Consumer Buying Decission Making Process

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    Chapter 08

    Consumer BuyingBehavior

    Part Four

    Customer Behavior

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    Chapter Learning Objectives

    1. Describe the level of involvement and types ofconsumer problem-solving processes

    2. Recognize the stages of the consumer buyingdecision process

    3. Explain how situational influences may affectthe consumer buying decision process

    4. Understand the psychological influences that

    may affect the consumer buying decisionprocess

    5. Be familiar with the social influences that affectthe consumer buying decision process

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    Chapter Outline

    Level of Involvement and Consumer Problem-Solving Processes

    Consumer Buying Decision Process Problem Recognition

    Information Search

    Evaluation of Alternatives

    Purchase

    Postpurchase Evaluation

    Situational Influences on the Buying DecisionProcess

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    Chapter Outline (contd)

    Psychological Influences on the Buying DecisionProcess Perception

    Motives

    Learning

    Attitudes

    Personality and Self-Concept

    Lifestyles

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    Chapter Outline (contd)

    Social Influences on the Buying DecisionProcess Roles

    Family Influences

    Reference Groups

    Personality and Self-Concept

    Opinion Leaders

    Social Classes

    Culture and Subcultures

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    Introduction

    Buying Behavior The decision processes and acts of people involved

    in buying and using products

    Consumer Buying Behavior Buying behavior of people

    who purchase productsfor personal use andnot for business purposes

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    Level of Involvement and ConsumerProblem-Solving Processes

    Level of Involvement An individuals degree of interest in a product and

    the importance of the product for that person Enduring involvement is ongoing and long term

    Situational involvement is temporary and dynamic Routinized Response Behavior

    The process used when buying frequentlypurchased, low-cost items that require little search-

    and-decision effort

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    Level of Involvement and ConsumerProblem-Solving Processes (contd)

    Limited Problem Solving The process that buyers use when purchasing

    products occasionally or when they need informationabout an unfamiliar brand in a familiar product

    category Extended Problem Solving

    The process employed when purchasing unfamiliar,expensive, or infrequently bought products

    Impulse Buying An unplanned buying behavior resulting from a

    powerful urge to buy something immediately

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    Figure 8.1: Consumer Buying Decision Processand Possible Influences on the Process

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    Consumer BuyingDecision Process

    Problem Recognition Occurs when a buyer becomes aware of a difference

    between a desired state and an actual condition

    May occur rapidly or slowly

    Information Search Internal search

    Buyers search their memories for information aboutproducts that might solve their problem

    External search Buyers seek information from outside sources

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    Consumer BuyingDecision Process (contd)

    Evaluation of Alternatives Consideration set

    A group of brands that the buyer views as alternatives forpossible purchase

    Evaluative criteria Objective and subjective characteristics that are important

    to a buyer

    Framing the alternatives Describing the alternatives and their attributes in a certain

    manner to make a particular characteristic appear moreimportant especially to the inexperienced buyer

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    Consumer BuyingDecision Process (contd)

    Purchase Choosing the product or brand to be bought based

    on the outcome of the evaluation stage

    The choice of seller may affect the final product

    selection. Factors such as terms of

    sale, price, delivery, andwarranties may affectthe sale.

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    Consumer BuyingDecision Process (contd)

    Postpurchase Evaluation Cognitive dissonance

    A buyers doubts shortly after a purchase about whetherthe decision was the right one

    Buyers are mostly likely to seek reassurance afterthe purchase of an expensive, high-involvementproduct

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    Situational Influenceson the Buying Decision Process

    Situational Influences Factors that can influence a buyers purchase

    decision and may cause the buyer to short,lengthen, or terminate the process.

    Major Situational Factors Physical surroundings

    Social surroundings

    Time perspective

    Reason for purchase Buyers momentary mood and condition

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    Figure 8.2: Fish or Birds?

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    Psychological Influenceson the Buying Decision Process

    Psychological Influences Factors that in part determine peoples general

    behavior, thus influencing their behavior asconsumers

    Perception The process of selecting, organizing, and

    interpreting information inputs toproduce meaning

    Information Inputs Sensations received through the

    sense organs

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    Psychological Influenceson the Buying Decision Process (contd)

    Selective Exposure The process of selecting inputs to be exposed to our

    awareness while ignoring others

    Selective Distortion

    An individuals changing or twisting of informationwhen it is inconsistent with personal feelings orbeliefs

    Selective Retention

    Remembering information inputs that supportpersonal feelings and beliefs and forgetting inputsthat do not

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    Psychological Influenceson the Buying Decision Process (contd)

    Perceptual Organization Organizing and integrating new information with

    what is already stored in memory. Closure occurs when a person mentally fills in missing

    elements in a pattern or statement

    12312312312312312.

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    Psychological Influenceson the Buying Decision Process (contd)

    Perceptual Interpretation The assignment of meaning to what has been

    organized based on what is expected or what isfamiliar

    Attempts by marketers to influence interpretation canfail because

    consumers block out sellers information.

    consumers interpret sellers information differently thanintended.

    consumers discard information that is inconsistent withprior beliefs.

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    Psychological Influenceson the Buying Decision Process (contd)

    Motives An internal energizing force that directs a persons

    behavior toward satisfying needs or achieving goals

    Maslows Hierarchy of Needs

    The five levels of needs that humans are motivatedto seek and satisfy, from least to most important are

    Physiological needsfood, water, sex, clothing, shelter

    Safety needssecurity, freedom

    Social needslove, affection, belonging

    Esteem needsrespect, recognition, self-worth

    Self-actualization needspersonal growth needs

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    Figure 8.3: Maslows Hierarchy of Needs

    Maslow believed that people seek to fulfill fivecategories of needs.

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    Psychological Influenceson the Buying Decision Process (contd)

    Learning Changes in an individuals thought processes and

    behavior caused by information and experience

    Behaviors that produce satisfying consequences are

    likely to be repeated. Consumers learn about products by

    experiencing the products personally.

    gaining additional product knowledge from seller-

    provided information. indirect information from other purchasers/users.

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    Psychological Influenceson the Buying Decision Process (contd)

    Attitudes An individuals enduring evaluation of, feelings

    about, and behavioral tendencies toward an objector idea

    Attitudinal Components Cognitive

    Knowledge and information about the object or idea

    Affective

    Feelings and emotions toward the object or idea Behavioral

    Individuals action regarding the object or idea

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    Psychological Influenceson the Buying Decision Process (contd)

    Attitude Scale A means of measuring consumer attitudes by

    gauging the intensity of an individuals reactions toadjectives, phrases, or sentences about an object

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    Psychological Influenceson the Buying Decision Process (contd)

    Personality and Self-Concept Personality

    A set of internal traits and distinct behavioral tendenciesthat result in consistent patterns of behavior in certainsituations

    Self-concept (self-image) Perception or view of oneself

    Lifestyles Lifestyle

    An individuals pattern of living expressed throughactivities, interests, and opinions

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    Social Influenceson the Buying Decision Process

    Social Influences The forces other people exert on ones buying

    behavior

    Role

    Actions and activities that a person in a particularposition is supposed to perform based onexpectations of the individual and surroundingpersons

    Multiple role-expectation sets affect behavior. Roles influence both general and buying behaviors.

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    Social Influenceson the Buying Decision Process (contd)

    Family Influences Consumer socialization

    The process through which a person acquires theknowledge and skills to function as a consumer

    Family Decision-Making Processes Autonomicequally shared decision making

    Husband-dominanthusband makes decisions

    Wife-dominantwife makes decisions

    Syncraticdecisions made jointly

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    Social Influenceson the Buying Decision Process (contd)

    Reference Groups Any group that positively or negatively affects a

    persons values, attitudes, or behavior Membership

    Aspirational Disassociative

    Opinion Leader A knowledgeable, accessible individual who

    provides information about a specific sphere ofinterests to followers

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    S f

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    Social Influenceson the Buying Decision Process (contd)

    Social Class An open group of individuals with similar social rank

    Individuals in the same social class develop and assume common behavioral patterns.

    have similar attitudes, values, language patterns, andpossessions.

    Influences many major life decisions

    Influences shopping patterns and spending habits

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    Source: Adapted from Richard P. Coleman, The Continuing Significance of Social Class to Marketing, Journal of Consumer Research. Dec. 1983, pp.

    265-280. Reprinted with permission from The University of Chicago Press. With data from J. Paul Peter and Jerry C. Olson, Consumer Behavior Marketing

    Strategy Perspective (Homewood, IL: Irwin, 1987), p. 433. Copyright 1987 The McGraw-Hill Companies, Inc. Reprinted with permission.

    S i l I fl th B i

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    Social Influences on the BuyingDecision Process (contd)

    Culture The accumulated values, knowledge, beliefs,

    customs, objects, and concepts of a society Culture influences buying behavior.

    Cultural changes affect product development, promotion,distribution, and pricing.

    Subcultures Groups of individuals whose characteristic values

    and behavior patterns are similar and differ from

    those of the surrounding culture African American Hispanic Asian American

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    After reviewing this chapter you should:

    1. Understand the level of involvement and typesof consumer problem-solving processes

    2. Recognize the stages of the consumer buyingdecision process

    3. Explain how situational influences may affectthe consumer buying decision process

    4. Understand the psychological influences thatmay affect the consumer buying decisionprocess

    5. Be familiar with social influences that affect theconsumer buying decision process