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Consumer Buying Behavior Part Two Part Two Buyer Behavior Buyer Behavior and and Target Market Target Market Selection Selection Copyright © Houghton Mifflin Company. All rights Copyright © Houghton Mifflin Company. All rights reserved. reserved. PowerPoint Presentation by Charlie PowerPoint Presentation by Charlie Cook Cook 8

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Page 1: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Consumer Buying Behavior

Part TwoPart TwoBuyer BehaviorBuyer Behavior

andandTarget Market Target Market

SelectionSelection

Copyright © Houghton Mifflin Company. All rights reserved.Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie Cook

88

Page 2: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–2

Chapter Learning Objectives

• To understand the level of involvement and types of consumer problem-solving processes

• To recognize the stages of the consumer buying decision process

• To explore how situational influences may affect the consumer buying decision process

• To understand the psychological influences that may affect the consumer buying decision process

• To examine the social influences that affect the consumer buying decision process

Page 3: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–3

Chapter Outline

• Level of Involvement and Consumer Problem-Solving Processes

• Consumer Buying Decision Process• Situational Influences on the Buying Process• Psychological Influences on the Buying Decision

Process• Social Influences on the Buying Decision Process

Page 4: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–4

Introduction: Key Terms

• Buying Behavior–The decision processes and acts of people involved in

buying and using products

• Consumer Buying Behavior–Buying behavior of people who

purchase products for personal use and not for business purposes

Page 5: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–5

Level of Involvement and Consumer Problem-Solving Processes

• Level of Involvement–An individual’s intensity of interest in a product and the

importance of the product for that person• Enduring involvement• Situational involvement

• Routinized Response Behavior–The process used when buying frequently purchased,

low-cost items that require little search-and-decision effort

Page 6: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–6

Level of Involvement and Consumer Problem-Solving Processes (cont’d)

• Limited Problem Solving–The process that buyers use when purchasing products

occasionally or when they need information about 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

Page 7: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–7

Consumer Buying Decision Process and Possible Influences on the Process

FIGURE 8.1

Page 8: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–8

Consumer Buying Decision 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 about products that might solve their problem

–External search• Buyers seek information from outside sources

Page 9: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–9

Consumer Buying Decision Process (cont’d)

• Evaluation of Alternatives–Consideration set

• A group of brands that the buyer views as alternatives for possible 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 more important especially to the inexperienced buyer

Page 10: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–10

Consumer Buying Decision Process (cont’d)

• 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, and

warranties may affect the sale.

Page 11: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–11

Consumer Buying Decision Process (cont’d)

• Postpurchase Evaluation–Cognitive dissonance

• A buyer’s doubts shortly after a purchase about whether the decision was the right one

–Buyers are mostly likely to seek reassurance after the purchase of an expensive, high-involvement product

Page 12: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–12

Situational Influences on the Buying Decision Process

• Situational Influences–Factors that can influence a buyer’s purchase decision

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

• Situational Factors–Physical surroundings–Social surroundings–Time perspective–Reason for purchase–Buyer’s momentary mood and condition

Page 13: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–13

Psychological Influences on the Buying Decision Process

• Psychological Influences–Factors that in part determine people’s general

behavior, thus influencing their behavior as consumers

• Perception–The process of selecting, organizing, and interpreting

information inputs to produce meaning

Page 14: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–14

Psychological Influences on the Buying Decision Process (cont’d)

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

awareness while ignoring others

• Selective Distortion–An individual’s changing or twisting of information when

it is inconsistent with personal feelings or beliefs

• Selective Retention–Remembering information inputs that support personal

feelings and beliefs and forgetting inputs that do not

Page 15: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–15

Psychological Influences on the Buying Decision Process (cont’d)

• 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….

Page 16: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–16

Psychological Influences on the Buying Decision Process (cont’d)

• Interpretation–The assignment of meaning to what has been

organized based on what is expected or what is familiar–Attempts by marketers to influence interpretation can

fail because• consumers block out seller’s information.• consumers interpret seller’s information differently than

intended.• consumers discard information that is inconsistent with

prior beliefs.

Page 17: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–17

Psychological Influences on the Buying Decision Process (cont’d)

• Motives–An internal energizing force that directs a person’s

behavior toward satisfying needs or achieving goals

• Maslow’s Hierarchy of Needs–The five levels of needs that humans are motivated to

seek and satisfy, from least to most important are• Physiological needs—food, water, sex, clothing, shelter• Safety needs—security, freedom• Social needs—love, affection, belonging• Esteem needs—respect, recognition, self-worth• Self-actualization needs—personal growth needs

Page 18: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–18

Maslow’s Hierarchy of Needs

Maslow believed that people seek to fulfill five categories of needs.

FIGURE 8.2

Page 19: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–19

Psychological Influences on the Buying Decision Process (cont’d)

• Learning–Changes in an individual’s 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.

Page 20: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–20

Psychological Influences on the Buying Decision Process (cont’d)

• Attitudes–An individual’s enduring evaluation of, feelings about,

and behavioral tendencies toward an object or idea

• Attitudinal Components–Cognitive

• Knowledge and information about the object or idea

–Affective• Feelings and emotions toward the object or idea

–Behavioral• Individual’s action regarding the object or idea

Page 21: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–21

Psychological Influences on the Buying Decision Process (cont’d)

• Attitude Scale–A means of measuring consumer attitudes by gauging

the intensity of individuals’ reactions to adjectives, phrases, or sentences about an object

Page 22: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–22

Psychological Influences on the Buying Decision Process (cont’d)

• Personality and Self-Concept–Personality

• A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations

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

• Lifestyles–Lifestyle

• An individual’s pattern of living expressed through activities, interests, and opinions

Page 23: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–23

Social Influences on the Buying Decision Process

• Social Influences–The forces other people exert on one’s buying behavior

• Role–Actions and activities that a person in a particular

position is supposed to perform based on expectations of the individual and surrounding persons

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

Page 24: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–24

Social Influences on the Buying Decision Process (cont’d)

• Family Influences–Consumer socialization

• The process through which a person acquires the knowledge and skills to function as a consumer

• Family decision-making processes–Autonomic—equally shared decision-making–Husband-dominant—husband makes decisions–Wife-dominant—wife makes decisions–Syncratic—decisions made jointly

Page 25: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–25

Social Influences on the Buying Decision Process (cont’d)

• Reference Groups–Any group that positively or negatively affects a

person’s values, attitudes, or behavior• Membership• Aspirational• Disassociative

• Opinion Leader–A knowledgeable, accessible individual who provides

information about a specific sphere of interests to followers

Page 26: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–26

Social Influences on the Buying Decision Process (cont’d)

• 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, and

possessions.

–Influences many major life decisions–Influences shopping patterns and spending habits

Page 27: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–27

Page 28: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–28

Page 29: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–29

Social Influences on the Buying Decision Process (cont’d)

• 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

Page 30: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–30

After reviewing this chapter you should:

• Understand the level of involvement and types of consumer problem-solving processes

• Recognize the stages of the consumer buying decision process

• Know how situational influences may affect the consumer buying decision process

• Understand the psychological influences that may affect the consumer buying decision process

• Be familiar with social influences that affect the consumer buying decision process

Page 31: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Chapter 8 Chapter 8 Supplemental SlidesSupplemental Slides

Copyright © Houghton Mifflin Company. All rights reserved. 8–31

Page 32: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–32

Key Terms and Concepts

• The following slides (a listing of terms and concepts) are intended for use at the instructor’s discretion.

• To rearrange the slide order or alter the content of the presentation–select “Slide Sorter” under View on the main menu.–left click on an individual slide to select it; hold and drag

the slide to a new position in the slide show.–To delete an individual slide, click on the slide to select,

and press the Delete key.–Select “Normal” under View on the main menu to return

to normal view.

Page 33: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–33

Important Terms

• Buying Behavior–The decision processes and acts of people involved in

buying and using products

• Consumer Buying Behavior–Buying behavior of people who purchase products for

personal use and not for business purposes

• Level of Involvement–An individual’s intensity of interest in a product and the

importance of the product for that person

Page 34: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–34

Important Terms

• Routinized Response Behavior–A type of consumer problem-solving process used

when buying frequently purchased, low-cost items that require little search-and-decision effort.

• Limited Problem Solving–A type of consumer problem-solving process that

buyers use when purchasing products occasionally or when they need information about an unfamiliar brand in a familiar product category

Page 35: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–35

Important Terms

• Extended Problem Solving–A type of problem-solving 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

• Consumer Problem Recognition–Occurs when a buyer becomes aware of a difference

between a desired state and an actual condition

Page 36: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–36

Important Terms

• Cognitive dissonance–A buyer’s doubts shortly after a purchase about

whether the decision was the right one

• Situational Influences–Factors that can influence a buyer’s purchase decision

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

• Psychological Influences–Factors that in part determine people’s general

behavior, thus influencing their behavior as consumers

• Perception–The process of selecting, organizing, and interpreting

information inputs to produce meaning

Page 37: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–37

Important Terms

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

awareness while ignoring others

• Selective Distortion–An individual’s changing or twisting of information when

it is inconsistent with personal feelings or beliefs

• Selective Retention–Remembering information inputs that support personal

feelings and beliefs and forgetting inputs that do not

Page 38: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–38

Important Terms

• Perceptual Organization–Organizing and integrating new information with what is

already stored in memory

• Interpretation–The assignment of meaning to what has been

organized based on what is expected or what is familiar

• Motives–An internal energizing force that directs a person’s

behavior toward satisfying needs or achieving goals

• Maslow’s Hierarchy of Needs–The five levels of needs that humans are motivated to

seek and satisfy

Page 39: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–39

Important Terms

• Learning–Changes in an individual’s thought processes and

behavior caused by information and experience

• Attitudes–An individual’s enduring evaluation of, feelings about,

and behavioral tendencies toward an object or idea

• Attitude Scale–A means of measuring consumer attitudes by gauging

the intensity of individuals’ reactions to adjectives, phrases, or sentences about an object

Page 40: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–40

Important Terms

• Personality–A set of internal traits and distinct behavioral

tendencies that result in consistent patterns of behavior in certain situations

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

• Lifestyle–An individual’s pattern of living expressed through

activities, interests, and opinions

• Social Influences–The forces other people exert on one’s buying behavior

Page 41: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–41

Important Terms

• Role–Actions and activities that a person in a particular

position is supposed to perform based on expectations of the individual and surrounding persons

• Consumer socialization–The process through which a person acquires the

knowledge and skills to function as a consumer

• Reference Groups–Any group that positively or negatively affects a

person’s values, attitudes, or behavior

Page 42: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–42

Important Terms

• Opinion Leader–A knowledgeable, accessible individual who provides

information about a specific sphere of interests to followers

• Social Class–An open group of individuals with similar social rank

• Culture–The accumulated values, knowledge, beliefs, customs,

objects, and concepts of a society

Page 43: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–43

Important Terms

• Subcultures–Groups of individuals whose characteristic values and

behavior patterns are similar and differ from those of the surrounding culture

Page 44: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–44

Transparency Figure 8H

Subcultural Differences in Moviegoing Behavior

Source: “Now Playing,” American Demographics, September 2001, p. 14. Adapted with permission.

Page 45: Consumer Buying Behavior Part Two Buyer Behavior and Target Market Selection Copyright © Houghton Mifflin Company. All rights reserved. PowerPoint Presentation

Copyright © Houghton Mifflin Company. All rights reserved. 8–45

Transparency Figure 8I

Food Spending Patterns for Hispanics Compared to Non-Hispanics

What can food marketers, attempting to reach Hispanics, learn from this spending pattern?

Source: “Well Stocked Fridges,” American Demographics, May 2000, p. 42. Adapted with permission.