1. Fundamentals Of
Marketing
MKT243
Chapter 3
Consumer and Business
Decision Making
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2. Slides Outline
Importance of understanding of consumer
behavior
Consumer buying behavior
Consumer Decision Making Process
Types of Consumer Buying Decision
Factor Influencing consumer buying
decision
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3. Importance of understanding
consumer behavior
Consumers’ product and service
preferences are constantly changing
Understanding how consumer make
purchase decisions can help marketing
managers to determine the most
important attribute for certain target
market
Easily design and developing marketing
strategy
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4. Model of Consumer Behavior
Consumer buyer behavior refers to the
buying behavior of final consumers—
individuals and households who buy
goods and services for personal
consumption
Consumer market refers to all of the
personal consumption of final consumers
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5. Model of Consumer Behavior
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6. The Buyer Decision Process
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7. Occurs when the buyer recognizes a
problem or need triggered by:
◦ Internal stimuli
◦ External stimuli
Need recognition
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8. Sources of information:
Personal sources—family and
friends
Commercial sources—
advertising, Internet
Public sources—mass media,
consumer organizations
Experiential sources—
handling, examining, using
the product
Information search
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9. Evoked Set
Analyze product attributes
Analyze product attributes
Use cutoff criteria
Use cutoff criteria
Rank attributes by
Rank attributes by
importance
importance
Purchase!
Evaluation of Alternative
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10. The act by the consumer to buy the most
preferred brand
The purchase decision can be affected by:
◦ Attitudes of others
◦ Unexpected situational factors
Purchase Decision
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11.  The satisfaction or dissatisfaction that the
consumer feels about the purchase
 Relationship between:
◦ Consumer’s expectations
◦ Product’s perceived performance
 The larger the gap between expectation and
performance, the greater the consumer’s
dissatisfaction
 Cognitive dissonance is the discomfort caused by
a post-purchase conflict
Post purchase decision
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12. Types Buying Decision Behavior
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13. Types of Buying Decision Behavior
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14. Factors Influencing Consumer
Buying Decision
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15. Factors Influencing Consumer
Buying Decision
Culture is the learned values,
perceptions, wants, and
behavior from family and other
important institutions
Subculture are groups of
people within a culture with
shared value systems based on
common life experiences
and situations
◦ Hispanic
◦ African American
◦ Asian
◦ Mature consumers
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16. Social classes are society’s relatively
permanent and ordered divisions whose
members share similar values, interests,
and behaviors
Measured by a combination of occupation,
income, education, wealth, and other
variables
Factors Influencing Consumer
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18. Groups and Social Networks
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19.  Word-of-mouth influence and
buzz marketing
Opinion leaders are people
within a reference group who
exert social influence on others
Also called influentials or
leading adopters
Marketers identify them to use
as brand ambassadors
 Online Social Networks are
online communities where people
socialize or exchange information
and opinions
 Include blogs, social networking
sites (facebook), virtual worlds
(second life)
Groups and Social Networks
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20. Family is the most important consumer-
buying organization in society
Social roles and status are the groups,
family, clubs, and organizations that a
person belongs to that can define role and
social status
Social Factors
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21. Age and life-cycle
stage
RBC Royal Band
stages
◦ Youth: younger than 18
◦ Getting started: 18–35
◦ Builders: 35–50
◦ Accumulators: 50–60
◦ Preservers: over 60
Personal Factors
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22. Occupation affects the goods and services
bought by consumers
Economic situation includes trends in:
Personal Factors
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23. Lifestyle is a person’s
pattern of living as
expressed in his or
her psychographics
Measures a
consumer’s AIOs
(activities, interests,
opinions) to capture
information about a
person’s pattern of
acting and
interacting in the
environment
Personal Factors
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24. Personality and self concept
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25. A motive is a need that is sufficiently
pressing to direct the person to seek
satisfaction
motivation
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26. Characteristics Affecting
Consumer Behavior
Maslow’s
Hierarchy of Needs
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27.  Perception is the process by which people select,
organize, and interpret information to form a meaningful
picture of the world from three perceptual processes
Psychological Factors
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28. Learning is the change in an individual’s
behavior arising from experience and
occurs through interplay of:
Psychological Factors
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29. Belief is a descriptive thought that a
person has about something based on:
Knowledge
Opinion
Faith
Psychological Factors
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30. Attitudes describe a person’s relatively
consistent evaluations, feelings, and
tendencies toward an object or idea
Psychological Factors
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