Ch 6 Consumer Decision Making 36 1 The Importance of Understanding Human Behavior Consumer Behavior well as to use and dispose of purchased goods or services also includes factors that influence purchase decisions processes a consumer uses to make purchase decisions as 6 2 The Consumer Decision Making Process a five step process used by consumers Consumer Decision Making Process when buying goods services o 1 Need Recognition o 2 Information Search o 3 Evaluation of Alternatives o 4 Purchases o 5 Postpurchase Behavior A Need Recognition 1st stage in consumer decision making process Imbalance arouses activates the consumer decision making process Need Recognition Want recognition of an unfulfilled need and a product that will satisfy it Need recognition stimulates when consumer exposed to internal external the result of an imbalance b t actual and desired states any unit of input affecting one or more of the 5 senses sight stimulus Stimulus smell touch taste hearing Internal Stimuli occurrences you experience such as hunger or thirst o ex may hear your stomach growl and realize you are hungry External Stimuli influences from an outside source o Ex someone s recommendation of a new restaurant the color of a car design of a package brand name mentioned by friend advertisement Want Got Gap the imbalance between the actual and desired states o Difference b t what a customer has and what he she actually wants o Doesn t always trigger consumer action Marketing Manager s objective to get consumer to recognize want got gap Surveying buyer preferences provides marketers w info about consumer needs and wants that can be used to tailor products services Marketing managers can create wants on the part of consumers ex when college students move into their own apartment dorm room they often need to furnish them and want new furniture rather than hand me downs A want can be for a specific product or for a certain attribute feature of the product 1 Understanding Need and Wants o view wants at job outcome statements o a job is a fundamental goal that consumers are trying to accomplish or a problem they are trying to solve o ex prevent mildew in shower hanging a picture Consumers search for info about the various alternatives available to satisfy B Information Search their need want Ch 6 Consumer Decision Making Ex if you know your interested in seeing a movie but don t know what to see you visit rotten tomatoes web site to see what is getting great reviews Internal Information Search process of recalling past info stored in memory o Ex When traveling w your family may choose to stay at a hotel you External Information Search have stayed at before b c you remember it had clean rooms etc process of seeking info in the outside environment o 2 Basic Types 1 Non Marketing Controlled Info Source a product info source that is not associated with advertising or promotion personal experiences trying observing a new product personal sources family friends aquaintences who recommend a product service Public sources Rotten tomatoes Consumer Reports 2 Marketing Controlled Info Source product info source that originates with the marketers promoting the product mass media advertising radio newspaper tv magazine ads sales promotion contests displays premiums salespeople product labels and packaging internet extent to which an individual conducts an external search depends on his her o Perceived risk As perceived risk increases the consumer enlarges search and considers more alternative brands Ex You want to purchase a surround sound system decision relatively risky b c of expense and technical nature motivated to search for info about models price options compatibility value of time expended finding the right stereo will be less than the cost of buying the wrong system Consumer who is knowledgeable and well informed about potential purchase less likely to search for additional info Consumers who have prior experience in buying a certain product will have less o Knowledge o Prior experience Ch 6 Consumer Decision Making perceived risk than inexperienced costumers o Level of interest in good service Consumer who has more interest ina product will spend more time searching for info o Consumers info search should yield a group of brands o Evoked Set consideration set info search from which a buyer can choose a group of brands resulting from an C Evaluation of Alternatives and Purchases Exposure to certain cues in your everyday life can affect decision criteria and purchase have the attribute Consumer reviews are influenced by existing reviews Pick a product attribute then exclude all products in the evoked set that don t Categorization process the evaluation of an alternative depends upon the particular category to which it is assigned Brand Extensions in which a well known and respected brand name from one product category is extended into other product categories o one way companies employ categorization to their advantage 1 To Buy or Not to Buy o Consumers must decide 1 Whether to buy 2 When to buy 3 What to buy product type and brand 4 Where to Buy type of retailer specific retailer online in store 5 How to pay o Fully planned purchase when person is buying an expensive or expensive item based upon a lot of info buying a new home o Partially Planned Purchase when they know the product category they want to buy shirts pants reading lamp but wait until they get to the store to choose a specific style or brand o Unplanned Purchase people buy on impulse 6 3 Post Purchase Behavior When buying products consumers expect certain outcomes from the purchase How well expectations are met determines whether the consumer is satisfied dissatisfied with the purchase Prices often influence level of expectations for product service For marketer an important element of post purchase evaluation is reducing any Cognitive Dissonance lingering doubts that the decision was sound recognizing an inconsistency between behavior and values or opinions inner tension that a consumer experiences after Ch 6 Consumer Decision Making o Ex Looking to purchase an e reader decide to buy ipad even though more expensive may be worried that top of the line technology will be obsolete in a couple months Consumers try to reduce dissonance by justifying their decision Seek new info that reinforces positive ideas about the purchase avoid info that Marketing managers reduce dissonance by effective communication with contradicts their decision purchases o
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