Consumer Buying Behavior and Decision MakingLearning ObjectivesVisaConsumer BehaviorThe Nature of Consumer BehaviorConsumer MarketsConsumer Decision ProcessHigh and Low-Involvement DecisionsTypes of Consumer ChoicesTypology of Decision MakingInfluence of the Social EnvironmentCulture InfluencesSocial Class InfluencesFamily InfluencesTransitions in Household TypesReference GroupsInterpersonal Influence ProcessesIndividual DifferencesSlide 19Situational FactorsA Model of Consumer SatisfactionConsumer SatisfactionEthical and Social IssuesSummaryC H A P T E RC H A P T E R© 2007 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinConsumer BuyingBehavior andDecision MakingConsumer BuyingBehavior andDecision Making44-2© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdLearning ObjectivesLearning ObjectivesLearning ObjectivesLearning ObjectivesAfter studying this chapter, you should be able to: Discuss the importance of consumer behavior. Understand consumer decision making and some of the important influences on those decisions.Distinguish between low-involvement and high involvement consumer behavior.Understand how attitudes influence consumer purchases.Appreciate how the social environment affects consumer behavior.Recognize many of the individual consumer differences that influence purchase decisions and behavior. Recognize the outcomes of consumers’ decisions to purchase or not to purchase and how they affect marketing success.4-3© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdVisaVisaVisaVisaVisa credit cards are the world’s most used form of “plastic” payment. In 2004 Visa U.S.A. achieved record sales of $956 billion and better than expected revenues of $2.4 billion. Visa’s cards are accepted at more than 21 million locations in over 300 countries.4-4© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdConsumer BehaviorConsumer BehaviorConsumer BehaviorConsumer BehaviorConsumer behavior can be defined as the mental and emotional processes and the physical activities that people engage in when they select, purchase, use, and dispose of products or services to satisfy particular needs and desires.4-5© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdThe Nature of Consumer BehaviorThe Nature of Consumer BehaviorThe Nature of Consumer BehaviorThe Nature of Consumer BehaviorUnderstandingUnderstandingConsumerConsumerMarkets & Markets & BehaviorBehaviorSize of theSize of theConsumerConsumerMarketMarketChanges in Changes in the Consumerthe ConsumerMarketMarketConsumer-Consumer-OrientedOrientedMarketingMarketingUnderstandingUnderstandingE-CustomersE-CustomersDesign ofDesign ofStrategyStrategy4-6© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdConsumer MarketsConsumer MarketsConsumer MarketsConsumer MarketsIn 2004, the consumption expenditures for U.S. consumer market were huge: $8.2 trillion out of a total gross domestic product of $11.7 trillion.Some important growing consumer markets are:4-7© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdConsumer Decision ProcessConsumer Decision ProcessConsumer Decision ProcessConsumer Decision ProcessExhibit 4-24-8© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdHigh and Low-Involvement DecisionsHigh and Low-Involvement DecisionsHigh and Low-Involvement DecisionsHigh and Low-Involvement DecisionsInvolvement represents the level of importance or interest generated by a product or a decision.Low-Low-involvement involvement decisionsdecisionsLow-involvement decisions occur when relatively little personal interest, relevance, or importance is associated with a purchase.High-High-involvement involvement decisionsdecisionsHigh-involvement decisions are characterized by high levels of importance, thorough information processing, and substantial differences between alternatives.4-9© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdTypes of Consumer ChoicesTypes of Consumer ChoicesTypes of Consumer ChoicesTypes of Consumer ChoicesProductProductBrandBrandShopping AreaShopping AreaStore TypeStore TypeStoreStoreNonstoreNonstore(Catalog, PC, TV shopping)(Catalog, PC, TV shopping)4-10© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdTypology of Decision MakingTypology of Decision MakingTypology of Decision MakingTypology of Decision MakingExtended purchase decision making based on logical and objective criteria. Symbolic purchase behavior based on image or social approval. Repetitive purchase behavior (decisions based on brand loyalty).Hedonic purchase behavior based on simple liking. Promotional purchase behavior because products are on sale. Exploratory purchase behavior due to curiosity or desire for variety.Casual purchase behavior involving little thought. Impulsive purchase behavior4-11© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdInfluence of the Social EnvironmentInfluence of the Social EnvironmentInfluence of the Social EnvironmentInfluence of the Social EnvironmentExhibit 4-34-12© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdCulture InfluencesCulture InfluencesCulture InfluencesCulture InfluencesCulture refers to the values, ideas, attitudes, and symbols that people adopt to communicate, interpret, and interact as members of society.The process of absorbing a culture is called socialization.Values are shared beliefs or cultural norms about what is important or right.The norms and values of specific groups or subcultures within a society are called ethnic patterns.4-13© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdSocial Class InfluencesSocial Class InfluencesSocial Class InfluencesSocial Class InfluencesSocial classes are relatively homogeneous divisions within a society that contain people with similar values, needs, lifestyles, and behavior. A recent perspective on social class includes the four factors impacting social class: social capital (whom you know)credential capital (where you received your degree), income capital  investment capital (stocks and bonds)4-14© 2007 The McGraw-Hill Companies, Inc. All