Ch 4 Flashcards
Consumer Decision Process
Need recognition -> information search - > alternative evaluation -> purchase decisions -> post purchase
Factors affecting consumers’ search processes
- Perceived Benefit vs. Perceived Costs
- Actual or Perceived Risk
- Locus of Control
Actual or Perceived Risk
- Performancerisk
- financial risk
- social risk
- physiological risk
- psychological risk
Alternative Evaluation: Decision Rules
- compensatory
- decision heuristics
- noncompensatory
compensatory decision rule
when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for bad ones
noncompensatory decision rule
when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes.
decision heuristics
Mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation
Purchase & Consumption
Retailers use the conversion rate to measure how well they convert purchase intentions into actual purchases
Purchase & Consumption Tactics
- Reduce real or virtual abandoned carts
- Merchandise in stock
- Reduce the actual wait time
Postpurchase outcomes
- customer satisfaction
- post purchase dissonance
- customer loyalty
Customer satisfaction
marketers can take the following steps to ensure postpurchase customer satisfaction:
build realistic expectations, demonstrate correct product use, stand behind your product or service, encourage customer feedback, periodically make contact with customers & thank them
Postpurchase cognitive dissonance
buyer’s remorse – an internal conflict that arises from an inconsistency between two beliefs, or between beliefs & behaviours
Customer loyalty
this develops over time with multiple repeat purchases of the product or brand from the same firm
Factors Influencing Consumer Buying decisions
- psychological
- social
- situational
Psychological Factors Influencing Consumer Buying decisions
influences internal to the consumer: motives, attitudes, perceptions, learning & lifestyles
Social Factors Influencing Consumer Buying decisions
family, reference groups & culture
Situational Factors Influencing Consumer Buying decisions
specific purchase situation, a particular shopping situation, & temporal states (the time of day) affect the decision process
Psychological Factors: Motives
a need or want that is so strong that it causes the person to seek satisfaction
Maslows hierarchy of needs:
- psychological (food)
- safety (secure employment)
- love (family)
- esteem (confidence)
- self-actualization (personal growth activities).
types of buying process/decisions
2 types depending on their level of involvement:
extended problem solving (high-priced, risky, infrequent or highly expressive purchases)
limited problem solving (impulse buying & habitual purchases/decision making)
Step 1: Need Recognition
Need both functional and psychological needs
Want to go from needy state to desired state
Create need through reminder advertising, awareness about new products and its capabilities, showing how product could enhance consumers’ image, placing of product
Psychological factors: attitude
Your evaluation or feeling towards an object or idea
Psychological factors: Perception
process by which we select, organize and interpret information to form meaningful picture of the world
Psychological factors: learning
change in person’s thought process or behaviour that arises from experience and takes place throughout the consumer decision process
Psychological factors: lifestyle
way consumers spend their time and money to live
