Marketing
Learning Outcomes

(Chapter 6)

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Consumer Decision Making

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Chapter 6

A concise review of the concepts presented in the chapter; the Chapter Summary is the perfect place to begin your study of the material.

Explain why marketing managers should understand consumer behavior. Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the products they buy. An understanding of consumer behavior reduces marketing managers' uncertainty when they are defining a target market and designing a marketing mix.

Analyze the components of the consumer decision-making process. The consumer decision-making process begins with need recognition, when stimuli trigger awareness of an unfulfilled want. If additional information is required to make a purchase decision, the consumer may engage in an internal or external information search. The consumer then evaluates the additional information and establishes purchase guidelines. Finally, a purchase decision is made.

Explain the consumer's postpurchase evaluation process. Consumer postpurchase evaluation is influenced by prepurchase expectations, the prepurchase information search, and the consumer's general level of self-confidence. Cognitive dissonance is the inner tension that a consumer experiences after recognizing a purchased product's disadvantages. When a purchase creates cognitive dissonance, consumers tend to react by seeking positive reinforcement for the purchase decision, avoiding negative information about the purchase decision, or revoking the purchase decision by returning the product.

Identify the types of consumer buying decisions and discuss the significance of consumer involvement. Consumer decision making falls into three broad categories. First, consumers exhibit routine response behavior for frequently purchased, low-cost items that require very little decision effort; routine response behavior is typically characterized by brand loyalty. Second, consumers engage in limited decision making for occasional purchases or for unfamiliar brands in familiar product categories. Third, consumers practice extensive decision making when making unfamiliar, expensive, or infrequent purchases. High-involvement decisions usually include an extensive information search and a thorough evaluation of alternatives. In contrast, low-involvement decisions are characterized by brand loyalty and a lack of personal identification with the product. The main factors affecting the level of consumer involvement are previous experience, interest, perceived risk of negative consequences (financial, social, and psychological), situation, and social visibility.

Identify and understand the cultural factors that affect consumer buying decisions. Cultural influences on consumer buying decisions include culture and values, subculture, and social class. Culture is the essential character of a society that distinguishes it from other cultural groups. The underlying elements of every culture are the values, language, myths, customs, rituals, laws, and the artifacts, or products, that are transmitted from one generation to the next. The most defining element of a culture is its values-the enduring beliefs shared by a society that a specific mode of conduct is personally or socially preferable to another mode of conduct. A culture can be divided into subcultures on the basis of demographic characteristics, geographic regions, national and ethnic background, political beliefs, and religious beliefs. Subcultures share elements of the overall culture as well as cultural elements unique to their own group. A social class is a group of people who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms.

Identify and understand the social factors that affect consumer buying decisions. Social factors include such external influences as reference groups, opinion leaders, and family. Consumers seek out others' opinions for guidance on new products or services and products with image-related attributes or because attribute information is lacking or uninformative. Consumers may use products or brands to identify with or become a member of a reference group. Opinion leaders are members of reference groups who influence others' purchase decisions. Family members also influence purchase decisions; children tend to shop in similar patterns as their parents.

Identify and understand the individual factors that affect consumer buying decisions. Individual factors that affect consumer buying decisions include gender; age and family life-cycle stage; and personality, self-concept, and lifestyle. Beyond obvious physiological differences, men and women differ in their social and economic roles that affect consumer buying decisions. How old a consumer is generally indicates what products he or she may be interested in purchasing. Marketers often define their target markets in terms of consumers' life-cycle stage, following changes in consumers' attitudes and behavioral tendencies as they mature. Finally, certain products and brands reflect consumers' personality, self-concept, and lifestyle.

Identify and understand the psychological factors that affect consumer buying decisions. Psychological factors include perception, motivation, learning, values, beliefs, and attitudes. These factors allow consumers to interact with the world around them, recognize their feelings, gather and analyze information, formulate thoughts and opinions, and take action. Perception allows consumers to recognize their consumption problems. Motivation is what drives consumers to take action to satisfy specific consumption needs. Almost all consumer behavior results from learning, which is the process that creates changes in behavior through experience. Consumers with similar beliefs and attitudes tend to react alike to marketing-related inducements.

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This page last updated January 8, 2004
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