Chapter 4: Consumer Behaviour

STUDY
PLAY
What is the consumer decision process?
Need recognition, information search, alternative evaluation, purchase decision, postpurchase
What is step one of the CDP?
Need recognition: The beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their needy state to a different, desired state
Functional needs
Pertain to the performance of a product or service
Psychological needs
Pertain to the personal gratification with a product or service
What is key to successful marketing?
A key to successful marketing is determining the correct balance of functional and psychological needs that best appeals to the firm's target markets
What is step two of the CDP?
Information search: After a consumer recognizes a need is to search for info about the various options that exist to satisfy that need. length and intensity of the search are based on several factors, including the degree of perceived risk associated with purchasing the product or service and the importance of the product to the customer
What is the Internal search for information?
Occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences
What is the external search for information?
Occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision
What are some factors affecting consumers' search process?
Perceived benefits bersus perceived costs of search, locus of control, actual or perceived risk(performance risk, financial risk, social risk, physiological risk, psychological risks)
Internal locus of control?
Refer to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities
External locus of control?
Refers to when consumers believe that fate or other external factors control all outcomes
Performance risk
Involves the perceived danger inherent in a poorly performing product or service
Financial risk
Risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service
Social Risk
Involves the fears that consumers suffer when they worry other might not regard their purchases positively
Physiological risk
Risk associated with the fear of an actual harm should the product not perform properly
Psychological risk
Associated with the way people will feel if the product or service does not convey the right image
What is step 3 of the CDP?
Once consumers have recognized a problem and explored the possible options, they must sift through the choices available and evaluate the alternatives. Alternative evaluation often occurs while consumers are engaged in the process of information search. When consumers begin to evaluate different alternatives, they often base their evaluations on a set of important attributes or evaluative criteria
Evaluate criteria?
Consist of a set of salient, or important, attributes about a particular product that are used to compare alternative products
Determinant Attributes
Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ
Consumer Decision rules
The set of criteria consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives
Compensatory Decision rule
Is at work when the consumer is evaluating alternatives and trades off one characteristics against another , such that good characteristics compensate for bad ones
Noncompensatory decision rule
Is at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes
Decision Heuristics
Mental shortcuts that help consumers narrow down choices; example include price, brand, and product presentation
Step four of the CDP?
After evaluating the alternatives, customers are ready to buy
Ritual Consumption
Refers to a pattern of behaviours tied to life events that affect what and how people consume
What is step five of the CDP?
FInal step of the consumer decision process is postpurchase behaviour. Marketers are interested in postpurchase behaviour because it entails actual, rather than potential, customers
What are the 3 possible postpurchase outcomes
Postpurchase outcome can lead to customer satisfaction, postpurchase dissonance, customer loyalty
Postpurchase dissonance
An internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour; buyers remorse
what are factors influencing consumer buying decisions?
Psychological factors, Social Factors, Situational factors
Factors affecting consumer decision process
Motive
A need or want that is strong enough to cause the person to seek satisfaction
Maslows Hierarchy of needs
Attitude
A person's enduring evaluations of his or her feelings about and behavioural tendencies toward an object or idea; consists of 3 components: cognitive, affective and behavioural
Cognitive component
A component of attitude that reflects what a person believes to be true
Affective component
A component of attitude that reflects what a person feels about the issue at hand- his or her like or dislike of something
Behavioural component
A component of attitude that comprises the actions a person takes with regard to the issue at hand
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world
Learning
Refers to a change in a person's thought process or behaviour that arises from experience and takes place throughout the consumer decision process
Lifestyle
Refers to the way consumers spend their time and money
What does social factors entail?
consumer decision process is influenced by the external, social environment, which consists of the customers family, reference group and culture
What is a reference group?
One or more persons an individual uses as a basis for comparison regarding beliefs, feelings and behaviours. Reference groups affect buying decisions by offering information, providing rewards for specific purchasing behaviours and enhancing a consumer's self image
Situational Factors
Factors affecting the consumer decision process; those that are specific to the purchase and shopping situation and temporal state that may override, or at least influence, psychological and social issues
Purchase Situation
Customers may be predisposed to purchase certain products or services because of some underlying psychological trait or social factor, but these factors may change in certain purchase situations
Shopping Situations
Consumers might be ready to purchase a product or service but for a variety of reasons be completely derailed once they arrive in the store. Marketers use several techniques to influence consumers at this choice stage of the decision process including: store atmosphere, salespeople, crowding, in-store demonstrations, promotions, packaging
Temporal State
Our state of mind at any particular time can alter our preconceived notions of what we are going to purchase
Involvement and consumer buying decisions
Consumers engage in two types of buying process/decisions depending on their level of involvement
Involvement
The consumer's degree of interest or concern in the product or service
Extended Problem Solving
A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a great deal of risk
Limited Problem Solving
Occurs during a purchase decisions that calls for, at most, a moderate amount of effort and time
Impulse Buying
A buying decision made by customers on the spot when they see the merchandise
Habitual Decision Making
A purchase decision process in which consumers engage with little conscious effort

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