Learning Outcomes

1 Explain why marketing managers should understand

consumer behavior

2 Analyze the components of the consumer decision-

making process

3 Explain the consumers postpurchase evaluation

process

4
Identify the types of consumer buying decisions and
discuss the significance of consumer involvement
1 2013 by Cengage Learning Inc. All Rights Reserved.
 Learning Outcomes

5 Identify and understand the cultural factors that

affect consumer buying decisions

6 Identify and understand the social factors that affect

consumer buying decisions

7 Identify and understand the individual factors that

affect consumer buying decisions

8 Identify and understand the psychological factors

that affect consumer buying decisions
2 2013 by Cengage Learning Inc. All Rights Reserved.
 The Importance of Understanding
Consumer Behavior

Explain why
marketing managers
should understand
consumer behavior

1
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Emerging Trends in Consumer Behavior

Metrosexual
Straight urban man
who enjoys shopping
and using grooming
products

4-4
 The Consumer
Decision-Making Process

Analyze the
components
of the consumer
decision-making
process

2
2013 by Cengage Learning Inc. All Rights Reserved. 5
 Consumer
Decision-Making Process

Consumer
Decision-Making
Process A five-step process used
by consumers when
buying goods or services.

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2
6
 Exhibit 6.1
Consumer Decision-Making Process

7 2013 by Cengage Learning Inc. All Rights Reserved.

 Need Recognition

Need Result of an imbalance between

Recognition actual and desired states.

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2
8
 Need Recognition

Preferred
Present State
Status

Marketing helps consumers recognize

an imbalance between present status
and preferred state.

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2
9
 Stimulus
Stimulus

Any unit of input affecting

one or more of the five senses:
sight
smell
taste
touch
hearing

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2
10
 Information Search

Internal Information Search

Recall information in memory

External Information search

Seek information in outside

environment
Nonmarketing controlled
Marketing controlled
Personal factors

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2
11
 Evaluation of Alternatives
and Purchase

Evoked Set Analyze product

attributes

Use cutoff criteria

Rank attributes by
importance
Purchase!
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2
12
 Mental Accounting (manner which consumers
code, categorize, and evaluate financial outcomes of choice)

Consumers tend to
Segregate gains
Sum of parts maybe greater than the wholemultiple
benefits
Integrate losses
House buyers more inclined to view additional
expenditures favorably given the high price of the
house
Integrate smaller losses with larger gains
Withholding taxes from monthly paycheck than one
lump-sum payment
Segregate small gains from large losses
4-13 Rebate for purchasing an automobile
 Perceived Risk
Functionalproduct does not perform
Physicalproduct poses treat to physical
well-being or health of the user or others
Financialproduct is not worth the price
paid
Socialproduct results in embarrassment
from others
Psychologicalproduct affects the mental
well-being of the user
Timefailure of product results in an
opportunity cost of finding another
satisfactory product
Copyright 2009 Pearson Education, Inc. Publishing
as Prentice Hall 6-14
 Purchase

To buy
or not to buy...

Determines which attributes

are most important
in influencing a
consumers choice

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2
15
 Post-purchase Behavior

Explain the consumers

postpurchase
evaluation process

3
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 Postpurchase Behavior
Consumers can reduce dissonance by:
q Seeking information that reinforces positive
ideas about the purchase
q Avoiding information that contradicts the
purchase decision
q Revoking the original decision by returning
the product

Marketing can minimize dissonance through effective

communication with purchasers.

2013 by Cengage Learning Inc. All Rights Reserved.

3
17
 Post Purchase Behavior
The actual experience of the consumer
will significantly impact whether he/she
will purchase the product again or not
depending he/she was satisfied.
In case consumer is not satisfied
he/she will go back to the information
search part to find out if there are other
products that can address his/her
needs.
Copyright 2009 Pearson Education, Inc. Publishing as
Prentice Hall 6-18
 Cultural Influences on
Consumer Buying Decisions

Identify and understand

the cultural factors that
affect consumer
buying decisions

5
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 Buying Motives of Consumers

Primary motive consumer buys any one of any

class of goods regardless of type to satisfy a need.
Selective motive consumer buys a particular
commodity within a class or considers the type of
product.
Emotional motive consumer buys as a result of
being swayed by emotions (imitation, belongingness,
status, innovation, vanity)
Rational motive consumer buys using reason or
intelligence (economy, convenience, desire for
quality)

Copyright 2009 Pearson Education, Inc. Publishing

 Other Factors Influencing
Consumer Buying Decisions

Cultural Social
Factors Factors CONSUMER
DECISION- BUY /
MAKING DONT BUY
PROCESS
Psycho-
Individual
logical
Factors
Factors

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5
21
 Components of Culture
Values

Language

Myths

Customs

Rituals

Laws

Material artifacts
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5
22
 Culture
Culture is the sum of the values, rituals,
symbols, beliefs, and thought processes
that are learned, shared by a group of
people, and transmitted from generation
to generation

Copyright 2009 Pearson Education, Inc. Publishing as

Prentice Hall 6-23
 Value

Value

Enduring belief that a specific

mode of conduct is
personally or socially
preferable to another mode
of conduct.

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5
24
 Subculture

Subculture

A homogeneous group
of people who share
elements of the overall
culture as well as cultural
elements unique to their
own group.

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5
25
 Social Class

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 norms.

2013 by Cengage Learning Inc. All Rights Reserved.

5
26
 Social Class Measurements
Occupation

Income

Education

Wealth

Other Variables

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5
27
 The Impact of
Social Class on Marketing

Indicates which medium to use for

advertising

Helps determine the best distribution for

products

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5
28
 Social Influences on
Consumer Buying Decisions

Identify and
understand the
social factors that
affect consumer
buying decisions

6
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 Social Influences
Reference
Groups

Opinion
Leaders

Family
Members

30 2013 by Cengage Learning Inc. All Rights Reserved. 6

 Exhibit 6.5
Types of Reference Groups
Primary: small,
informal group
Direct Face-to-Face
membership
Secondary: large,
formal group

Reference Groups
Aspirational Group
that someone would
like to join
Indirect
Nonmembership
Nonaspirational Group
with which someone
wants to avoid being
identified

31 2013 by Cengage Learning Inc. All Rights Reserved.

 Opinion Leaders
are the first to try new products
and services out of pure curiosity.
can be challenging to locate.

Marketers are increasingly using

blogs, social networking, and other
online media to determine and attract
opinion leaders.

2013 by Cengage Learning Inc. All Rights Reserved.

6
32
 Family
Purchase Process Roles
in the Family
Initiators

Influencers

Decision Makers

Purchasers

Consumers

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6
33
 Individual Influences on
Consumer Buying Decisions

Identify and
understand the
individual factors that
affect consumer
buying decisions

7
2013 by Cengage Learning Inc. All Rights Reserved. 34
 Individual Influences

Personality
Age
Gender Self-Concept
Life Cycle
Lifestyle

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7
35
 Age and Family Life Cycle
Stage
Consumer tastes in food, clothing,
cars, furniture, and recreation are
often age related.

Marketers define target markets

according to life cycle stages such as
young singles or young married with
children.

2013 by Cengage Learning Inc. All Rights Reserved.

7
36
 Psychological Influences on
Consumer Buying Decisions

Identify and understand

the psychological
factors that affect
consumer buying
decisions

8
2013 by Cengage Learning Inc. All Rights Reserved. 37
 Psychological Influences

Perception

Motivation

Learning

Beliefs & Attitudes

2013 by Cengage Learning Inc. All Rights Reserved.

8
38
 Perception

Selective Consumer notices certain stimuli

Exposure and ignores others

Consumer changes or distorts

Selective
information that conflicts
Distortion
with feelings or beliefs
Consumer remembers only
Selective
that information that
Retention
supports personal beliefs

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8
39
 Marketing Implications
of Perception
Important attributes
Price
Brand names
Quality and reliability
Product or repositioning changes
Foreign consumer perception

2013 by Cengage Learning Inc. All Rights Reserved.

8
40
 Motivation

Freuds Maslows Herzbergs

Theory Hierarchy Two-Factor
of Needs Theory
Behavior
is guided by Behavior Behavior is
subconscious is driven by guided by
Motivations lowest, motivating
(id, ego, unmet need and hygiene
Superego) factors

Copyright 2009 Pearson Education, Inc. Publishing

as Prentice Hall 6-41
 Motivation

Maslows
Hierarchy
of Needs
A method of classifying human
needs and motivations into five
categories in ascending order of
importance.

2013 by Cengage Learning Inc. All Rights Reserved.

8
42
 Exhibit 6.6
Maslows Hierarchy
of Needs

43 2013 by Cengage Learning Inc. All Rights Reserved.

 Types of Learning

An experience changes
Experiential
behavior

Not learned through direct

Conceptual
experience

2013 by Cengage Learning Inc. All Rights Reserved.

8
44
 Business and Organizational
Customers A Big Opportunity
Manufacturers
Farms, mines,
etc.
Producers Financial
institutions
All Business Other providers
&
Organization Intermediari Wholesalers
es Retailers
al
Customers Government Federal
Units State and Local

National
Nonprofits Local
 Understanding Business & Organizational
Customers for Marketing Strategy Planning
(Exhibit 6-1)

Final Consumers Business and Organizational

and Their Buying Customers and Their Buying
Behavior Behavior

Business & Organizational

Markets and Customers A Model of Organizational/ Characteristics of Types
Are Different Business Buying of Organizational
Buyers Customers
Economic needs Defining the problem
Behavioral needs Buying process Manufacturers
Ethical issues Buyerseller Producers of services
Purchasing managers relationships Retailers & wholesalers
Multiple buying influence Government units
Buying procedures
 Differences Between Organizational
Customers and Final Consumers (Exhibit 6-2)
Fewer but
Multiple buying
larger
influence
customers

Economic
Buyers follow Business &
needs are
procedures Organizational
primary
Markets Are
Purchasing Different Behavioral
managers are patterns
specialists still matter

Ethical issues
arise
Multiple Influence and Roles in the Buying
Center

Buyers

Users Buying Influencers

Center

Gatekeepers Deciders
 Checking Your Knowledge
Consuela Velasquez is a receptionist for a group of seven
physicians. As she controls the calendars for the physicians,
any sales representatives from a pharmaceutical company
wanting to call on the physicians have to go through
Consuela. As a result, it is very important for sales reps to
cultivate a good relationship with her. In the buying center,
Consuela would be best described as a:

A. buyer.
B. user.
C. influencer.
D. gatekeeper.
E. decider.
 Checking Your Knowledge
Ahmed Jamison is a purchasing specialist for a large
company. He has the authority to execute purchase orders
on amounts up to $100,000. On a purchase order for a
higher amount, Ahmed arranges the terms of sale, but the
transaction has to be approved by the company president. In
the buying center for a purchase in excess of $100,000,
Ahmed is a(n) _________ and the president is
a(n)_________.

A. buyer; influencer
B. influencer; buyer
C. buyer; decider
D. gatekeeper; decider
E. user; influencer
 A Model of Organizational Buying
(Exhibit 6-4)

Step 2: Buying process

Step 1: Defining the problem Establish buying process
Problem recognition Gather information
Need description Solicit bids and select
Product specification the supplier

Step 3: Managing the buyer-

seller relationship
Structure the relationship
Monitor supplier
performance
Step 1: Define the Problem
From
recognizing Specifications
problems to describe the
describing product
needs

Quality
certification
Step 2: The Buying Process

Establish
buying
processes

Solicit bids &

Gather
select
information
suppliers
 Organizational Buying Processes
(Exhibit 6-5)
Type of Process
Characteristics
New-Task Modified Straight
Buying Rebuy Rebuy
Time required Much Medium Little

Multiple influence Much Some Little

Review of suppliers
Much Some None

Information needed
Much Some Little
 Major Sources of Information Used by
Organizational Buyers (Exhibit 6-6)
Marketing sources Nonmarketing sources
Salespeople Buying centre members
Others from Outside business
Personal suppliers firm associates
Sources Trade shows Consultants and outside
experts
Online events & virtual
Online searches
trade shows
Rating services
Sales literature and
Trade associations
Impersonal catalogs
News publications
Sources Emails & newsletters
Product directories
Web site content
Online communities
including blogs, videos,
case studies, & white
papers
 New-Task Buying Requires
Information
Search
Web Sites
Engines

New-Task
Buying
Requires
Information
Competitive Online
Bids Communities
 Checking Your Knowledge
Nikita Jackson, a sales representative for an industrial supply
house, calls on a prospective business customer. The customer
has an established relationship with another supplier, but says
that there have been some reliability problems with deliveries.
Nikita seizes the opportunity to describe her companys state-of-
the-art logistics and transportation system that provides
outstanding delivery reliability at low shipping costs. Nikita is
encouraged because her customer seems to be in a
___________ situation.

A. straight rebuy
B. modified rebuy
C. new-task
D. extensive problem-solving
E. limited problem-solving
 Checking Your Knowledge
Auto parts wholesaler Fixem, Inc. decides to invest in a new
data management system to increase the efficiency of its
warehouse operations. Previously, all record-keeping was done
via printed documents, but now all transactions will be
electronic. This change will require Fixem to expend a
significant amount of money for hardware, software, and
training. However, in the long run, the cost savings should
exceed the up-front investment. Fixem has arranged for
presentations to be made by three different vendors. Fixem
seems to be facing a ______________ buying situation.

A. straight rebuy
B. modified rebuy
C. new-task
D. extensive problem-solving
E. limited problem-solving
 Step 3: Managing Buyer-Seller
Relationships in Business Markets

Close Relationships
May Produce Relationships May
Mutual Benefits Not Make Sense

Relationships Reduced flexibility

Mutual trust
can involve
Long-term outlook Some purchases are
many from
too small or infrequent
Share tasks at lower both sides
total cost Some purchases
require much special
attention
Relationships Have Many
Dimensions (Exhibit 6-7)
Dynamics of Buyer-Seller
Relationships
Powerful Customer
May Control the
Relationship
Buyers May Use
Several Sources to
Spread Risks

Buying Varies by
Customer Type
 Manufacturers Are Important
Customers
Clustered in
Not Many Big
Geographic
Ones
Areas

Business
NAICS Codes Data
Classifies
Industries
 Illustrative NAICS Code Breakdown for
Apparel Manufacturers (Exhibit 6-9)
Construction Manufacturing Retail
others
(23) (31) (44)

Food (311) Apparel (315) Leather (316) others

Cut & Sew Apparel

Knitting Mills
Apparel accessories others
(3151)
(3152) (3159)

Mens & Womens & Other cut &

girls (31523) others
boys (31522) sew (31529)

Lingerie Blouses Dresses

others
(315231) (315232) (315233)
 Producers of Services
Smaller and More Spread Out

Car Repair Medical Services Legal Services

Housekeeping Library Small Service

Services Service Buyers
Buying May Not Be Formal
Retailers & Wholesalers Buy for
Their Customers
Committee
Buying Is
Impersonal

Reorders Are Buyers Watch

Straight Computer
Rebuys Output Closely
 The Government Market
Size and
Diversity

Competitive
FCPA
Bids

Foreign Approved
Governments Supplier List
Government
Wants