Chapter 5

Consumer Decision Making

Chapter 5 Objectives

1. Analyze the components of the consumer

decision-making process.

2. Explain the consumer’s post-purchase

evaluation process.

3. Identify the types of consumer buying

decisions and discuss the significance of
consumer involvement.
Chapter 5 Objectives (cont.)

Identify and understand the…

4. Cultural factors that affect consumer
buying decisions.
5. Social factors that affect consumer buying
decisions.
6. Individual factors that affect consumer
buying decisions.
7. Psychological factors that affect consumer
buying decisions.
Understanding Consumer Behavior
Consumer
Consumer
Behavior
Behavior

 Describes how consumers make

purchase decisions

 Describes how they use and dispose of

goods/services

 Reduces uncertainty when creating the

marketing mix
Consumer Decision-Making Process

Need
Need Recognition
Recognition

Information
Information Search
Search
Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological Evaluation
Evaluation
factors
factors of
of Alternatives
Alternatives
affect
affect
all
all steps
steps
Purchase
Purchase

Postpurchase
Postpurchase
Behavior
Behavior
 Need Recognition

Consumers are Stimuli

faced with an
imbalance between Internal External
present status and
preferred state

Preferred State

Present Status
 Need Recognition

A marketer’s Create wants:

objective is to get
Unfulfilled need and
consumers to Wants
determination of
recognize the
product/service to
imbalance
satisfy it

Preferred State

Present Status Back

Information Search

Internal Information Search

 Recall information in memory

External Information search

 Seek information in outside environment

 Non-marketing controlled
 Marketing controlled
Extent of Information Search

Need Less Need More

Information Information
Less Risk More Risk
More knowledge Less knowledge
More prior experience Less prior experience
Low level of interest High level of interest

Back
Evaluation of Alternatives

Evoked Set
Evaluation of Products by attributes

 Pick specific product attributes

 Use cutoff criteria

 Rank attributes by importance

Purchase!
Back
 Purchase

To buy
or not to buy... Determines which attributes
are most important
in influencing a
consumer’s choice

Back
Postpurchase Behavior

Cognitive Dissonance

?
Need to reduce dissonance
by justifying the purchase
Can minimize through:

Follow-up
Guarantees
Warranties
decision

Back
 Types of Consumer Buying Decisions

Routine
Routine Limited
Limited Extensive
Extensive
Response
Response Decision
Decision Decision
Decision
Behavior
Behavior Making
Making Making
Making

Less More
Involvement Involvement
Types of Consumer Buying Decisions
Routine
Routine
Response
Response
Behavior
Behavior

• Little involvement in selection process

• Frequently purchased low cost goods
• May stick with one brand
• Quick decision
Types of Consumer Buying Decisions
Limited
Limited
Decision
Decision
Making
Making

• Previous product experience

• Low levels of involvement
• Low to moderate cost goods
• Evaluation of a few alternative brands
• Short to moderate time to decide
Types of Consumer Buying Decisions
Extensive
Extensive
Decision
Decision
Making
Making

• High involvement in selection process

• High cost goods
• Evaluation of many brands
• Long time to decide
• May experience cognitive dissonance
Level of Consumer Involvement
Previous
Previous
Experience
Experience Interest
Interest

Factors
Factors Perceived
Perceived Risk
Risk of
of
Determining
Determining Negative
Negative
Level
Level of
of Consequences
Consequences
Involvement
Involvement
Situation
Situation
Social
Social Visibility
Visibility
Factors Influencing Buying Decisions

Cultural Social
Factors Factors CONSUMER BUY /
DECISION-
MAKING DON’T BUY
Psycho- PROCESS
Individual logical
Factors Factors
Cultural : functional, learned, dynamic
Values
Values

Language
Language

Myths
Myths

Customs
Customs

Components
Components of
of Rituals
Rituals
American
American
Culture
Culture
Laws
Laws
Subcultures
A subculture is a homogeneous group of people who share elements
of the overall culture as well as cultural elements unique to their own
group

A subculture of consumption comes into existence as people identify

with certain objects or consumption activities and, through those
activities or objects, identify with other people

 Attitudes, values and purchase decisions are

more similar than broader culture
 Example: The new bikers study in Journal of
Consumer Research, 1995
• Hierarchies within subculture
– Cycle Lords of the High Truth
» RUBies: Rich Urban Bikers
» SEWERS: Suburban Weekend Riders
» RIOTS: Retired Idiots On Tour
» BASTARDS: Bought A Sportster, Therefore A
Radical Dude
 Social Factors

Social
Social Influences
Influences

Reference
Reference Group
Group Family
Family Members
Members
ss

Opinion
Opinion Leaders
Leaders
Individual Factors

Individual
Individual
Influences
Influences

Personality
Personality
Gender
Gender Self-Concept
Self-Concept
Lifestyle
Lifestyle
Age
Age
Family
Family Life
Life Cycle
Cycle
Individual Factors

Personality
…a broad concept that can be thought
of as a way of organizing and grouping how an
individual typically reacts to situations

Self-Concept
How consumers perceive themselves, including
attitudes, perceptions, beliefs and self-evaluations
ideal self-image vs. real self-image

Lifestyle
… a mode of living identified by a person’s
activities, interest, and opinions
useful for segmentation and targeting
 Psychological Factors

Perception
Perception

Motivation
Motivation

Learning
Learning
Psychological
Psychological
Influences
Influences on
on
Buying
Buying Decisions
Decisions Beliefs
Beliefs &
& Attitudes
Attitudes
Perception
…the process by which an individual selects, organizes, and interprets
information inputs (stimuli) to create a meaningful picture of the world.

Selective
Selective Selective
Selective
Exposure
Exposure Distortion
Distortion
Decide which Distort
Distortinformation
information
stimuli to notice that
thatconflicts
conflictswith
withbeliefs
beliefs
and which to
ignore
Selective
Selective
Retention
Retention

Remember
Rememberonlyonly
information
information
that
thatsupports
supports
feelings
feelingsand
andbeliefs
beliefs
Heuristics and Biases in Judgments

Representativeness
Jack
Flipping a coin
The letter R
Anchoring and Adjustment
Example
Price endings $1.99 vs. $2.00

Framing
Motivation
Maslow’s
Maslow’s Self-
Hierarchy
Hierarchy of
of Actualization
Needs
Needs
Self-
Esteem

Social

Safety

Physiological