Consumer Behavior

CHAPTER
CONSUMER
BEHAVIOR
Copyright © 2007 by The McGraw-Hill Companies, Inc. All Rights Reserved. Slide 5-1
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1. Describe the stages in the consumer decision

process.
2. Distinguish among three variations of the

consumer decision process: routine, limited,
and extended problem solving.
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
3. Identify major psychological influences on

consumer behavior.
4. Identify major sociocultural influences on

consumer behavior.
GETTING TO KNOW THE
AUTOMOBILE CUSTOM(H)ER
AND INFLUENC(H)ER
CONSUMER PURCHASE
DECISION PROCESS
• Consumer Behavior
• Purchase Decision Process
• Problem Recognition: Perceiving a Need
FIGURE 5-1 Purchase decision process
CONSUMER PURCHASE
DECISION PROCESS
• Information Search: Seeking Value
 Internal Search
 External Search
• Personal Sources
• Public Sources
• Market-Dominated Sources
FIGURE 5-2 Consumer Report’s evaluation
of portable MP3-capable CD players
CONSUMER PURCHASE
DECISION PROCESS
• Alternative Evaluation: Assessing Value
 Evaluative Criteria
 Consideration Set
• Purchase Decision: Buying Value
• Postpurchase Behavior: Value in

Consumption or Use
 Cognitive Dissonance
FIGURE 5-A What new car buyers consider
most important in deciding what new car to
buy
Consumer Purchase Decision
Why is post purchase behavior important?
CONSUMER PURCHASE
DECISION PROCESS
• Involvement and Problem-Solving

Variations
 Extended Problem Solving
 Limited Problem Solving
 Routine Problem Solving
CONSUMER PURCHASE
DECISION PROCESS
• Situational Influences
 Purchase Task
 Social Surroundings
 Physical Surroundings
 Temporal Effects
 Antecedent States
FIGURE 5-3 Comparison of problem-solving
variations
FIGURE 5-4 Influences on the consumer
purchase decision process
Concept Check
1. What is the first stage in the

consumer purchase decision process?
A: problem recognition
Concept Check
2. The brands a consumer considers

buying out of the set of brands in
a product class of which the
consumer is aware is called the
______________.
consideration set
PSYCHOLOGICAL INFLUENCES
ON CONSUMER BEHAVIOR
• Motivation and Personality
 Motivation  Personality
• Physiological Needs • Self-Concept
• Safety Needs
• Social Needs
• Personal Needs
• Self-Actualization Needs
FIGURE 5-5 Hierarchy of needs
• Perception
 Selective Perception
• Selective Perception
• Selective Exposure
• Selective Comprehension
• Selective Retention
 Subliminal Perception
• Perception
 Perceived Risk
• Obtain Seals of Approval
• Secure Endorsements from Influential People

• Provide Free Trials of the Product
• Give Extensive Usage Instructions
• Provide Warranties and Guarantees
Fresh Step Crystals Cat Litter
Why use the Good Housekeeping Seal?
Mary Kay’s Velocity Fragrance
Why offer a free sample through a website?
• Learning
 Behavioral Learning
• Drive • Stimulus Generalization
• Response • Stimulus Discrimination

• Reinforcement
 Cognitive Learning
 Brand Loyalty
FIGURE 5-B Brand loyalty tendency by
product category
• Values, Beliefs, and Attitudes
 Attitude Formation
• Attitude
• Beliefs
 Attitude Change
• Change Beliefs About a Brand’s Attributes
• Change Perceived Importance of Attributes
• Add New Attributes to the Product

Colgate Total Toothpaste and
Bayer Extra Strength Aspirin
How did these ads change attitudes?
• Lifestyle
 Psychographics
 VALS™
• Thinkers • Experiencers
• Believers • Makers
• Achievers • Innovators
• Strivers • Survivors
VALS™ Consumer Segments
How do consumers make purchase decisions?
Concept Check
1. The problem with the Toro Snow

Pup was an example of selective
_____________.
comprehension
Concept Check
2. What three attitude-change

approaches are most common?
A: (1) Change beliefs about the extent to

which a brand has certain attributes.
(2) Change the perceived importance
of attributes. (3) Add new attributes.
SOCIOCULTURAL INFLUENCES
• Personal Influence
 Opinion Leadership
• Opinion Leaders
• Word of Mouth
• Buzz
Pierce Brosnan and Anna Kournikova
Why use celebrity spokespersons?
FIGURE 5-C Word of mouth influence
• Reference Groups
 Membership Group
 Aspiration Group
 Dissociative Group
• Family Influence
 Consumer Socialization
 Family Life Cycle
 Family Decision Making
• Information Gatherer • Purchaser
• Influencer • User
• Decision Maker
Haggar Clothing
What role do women play in this purchase?
• Culture and Subculture
 African American Buying Patterns

 Hispanic Buying Patterns
 Asian American Buying Patterns
• Assimulated
• Nonassimulated
Bonne Bell Cosmetics
Why target the African American women market?
Hershey’s Kisses
Why use Spanish language ads in the U.S.?
Concept Check
1. What are the two primary forms of

personal influence?
A: opinion leadership; word of mouth
Concept Check
2. What two challenges must marketers

overcome when marketing to
Hispanics?
A: diversity of this subculture; the
language barrier
GOING ONLINE
TRACKING BUYING POWER
OF MULTICULTURAL
CONSUMERS
Going Online
1. What is the most recent estimate of the

buying power of African Americans,
Hispanics, and Asian Americans in
the United States?
Going Online
2. In which states is African American

buying power the highest? Which
states have the highest Hispanic and
Asian American buying power?
VIDEO CASE 5
KEN DAVIS PRODUCTS, INC.:

SAUCES FOR ALL TASTES
VIDEO CASE 5
Ken Davis Products
VIDEO CASE 5
Ken Davis Products
VIDEO CASE 5
Ken Davis Products
1. In what ways have American eating

habits changed over the past decade
that affect a barbecue sauce
manufacturer?
VIDEO CASE 5
Ken Davis Products
2. What are the two or three main

(a) objective evaluative criteria and
(b) subjective evaluative criteria
consumers of Ken Davis Bar-B-Q
Sauces might use?
VIDEO CASE 5
Ken Davis Products
3. How can Ken Davis Products do

marketing research on consumers to
find out what they eat, to learn how
they use barbecue sauces, and to get
ideas for new products?
VIDEO CASE 5
Ken Davis Products
4. (a) Do you think a small, regional

company such as Ken Davis Products
should have entered the market as a
premium-priced product or a low-
priced product? (b) What should be
its pricing strategy be today?
VIDEO CASE 5
Ken Davis Products
5. What do you see are the

(a) satisfactions and (b) concerns of
being in business for yourself?
SUPPLEMENTAL
LECTURE NOTE 5-1
MISTAKES MUY GRANDE
IN-CLASS ACTIVITY 5-1
BUYING PROCESS FOR

STARBUCKS COFFEE
Starbucks House Blend Coffee
FIGURE 11-D Purchase decision process
IN-CLASS ACTIVITY 5-2
MAKING DECISIONS
WITH THE PRESIDENT OF
KEN DAVIS PRODUCTS, INC.
Ken Davis Jazz it Up Marinade Sauce
Ken Davis News
Consumer Behavior
Consumer
Consumer behavior
behavior consists
consists of
of the
the
actions
actions aa person
person takes
takes in
in purchasing
purchasing and
and
using
using products
products and
and services,
services, including
including the
the
mental
mental and
and social
social processes
processes that
that come
come
before
before and
and after
after these
these actions.
actions.
Purchase Decision Process
The
The purchase
purchase decision
decision process
process is
is the
the
stages
stages aa buyer
buyer passes
passes through
through in
in making
making
choices
choices about
about which
which products
products and
and
services
services to
to buy.
buy.
Involvement
Involvement
Involvement consists
consists of
of the
the personal,
personal,
social,
social, and
and economic
economic significance
significance of
of the
the
purchase
purchase to
to the
the consumer.
consumer.
Motivation
Motivation
Motivation isis the
the energizing
energizing force
force that
that
stimulates
stimulates behavior
behavior toto satisfy
satisfy aa need.
need.
Personality
Personality
Personality refers
refers to
to aa person’s
person’s
consistent
consistent behaviors
behaviors oror responses
responses to
to
recurring
recurring situations.
situations.
Perception
Perception
Perception is is the
the process
process byby which
which an
an
individual
individual selects,
selects, organizes,
organizes, and
and
interprets
interprets information
information to to create
create aa
meaningful
meaningful picture
picture ofof the
the world.
world.
Perceived Risk
Perceived
Perceived risk
risk represents
represents the
the anxieties
anxieties
felt
felt because
because the
the consumer
consumer cannot
cannot
anticipate
anticipate the
the outcomes
outcomes of
of aa purchase
purchase but
but
believes
believes that
that there
there may
may be
be negative
negative
consequences.
consequences.
Learning
Learning
Learning refers
refers to
to those
those behaviors
behaviors that
that
result
result from
from (1)
(1) repeated
repeated experience
experience and
and
(2)
(2) reasoning.
reasoning.
Brand Loyalty
Brand
Brand loyalty
loyalty is
is aa favorable
favorable attitude
attitude
toward
toward and
and consistent
consistent purchase
purchase ofof aa single
single
brand
brand over
over time.
time.
Attitude
An
An attitude
attitude is
is aa “learned
“learned predisposition
predisposition
to
to respond
respond to
to an
an object
object or
or class
class of
of objects
objects
in
in aa consistently
consistently favorable
favorable or
or unfavorable
unfavorable
way.”
way.”
Beliefs
Beliefs
Beliefs are
are aa consumer’s
consumer’s subjective
subjective
perception
perception of
of how
how aa product
product oror brand
brand
performs
performs on
on different
different attributes
attributes based
based on
on
personal
personal experience,
experience, advertising,
advertising, and
and
discussions
discussions with
with other
other people.
people.
Opinion Leaders
Opinion
Opinion leaders
leaders are
are individuals
individuals who
who
exert
exert direct
direct or
or indirect
indirect social
social influence
influence
over
over others.
others.
Word of Mouth
Word
Word ofof mouth
mouth is
is the
the influencing
influencing of
of
people
people during
during conversations.
conversations.
Reference Groups
Reference
Reference groups
groups are
are people
people to
to whom
whom anan
individual
individual looks
looks as
as aa basis
basis for
for
self-appraisal
self-appraisal or
or as
as aa source
source of
of personal
personal
standards.
standards.
Family Life Cycle
The
The family
family life
life cycle
cycle describes
describes thethe
distinct
distinct phases
phases that
that aa family
family progresses
progresses
through
through from
from formation
formation toto retirement,
retirement,
each
each phase
phase bringing
bringing with
with itit identifiable
identifiable
purchasing
purchasing behaviors.
behaviors.
Subcultures
Subcultures
Subcultures areare subgroups
subgroups within
within the
the
larger,
larger, or
or national,
national, culture
culture with
with unique
unique
values,
values, ideas,
ideas, and
and attitudes.
attitudes.

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CHAPTER

1. Describe the stages in the consumer decision

2. Distinguish among three variations of the

3. Identify major psychological influences on

4. Identify major sociocultural influences on

• Purchase Decision Process

• Problem Recognition: Perceiving a Need

• Information Search: Seeking Value

• Alternative Evaluation: Assessing Value

• Postpurchase Behavior: Value in

• Involvement and Problem-Solving

1. What is the first stage in the

2. The brands a consumer considers

• Motivation and Personality

• Secure Endorsements from Influential People

• Provide Warranties and Guarantees

• Response • Stimulus Discrimination

• Values, Beliefs, and Attitudes

• Add New Attributes to the Product

1. The problem with the Toro Snow

2. What three attitude-change

A: (1) Change beliefs about the extent to

• Culture and Subculture

 African American Buying Patterns

1. What are the two primary forms of

A: opinion leadership; word of mouth

2. What two challenges must marketers

1. What is the most recent estimate of the

2. In which states is African American

KEN DAVIS PRODUCTS, INC.:

1. In what ways have American eating

2. What are the two or three main

3. How can Ken Davis Products do

4. (a) Do you think a small, regional

5. What do you see are the

BUYING PROCESS FOR

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