affect consumer buying decisions

Individual factors that affect consumer buying decisions include gender; age and family life-cycle stage; and personality,

Chapter 6 ♦ Consumer Decision Making 6-3

8 Identify and understand the psychological factors that affect consumer buying

decisions

Psychological factors include perception, motivation, learning, values, beliefs, and attitudes. These factors allow

consumers to interact with the world around them, recognize their feelings, gather and analyze information, formulate

CHAPTER OUTLINE

1 Explain why marketing managers should understand

consumer behavior

PowerPoint 6-5:

Consumer Behavior

Review Question 1.1

I. The Importance of Understanding Consumer Behavior

Consumer behavior describes the manner in which consumers make purchase

decisions, and how they use and dispose of the purchased goods or services.

PowerPoint 6-8:

Consumer Decision-

Making Process

PowerPoint 6-9:

Need Recognition

PowerPoint 6-10:

Recognition of Unfulfilled

Wants

2 Analyze the components of the consumer decision-making

process

II. The Consumer Decision-Making Process

The consumer decision-making process is a five-step method used by

consumers when buying goods or services.

A. Need Recognition

Need recognition occurs when consumers are faced with an imbalance

between actual and desired states.

3. Consumers recognize unfulfilled wants in a number of ways.

Recognition occurs when the consumer:

a. Has a current product that isn’t performing properly

6-4 Chapter 6 ♦ Consumer Decision Making

PowerPoint 6-11:

PowerPoint 6–12:

External Information

Searches

Review Question 2.1

Information search can occur internally, externally, or both.

2. External information search seeks information in the outside

environment.

a. Nonmarketing-controlled information sources, such as

personal experience, personal sources such as friends, and

3. The factors influencing an external search are the consumer‘s

perceived risk, knowledge, prior experience, and interest level in the

good or service.

4. The search yields an evoked set (also called a consideration set), a

group of brands resulting from the information search from which a

buyer can choose.

C. Evaluation of Alternatives and Purchase

1. Evaluation involves the development of a set of criteria. These

standards help the consumer evaluate and compare alternatives.

5. Ultimately, the consumer must decide :

a. Whether to buy

Marketing Metrics

Chapter 6 ♦ Consumer Decision Making 6-5

Search Engine Optimization

Marketers at VersaceRetailer.com want to increase Web site traffic. To do this, they

will use five areas of SEO to evaluate the effectiveness of keywords: CPC, clicks per

3 Explain the consumer’s postpurchase evaluation process

PowerPoint 6-17:

Postpurchase Behavior

Review Questions 3.1

III. Postpurchase Behavior

When buying products, consumers expect certain outcomes from the purchase.

How well these expectations are met determines whether the consumer is

satisfied or dissatisfied with the purchase.

Cognitive dissonance is a state of inner tension experienced by consumers after

they recognize an inconsistency between their values or opinions and their

4 Identify the types of consumer buying decisions and discuss

the significance of consumer involvement

IV. Types of Consumer Buying Decisions and Consumer Involvement

PowerPoint 6–20:

Consumer Buying

Decisions and Consumer

Involvement

Involvement refers to the amount of time and effort a buyer invests in the search,

evaluation, and decision processes of consumer behavior.

Five factors of consumer involvement:

o Level of consumer involvement

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associated with lower levels of involvement.

Extensive decision making is used for an unfamiliar, expensive, or infrequently

bought item. It is the most complex type of consumer buying decision and is

associated with high involvement on the part of the consumer.

PowerPoint 6–22:

Factors Determining the

Level of Consumer

Involvement

PowerPoint 6-23:

Marketing Implications of

Involvement

PowerPoint 6–24:

Factors Influencing

Buying Decisions

A. Factors Determining the Level of Consumer Involvement

1. Previous experience: Previous experience tends to lead to low

involvement.

F. Not All Involvement Is the Same

High involvement means that the consumer cares about a product’s

category, or a specific good or service. The most important types of high

involvement are as follows:

• Product involvement

G. Marketing Implications of Involvement

1. Marketing managers must offer extensive and informative promotion

for high-involvement products.

5-8 Factors Influencing Consumer Buying Decisions

The consumer decision-making process does not occur in a vacuum. Underlying

5 Identify and understand the cultural factors that affect

consumer buying decisions

Chapter 6 ♦ Consumer Decision Making 6-7

V. Cultural Influences on Consumer Buying Decisions

PowerPoint 6–27:

Components of Culture

PowerPoint 6–29:

Values

Review Question 5.1

PowerPoint 6–30:

Social Class

A. Culture and Values

1. Culture is the essential character of a society that distinguishes it

from other cultural groups. It is defined as the set of values, norms,

attitudes, and other meaningful symbols that shape human behavior

2. Values are the enduring beliefs that a specific model of conduct is

personally or socially preferable to another mode of conduct. Values

B. Understanding Culture Differences

1. Companies must understand the culture of foreign countries. A firm

C. Subculture

A subculture is a homogeneous group of people who share elements of the

overall culture as well as unique elements of their own group.

1. Subcultures may be geographically concentrated, such as Cajuns in the

bayou regions of southern Louisiana.

D. Social Class

A social class is a group of people who are nearly equal in status of

6-8 Chapter 6 ♦ Consumer Decision Making

Measurements

PowerPoint 6–34:

Social Influences

PowerPoint 6–35:

Reference Groups

2. Social class is typically measured as a combination of occupation,

income, education, wealth, and other variables.

3. Marketers are interested in social class for two main reasons:

Global Perspectives

Understanding Taiwanese Behavior Keeps Costco Counting Members

Though Taiwanese consumers were apprehensive of a $40 membership fee, offering an

6 Identify and understand the social factors that affect

consumer buying decisions

VI. Social Influences on Consumer Buying Decisions

A. Reference Groups

In-Class Activity:

Everyone is a member of several reference groups at any given time. After defining the

1. Direct membership groups are face–to-face membership groups that

touch people’s lives directly.

a. Primary membership groups include all groups with which

people interact regularly in an informal, face–to-face manner,

2. Indirect membership groups are groups of which one is not a member.

a. Aspirational groups are groups one would like join. To gain

PowerPoint 6–36:

Influences of Reference

Groups

PowerPoint 6–37:

Opinion Leaders

PowerPoint 6-38:

Family

PowerPoint 6–39:

Relationships Among

Purchasers and

PowerPoint 6–41:

Review Question 7.1

3. For marketers, reference groups have three important implications:

a. They serve as information sources and influence perceptions

B. Opinion Leaders

An opinion leader is an individual who influences the opinion of

others.

C. Family

The family is the most important social institution for many consumers; it

strongly influences our values, attitudes, self-concept, and socialization

process (the passing down of cultural values and norms to children).

Purchase and information roles within the family:

1. Initiators suggest, initiate, or plant the seed for the purchase process

7 Identify and understand the individual factors that affect

consumer buying decisions

VII. Individual Influences on Consumer Buying Decisions

A. Gender

1. Gender differences include the obvious physiological differences, and

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distinct cultural, social, and economic roles.

B. Age and Family Life Cycle Stage

1. The age and family life-stage of a consumer generally indicates what

products he or she will purchase.

C. Personality, Self-Concept, and Lifestyle

Class Activity: This

activity asks students to

examine the ways in which

their purchases reflect

their self-concept

PowerPoint 6-44:

Psychological Influences

1. Personality is a way of organizing and grouping the consistencies of

an individual’s reactions to situations.

2. Personality includes a person’s underlying dispositions, especially

their most dominant characteristics.

4. Lifestyle is a person’s mode of living as identified by activities,

interests, and opinions.

8 Identify and understand the psychological factors that affect

consumer buying decisions

VIII. Psychological Influences on Consumer Buying Decisions

PowerPoint 6-45:

A. Perception

Perception

Perception is the process by which people select, organize, and interpret

stimuli to create a meaningful and coherent picture. Perception is how we

recognize that we have a consumption problem.

PowerPoint 6-46:

Marketing Implications of

Perception

1. Selective exposure is the process whereby a consumer notices certain

stimuli (such as advertisements) and ignores other stimuli.

Marketing Implications of Perception:

o Important attributes

o Price

B. Motivation

PowerPoint 6-47:

1. Motives are the driving forces that cause a person to take action to

satisfy specific needs.

2. Maslow’s hierarchy of needs is a method of classifying human needs

o Physiological needs: food, water, shelter

o Safety needs: security, freedom from pain and discomfort

PowerPoint 6-48:

Types of Learning

C. Learning

Learning is the process that creates changes in behavior, immediate or

expected, through experience and practice.

1. Experiential learning is learning by doing.

2. Conceptual learning is learning by applying previously learned

Stimulus Generation and

Discrimination

second stimulus similar to the first.

Stimulus discrimination is the learned ability to differentiate among