1. onsumer Decision Making
KEY TERM! KEY CONCEPTS
L01 consumer behavior Explain why marketing managers should understand consumer
processes a consumer behavior. An understanding of consumer behavior reduces marketing
uses to make purchase managers' uncertainty when they are defining a target market and designing a
decisions, as well as to use and dispose marketing mix.
of purchased goods or services;
also includes factors that influence
Analyze the components of the consumer decision-making process.
purchase decisions and product use The consumer decision-making process begins with need recognition, when
stimuli trigger awareness of an unfulfilled want. If additional information is required
L0 2 consumer decision to make a purchase decision, the consumer may engage in an internal or external information
making process a five- search. The consumer then evaluates the additional information and establishes purchase
step process used by con guidelines. Finally, a purchase decision is made.
sumers when buying goods or services
need recognition result of an
Explain the consumer's postpurchase evaluation process. Consumer
imbalance between actual and
desired states postpurchase evaluation is influenced by prepurchase expectations, the
prepurchase information search, and the consumer's general level of self-
want recognition of an unfulfilled
confidence. When a purchase creates cognitive dissonance, consumers tend to react by
need and a product that will satisfy it
seeking positive reinforcement for the purchase decision, avoiding negative information
stimulus any unit of input affecting about the purchase decision, or revoking the purchase decision by returning the product.
one or more of the five senses: sight,
smell, taste, touch, hearing
internal information search the Identify the types of consumer buying decisions and discuss the
significance of consumer involvement. Consumer decision making falls into
process of recalling past information
stored in the memory three broad categories: routine response behavior, limited decision making, and
extensive decision making. High-involvement decisions usually include an extensive information
external information search the
search and a thorough evaluation of alternatives. In contrast, low-involvement decisions are
process of seeking information in the characterized by brand loyalty and a lack of personal identification with the product. The main
outside environment
factors affecting the level of consumer involvement are previous experience, interest, perceived
nonmarketing-controlled risk of negative consequences (financial, social, and psychological), situation, and social visibility.
information source a product
information source that is not associated
with advertising or promotion Identify and understand the cultural factors that affect consumer
marketing-controlled buying decisions. Cultural influences on consumer buying decisions include
information source a product culture and values, subculture, and social class. Culture is the essential character
information source that originates with of a society that distinguishes it from other cultural groups. The underlying elements of every
marketers promoting the product culture are the values, language, myths, customs, rituals, laws, and the artifacts, or products,
evoked set (consideration set) that are transmitted from one generation to the next. The most defining element of a
a group of brands, resulting from an culture is its values. A culture can be divided into subcultures on the basis of demographic
information search, from which a characteristics, geographic regions, national and ethnic background, political beliefs, and
buyer can choose religious beliefs.
L0 3 cognitive dissonance Identify and understand the social factors that affect consumer
inner tension that a
buying decisions. Social factors include such external influences as reference
consumer experiences after
groups, opinion leaders, and family. Consumers seek out others' opinions for guidance on
recognizing an inconsistency between new products or services and products with image-related attributes or because attribute
behavior and values or opinions
information is lacking or uninformative. Consumers may use products or brands to identify
with or become a member of a reference group, or to follow an opinion leader. Family
L0 4 involvement the
members also influence purchase decisions; children tend to shop in similar patterns as
amount of time and
effort a buyer invests in their parents.
the search, evaluation, and decision
processes of consumer behavior
served. May not he scanned, copied or duplicated, or posted to a public!} accessible website, in whole or in part.
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