Lesson 2 Videos Flashcards
The Consumer Decision Process
How do consumers make purchase decisions?
What are the different types of decision making?
Consumer Decision Process Model
Need Recognition»_space; Search for Information
»_space; Pre-purchase Evaluation of Alternatives
»_space; Purchase»_space; Consumption»_space; Post-consumption Evaluation»_space; Divestment
Need Recognition
An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs
Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems
Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively
Needs
an internal state of tension caused by disequilibrium between existing state and an ideal or desired state.
Need Recognition is affected/influenced by…
Memory
Environmental Influences
- Culture
- Social Class
- Personal Influence
- Family
- Situation
Individual Differences - Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle
Search for Information
Internal search
External search
Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior
Search refers to a receptivity of information that solves problems or needs rather than a search for specific products
Internal search
retrieving knowledge from memory or genetic tendencies
External search
collecting information from peers, family, and the marketplace
Marketer Dominated Stimuli
- Advertising
- Salespeople
- Infomercials
- Websites
- Point-of-sales materials
Non-Marketer Dominated Stimuli
- Friends
- Family
- Opinion leaders
- Media
Information Processing
As a consumer is exposed to information from external search, they begin to process the stimuli.
Hedonic needs/Hedonic benefits
needs satisfied by products that offer hedonic benefits.
what are these needs? needs that give you pleasure
Search: Information Processing
Exposure
Attention
Comprehension
Acceptance
Retention
Pre-purchase Evaluation of Alternatives
The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer
Can use new or preexisting evaluations stored in memory
CB stuff
55% intentionally carry their smartphone
while shopping so they can comparison shop.
40% said they had changed their mind
about purchasing in-store based on
information found online while shopping.
Pre-purchase Evaluation of Alternatives
Evaluative criteria:
standards and specifications used to compare different products and brands
Alternatives can be considered on attributes that are salient or determinant
salient
attributes such as price and reliability are important to the consumer (may be very little difference)
determinant
attributes such as a car’s style and finish usually determine which brand or store consumers choose
Purchase
Acquisition of the product that involves choosing a specific retailer, and in-store choices
Purchase intention can change during the purchase stage—it can be influenced by factors such as:
in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources
Consumption
The process of using the product or service purchased
Consumption can either occur immediately or be delayed
How consumers use a product affects satisfaction with product
How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed
Post-Consumption Evaluation
Consumption is an important determinant of satisfaction
Satisfaction: when consumers’ expectations are matched by perceived performance
Dissatisfaction: when experiences and performance fall short of expectations
Cognitive dissonance: questioning the purchase decision (post-purchase regret)
Usually, the higher the price, the higher the level of cognitive dissonance
Emotion strongly affects the evaluation of a product or transaction
Divestment
How consumers dispose of the packaging or product after use
Options include:
Disposal
Remarketing or reselling Recycling
lateral cycling
hand me downs
Variables That Shape the Decision Process
Individual Differences
Environmental Influences
Psychological Influences
Individual Differences
- Demographics, psychographics, values, and personality
- Consumer resources
- Motivation
- Knowledge
- Attitudes
Environmental Influences
- Culture (one of the most important!)
- Social Class (combo of income, old/new money, where you live, etc.)
- Family (also works as a type of reference group)
–peer groups, membership groups, etc. are also types of
reference groups - Personal Influence
- Situation behaviors
Psychological Influences
- Information processing
- Learning
- Attitude and behavior change
Consumer Decision Process Continuum
Extended Problem Solving (High Degree of Complexity)
Limited Problem Solving (Moderate Degree of Complexity)
Routine Problem Solving (Low Degree of Complexity)
Types of Decision Processes
Extended Problem Solving (EPS) Limited Problem Solving (LPS) Routine Problem Solving Habitual Decision Making Impulse Buying Variety Seeking
Extended Problem Solving (EPS)
Problem solving of a higher degree of complexity that influences consumers actions.
Often occurs with expensive items or can be fueled by doubts and fears.
High importance in making the “right choice”.
All seven consumer decision making stages are often activated.
Dissatisfaction is often vocal and more critical.
Limited Problem Solving (LPS) / Routine Problem Soving (RPS)
Problem solving of a lower degree of complexity that influences consumers’ actions.
Consumers don’t have motivation, time, or resources to engage in EPS
Little search and evaluation before purchase
Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance.
Routine Problem Solving
Decisions are made with a minimal amount of time and only moderate deliberation.
Impulse Buying
Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion
Least complex form of LPS but differs in some important ways
Variety Seeking
Consumers may be satisfied with the present brand but still engage in brand switching
Can be triggered because bored with current brand or because of special offer
Brand Inertia
“If you buy my brand and keep buying my brand.”
Kind of like habitual decision making, but it becomes brand inertia when the habit surrounds a specific brand.
Brand Loyalty vs Brand Inertia
Brand Loyalty - if colgate is not available, i will go to the next store to buy colgate
Brand Inertia - buying colgate b/c I just buy colgate
Cigarette smokers are very Brand…
…Loyal. They will drive miles for a specific brand.
