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Because learning changes everything. ®
Chapter 6
Consumer Behavior
Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Learning Objectives
Learning Objective 6.1 Articulate the steps in the consumer
buying process.
Learning Objective 6.2 Describe the difference between functional and
psychological needs.
Learning Objective 6.3 Describe factors that affect information search.
Learning Objective 6.4 Discuss postpurchase outcomes.
Learning Objective 6.5 List the factors that affect the consumer
decision process.
Learning Objective 6.6 Describe how involvement influences the
consumer decision process.
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Exhibit 6.1: The Consumer Decision Process
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Need Recognition
Wants are goods or services that are not necessarily needed but are
desired.
• Regardless of the level of your hunger, your desire for ice cream will
never be satisfied by any type of salad.
Types of needs
• Function needs
• Psychological needs
What needs does a BMW K1600 satisfy?
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Bill Pugliano/Getty Images
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Search for Information
Internal and external searches for information
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© Image Source, all rights reserved.
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Factors Affecting
Consumers’ Search Processes
Perceived Benefits
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Perceived Costs
Shutterstock / bleakstar
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The Locus of Control
Internal locus of control =
more search activities
External locus of control =
fate or external factors
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Actual or Perceived Risk
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Evaluation of Alternatives: Attribute Sets
Universal
Retrieval
Evoked
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Evaluation of Alternatives
What are some of the features of a vacation
that would in your evaluative criteria?
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Shutterstock / Juancat
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Exhibit 6.2: Consumer Decision Rules
Compensatory Multi-Attribute Model for Buying Cereal
If the consumer makes a decision using a compensatory
decision rule, which cereal will they choose?
Taste
Calories
Natural/Organic
Claims
Price
Overall
Score
Cheerios
10
8
6
8
8.2
Post
8
9
8
3
7.1
Kashi
6
8
10
5
7.2
If the consumer makes a decision based only on Natural or
Organic claims, which cereal will they choose?
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Choice Architecture
Impulse products
Nudge
Defaults
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Left: stocking © 123RF.com; Right: Iakov Filimonov/Shutterstock; Bottom: Shutterstock/ever
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Purchase and Consumption
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Exhibit 6.3: Components of Post purchase
Outcomes
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Post purchase Customer Satisfaction
• Build realistic expectations, not too high and not too
low.
• Demonstrate correct product use—improper usage
can cause dissatisfaction.
• Stand behind the product or service by providing
money-back guarantees and warranties.
• Encourage customer feedback, which cuts down on
negative word of mouth and helps marketers adjust
their offerings.
• Periodically make contact with customers and thank
them for their support.
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Post purchase Cognitive Dissonance
More likely for products that are:
• Expensive.
• Infrequently purchased.
• Do not work as intended.
• Associated with high levels
of risk.
Firms attempt to reduce
dissonance by reinforcing the
decision:
• Return policies.
• Thank-you letters.
• Congratulations letters.
• Tags on garments.
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Shutterstock/Atstock Productions
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Post purchase Customer Loyalty
Marketers attempt to
solidify a loyal
relationship.
Firms use analytics
software and customer
relationship
management (CRM)
programs to acquire and
retain loyal customers.
Marketers, such as Amazon, owners of Whole Foods, collect customer
information for their CRM programs from their loyalty cards.
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Smith Collection/Gado/Getty Images
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Post purchase
Undesirable Consumer Behavior
Negative word of mouth
•
Personal blogs, Twitter,
corporate websites.
Companies use listening
software to identify negative
word of mouth.
If a customer believes a
complaint will result in
positive action, negative
word of mouth is less likely.
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Whirlpool posts good as well as bad comments on Twitter. It
believes that posting negative comments opens up
discussions and emphasizes the proactive measures the
company is taking to remedy service or product failures.
Source: Whirlpool
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PROGRESS CHECK (1 of 3)
1. Name the five stages in the consumer decision process.
2. What is the difference between a need and a want?
3. Distinguish between functional and psychological needs.
4. What are the various types of perceived risk?
5. What are the differences between compensatory and
noncompensatory decision rules?
6. How do firms enhance post purchase satisfaction and
reduce cognitive dissonance?
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Factors Influencing the
Consumer Decision Process
EXHIBIT 6.4 Factors Affecting the Consumer Decision Process
Access the text alternative for slide images.
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Psychological Factors: Motives
EXHIBIT 6.5 Maslow’s Hierarchy of Needs
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Psychological Factors: Attitude
Cognitive.
Affective.
Behavioral.
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Pixel-Shot/Shutterstock
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Psychological Factors: Perception
Selection.
Organization.
Interpretation.
How has society’s perception of people with
tattoos changed in recent years?
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A. and I. Kruk/Shutterstock
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Psychological Factors:
Learning and Memory
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Psychological Factors: Lifestyle
Lifestyle involves
decisions in spending
time and money.
Actual vs. Perceived
Lifestyle
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Shutterstock/STUDIO DREAM
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Social Factors: Family
Firms must consider how
families make purchase
decisions and understand
how various family
members might influence
these decisions.
When families make
purchase decisions, they
often consider the needs
of all the family members.
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Peter Muller
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Social Factors: Reference Groups
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Social Factors: Culture
The shared meanings,
beliefs, morals, values, and
customs of a group of people.
Like reference groups,
cultures influence consumer
behavior.
A cultural group might be as
small as a reference group at
school or as large as a
country or religion.
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Jacob Lund/Shutterstock
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Situational Factors
Purchase Situation.
Sensory Situation.
Temporal State.
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Sensory Situation
Visual.
Auditory.
Olfactory.
Tactile.
Taste.
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© Niall McDiarmid / Alamy
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Purchase Situation
Situational factors may influence your purchase
decisions.
If you are buying jewelry for yourself, you might browse the clearance counter at Kay Jewelers (left). But
if you are buying a gift for your best friend’s birthday, you may go to Tiffany & Co (right).
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© Niall McDiarmid / Alamy
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Temporal State
A purchase situation may have different appeal
levels depending on time of day and the type of
person a consumer is.
Mood swings can alter consumer behavior.
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oatawa/Shutterstock
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PROGRESS CHECK (2 of 3)
1. What are some examples of specific needs
suggested by Maslow’s hierarchy of needs?
2. Which social factors likely have the most
influence on (a) the purchase of a new outfit for a
job interview and (b) the choice of a college to
attend?
3. What situational factors do firms use to influence
consumer purchase behavior?
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Involvement and Consumer Buying Decisions
Exhibit 6.6: Elaboration Likelihood Model
Access the text alternative for slide images.
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Involvement and Consumer Buying Decisions
Types of Buying Decisions
Extended Problem Solving
Limited Problem Solving
• Impulse Buying.
• Habitual Decision
Making.
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Jeff Greenough/Blend Images/Getty Images
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PROGRESS CHECK (3 of 3)
1. How do low- versus high-involvement consumers
process the information in an advertisement?
2. What is the difference between extended versus
limited problem solving?
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Because learning changes everything.
®
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Copyright 2022 © McGraw Hill LLC. All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill LLC.
Week 5: Interactive Learning Activity
5.1 Learning Outcomes:
• List the factors that affect the consumer decision process
5.2 Action Required:
• Chapter Reading: Read Ch-6 “Global Marketing” from the text book- Dhruv Grewal and
Michael Levy (2020) “Marketing” (8th Edition). McGraw-Hill Education, Digital Version:
ISBN13: 978-1-260-71743-3.
5.3 Test your Knowledge (Question):
• Discussion Question #1 In chapter-6 you have read about Problem solving concept. How
you can differentiate between extended versus limited problem solving? Explain with
examples.
•
•
5.4 Instructions
Answer this question in test your knowledge section.
Post your answer in the discussion board using the discussion link below
(Week 5: Interactive learning Discussion)
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