Consumer decision making: basic summary
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The document discusses consumer decision making, which involves three stages: 1) The input stage, where consumers are influenced by marketing (the 4 Ps) and sociological factors in recognizing a product need. 2) The process stage, where consumers go through need recognition, information search, and alternative evaluation before making a purchase decision. 3) The output stage, where consumers make a purchase and then evaluate the product experience against their expectations.
Consumer decision making: basic summary
- 2. CONSUMERDECISIONMAKING • Covers critical thinking skills related to consumers' goals, needs, wants, and the effects of attitudes, advertising, information and opportunity costs on consumer behavior. • processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. - way a customer identifies their needs, collects information, evaluates alternatives then makes the purchase decision.
- 3. The three stages: 1.Input stage- influences the consumers recognition of a product need and consists of two major sources of information: (i) The firms marketing efforts (4p’s) (ii)External sociological influences 2.Process- focuses on how consumers make decisions. 3.Output- consumer satisfaction.
- 5. Perceived beliefs, Norms, Values of significant others. Other customer Decision-makers Information Intrinsic attributes Extrinsic attributes Price availability Advocate impersonal sources Independent impersonal sources Advocate personal sources Independent personal sources Information storage Attitudes towards sources Filtration Personality Direct experience Beliefs Wants Want strength Feelings Disposition Search Select No action Attitudes towards product, substitutes, complement Income, budget piorities, physical capacity, household capacity Ownership Other purchase decisions Hold Key Direct Flows Feedbacks Yes No Constraints
- 6. Input stage: The 4 Ps: (i) Product (ii)Price (iii)Place (iv)Promotion External sociological influences - Behavioral influence perspective - Experiental influence - High/low level involvment
- 7. Process stage: Need recognition- where the consumer recognizes that what essentially is the problem or need and hence accordingly a consumer can identify the product or kind of product which would be required by the consumer. - Realization by the consumer that there is a difference between “what is” & “what should be”.
- 8. Pre-purchase search for information- consumer perceives a need & actively seeks out all information concerning products which could help satisfy that need. Evaluation of alternatives- consumers evaluate all of their products or brand options on a scale of attributes which have the ability to deliver the benefit that they are seeking to spend available resources.
- 9. Ads often appeal to consumers who are looking for information to help them evaluate the products.
- 10. 3. Output stage: Purchase behaviour (i) Trial purchase (ii)Repeat purchase (iii)Long term commitment Post purchase evaluation -actual performance; matches, exceeds or is below expectations.
- 11. Lives, like money, are spent. What are you buying with yours? Roy H. Williams