The Consumer Decision Making, Segmentation and Target Market selection.
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Transcript of The Consumer Decision Making, Segmentation and Target Market selection.
The Consumer
Decision Making, Segmentation and Target Market selection
Why Consumer Behavior?
Consumer behavior
consumers make purchase decisions
consumers use anddispose of product
= HOW
Purchase Example
• You have decided you need to buy the following:– New laptop– Tablet– A taco– New pair of jeans– Bottle of shampoo– Gnocchi
Consumer Decision Process
A Simple “Value” Example
Social Media Application
Need Recognition
• Difference between current state and desired state– Physical/Functional– Psychological– Product Issues (running out, try new, need new)
• Stimuli– External Marketing Saw a Wendy’s ad– Internal YOU Stomach growling
Information Search
• Internal– What you know– Previous experience– Information you’ve been made
aware of previously
• External– Research collect information
• Other People Friends, Family, etc.• Marketing Advertising, company
websites, etc.• Non Marketing Reviews, specialty
sites, etc.
• Involvement– High– Low
• Risk– Performance– Social– Financial
Information Search: Involvement
High-involvement purchases require:
Extensive and informative promotion to target market
Low-involvement purchases require:
In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers
Evaluation of Alternatives
Evaluation of Alternatives
• Attributes• Cutoff Criteria• Ranking
• What attributes must it have?• Which are more important?• Which can you live without?
Evaluation of Alternatives
• Mentally Taxing Use of Heuristics (shortcuts)– Price– Brand– Packaging/Presentation
Purchase and Consumption
• Whether to buy• When to buy• What to buy (product type and brand)• Where to buy (type of retailer, specific retailer,
online or in store)• How to pay
Post Purchase
• Did product deliver promise?• Was it worth the price?• Cognitive Dissonance/Buyers remorse
Influences on CDM
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKINGPROCESS
BUY / DON’T BUY
Social Factors
Social Factors
• Opinion Leaders
• Family Members
Psychological Factors
• Motives• Attitudes• Perceptions• Learning
Motives
Perception
• Select• Organize• Interpret
Selective Exposure
SelectiveDistortion
Selective Retention
Consumer notices certain stimuli and ignores others
Consumer changes or distorts information that conflicts
with feelings or beliefsConsumer remembers only
that information that supports personal beliefs
Why should we care about these?
• Important attributes• Price• Brand names • Quality and reliability• Threshold level of perception• Product or repositioning changes• Foreign consumer perception• Subliminal perception
Attitudes
• Affect• Cognitive• Conative
EmotionsThoughtsBehavior/Action
Individual Factors
• Age• Lifestyle/Personality• Lifecycle– Single– Married– Married w/kids– Empty nesters– Retired
Age of kids• Babies• Toddlers• Teenagers• College
Additionally….
• Purchase Situation– What occasion am I buying for?– Who am I buying for?
• Shopping Situation– Store atmosphere– Salespeople– Crowding– In-Store Demos– Promotions– Packaging
• Temporal State– mood
SWOT & Industry Analysis
• SWOT in Table form– Short concise statements
• Discussion section– Implications of above statements
• Industry Analysis– Sales– Market share– Trends