Analyzing Consumer Behavior & The Buying Process Flashcards
CONSUMER BEHAVIOR
Study that consists of how the consumer’s emotions, attitudes, and preferences affect buying behavior.
PATTERNS OF BUYING BEHAVIOR
Driven by:
- Product/Service under consideration.
- Context in which the buying takes place.
- People involved in the process.
WHY UNDERSTAND HOW CONSUMERS THINK?
By understanding the patterns of buying, marketers can anticipate consumer’s behavior and tailor their selling efforts to better match consumers’ buying processes.
CONSUMER DECISION-MAKING PROCESS (CDMP)
The process by which consumers identify their needs, gather information, evaluate alternatives, and make their buying decision.
PHASES OF CONSUMER DECISION-MAKING
- Pre-Purchase Phase
- Purchase Phase
- Post-Purchase Phase
PRE-PURCHASE PHASE
CDMP
- Trigger
(recognition of need) - Search & consideration (alternatives to satisfy need)
- Evaluation of alternatives (total set to a consideration set to a choice set)
PURCHASE PHASE
CDMP
Making choices about which brand to buy, what seller to buy from, and how many of the offering to buy, and how to pay.
POST-PURCHASE PHASE
CDMP
Likelihood to buy again (if happy); dealing with returns/complaints; next purchases.
CONSUMER DECISION-MAKING FRAMEWORK
Mapping out the buying process:
- Cognitive vs. Emotional
- High vs Low Involvement
- Optimizing vs Satisficing
- Compensatory vs Non-compensatory
COGNITIVE DECISION MAKING
FRAMEWORK
Mind-driven decisions based on deliberate, information-based processing.
EMOTIONAL DECISION MAKING
FRAMEWORK
Heart-driven decisions that entail a subject liking for one product over another.
HIGH-INVOLVEMENT DECISION-MAKING
FRAMEWORK
Decision making is effortful, consumes a lot of time, and the consequences of making a good vs bad decision tends to be significant for the buyer.
LOW-INVOLVEMENT DECISION-MAKING
FRAMEWORK
Decisions that require far less efforts, happen more quickly, and are perceived as having far lower risk.
OPTIMIZING DECISION-MAKING
FRAMEWORK
Consumers are always motivated to purchase the best alternative they can.
SATISFICING DECISION-MAKING
FRAMEWORK
Consumers settle for an alternative that is good enough. Consumer feels that the added benefit does not warrant the added cost of the search.
COMPENSATORY DECISION-MAKING
FRAMEWORK
For the consumer some product characteristics outweigh others (ex., higher price for better styling)
NON-COMPENSATORY DECISION-MAKING
FRAMEWORK
A products failure to reach an acceptable threshold on one attribute cannot be compensated for by high performance on another attribute.
HOW TO DETERMINE IF BUYING PROCESS IS COGNITIVE, EMOTIONAL OR BOTH?
Three factors to consider:
- Product Type
- Context
- Individual Preferences
PRODUCT TYPE FACTOR
Products serving two types of purposes:
- Utilitarian (cognitive; purchase motivated by functionality of product)
- Hedonic/Self-Expressive (emotional; consumer think product says something about them)
DECISION SEQUENCES
PRODUCT TYPE FACTOR
- Think: rationally coming to some decision.
- Feel: emotionally coming to some decision
- Act: taking action; purchasing decision
INDIVIDUAL PREFERENCES
Same products in the same context elicit different decision processes based on an individual’s natural tendencies. (Some are governed by emotions, others by facts/figures)
HOW TO REDUCE THE CONSUMER’S PERCEIVED RISK?
HIGH-INVOLVEMENT PURCHASES
Easy return policies, offering guarantees, provide price comparisons.
HOW TO HAVE OFFERINGS READY AVAILABLE?
Have products on physical checkout aisles; Online have “products you may like”
HOW TO TARGET OPTIMIZERS?
Emphasize the superiority of the product/service.
