Customer insight Flashcards
How do consumers make decisions?
expectancy-value model
weighted average model
economist’s view
economist’s view definition
consumers seek information until the marginal value gained thanks to the new knowledge is equal to, or less than, the cost of securing that knowledge
problems with the economist’s view
consumers lack cognitive, time and other resources to aquire perfect information
in fact, even when presented with the economist’s view of perfect information, they are unable to comprehend it
what are consumers influenced by?
time pressure
previous experience
situation
advice from friends and so on
what are the two key factors that are useful in explaining how consumers decide?
involvement in the product purchase
perception of any differences between competing products
significant perceived product differences // high consumer involvement
extended problem solving
minor perceived product differences // high consumer involvement
tendency to post-purchase dissonance
significant perceived product differences// low consumer involvement
tendency to limited problem solving
minor perceived product differences// low consumer problem solving
limited problem solving
flow of extended problem solving
problem recognition
information search
evaluation of alternatives
purchase
post purchase evaluation
feedback
back to the start
complex decision mating
present relatively detailed information explaining the benefits of the product
identify those attributes that consumers perceive to be important and focus on communicating them as powerfully as possible
as the consumer is likely to actively seek information from several different sources, the marketer should use a consistent multimedia promotional approach
flow chart for tendency to post-purchase dissonance
problem recognition
purchase decision
alternatives are evaluated
Beliefs formed by active learning from advertisements
solutions to post purchase dissonance
- provide reassurance after the purchase
- sales staff should be trained to be reassurers rather than pushers
- close to the point of purchase, as consumers are unsure about which brand to select, promotional material is particularly important in increasing the likelihood of a particular brand being selected
flow chart for problem solving
Problem recognition
Beliefs formed from passive learning recalled from memory
Alternative are evaluated
Purchases may or may no be evaluated afterwards
affecting limited problem solving purchase decision
consumers pay minimal attention to advertisements for these products, the message should be simple an the advertisements frequent
a low number of benefits should be presented
encourage trial by using sales promotion
ensure widespread availability
locate the brands at eye level or very close to the check out counter
categories of consumer decision making
- cognitive
-habitual - affective
cognitive consumers
deliberate and rational
habitual decision maker
unconscious and automatic
affective decision makers
emotional and instantaneous
what is an attitude?
a general evaluation of people, objects, information
anything towards which one has an attitude is called an attitude object
3 facets of an attitudes
affect - how a consumer feels about an attitude object
behaviour - the consumers intention to do something with regard to an attitude object
cognition - the beliefs a consumer has about an attitude object
how are attitudes formed?
classical conditioning
instrumental conditioning
complex cognitive process
principle of cognitive consistency
consumers value harmony among their thoughts, feelings and behaviours and they are motivated to maintain uniformity among these elements
theory of cognitive dissonance
when a person is confronted with inconsistencies among attitudes or behaviours, he or she will take some action to resolve this dissonance perhaps by changing an attitude or modifying behaviour
