MKTG 5 CHAPTER Consumer Decision Making
consumers make purchase decisions Consumer behavior = HOW consumers use anddispose of product Understanding Consumer Behavior
Importance of Consumer Behavior • Why study consumer behavior? • Complex: personality is a poor predictor of purchasing. • Purchasing agent is variable (no longer wife, husband, etc…) • May have + attitude without intent to buy (I like Jennifer Anniston v.s. I plan to see Anniston’s new movie; Mercedes) • Routine or involved decisions
Time (convenience stores a good value vs grocery?) 3. Atmospherics (how stores makes you feel) What are some of the other things that makes you purchase a particular product? 2. Reason for purchase (gift vs personal use; restaurant choice) An Involved Choice? • Previous experience, interest, risk, social visibility and purchase situation • Purchase situation includes:
Need Recognition (vs.want) Information Search (internal/external) Cultural, Social, Individual and Psychological Factors affect all steps Evaluation of Alternatives (evoked set) Purchase Postpurchase Behavior (satisfaction, cognitive dissonance) Consumer Decision-Making Process
Cognitive Dissonance Dissonance • Buyer’s remorse • Ex: Neiman Marcus, United Airlines, and what else??
Other Influences • Social factors (reference groups, opinion leaders, family) • Cultural factors (values, subcultures, class) • Individual factors (demographics, psychographics) • Psychological factors (perception, motivation, learning, and beliefs)
Social Factors Reference groups • Those you look to for guidance. What are some reference groups that you can think of?? • Marketers: opinion leaders, influence others, usually type of product • Most influential for visible products (car vs mattress – function)
Cultural Influences • Subcultures and values • Social Class is defined as people with the same status in a society. • It is NOT simply a function of income • Factors U.S.: usually measured • Occupation • Education • Housing • U.S. is fluid (change) • People over rank themselves
1936 1965 1972 1986 1980 current Individual Influences • Demographic change • Change in lifestyles and attitudes Betty Crocker pictures change as consumer attitudes and lifestyles also change.
Oil of Olay Ads Before After People did not see the positive association between oil and beauty. As such, the second logo for Olay was changed and oil was taken out.
Psychological Influences Perception • Gathering & interpreting of information from the world around us. • The process involves: • Selective exposure • Seek what interests us, ignore others • Ex: political information and what else?? • Selective distortion • Screen/modify ideas we disagree with • Ex: power of suggestion, Bugs Bunny, and what else?? • Selective retention • Remember what you want • Ex: forget homework, photo memory
A method of classifying human needs and motivations into five categories in ascending order of importance. Motivation Maslow’s Hierarchy of Needs
Exhibit 5.5 Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs LO7
Summary • Why study consumer behavior? • Involvement factors • Social, cultural, individual, psychological • Hierarchy of needs • Any questions?