Copy of Consumer Decision Making

8/3/2019 Copy of Consumer Decision Making

1/57

Consumer Decision Making


2/57

The Consumer Decision Proess


3/57

Consumer Decision Process Model

Purchase

Need Recognition

Search for Information

Consumption

Post-consumption Evaluation

Divestment

Pre-purchase Evaluation of Alternatives


4/57

Consumer Decision Process ModelNeed Recognition


5/57

Need RecognitionAn individual senses a differencebetween what he or she perceives tobe the ideal versus the actual stateof affairs


6/57

Need RecognitionConsumers recognize needs andseek to fulfill them, or seek aproduct to solve their problems

Knowing consumers needs helpsfirms develop products andmarketing programs to reach themmore effectively


7/57

Need Recognition

Individual Differences- Consumer Resources- Motivation

- Knowledge- Attitudes- Personality, Values,

and Lifestyle

Environmental Influences- Culture- Social Class- Personal Influence- Family- SituationM

E

MORY

NeedRecognition


8/57

SearchInternalSearch

ME

MORY

IndividualDifferences

Environ-mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli


9/57

Search for InformationInternal search:

retrieving know-ledge frommemory orgenetictendencies

External search:collecting

informa-tion from peers,family, and themarketplace


10/57

Search for InformationSearch may be passive asconsumers become more receptiveto information around them, oractive if they engage in searchbehavior


11/57

Search refers to a

receptivity of information

that solves problems or

needs rather than a search

for specific products


12/57


NeedRecognition

Search

External

Search

Internal

Search

ME

MORY

IndividualDifferences

EnvironmentalInfluences


13/57

Search: Sources of Information

Marketer Dominated

Non-Marketer Dominated Stimuli


14/57

- Advertising

- Salespeople

- Infomercials

- Websites

- Point-of-sales materials

Search: Sources of Information

Marketer Dominated


15/57


16/57

Information ProcessingAs a consumer is exposed to

information from external search,they begin to process the stimuli


17/57

Information Processing

ME

MOR

Y

Attention

Comprehension

Acceptance

Retention

Exposure

Stimuli:- Marketer

Dominated- Nonmarketer

Dominated


18/57

Search: Information ProcessingExposure

Attention

Comprehension

Acceptance

Retention


19/57


20/57

Consumer Decision Process ModelNeed Recognition




21/57

Pre-purchaseEvaluation ofAlternatives


MEMORY IndividualDifferences

Environ-mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli


22/57

Pre-purchase Evaluation ofAlternativesThe process of evaluatingalternatives identified from search,which leads to a product or brand

selection most likely to satisfy theconsumer


23/57

Pre-purchase Evaluation ofAlternativesCan use new or preexistingevaluations stored in memory

Evaluative criteria: standards andspecifications used to comparedifferent products and brands

Alternative can be considered onattributes that are salientordeterminant


24/57

Pre-purchase Evaluation ofAlternativesSalient attributes such as price andreliability are important to theconsumer

Determinant attributes such as acars style and finish usually

determine which brand or store

consumers choose


25/57


Purchase

Need Recognition




26/57




Environ-mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase


27/57

Purchase

Acquisition of the product thatinvolves choosing a specificretailer, and in-store choices


28/57

Purchase

Acquisition of the product that involveschoosing a specific retailer, and in-storechoices

Purchase intention can changeduring the purchase stageit canbe influenced by factors such asin-store promotions, discounts,salespeople, failure to find theproduct, or lack of financialresources


29/57


Purchase

Need Recognition


Consumption



30/57




Environ-mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase

Consumption


31/57

Consumption

The process of using the product or

service purchased

Consumption can either occurimmediately or be delayed


32/57

Consumption

The process of using the product or

service purchased

Consumption can either occurimmediately or be delayed

How consumers use a productaffects satisfaction with product

How carefully consumers use ormaintain a product also determineshow long it will last before anotherpurchase is needed


33/57

An Emotional Appeal inProduct Consumption

C D i i P M d l


34/57


Purchase

Need Recognition


Consumption




35/57




Environ-mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase

Consumption

Post-consumptionEvaluation

ExternalSearch

SatisfactionDissatisfaction


36/57


Consumption is an important

determinant of satisfactionSatisfaction: when consumersexpectations are matched by

perceived performanceDissatisfaction: when experiencesand performance fall short of

expectations


37/57

Post-Consumption Evaluation

Cognitive dissonance: questioning

the purchase decision (post-purchase regret)

Usually, the higher the price, the

higher the level of cognitivedissonance

Emotion strongly affects the

evaluation of a product ortransaction

C D i i P M d l


38/57


Purchase

Need Recognition


Consumption


Divestment



39/57




Environ-mental

Influences

Need Recognition

Attention

Comprehension

Acceptance

Retention

Exposure

CDP Model

Stimuli

Purchase

Consumption

Post-consumptionEvaluation

ExternalSearch

SatisfactionDissatisfaction

Divestment


40/57

Divestment

How consumers dispose of the

packaging or product after use

Options include:Disposal

Remarketing or resellingRecycling


41/57

How Organizations Use the CDPModel


42/57

Variables Shaping the DecisionProcess

Identify relationships and variablesthat affect consumer decisionmaking

Identify topics for additionalresearch

Develop and implement marketingmix strategies


43/57

Variables Shaping the DecisionProcess

Individual Differences:

Demographics, psychographics,values, and personality

Consumer resources

Motivation

KnowledgeAttitudes

T f D i i P


44/57

Types of Decision Processes

Initial Purchase

Extended Problem Solving (EPS):

Often occurs with expensive items orcan be fueled by doubts and fears

Importance in making the right

choice

All seven consumer decision making

stages are often activated

Dissatisfaction is often vocal


45/57

T f D i i P


46/57


Initial Purchase

Limited Problem Solving (LPS):

Consumers dont have motivation,

time, or resources to engage in EPS

Little search and evaluation beforepurchase

Need recognition leads to buying

action; extensive search and evaluationoften avoided as the purchase is not ofgreat importance

T f D i i P


47/57


Initial Purchase

Midrange Problem Solving:

Many decisions occur along the middleof the continuum

Decisions are made with a minimalamount of time and only moderatedeliberation

T f D i i P


48/57


Repeat Purchases

Repeated Problem Solving

Habitual Decision Making

T f D i i P


49/57


Repeat Purchases

Impulse BuyingUnplanned, spur-of-the-moment actiontriggered by product display or point ofsale promotion (least complex form of

LPS)



T f D i i P


50/57


Repeat Purchases

Impulse BuyingUnplanned, spur-of-the-moment actiontriggered by product display or point ofsale promotion

Least complex form of LPS but differs insome important ways



T f D i i P


51/57


Repeat Purchases

Impulse Buying

Variety SeekingConsumers may be satisfied with thepresent brand but still engage in brand

switching

Can be triggered because bored withcurrent brand or because of special offer



F t I fl i P bl


52/57

Factors Influencing ProblemSolving Extent

Factors Infl encing Problem


53/57


Degree of Involvement: Level ofperceived personal importance andinterest evoked by a stimulus in a

specific situation (High-Low)

Factors Influencing Problem


54/57


Degree of Involvement (High-Low)

Personal Factors (self-image, health,beauty, or physical condition)

Product Factors (is there perceived riskin purchasing and using a particularbrand or product?)

Situational Factors (is the productpurchased for personal use or as a gift?)



55/57


Degree of Involvement (High-Low)

Perceptions of differences among

alternatives



56/57


Time AvailabilityHow much time is available to devote tosolving the problem?

How quickly does the decision need tobe made?



57/57


Time AvailabilityHow much time is available to devote tosolving the problem?

How quickly does the decision need tobe made?

Consumers Mood State

How people feel at a particular momentMood can reduce or increase length andcomplexity of decision process

Copy of Consumer Decision Making

Documents

Transcript of Copy of Consumer Decision Making