Marketing Chapter 6: Decision Making Process/Influence on Consumer Behavior

consumer behavior
-how consumers make purchase decisions
-how consumers use and dispose of product
consumer decision-making process
1. need recognition
2. information search
3. evaluation of alternatives
4. purchase
5. post-purchase behavior
need less information
-less risk
-more knowledge
-more product experience
-low level of interest
-confidence in decision
need more information
-more risk
-less knowledge
-less product experience
-high level of interest
-lack of confidence
evoked set
group of brand, resulting from an information search, from which a buyer can choose
the attraction effect
when one option (A) is better than another option (D) along both attributes (cheaper and of better quality), choosing A is easier to justify
-this happens especially with high-involvement decisions, or when people expect to justify their choice
the compromise effect
when one option (B) is a compromise between two other option (A and C) (e.g., medium quality for medium price), choosing B is easier to justify
-this happens especially with high-involvement decisions, or when people expect to justify their choice
choice overload
more likely to lead to a non-purchase decision
cognitive dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions

can be reduced 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 it through effective communication with purchasers

involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
routine response behavior
-little involvement in selection process
-frequently purchased low cost goods
-may stick with one brand
-buy first/evaluate later
-quick decision
limited decision making
-low levels of involvement
-low to moderate cost goods
-evaluation of a few alternative brands
-short to moderate time to decide
extensive decision making
-high levels of involvement
-high cost goods
-evaluation of many brand
-long time to decide
-may experience cognitive dissonance
factor determining the level of consumer involvement
-previous experience
-interest
-perceived risk of negative consequences
-social visibility
product involvement
a product category has high personal relevance
situational involvement
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
high-involvement purchases require
extensive and informative promotion to target market
-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
low-involvement purchases require
in-store promotion, eye-catching package design, and good displays; coupons, and two-for-one offers
-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 attentions; good displays can help explain a product’s purpose and create recognition of a want
factors influencing buying decisions
-cultural factors
-social factors
-individual factors
-psychological factors
components of culture
-values
-language
-myths
-customs
-rituals
-laws
-material artifacts
culture is
-pervasive: cultural values influence individual life, yet most are completely unaware of its presence
-functional: by establishing expectations, culture gives order to society, such as laws
-learned: culture is not genetics; instead, consumers must learn what is acceptable from family and friends
-dynamic: it adapts to changing needs and an evolving environment
value
an enduring belief that a specific mode of conduct is personally or socially preferable to another mode on conduct
subculture
a homogeneous group of people who share elements of the overall culture as well as cultural elements unique to their own group
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 normal
social class measurements
-occupation
-income
-education
-wealth
-other variables
impact of social class on marketing
-indicates which medium to use for advertising
-helps determine the best distribution for products
social influences
-reference groups
-opinion leaders
-family members
direct face-to-face membership
-primary: small, informal group
-secondary: large, formal group
indirect nonmembership
-aspirational group that someone would like to join
-nonaspirational group with which someone wants to avoid being identified
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
the first to try new products and services out of pure curiosity; may be challenging to locate
-marketers are increasingly using blogs, social networking, and other online media to determine and attract opinion leaders
individual influences
-gender
-age life cycle
-personality self-concept lifestyle
gender
physiological differences between men and women result in different needs, such as health and beauty products
-trends are influenced by the changing roles of men and women in society
personality
combines psychological makeup and environmental forces
human behavior
depends largely on self-concept
self-concept
combines ideal self-image and real self-image
psychological influences
-perception
-motivation
-learning
-beliefs and attitudes
selective exposure
consumer notices certain stimuli and ignores others
selective distortion
consumer changes or distorts information that conflicts with feelings or beliefs
selective retention
consumer remembers only the information that supports personal beliefs
marketing implications of perception
-important attributes
-price
-brand names
-quality and reliability
-threshold level and perception
-product or repositioning changes
-foreign consumer perception
-subliminal perception

1. marketers must recognize the importance of cues or signal in a consumers’ perception of products
2. marketing managers must first identify the important attributes, then design signals to communicate these attributes to consumers

maslow’s pyramid of needs
a method of classifying human needs and motivations into five categories in ascending order of importance

1. self-actualization needs
2. esteem needs
3. social needs
4. safety needs
5. physiological needs

experimental learning
an experience changes behavior
conceptual learning
not learning through direct experience
belief
an organized pattern of knowledge that an individual holds as true about his or her world
attitude
a learned tendency to respond consistently toward a given object
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