Chapter 3 (consumer decision making)
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This document discusses consumer and business decision making. It covers the consumer decision making process, which involves need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also discusses types of consumer buying decisions and factors that influence consumer buying decisions, such as cultural, social, personal, and psychological characteristics. The key models presented are the consumer behavior model and the consumer decision making process model.
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Chapter 3 (consumer decision making)
- 1. Fundamentals Of Marketing MKT243 Chapter 3 Consumer and Business Decision Making MKT243 Fundamental of DHD 2012 Marketing 1
- 2. Slides Outline Importance of understanding of consumer behavior Consumer buying behavior Consumer Decision Making Process Types of Consumer Buying Decision Factor Influencing consumer buying decision MKT243 Fundamental of DHD 2012 Marketing 2
- 3. Importance of understanding consumer behavior Consumers’ product and service preferences are constantly changing Understanding how consumer make purchase decisions can help marketing managers to determine the most important attribute for certain target market Easily design and developing marketing strategy MKT243 Fundamental of DHD 2012 Marketing 3
- 4. Model of Consumer Behavior Consumer buyer behavior refers to the buying behavior of final consumers— individuals and households who buy goods and services for personal consumption Consumer market refers to all of the personal consumption of final consumers MKT243 Fundamental of DHD 2012 Marketing 4
- 5. Model of Consumer Behavior MKT243 Fundamental of DHD 2012 Marketing 5
- 6. The Buyer Decision Process MKT243 Fundamental of DHD 2012 Marketing 6
- 7. Occurs when the buyer recognizes a problem or need triggered by: ◦ Internal stimuli ◦ External stimuli Need recognition MKT243 Fundamental of DHD 2012 Marketing 7
- 8. Sources of information: Personal sources—family and friends Commercial sources— advertising, Internet Public sources—mass media, consumer organizations Experiential sources— handling, examining, using the product Information search MKT243 Fundamental of DHD 2012 Marketing 8
- 9. Evoked Set Analyze product attributes Analyze product attributes Use cutoff criteria Use cutoff criteria Rank attributes by Rank attributes by importance importance Purchase! Evaluation of Alternative MKT243 Fundamental of DHD 2012 Marketing 9
- 10. The act by the consumer to buy the most preferred brand The purchase decision can be affected by: ◦ Attitudes of others ◦ Unexpected situational factors Purchase Decision MKT243 Fundamental of DHD 2012 Marketing 10
- 11. The satisfaction or dissatisfaction that the consumer feels about the purchase Relationship between: ◦ Consumer’s expectations ◦ Product’s perceived performance The larger the gap between expectation and performance, the greater the consumer’s dissatisfaction Cognitive dissonance is the discomfort caused by a post-purchase conflict Post purchase decision MKT243 Fundamental of DHD 2012 Marketing 11
- 12. Types Buying Decision Behavior MKT243 Fundamental of DHD 2012 Marketing 12
- 13. Types of Buying Decision Behavior MKT243 Fundamental of DHD 2012 Marketing 13
- 14. Factors Influencing Consumer Buying Decision MKT243 Fundamental of DHD 2012 Marketing 14
- 15. Factors Influencing Consumer Buying Decision Culture is the learned values, perceptions, wants, and behavior from family and other important institutions Subculture are groups of people within a culture with shared value systems based on common life experiences and situations ◦ Hispanic ◦ African American ◦ Asian ◦ Mature consumers MKT243 Fundamental of DHD 2012 Marketing 15
- 16. Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors Measured by a combination of occupation, income, education, wealth, and other variables Factors Influencing Consumer Buying Decision MKT243 Fundamental of DHD 2012 Marketing 16
- 17. MKT243 Fundamental of DHD 2012 Marketing 17
- 18. Groups and Social Networks MKT243 Fundamental of DHD 2012 Marketing 18
- 19. Word-of-mouth influence and buzz marketing Opinion leaders are people within a reference group who exert social influence on others Also called influentials or leading adopters Marketers identify them to use as brand ambassadors Online Social Networks are online communities where people socialize or exchange information and opinions Include blogs, social networking sites (facebook), virtual worlds (second life) Groups and Social Networks MKT243 Fundamental of DHD 2012 Marketing 19
- 20. Family is the most important consumer- buying organization in society Social roles and status are the groups, family, clubs, and organizations that a person belongs to that can define role and social status Social Factors MKT243 Fundamental of DHD 2012 Marketing 20
- 21. Age and life-cycle stage RBC Royal Band stages ◦ Youth: younger than 18 ◦ Getting started: 18–35 ◦ Builders: 35–50 ◦ Accumulators: 50–60 ◦ Preservers: over 60 Personal Factors MKT243 Fundamental of DHD 2012 Marketing 21
- 22. Occupation affects the goods and services bought by consumers Economic situation includes trends in: Personal Factors MKT243 Fundamental of DHD 2012 Marketing 22
- 23. Lifestyle is a person’s pattern of living as expressed in his or her psychographics Measures a consumer’s AIOs (activities, interests, opinions) to capture information about a person’s pattern of acting and interacting in the environment Personal Factors MKT243 Fundamental of DHD 2012 Marketing 23
- 24. Personality and self concept MKT243 Fundamental of DHD 2012 Marketing 24
- 25. A motive is a need that is sufficiently pressing to direct the person to seek satisfaction motivation MKT243 Fundamental of DHD 2012 Marketing 25
- 26. Characteristics Affecting Consumer Behavior Maslow’s Hierarchy of Needs MKT243 Fundamental of DHD 2012 Marketing 26
- 27. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes Psychological Factors MKT243 Fundamental of DHD 2012 Marketing 27
- 28. Learning is the change in an individual’s behavior arising from experience and occurs through interplay of: Psychological Factors MKT243 Fundamental of DHD 2012 Marketing 28
- 29. Belief is a descriptive thought that a person has about something based on: Knowledge Opinion Faith Psychological Factors MKT243 Fundamental of DHD 2012 Marketing 29
- 30. Attitudes describe a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea Psychological Factors MKT243 Fundamental of DHD 2012 Marketing 30
Editor's Notes
- #18: Note to Instructor The Web link brings you to Rhode Island Housing. This is an example of an organization that targets the lower income groups with housing solutions. It will be interesting to ask the student the challenges in targeting this group for this company. They might realize that high illiteracy rates, non-English speakers, and lower education levels might make it harder for them to be reached and to understand the messages.