CHAPTER

SIX

CONSUMER BEHAVIOR

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AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:

Outline the stages in the consumer decision process. Distinguish among three variations of the consumer decision process: routine, limited, and extended problem solving. Explain how psychological influences affect consumer behavior, particularly purchase decision processes. Identify major sociocultural influences on consumer behavior and their effects on purchase decisions. Recognize how marketers can use knowledge of consumer behavior to better understand and influence individual and family purchases.
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PP6-AA The Female Automobile Customer Females: will buy 60% of all new cars in 2001 spend $81 billion+ on new & used cars prefer inexpensive sporty vehicles buy American 75% of the time often utilize internet-based information

place a higher value on low price & safety than men

2/3 of whom dislike the car-buying process
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PP6-1 Purchase Decision Process

Problem recognition: Perceiving need
Information search: Seeking value Alternative evaluation: Assessing value Purchase decision: Buying value Post-purchase behavior: Value in consumption of user
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PP6-BB The Evoked Set

The evoked set is the group of brands, based on ones evaluative criteria, that a consumer would consider acceptable from all the brands in the

product class which he or she is aware of.

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PP6-2 Consumer Reports Evaluation of Portable Compact Disk Players

Brand Model Price Error Headphones Correction Bumps Locate Speed

Panasonic Phillips
(A CR best buy)

SL-SX500 AZ7383 AZ7583

$ 150 100 120 Excellent Rating:

Phillips

Sony
Aiwa Sony Panasonic JVC Sony Panasonic Aiwa

D-E409CK
XP-SP1200 D-E401 SL-SW505 XL-P34 D-ES55 SL-S230 XP-570

140
145 100 150 80 Fair 200 80 75
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Very Good

Good

Poor

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PP6-A What New Car Buyers Consider Most Important in Deciding What New Car To Buy

Factor
Warranty/guarantee

Percent Saying Factor is Most Important

64%
61%

Ease of maintenance/repair

Quality compared to other brands

Price compared to other brands

61%
58%

High-quality brand
Style/look of brand
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54%
46%
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PP6-CC Computer-Mediated Buying

Consumer computer-mediated buying, or online buying, is the use of Internet technology to: a. Seek information b. Evaluate alternatives & c. Make purchase decisions This technology also allows marketers to customize their offering to the specific needs of individuals, thereby increasing customer value and satisfaction.

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PP6-DD Cognitive Dissonance

Cognitive Dissonance is a feeling of post-purchase psychological tension or anxiety. To alleviate cognitive dissonance, consumers often search for information to reinforce their purchase decision.
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PP6-EEa High versus Low Involvement High Involvement purchase occasions can be expensive, have serious personal consequences, and/or reflect ones social image. These occasions typically involve extensive information search, consideration of several product attributes and brands, the formation of attitudes, and word-of-mouth communication. An example would be the purchase of an automobile or stereo system.
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PP6-EEb High versus Low Involvement

Low Involvement purchase occasions typically involve little information search or consideration of various brands, except on the basis of price. They usually dont involve any personal consequences. They tend to be privately consumed. An example would be the purchase of soap or toothpaste.
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PP6-3 Comparison of problem-solving variations

Consumer Involvement High Low

Characteristics of purchase decision process

Number of brands examined Number of sellers concerned Number of product attributes evaluated Number of external information sources used Time spent searching
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Extended problem solving

Many Many Many Many

Limited problem solving

Several Several Moderate Few

Routine problem solving

One Few One None

Considerable
KERIN HARTLEY

Little
RUDELIUS

Minimal
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PP6-B Consumer involvement, knowledge, and problem-solving variations

Low

Consumer involvement

Routine problem solving (e.g., milk and bread) Limited problem solving (e.g., small appliances) Extended problem solving (e.g., stocks and bonds)
High

High

Consumer knowledge
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Low

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PP6-4 Influences on the consumer purchase decision process

Marketing mix influences
Product Price Promotion Place

Psychological Influences
Motivation Personality Perception Learning Values, beliefs and attitude Lifestyle

Consumer Decision Process

Problem recognition Information search Alternative evaluation Purchase decision Postpurchase behavior

Sociocultural Influences
Personal influence Reference groups Family Social class Culture Subculture

Promotion Influences

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Purchase task Social surroundings Physical surroundings Temporal effects Antecedent states KERIN HARTLEY RUDELIUS

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PP6-FF Concept Check

1.
2.

3.

What is the first step in the consumer decision process? The brands a consumer considers buying out of the set of brands in a product class of the consumer is aware is called the ____________. What is the term for post-purchase anxiety?
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PP6-5 Hierarchy of Needs

Self-Actualization Needs Self-Fulfillment Personal Needs Status, respect, prestige Social Needs Friendship, belonging, love Safety Needs Freedom from harm, financial security Physiological Needs Food, water, sex, oxygen
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PP6-GG Psychological Influences on Consumer Behavior

motivation and personality

perception

learning
values, beliefs, and attitudes lifestyle
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PP6-C Selective perception filters

Messages

Selective exposure

Selective comprehension Selective retention

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PP6-HH Subliminal Perception

Subliminal perception means that you see or hear messages without being aware of them. The presence and effect of subliminal perception on behavior is a hotly debated issue, with more popular appeal than scientific support. Evidence suggests that subliminal messages have some effect on behavior. If so, is their use an ethical practice? See the accompanying Ethics and Responsibility Alert.
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PP6-II Perceived Risk

Perceived Risk represents anxieties felt because the consumer cannot anticipate the outcomes of a purchase but believes that there may be negative consequences. Perceptions of greater perceived risk are usually accompanied by a more extensive external information search concerning a purchase. Types of Perceived Risk: financial physical psychosocial
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PP6-JJ Learning
Learning refers to those behaviors that result from: 1. repeated experience 2. thinking

Behavioral Learning is the process of developing automatic responses to a situation built up through repeated exposure to it.
Cognitive Learning is learning via thinking, reasoning, and mental problem solving without direct experience.
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PP6-KK Brand Loyalty

Brand Loyalty is a favorable attitude toward and consistent purchase of a single brand over time. It results from positive reinforcement of previous actions. There is evidence of brand loyalty in many commonly purchased products in the U.S. and the global marketplace. However, the incidence of brand loyalty appears to be declining in North American, Mexico, European Union nations, and Japan.
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PP6-D Brand loyalty tendency by product category

(Percent of U.S. consumers with strong brand preference)
Mayonnaise Soft drinks Bar soap Canned soup Cigarettes Baked macaroni & cheese Dry cereals Spaghetti sauce Pain relievers Toilet paper Facial tissue Cold remedies Dog food Cake mix Paper towels Frozen vegetables Frozen entries Cat food 70 67 66 62 60 59 57 57 56 54 53 51 49 45 43 43 41 41

0
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10
KERIN

20
HARTLEY

30
RUDELIUS

40

50

60

70

80

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PP6-LL Attitudes, Values and Beliefs

An attitude is a learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way. Attitudes are shaped by our values and beliefs. Beliefs are a consumers subjective perception of how well a product or brand performs on different attributes. Beliefs are based on personal experience, advertising, and discussions with other people. Values are deeply held attitudes and beliefs, which are resistant to change, but which may change over time.
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PP6-MM Lifestyle & VALS

Lifestyle is a mode of living that is identified by how people spend their time and resources (activities), what they consider important in their environment (interests), and what they think of themselves and the world around them (opinions). Lifestyle analysis focuses on identifying consumer profiles. The most prominent example of this type of analysis is the Values and Lifestyles (VALS) Program developed by SRI International.
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PP6-6 VALS2 Psychographic Segments

ACTUALIZERS

Most resources

Enjoy the "finer things." Receptive to new products, technologies, distribution. Skeptical of advertising. Frequent readers of wide variety of publications Light TV viewers.
Oriented Status ACHIEVERS Oriented Action EXPERIENCERS Oriented

Principle FULFILLEDS

Little interest in image or prestige Above-average consumers of products for the home Like educational and public affairs programming Read widely and often
BELIEVERS

Attracted to premium products Prime target for variety of products Average TV watchers, read business, news, and self-help publications
STRIVERS

Follow fashion and fads. Spend much of disposable income on socializing. Buy on impulse. Attend to advertising. Listen to rock music.

MAKERS

Buy American. Slow to change habits. Look for bargains. Watch TV more than average. Read retirement, home and garden, and general interest magazines.

Image conscious. Limited discretionary incomes, but carry credit balances. Spend on clothing and personal care products. Prefer TV to reading.
STRUGGLERS

Shop for comfort, durability, value. Unimpressed by luxuries. Buy the basics, listen to radio. Read auto, home mechanics, fishing, outdoor magazines.

Least resources

Brand loyal. Use coupons and watch for sales. Trust advertising. Watch TV often. Read tabloids and womens magazines.

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PP6-NN Concept Check 1. The problem with Toro Snow Pup was an example of selective ____________.

2. What three attitude change approaches are most common? 3. What does lifestyle mean?
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PP6-OO Sociocultural Influences

Sociocultural influences, which evolve from a consumers formal and informal relationships with other people, can exert significant impact on consumer behavior. Sociocultural influences include: 1. Personal influence 2. Reference groups 3. The Family 4. Social Class 5. Culture 6. Subculture
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PP6-PP Personal Influence

Personal Influence includes two aspects

that are very important to marketers: 1. 2. Opinion Leadership Word of Mouth
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PP6-E Word of mouth influence

(Percent of men and women who seek advice regarding selected products and services)

50% 40% 30% 20%

40%

49% 39% 38%

28%
26% 22% 24%

15%

Women

Men

Men

Men

Car mechanic
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Where to What movies What car Where to get eat out to see to buy hair cut
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Men

10%

Women

Women

Women

Women

Men

10%

PP6-QQ Reference Groups

Reference groups are people to whom an individual looks as a basis for self-appraisal or as a source of personal standards. Three kinds of reference groups that have clear marketing implications are: 1. 2. 3. Membership group Aspiration group Dissociative group

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PP6-F Where children between the ages of 4 and 12 spend spend their money
11% 8% Movies Other & sports

6% Video arcades

15% Clothes

27% Play items

33% Food and beverages

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PP6-RR The Family Life Cycle

The family life cycle concept describes

the distinct phases that a family

progresses through from formation to

retirement, each phase bringing with it identifiable purchasing behaviors.
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PP6-7 Modern family life cycle

Young single
Young married without children Young divorced without children Middle-aged divorced without children

Young married with children

Middle-aged married without children

Young divorced with children

Middle-aged married with children

Middle-aged divorced with children

Middle-aged married without dependent children

Usual flow Recycled flow Traditional family flow MARKETING, 6/e

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Middle-aged divorced without dependent children

HARTLEY RUDELIUS

Older married Older unmarried

KERIN

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PP6-SS Social Class

Social Class may be defined as the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped. Social class is determined by: 1. Occupation 2. Source of income (not level) 3. Educational attainment
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PP6-TT Culture & Subculture

Culture refers to the set of values, ideas, and attitudes that are accepted by a homogeneous group of people and transmitted to the next generation.
Subcultures are subgroups within a larger, or national culture with unique values, ideas, and attitudes.
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PP6-G Ownership of consumer electronics among AfricanAmericans, Hispanics, and Asian-Americans

Percent owning among . . . .

Product
VCR Answering machine Compact disk player Personal computer

AfricanAmericans
73.5% 47.2 31.9 19.8

Hispanics
73.1% 27.5 26.7 9.6

AsianAmericans
89.4% 50.0 45.5 30.5

Camcorder
Cellular telephone

15.0
10.3

17.1
6.7

35.6
24.4
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PP6-UU Concept Check

1.
2. 3.

What are the two primary forms of personal influence?

Marketers are concerned with which types of reference groups? What two challenges must marketers overcome when marketing to Hispanics?
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