Consumer Behavior Flashcards
What marketers should have when it comes to consumers
-must have a through understanding of how consumer think, feel and act
- the feeling of understanding is the most important
What is the key to designing a true value proposition ?
understanding consumer needs and problems
- the need is the most important
What kind of questions should marketers asks ?
in term of who, what, when, where, how and why
What is a need ?
- feeling of missing something that comes from the perception of a gap between what we have and what we wish to have
Marketing scholars have developped what ?
a stage model of the decision process, 5 stages
What are the 5 stages of the model of the decision process ?
1- Problem recognition (identify what is the problem)
2- Information system (where can i find the info abt the products, how i get the information ? People to People or INTERNET ?)
3- Evaluation of alternatives
4- Purchase decision (act according to what i believe, go in the store and buy)
5- Post-purchase behavior
The steps are group into what 3 aspects ?
Cognitive 1-2 : knoledge acquisition
Emotional 3 : emotional more that reason
Conative 4-5 : connected with a wish, intention or effort to do something
Consumer’s buying decision process : CONSUMER CHARACTERISTICS : (slide 6 class 4)
- sociodemographic factors : age, occupation, educational level, geographic location, revenue
- psychology factors : motivation, perception, emotions, memory
Buying decision process (slide 6 class 4)
-problem recognition
-information search
- evaluation of alternatives
- purchase decision
- satisfaction, dissatisfaction
Consumer’s buying decision process : ENVIRONMENTAL INFLUENCE : (slide 6 class 4)
Sociocultural factors : culture, subculture, social class, reference groups, family
Situational or circumstantial factors : reason of purchase, social framework (who do i care abt), environment, time factor, state of mind (ready to buy? financially ready ?)
Categories and relative importance of purchase
- routine purchase as commodit : grocery, electricity, full & gas
- Expenses : rental, rental car
- Major expenses : mortgage, financial investment
Inluence of sociodemographic factors on purchasing ?
age : needs and desires evolved over time
often used when segmenting markets
occupation : determinning income, expenses and discretionary revenues, variables reevealing class and refernence groups
educational level
geographic location : food, climate, clothing
revenue : main factor in mkg strategic decision, purchasing power, selection of products attributes, selection of brand
Maslow’s hierarchy of needs ?
Self-actualization needs
Esteem needs (recognition)
Social needs (sense of belonging, love)
Safety needs (security and protection)
Physiological Needs (food shelter)
Influence of psychological factors on purchasing ?
Perception
Emotions
Memory
Perception ?
a process where we select, organize and interpret info inputs to create a meaningful picture
- physical stimuli and stimuli’s environment surrounding us
- selective attention : allocation of prcessing capacity to some stimulus
- selective distortion : tendency to interpret information (if we cannot change the perception about what we heard is good the
= perception is hard to change and you have to find out if it thrives to change
Emotions ?
Mental state that arise spontaneously rather that from conscious effort.
Human reaction to stimulus
Memory ?
The brain ability to record, store and retrieve information and events.
Memory models: short-term and long-term memory.
Memory processes: memory encoding and memory retrieval.
Situational or circumstantial factors ?
Reason of purchase
social framework
environment
time factor
state of mind
Personal factors
age and stage in the life style
state of mind
mood
What are the factors of influence in the decision ?
- Kind of purchase
- Role and influence of purchasing group
what is Kind of purchase ?
- Operational expenditure (OPEX) (related to ur state of revenues, income, expense and profit you have, people who have more OPEX to take decisions)
- Capital expenditure (CAPEX) (change our process of manufacturing to change the plan need) (change the future, more risk)
Importance in business process.
What is Role and influence of purchasing group?
- Instigator (bring the idea to the grp)
- Influencer (power to make things happen)
- Decision maker (the one who write the checks, CEO or financial guy)
- Experts (know more than anyone. why and how should we do that)
- Buyers (has the rules, get the right price)
- Users (can choose >< 2 tools which is the best one)
