Consumer Decision Making REVIEW

*Chapter 3 Instructor Shan A. Garib, S2013

The stages that consumers pass when making choices about which products/services to buy

Need recognitionInformation searchEvaluation of alternativesPurchasePostpurchase behaviour

*

The general process used as a guide for studying how consumers make decisionsNeeds recognition when consumers are faced with an imbalance between actual and desired states-consumer exposed to internal/external stimuliseg. Hunger or thirst or firend recommendation-marketing managers can create wants, an unfulfilled need-marketing managers objective to create an imbalance through ads and promotion

*

Marketing managers: -can create wants, an unfulfilled need-observe trends in the marketplaceeg. IKEA tables for Gen Y-objective to get consumers to recognize imbalance through ads and promotion-surveys reveal this imbalance*

Consumers recognize unfulfilled needs and wants through:-when current products not performing-or run out of product eg. toilet paper-see a product that outperformseg. Car stereo now have mp3s*

The general process used as a guide for studying how consumers make decisions

2. Information search for information about alternatives available to satisfy needsinternal search: recall of info from memory on previous experienceexternal search: for info from marketing sources-nonmarketed: not marketers promoting product but from experience

*


external search: for info from marketing sources-nonmarketed: not marketers promoting product but from experience or public sources like consumer reports-marketed: biased towards a specific product because its from the makers *

The general process used as a guide for studying how consumers make decisionsFactors affecting external search: -the greater the risk of failure and the greater the interest the more the consumer searches for information-prior knowledge of product or service means less searching-confidence in owns decision making ability-prior exprience with product eg west jet*

Info search should yield a buyers evoked set of perferred alternatives*

3&4. Evaluation of alternatives & Purchase Decision -use internal and external info-narrow down alternatives by:- attributes eg. 4X4 car-cut-offs eg. 23K CAD-rank based on performance

*

Goal of marketing manager to determine which attributes have the most influence on choice-eg. Price, brand name (set of promises)

*


5. Postpurchase behaviour how well product/service meets expectations determines whether satisfied or not-marketing manager has to reduce any doubt-when inconsistencey between values and behaviour it is called cognitive dissonance

*

Involvement: level depends on personal, social, and economic consequences of the purchase at that momentAll consumer buying decisions fall within three categories:

Routine problem solving Limited problem solving Extended problem solving

*

Frequently purchased, low cost products are associated with routine response behaviour-such products can also be called low involvement products-usually consumers are familiar with products in this category but stick with one brand/product-usually dont experience needs recognition until they see ads or see product on shelfs-consumers here buy first and eval. Later-opposite of extensive decisions

*

Extensive Decision Making consumers buying unfamiliar, expensive products or infrequently bought item-most complex type of consumer buying decision and is associated with high consumer involvement-consumer wants to make the right decision so they want to know as much as possible about the product-usually experience cognitave dissonance

*

Limited Decision making consumer has previous product experience but unfamiliar with current brands available-associated with lower levels of involvment because consumers spend moderate amoun of searchign for information or considering alternatives-if ususal brand is sold out then consumver will evaluate otehr brands before buying

*

Social, cultural, individual and psychological factors strongly influence the decision process

Psycological factors determine how consumers percieve and interact with their environments-eg. Perception, motivation, learning, beliefs, attitudes*

An individuals buying decisions are further influenced by psychological factorsOne motivation theory is Maslows hierarchy of needs arranges needs in ascending order of importance:1. Self-actualization reach a satitation point2. Esteem needs recognition status3. Social needs - belonging4. Safety needs - security3. Physiological needs - hunger

*

An individuals buying decisions are further influenced by psychological factors

Motivation buy a product to fulfil a need, these needs become motiveseg. Motivated by hunger for McDs

Motives: are the driving forces that cause to take action to satisfy a need *

Consumers are influenced by personal characterisitcs that are unique to individuals

Personality, self-concept are reflected in a lifestyle, or mode of living by activities, interests and opinions

Psychographics is an analytical technique used to examine consumer lifestyles and to categorize consumers, segment into target markets

*


Learning the process that creates in behaviour through experience and practice

Two types: Eperiential experiecne changes your behaviourConeptual no direct experience but changes your behaviour eg. Diet drinks*

Values, Beliefs and attitudes

Beliefs organized pattern of knowledge that person holds true about the world

Closely related to brand image, a set of beliefs about a particular brand

*


Attitude learned predisposition to respond to an object in a favourable or unfavourable way-rest on individuals value system which represents personal standards or good and bad, right and wrong eg credit card use in the EU*

Attitude change through:Changing beliefs about the extent to which a brand has certain attributes eg. Aspirin and upset stomach

Changing the perceived importance of attributes eg hours of sleep

Adding new attributes to the product eg antioxidants

*

Documents

Consumer Decision Making REVIEW