Chapter 4: Consumer Decision Making Flashcards
What is the process of decision making?
- Need Recognition
- Information Search (external/internal)
- Evaluate info & set purchase guidelines
- purchase decision
process of decision making: need recognition
Occurs when consumers are faced with an imbalance between actual and desired stats that arouses and activates the consumer decision-making process
process of decision making : information search
○ Consumers search for information about the various alternatives available to satisfy it
§ Internal information search - the person recalls information stored in his or her memory
§ External information search- seeks information in the outside environment . There are two kinds
1. Non-marketing controlled information source- not associated with marketers promoting product( personal experience, personal sources, public sources)
2.Marketing-controlled information source - is biased toward a specific product because it originates with marketers promoting that product
process of decision making: evaluate info & set purchase guildlines
○ Made list of alternatives, ready to make a decision– consumer will use the information stored in memory and obtained for outside sources to develop a set of criteria.
§ Pick a attribute- evoke all alternatives that do no have that attribute
§ Set cutoffs - minimum or maximum levels of an attribute that an alternative must pass to be considered.
§ Categorization - basing you decision on a certain category (could be general- motorized vehicle, or specific like FORD)
-Brand extensions - useful if there is brand loyalty- could choose product based on the ties to another brand that the consumer likes (neslte chocolate bars)
process of decision making: purchase decision
○ Consumer has to decide :
§ Whether to buy
§ When to buy
§ What to buy (Product or brand)
§ Where to buy (retailer, online)
-How to payWhat can happen post purchase?
• Cognitive Dissonance
Inner tension that a consumer experiences after recognizing an inconsistency between behaviour and values or opinions
Consumers and reduce dissonance by
§ Seeking information that reinforces positive idea about the purchase
§ Avoiding information that contradicts the purchase decision
Revoking the original decision by returning product
Marketers can minimize cognitive dissonance through
§ Effective communication
§ Guarantees
§ Follow-up
§ Warranties
-Service during and after the saleWhat are the types of buying decisions?
Routine, Limited & Extensive
What are the types of buying decisions? Routine Response Behaviour
§ Little involvement in selection process
§ Frequently puchased low cost goods
§ May stick with one brand (brand loyalty)
§ Buy/first evaluate later -Quick decision
-Cognitive dissonance not likely because it is low cost and you can go get another.
What are the types of buying decisions? Limited Decision Making
§ Low levels of involvement
§ Low to moderate cost goods
§ Evaluation of a few alternative brands
§ Short to moderate time to decide
What are the types of buying decisions? Extensive Decision Making
§ High levels of involvement
§ High cost goods
§ Evaluation of many brands
§ Long time to decide
-May experience cognitive dissonanceInfluences on behaviour and decision making
- Cultural
- Social
- Individual
- Psychological
Influences on behaviour and decision making:. Cultural
Culture– the essential character of society that distinguishes it from other groups. Underlying elements are the values, language, myths, customs, rituals, and laws that shape the behaviour of people.
(culture, values, subcultures, social class)
Influences on behaviour and decision making:2. Social
(reference groups, opinion leaders, family - roles)
Influences on behaviour and decision making:3. Individual
○ Influence by personal characteristics that are unique to each individual
(gender, age, personality, self-concept, lifestyle)
Influences on behaviour and decision making4. Psychological
(perception, motivation, learning, values, beliefs, attitudes)
Values
most defining element of culture–> enduring beliefs share by society that a specific mode of conduct is personally and societally preferable to another mode of conduct. Values affect how we are affected by marketing, how we consume, and what we consume.
Subcultures
homogenous group o people who share elements of the overall culture, as well as cultural elements that are unique to their own group ( geophraphicsal regions, national and ethnic background, political or religious beliefs.)
Social class-
is a group of people who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally and who share behavioural norms (occupation, income, education, wealth)
Reference groups
formal or informal groups that influence the buying behaviour of an individual.
§ Direct reference group --> face to face that touch individuals life directly □ Primary membership groups--> direct reference group- include all groups with which people interact regularly in an informal, face to face manner (family and friend) □ Secondary membership groups- less consistently and more formally ( clubs, professional groups, religious groups ) § Indirect reference group--> nonmembership groups to which they do not belong □ Aspirational reference groups-- those that a person would like to join. To join the group the individual must conform with the norms of the group. Nonaspiration reference groups-- influence our behaviour when we try to maintain a distance from them .
Opinion leaders-
§ Those who influence others . First to try new product – teenagers, celebrities, sports figures
-Usually casual face to face phenomenon and usually inconspicuous
Family-roles
§ Most important social institution for many consumers
□ Influences values attitude , self-concept and buying behaviour
□ Socialization process–> the passing down of cultural values an norms to children.
§ Family roles
□ Initiators
□ Influencers
□ Decision makers
□ Purchases
-consumers
Gender
□ Men and women have different needs, decision making processes, and hsip differently
