Chapter 7 Consumer

Behavior

5-Step Decision-Making Process

Evoked Set Model
Consumer decision strategies
Compensatory vs. Non-compensatory
Multi-attribute, conjunctive, lexicographic
Make sure you can tell which choice is
made with each of the decision models

Cognitive Dissonance

Chapter 7 Consumer
Behavior

Factors Influencing Purchase

Social/reference groups
Personal influences lifestyle/personality
Psychological
Situational

Theory of Reasoned Action

Beliefs and attitudes

Central-route/peripheral-route processing
Internal/external components
Relationship of TORA variables

Forgetting
Percentage retained:
20 minutes - 58.2%
1 hour - 44.2%
1 day - _____%
1 week - _____%
1 month - _____%

Affecting Retrieval
As marketers we can affect
retrieval by:
Characteristics of the stimulus
Congruency (Healthy Choice/green)
_______________ effect
If

goal is rapid awareness of

product, then high frequency of
ads over a short period of time

Consumer Behavior is the dynamic

interaction of affect and cognition,
behavior, and the environment in
which human beings conduct the
exchange aspects (product and
service purchases) of their lives.

Consumer Behavior
Definition
Describes how consumers
make ________ decisions
and how they _____ and
_____ of the purchased
goods and services. It
includes factors that
influence purchase
decisions.

Consumer Decision-Making Proce

Cultural,
Cultural, Social,
Social,
Individual
Individual and
and
Psychological
Psychological
Factors
Factors
affect
affect
all
all steps
steps

Marketing Perspective

Drive product/solution
development
Need to find out
People dont
WHAT problems
buy products
people have
they buy
todayand then
solutions to
solve them.
problems.
Ted Levitt

1. Need Recognition
Marketing helps consumers recognize
an imbalance between present status
and preferred state
Present state = _________________________________________
Preferred state = _________________________________________
Can we as marketers create a different
ideal state?

Consumer Decision-Making Process

Depends on:
How much information you
have
Ease of obtaining
information
Value you place on
information

6-10

Evoked Set Model

6-11

Consumer Decision-Making Process

Process varies with product
type

Careful,
logical

Impulse

Weigh attributes

Seek advice

Rank Brands

6-12

3. Evaluation of Alternatives

Consumers use criteria to evaluate

alternatives
Criteria are based on internal and
external information search and
might not be equally weighted

Consumer Decision
Strategies

__________________ Models
Cost-benefit analysis
Which one does the +s most
outweigh the -s?

__________________ Models
Immediate rejection based on
some factor

Consumer Decision
Strategies
1. Multi-Attribute
2. Conjunctive
3. Lexicographic

Choice Models

-3

-2

-1

1. Multi-attribute
List outcomes, rate each
outcome on importance
How strong is belief that each
alternative can meet outcome
Weighted total derived by
multiplying importance rating
by your evaluation

2. Conjunctive Rule

Set minimum standards for one

or more attributes
Reject any brands that do not
meet ALL minimum thresholds
"And" rule: must meet standards
for this attribute and the second
attribute and the third attribute

3. Lexicographic Rule

Rank the attributes in order of importance

Find the brand(s) that is best on the most
important attribute
If there is a tie, then find the brand(s)
among the survivors of the first round
that is best on the second most important
attribute
Continue until you have one winner
Best on most important attribute

Decision Making Models:

Four Vacation Choices
Attribute
Hot
Neat things to
do
Inexpensive
Accommodatio
ns
Wife wants to
go
Great nightlife

Impor- Minimu
tance m Cutoff

Bali

Hawai Europ Alaska

i
e
+2
-2
-3
+3
+3
+3

5
10

-2
+3

+3
+3

4
3

-2
+1

-3
-1

-3
+2

-1
+1

-2
-1

+1

+2

+2

+1

+3

-2

+2

+1

-3

1. Multi-attribute

Determine weighted total for each

option by multiplying the importance
rating by attribute evaluation and
summing
For Bali: (5x3) + (10x3) +(4x-3) +(3x1) +(7x2) +(1x2) =
Hawaii =
Europe =
Alaska =
CHOICE: _____________

2. Conjunctive Rule

Set minimum standards/cutoffs

for one or more attributes; reject
any brands that do not meet ALL
minimum thresholds ("And" rule)
CHOICE: _____________ as it is the only
option that meets/exceeds all six
MINIMUM CUTOFFS
_______ is not inexpensive enough and
fails in accommodations

________________________

is not inexpensive enough

3. Lexicographic Rule

Best on most important attribute:

Tie between all four on most
important attribute (neat things to
do)
Best on second most important
attribute (wife wants to go)
CHOICE: ______________

Consumer Decision-Making Process

Brand to purchase selected,
but not bought
Choice can still be altered

Opinion of
others

Unexpected

6-24

Consumer Decision-Making Process

Cognitive
Dissonance:
Discomfort caused by a purchase
decision

Low Satisfaction, Product Returns

6-25

Cognitive Dissonance
Preference

High

Product A
Purchased

Low
Prepurchase
Phase

Purchase
Point

Post-Purchase
Phase

Influences in the Consumer

Decision-Making Process

1. Social Influences

Reference
Groups
Opinion Leaders

Reference Groups

1. Social
Influences

Primary
Direct
Types of
Reference
Groups

(family, friends,
co-workers)

Secondary

(clubs,
professional
and religious groups)

Indirec
t

Aspiration
al
I want to be like
Mike

Nonaspirational

If I buy one of those cars

people will think

United States Social

Classes
Upper

class: 15%
Middle class

Average white-collar: 33%

Working class: 32%
Lower

class

Working Poor: 12%

Underclass: 8%
1. Social
Influences

Determinants of Social
Class
Income
Occupation
Education
Language
Location
Possessions
Family

1. Social
Influences

2. Personal Influences

Lifestyle:
Psychographics

Quantitative
investigation of
a consumers:
Values
Personality
Lifestyle
Activities
Interests
Opinions

2. Personal
Influences

Personality

The consistent patterns of behavior that

people show with regard to social
situations (e.g. cognitive style)
Personality refers to the _internal_ characteristics; lifestyle refers to the External
characteristics of how one lives
Image congruence hypothesis states that
the consumer selects products and stores
that correspond to their self-concept
2. Personal
Influences

Examples of MarketingRelated Personality Traits

Dogmatism: Open/closed mindedness___

Self-monitoring: Ability to look to others

for clues on how to behave_

Need for cognition: Pleasure from thinking

Innovativeness: Have to have latest

Materialism: Need to possess

Compulsive consumption: Have to spend

it

Variety/Novelty seeking: Different

2. Personal
experiences
Influences

Personality of Color

Respect, authority
Novelty, caution - eyecatching
Secure, natural - Canada Dry
Hot, strong - food smells
better
Powerful, informal - bright
Relaxed, masculine
Purity, goodness - Low
calories
Power, mystery - high-tech
2. Personal
Wealthy, stately - premium
Influences

3. Situational
Influences

4. Psychological
Influences

Perception
Selective
Selective
exposure
exposure

Consumer
Consumer notices
notices certain
certain stimuli
stimuli
and
and ignores
ignores others
others

Selective
Selective
distortion
distortion

Consumer
Consumer changes
changes or
or distorts
distorts
information
information that
that conflicts
conflicts
with
with feelings
feelings or
or beliefs
beliefs

Selective
Selective
retention
retention

Consumer
Consumer remembers
remembers only
only
that
that information
information that
that
supports
supports personal
personal beliefs
beliefs

Marketing Implications of
Perception

Important attributes
Price
Brand names
Quality and reliability
Threshold level of perception
Product or repositioning changes
Foreign customer reception

Consumer Beliefs
Represent

the knowledge
a consumer has about
objects, their attributes,
and their benefits
provided
Objective/subjective

Attitudes
Consistent response toward
an object
Enduring evaluation of
Amount of affect or feeling
for or against a stimulus
One dimensional: +/

Importance of Attitudes
Cognitive

- _guide our thoughts___

Affective - _influence our feelings_
Connative affect our actions___
Serve as ego-defense
mechanisms
Value-expressive (self-identity)

Attitude Formation
If

highly motivated/involved
(effort), people likely use
Central-route
processing

If

not, _peripheral-route
processing is used

High Effort Processing

Attitudes

based on:

beliefs/schema associations
evaluation of these beliefs (e.g.
we believe it to be of good quality
and this is important to us;
resulting in a positive attitude)

High Effort Processing

Theory

of Reasoned Action

Can I predict your behavior

based on your beliefs and
normative influences?
Also called the Behavioral
Intentions Model

Theory of Reasoned
Action
Behavior

(B) results from the

formation of specific intentions
to behave (BI)
Predicts BI, not B; based on
ones attitude toward the act
(Aact) and the influence of
others opinions (called
subjective norms (SN))

The Theory of Reasoned Action

Theory of Reasoned
Action

B= BI = (Aact) + (SN)

(Aact) = (belief about consequences

(bi)) x (evaluation of consequences
(ei))

Take the sum of all these (bi) x (ei)

to get (Aact)

Theory of Reasoned
Action

B= BI = (Aact) + (SN)

(SN) = (belief of important people

(NBj)) x (motivation to comply
(MCj))

Take the sum of all these (NBj) x

(MCj) to get (SN)

TORA Example
B = get a tattoo
BI = intention to get a tattoo
Aact = your attitude toward getting
one
SN = what influence others
have on you

TORA Scales

bi = The likelihood that this outcome will

occur is (-3) very low to (+3) very high
ei = If this outcome occurs, it will be (-3)
very bad to (+3) very good
NBj = This person thinks I should (-3)
not do it to (+3) do it
MCj = How much do I care what this
person thinks? (-3) strongly dont care
at all to (+3) very much

TORA Example
Aact = sum of bi x ei
all scales range from -3 to +3
Aact = Getting a tattoo
bi
ei
bi x ei
will hurt
+3 -3
-9
will be cool
+1 +2
+2
expensive
+2 -2
-4
self-expression +3 +3
+9

Aact =

TORA Example
SN = sum of NBj x MCj
all scales range from -3 to +3
SN = Influence of others
NBj MCj NBj x MCj
Parents
-3
-1
+3
S.O.
-1
+3
-3
SN =
Best friend
+3 +2
+6
300 Instructor +3 0
0
BI =

Attitude Change
Using TORA, we can see how we
might affect attitudes
Can focus on changing existing
beliefs, evaluations of beliefs,
normative beliefs
OR, add new beliefs, normative
beliefs (introduce peer pressure?)

Bottom line...
When do attitudes predict
behavior?
Involvement/effort is high
Knowledge is high
Confidence is high
______________ is high