Social influences on consumer decision making

Chapter 3

Consumer Behavior

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Chapter Outline

Social influences on consumer decision making

Marketing influences on consumer decision making

Situational influences on consumer decision making

Psychological influences on consumer decision making

Consumer decision making

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Figure 3.1: An Overview of the Buying Process

Jump to Figure 3.1: An Overview of the Buying Process , Appendix

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Culture

Influences an individual’s needs, wants, and behavior

Determinant of certain aspects of consumer behavior

Cultural values are transmitted through:

Family

Religious organizations

Educational institutions

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Culture and Subculture

Marketing managers should:

Adapt the marketing mix to cultural values

Constantly monitor value changes and differences in both domestic and global markets

Subcultures

Arise when a population loses a significant amount of its homogeneity

Based on geographic areas, religions, nationalities, ethnic groups, and age

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Social Class

Develops on the basis of wealth, skill, and power

Tends to have different attitudinal configurations and values that influence the behavior of individual members

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Social Class: Classification

Differentiated mainly by having high incomes

Upper Americans

Concerned with doing the right thing and buying what is popular

Middle class

Family folk who depend heavily on relatives for economic and emotional support

Working class

Have the lowest education levels and resources and lie at the bottom of the social class hierarchy

Lower Americans

Jump to Social Class: Classification, Appendix

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Reference Groups

Groups that an individual looks to when forming attitudes and opinions

Primary reference groups: Family and close friends

Family life cycle: Framework that divides the development of a family into a number of stages based on the needs, assets, debts, and expenditures that change with time

Secondary reference groups: Fraternal organizations and professional associations

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Marketing Influences on Consumer Decision Making

Brand name, quality, newness, complexity, physical appearance of the product, packaging, and labeling information

Product influences

Sales depend on competitive offering

Price influences

Advertising, sales promotions, salespeople, and publicity

Promotion influences

Convenience in buying

Products being sold in exclusive outlets

Products being offered by nonstore methods

Place influences

Jump back to Marketing Influences on Consumer Decision Making , Appendix

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Situational Influences on Consumer Decision Making, 1

Factors particular to a time and place that have a demonstrable and systematic effect on current behavior

Physical features: Geographical and institutional location, decor, sounds, aromas, lighting, weather, and visible configurations of merchandise or other materials

Social features: Other persons present, their characteristics, their apparent roles and interpersonal interactions

Time: Temporal dimension of a situation

Task features: An intent or requirement to select, shop for, or obtain information about a general or specific purchase

Current conditions: Momentary moods and conditions that influence consumer behavior

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Psychological Influences on Consumer Decision Making: Product Knowledge

Amount of information a consumer has about particular products and ways to purchase them

Influences:

How much information is sought to make a purchase

How quickly a consumer goes through the decision-making process

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Psychological Influences on Consumer Decision Making: Product Involvement

Consumer’s perception of the importance or personal relevance of an item

High-involvement product: Consumers develop a high degree of product knowledge

High degree of product involvement: Increases the time it takes to go through the decision-making process

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Figure 3.2: The Consumer Decision-Making Process

Jump to Figure 3.2: The Consumer Decision-Making Process, Appendix

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Types of Decision Making

Requires the most time and effort since the purchase typically involves a highly complex or expensive product that is important to the consumer

Extensive decision making

Requires a moderate amount of time and effort to search for and compare alternatives

Limited decision making

Involves little in the way of thinking and deliberation

Routine decision making

Jump to Types of Decision Making, Appendix

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Need Recognition

Consumer’s recognition of an unsatisfied need is the starting point in the buying process

Stimulated by either internal or external stimuli

Marketing managers must find out:

What needs and wants a particular product satisfies

What unsatisfied needs and wants consumers have for which a new product could be developed

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Abraham Maslow’s Hierarchy of Needs

Physiological needs: Primary needs of the human body such as food, water, and sex

Safety needs: Protection from physical harm, ill health, and economic disaster and avoidance of the unexpected

Belongingness and love needs: Social and gregarious nature of humans and the need for companionship

Esteem needs: Awareness of importance to others and actual esteem from others

Self-actualization needs: Desire to become everything one can become and fully realize talents and capabilities

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Sources of Alternative Search

Consumer’s stored information and experience to deal with a particular need

Internal sources

Communication with other people

Group sources

Advertising, salespeople, dealers, packaging, and displays offered by marketers

Marketing sources

Newspaper articles, and independent ratings of the product

Public sources

Information a consumer gets from handling, examining, and trying a product

Experiential sources

Jump to Sources of Alternative Search, Appendix

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Steps in Information Processing

Being exposed to information

Becoming attentive to the information

Understanding the information

Retaining the information

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Describing Evaluation Process, 1

Consumer has information about a number of brands in a product class

Consumer perceives that some of the brands in a product class are viable alternatives for satisfying a recognized need

Each of these brands has a set of attributes

Set of these attributes is relevant to the consumer

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Describing Evaluation Process, 2

Consumer perceives that different brands vary in how much of each attribute they possess

Consumers prefer brands that have desired attributes in desired amounts and desired order

Brand the consumer likes best is the brand the consumer will intend to purchase

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Purchase Decision

Involves:

Product type

Brand

Model

Dealer selection

Method of payment

Consumers minimize their risk by either reducing negative consequences or uncertainty

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Postpurchase Evaluation

Probability of repurchase increases if the product fulfills the need for which it was purchased

Cognitive dissonance: Lack of harmony among a person’s thoughts after a decision has been made

Related to the occurrence of postdecision dissonance

Disconfirmation paradigm: Views consumer satisfaction as the degree to which the actual performance of a product is consistent with expectations a consumer had before purchase

Related to the postpurchase consumer satisfaction

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Implications of Postpurchase Evaluation

Marketers should not raise prepurchase expectations to such a level that the product cannot possibly meet them

Creating positive expectations consistent with the product’s likely performance is important

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APPENDICES

Figure 3.1: An Overview of the Buying Process, Appendix

The top row contains three boxes that are arranged beside each other. Starting from the left, the first box is labeled social influences, the second box is labeled marketing influences, and the third box is labeled situational influences. Arrows extend from each of these boxes that connect them to a fourth box below. The fourth box is labeled psychological influences. An arrow extends from this box and connects it to a fifth box below. The fifth box is labeled consumer decision making.

Jump back to Figure 3.1: An Overview of the Buying Process

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25

Social Class: Classification, Appendix

There are 4 small rectangular boxes partially overlapping 4 large rectangular boxes. Each pair of small and large boxes is placed one below the other. The content in the large box explains the term provided in the small box. In the first pair of boxes, the small box is labeled upper Americans. The content in the large box reads differentiated mainly by having high incomes. In the second pair of boxes, the small box is labeled middle class. The content in the large box reads concerned with doing the right thing and buying what is popular. In the third pair of boxes, the small box is labeled working class. The content in the large box reads family folk who depend heavily on relatives for economic and emotional support. In the fourth pair of boxes, the small box is labeled lower Americans. The content in the large box reads have the lowest education levels and resources and lie at the bottom of the social class hierarchy.

Jump back to Social Class: Classification

© McGraw-Hill Education

26

Marketing Influences on Consumer Decision Making, Appendix

There are 4 small rectangular boxes partially overlapping 4 large rectangular boxes. Each pair of small and large boxes is placed one below the other. The content in the large box contains examples of the term provided in the small box. In the first pair of boxes, the small box is labeled product influences. The content in the large box reads brand name, quality, newness, complexity, physical appearance of the product, packaging, and labeling information. In the second pair of boxes, the small box is labeled price influences. The content in the large box reads sales depend on competitive offering. In the third pair of boxes, the small box is labeled promotion influences. The content in the large box reads advertising, sales promotions, salespeople, and publicity. In the fourth pair of boxes, the small box is labeled place influences. The content in the large box reads convenience in buying, products being sold in exclusive outlets, and products being offered by nonstore methods.

Jump back to Marketing Influences on Consumer Decision Making

© McGraw-Hill Education

Figure 3.2: The Consumer Decision-Making Process, Appendix

It consists of four square-shaped boxes. Starting from the left, the first box is labeled need recognition. An arrow extends from this box to the next box, which is labeled alternative search. An arrow extends from this box to the next box, which is labeled alternative evaluation. An arrow extends from this box to the next box, which is labeled purchase decision. An arrow extends from this box to the next box, which is labeled postpurchase evaluation. An arrow extends from this box and connects it back to the first box labeled need recognition from the left.

Jump back to Figure 3.2: The Consumer Decision-Making Process

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Types of Decision Making, Appendix

There are 4 small rectangular boxes partially overlapping 4 large rectangular boxes. Each pair of small and large boxes is placed one below the other. The content in the large box explains the term provided in the small box. In the first pair of boxes, the small box is labeled extensive decision making. The content in the large box reads requires the most time and effort since the purchase typically involves a highly complex or expensive product that is important to the consumer. In the second pair of boxes, the small box is labeled limited decision making. The content in the large box reads requires a moderate amount of time and effort to search for and compare alternatives. In the third pair of boxes, the small box is labeled routine decision making. The content in the large box reads involves little in the way of thinking and deliberation.

Jump back to Types of Decision Making

© McGraw-Hill Education

Sources of Alternative Search, Appendix

There are 5 small rectangular boxes partially overlapping 5 large rectangular boxes. Each pair of small and large boxes is placed one below the other. The content in the large box explains the term provided in the small box. In the first pair of boxes, the small box is labeled internal sources. The content in the large box reads consumer’s stored information and experience for dealing with a particular need. In the second pair of boxes, the small box is labeled group sources. The content in the large box reads communication with other people. In the third pair of boxes, the small box is labeled routine marketing sources. The content in the large box reads advertising, salespeople, dealers, packaging, and displays offered by marketers. In the fourth pair of boxes, the small box is labeled public sources. The content in the large box reads newspaper articles, and independent ratings of the product. In the fifth pair of boxes, the small box is labeled experiential sources. The content in the large box reads information a consumer gets from handling, examining, and trying a product.

Jump back to Sources of Alternative Search

© McGraw-Hill Education

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