Chapter 2 Consumer decision-making

Learning objectives

1 Explain why marketing managers should

understand consumer behaviour

2 Analyse the components of the consumer

decision-making process

3 Explain the consumer’s post-purchase

evaluation process

4 Identify the types of consumer buying

decisions and explain how they relate to

consumer involvement

Learning objectives (cont.)

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 behaviour

8 Identify and understand the psychological factors that affect consumer buying decisions

Learning objective 1

Explain why marketing managers should understand consumer behaviour

Consumer behaviour

Processes a consumer uses to

make purchase decisions, as well

as to use and dispose of

purchased goods or services;

also includes factors that

influence purchase decisions and

product use.

1

Learning objective 2

Describe four marketing management philosophies.Analyse the components of the consumer decision-making process

The consumer decision making-process

2

• need recognition

• information search

• evaluation of alternatives

• purchase

• post-purchase behaviour.

Cultural, social, individual and psychological factors affect all steps:

Need recognition

Marketing helps consumers

recognise an imbalance

between present status and

preferred state.

Internal stimuliand

external stimuli

2

Any unit of input affecting one or more of the five senses:

• sight

• smell

• taste

• touch

• hearing.

Stimulus2

Want2

Recognition of an unfulfilled

need and a product that will

satisfy it..

Internal informationsearch

External information search

Non-marketing-controlledinformation sources

Information search2

Evoked set

Group of brands, resulting

from an information

search, from which a

buyer can choose.

2

Evoked setEvoked set

PurchasePurchase

Evaluation of products

• Analyse product attributes.

• Use cutoff criteria.• Rank attributes by

importance.

Evaluation of alternatives2

Learning objective 3

Describe four marketing management philosophies.Explain the consumer’s

post-purchase evaluation process

Post-purchase behaviour

Inner tension that a

consumer experiences after

recognising an inconsistency

between behaviour and

values or opinions.

3

Marketing can minimise through:

Cognitive dissonance:ognitive dissonance:

• Did I make a good decision?• Did I buy the right product?• Did I get a good value?

Post-purchase behaviour (cont.)

• effective communication• follow-up• guarantees• warranties.

3

Learning objective 4

Identify the types of consumer buying decisions and explain how they relate to consumer involvement

More Involvement

LessInvolvement

Routineresponsebehaviour

Limiteddecision-making

ExtensiveDecision-making

Types of consumer buying decisions

More Involvement

LessInvolvement

More involvement

Lessinvolvement

4

Factors that affect the consumer decision-making process

Consumer decision- makingprocess

Buy/Don’t buy

4

Psychological factors

Social factors

Individual factors

Cultural factors

Learning objective 5

Identify and understand the cultural factors that affect consumer buying decisions

Set of values norms, attitudes, and other meaningful symbols that shape human behaviour and the artifacts, or products, of that behaviour as they are transmitted from one generation to the next.

Culture5

Culture is...

• pervasive

• functional

• learned

• dynamic.

5

A homogeneous group of

people who share elements of

the overall culture as well as

unique elements of their own

group.

Subculture5

Value

Enduring belief that a

specific mode of conduct is

personally or socially

preferable to another mode

of conduct.

5

Roy Morgan Australian Value Segments™

• Conventional Family

• Traditional Family

• Real Conservatism

• A Fairer Deal

• Basic Needs

5

• Young Optimism

• Socially Aware

• Something Better

• Visible Achievement

• Look at Me

A group of people in a society

who are considered nearly equal

in status or community esteem,

who regularly socialise among

themselves both formally and

informally, and who share

behavioural norms.

Social class5

Learning objective 6

Identify and understand the social factors that affect consumer buying decisions

Social influences on buying decisions

Social influences6

• Reference groups

• Opinion leaders

• Family members

A group in society that influences an individual’s purchasing behaviour.

Reference group6

Direct

Indirect

Primary

Aspirational

Non-aspirational

Secondary

Reference group (cont.)6

Types ofreference

groups

An individual who

influences the opinion

of others.

Opinion leaders6

Learning objective 7

Identify and understand the individual factors that affect consumer buying decisions

Individual influences7

• Gender

• Age and family life cycle

• Personality, self-concept

and lifestyle

Identify and understand the psychological factors that affect consumer buying decisions

Learning objective 8

Psychological influences8

• Perception

• Motivation

• Learning

• Beliefs and attitudes

8Perception

• Selective exposure

• Selective retention

• Selective distortion

Consumer remembers only the information that

supports personal beliefs.

Selective exposure

Selectivedistortion

Consumer notices certain stimuli and ignores others.

Consumer changes or distorts information that conflicts

with feelings or beliefs.

Selective retention

Perception (cont.)

8

Maslow’s Hierarchy of

needs

Physiological

Safety

Social

Esteem

Self-actualisation

Motivation8

A process that creates changes in behaviour, immediate or expected, through experience and practice.

Learning8

An organised pattern of knowledge that an individual holds as true about his or her world.

Belief

AttitudeA learned tendency to respond consistently toward a given object.

Beliefs and attitudes8