Ch. 10 - International Business courses

Report
Chapter 10
Organizational and
Household Decision Making
CONSUMER
BEHAVIOR, 10e
Michael R. Solomon
10-1
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Chapter Objectives
When you finish this chapter, you should
understand why:
1. Marketers often need to understand
consumers’ behavior rather than a
consumer’s behavior.
2. Companies as well as individuals make
purchase decisions.
3. Our traditional notions about families are
outdated.
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Chapter Objectives (continued)
4. Many important demographic dimensions
of a population relate to family and
household structure.
5. Members of a family unit play different
roles and have different amounts of
influence when the family makes
purchase decisions.
6. Children learn over time what and how to
consume.
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Learning Objective 1
• Marketers often need to understand
consumers’ behavior rather than a
consumer’s behavior.
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Roles In Collective Decision Making
Initiator
Gatekeeper
Influencer
Buyer
User
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For Reflection
Assume that you are a sales representative
for a large company that markets laptop
computers.
• List all the people that may be involved in
the decision making.
• Try to match all the people to their possible
decision roles as outlined on the previous
slide.
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Learning Objective 2
• Companies as well as individuals make
purchase decisions.
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Organizational Decision Making
• Organizational buyers: purchase goods
and services on behalf of companies for
use in the process of manufacturing,
distribution, or resale.
• Business-to-business (B2B) marketers:
specialize in meeting needs of
organizations such as corporations,
government agencies, hospitals, and
retailers.
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Compared to Consumer Decision Making,
Organizational Decision Making…
• Involves many people
• Requires precise, technical specifications
• Is based on past experience and careful
weighing of alternatives
• May require risky decisions
• Involves substantial dollar volume
• Places more emphasis on personal selling
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What Influences Organizational Buyers?
•
•
•
•
Internal stimuli
External stimuli
Cultural factors
Type of purchase
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Table 10.1 Types of
Organizational Buying Decisions
• Buyclass theory: organizational buying decisions
divided into three types, ranging from most to
least complex:
Buying Situation
Extent of Effort
Risk
Buyers Involved
Straight rebuy
Habitual decision
making
Low
Automatic
reorder
Modified rebuy
Limited problem
solving
Low to moderate
One or a few
New task
Extensive problem
solving
High
Many
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For Reflection
• Summarize the buyclass model of
purchasing. How do decisions differ within
each class?
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Learning Objective 3
• Our traditional notions about families are
outdated.
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For Reflection
• How does the changing nature of the
family affect marketing mix decisions
marketers make to target families and
family members?
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Learning Objective 4
• Many important demographic dimensions
of a population relate to family and
household structure.
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The Modern Family
• Changes in family structure
• Changes in concept of household (any
occupied housing unit)
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Family Size
• Depends on educational level, availability
of birth control, and religion
• Women want smaller families
• The rate of voluntary childlessness is
rising, making DINKs a valuable market
segment
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Sandwich Generation
• Sandwich generation: adults
who care for their parents as
well as their own children
• Boomerang kids: adult
children who return to live
with their parents
• Spend less on household
items and more on
entertainment
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Nonhuman Family Members
• Pets are treated like family members
• Pet-smart marketing strategies:
• Name-brand pet products
• Lavish kennel clubs
• Pet accessories
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Family Life Cycle
• Factors that determine how couples spend
money:
• Whether they have children
• Whether both spouses work
• Family life cycle (FLC) concept combines
trends in income and family composition
with change in demands placed on income
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Variables Affecting FLC
Age
Marital Status
Children in the Home
Ages of Children in the Home
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For Reflection
• For the following products, discuss how
having children or not might affect the
choices a couple makes. What do such
variations mean for marketers?
• Groceries
• Cars
• Vacations
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Learning Objective 5
• Members of a family unit play different
roles and have different amounts of
influence when the family makes purchase
decisions.
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Household Decisions
Consensual
Purchase Decisions
Accommodative
Purchase Decisions
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Resolving Decision Conflicts in Families
• Interpersonal need
• Product involvement
and utility
• Responsibility
• Power
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Who Makes Key Decisions in the Family?
• Autonomic decision: one family member
chooses a product
• Syncretic decision: involve both partners
• Used for cars, vacations, homes,
appliances, furniture, home electronics,
interior design, phone service
• As education increases, so does
syncretic decision making
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Factors Affecting Decision-Making
Patterns Among Couples
Sex-role stereotypes
Spousal Resources
Experience
Socioeconomic Status
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Heuristics in Joint Decision Making
• Synoptic ideal: the couple takes a
common view and act as joint decision
makers
• Heuristics simplify decision making:
• Salient, objective dimensions
• Task specialization
• Concessions based on intensity of each
spouse’s preferences
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For Reflection
• What exposure have you had to family
decisions made in your own family? Can
you see the patterns discussed in the
chapter in those decisions? Give an
example.
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Learning Objective 6
• Children learn over time what and how to
consume.
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Children as Decision Makers
• Primary market: kids spend their own
money
• Influence market: parents buy what their
kids tell them to buy (parental yielding)
• Future market: kids “grow up” quickly and
purchase items that normally adults
purchase (e.g., photographic equipment,
cell phones)
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Consumer Socialization
• Consumer socialization is the process by
which young people acquire skills,
knowledge, and attitudes relevant to their
functioning in the marketplace
• Children’s purchasing behavior is
influenced by
• Parents, family, and teachers
• Television and toys
• Culture
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Figure 10.2
Five Stages of Consumer Development
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Parental Styles for Socializing Children
Authoritarian
Neglecting
Indulgent
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Cognitive Development
• Limited: Below age 6, children do not use
storage and retrieval strategies
• Cued: Between ages 6 and 10, children
use these strategies, but only when
prompted
• Strategic: Children ages 10 and older
spontaneously employ storage and
retrieval strategies
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For Reflection
• How do the stages of cognitive
development relate to a child’s ability to
comprehend marketing messages?
• How can marketing messages be adapted
to meet the appropriate stage of cognitive
development?
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Chapter Summary
• The purchase decisions made by many
•
•
•
•
may differ from those made by individuals.
Buying for one’s self is different than
buying for one’s company.
Our traditional notions of family are
outdated.
Family members play different roles and
varying levels of influence.
Children learn over time how to consume.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
10-37

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