Chapter 4: Consumers Flashcards
Model of consumer behaviour
Marketing stimuli(4 Ps) > consumer’s mind > Buyer’s response
Consumer decision making processes
Need recognition –> Information Search –> Evaluation of alternatives –> Product choice –> Post-purchase/consumption
Consumer analysis
- Aggregate (Macro) analysis
- Individual (Micro) Analysis
Aggregate (Macro) analysis
- Demographic trends: Rate of population growth, age distribution, roles of gender at workplace, income distribution, geographic centers of population
- Consumer buying trends:
Focus: Self, family, world
Consumption values: Price, value, quality
Scarce resources: Money, time, people
Individual (Micro) consumer analysis
- Personal characteristics: Age, income, gender, self- concept, personality
Rational consumers
- Clearly knows their problem
- Knows all alternatives
- Knows all criteria, compares criteria to alternatives and makes the best choice
- ie, we’re utility maximizing consumers
Three broad types of decision modes
- Utilitarian
- Mundane
- Self-expressive
Utilitarian decision modes
Driven by functionality, price, and performance
Know > Feel > Do
Mundane decision modes
Habitual purchases driven by availability
Do > know > feel
Self-expressive decision modes
Emotional and driven by relevance to self. We buy the product cause it represents who we are and we’re emotionally connected to it
Feel > Do > know
The REAL consumer
- Emotional, but also rational
- In truth, we’re lazy, we take shortcuts, and we forget
- ie, we’re boundedly rational (Rational within certain bounds)
2 Customer value motives
- Manifest motives
- Latent motives
Manifest motives
Obvious values of the product
Latent motives
Underlying values of the product like status
Understanding customer needs
Understanding consumer needs
Motivation:
- Physiological, safety, social, esteem, and self-actualization (Maslow Hierarchy of Needs)
Value Laddering
Information acquisition
- Bottom-Up
- Top-Down
- Perception
Bottom-Up
- New information, trying to make sense (Learning a new language
Top-Down
- Guided by existing knowledge in memory. (For example, failing to notice a typographical error such as the one you just passed.
Perception
Select, organize, and interpret information
Pertinence
- Situational factors: Occasion, time, pressure
- Individual differences: Level of involvement
- Product factors: Cost/investment
Evaluation of alternatives
Evaluation of alternatives
- Idea that consumers value brands based on the delivery and importance of benefits
- Value to the customers is the importance of benefit multiplied by delivery of benefits. If product has multiple benefits, use the sum of all of them
Customer aggregation process
- Linear Model
- Lexicographic
- Conjunctive
- Elimination by aspects
Linear model
Decision based on all attributes given equal weight
Lexicographic
Decision based on most important attribute, then the next if tied
