Chapter Six - Consumer & Business Markets
The Consumer Decision-Making
Consumer behaviour is the process individuals or groups go through to select, purchase, use and dispose of products in order to satisfy their wants and needs Decision-making behaviours are influenced by a variety of factors o Internal: perception, motivation, learning, attitude, ... - Situational: physical environment, time - Social factors: culture, social class, group memberships
Process
Problem recognition : Information search Evaluation of alternatives Product choice : Post purchase evaluation
Not All Decisions are the Same
: Amount of effort expended in decision-making varies according to the Level of involvement Perceived risk Consumers use different approaches depending on the amount of effort o Habitual problem-solving -> low involvement & low risk - Extended problem-solving -> high involvement & high risk - Limited problem-solving : Understanding the type of decision making is important, as it suggest differing tactics that marketers should use to appeal to consumers
Problem Recognition
Occurs whenever a consumer sees a difference between current state and desired/ideal state : Marketers can develop ads that stimulates problem recognition : Internal cues - consumers recognise state of discomfort
Information Search
Consumers need adequate information to make good decisions Consumers search memory and environment for information o If information is inadequate, consumers seek out additional sources o May use search engines, portals, and shopbots
: EVOKED SET - Consumer checks memory and identifies brands/products to consider : Evoked set: brands or products that are recalled immediately from memory : May survey environment to identify what options are available CONSIDERATION SET - The brands/products actively considered as potential purchase options : Amount of search is related to involvement & perceived risk in choice Brands examined, sellers considered, product attributes evaluated, time spent searching, number of external information sources used
Evaluation of Alternative
: Identify consideration set Narrow list and compare pros and cons Use evaluative criteria to decide among remaining choices
Product Choice
Consumers often rely on mental shortcuts, or heuristics, in making decisions Heuristics are rules of thumb used by individuals to arrive at good decision with less mental effort: . Prie equals quality . Brand loyalty - Country of origin
Post Purchase Evaluation
Consumer satisfaction/dissatisfaction following purchase of product is critical - Level of satisfaction is influenced by whether or not expectations of quality are met or exceeded - Marketing communications must create accurate expectations for the product - Cognitive dissonance
Consumer Decisions
: Decision-making effort varies based on levels of perceived importance and risk Marketing can trigger problem recognition and facilitate consumer progression through decision process
How Can Marketing Impact Perception?
: Process by which people select, organise, and interpret information : Exposure: stimulus must be within sensory receptors to be noticed - Perceptual Selection: consumers will pay attention to some stimuli and not to others - Interpretation: consumers assign meaning to stimuli
How Can Marking Impact Motivation?
Motivation is an internal state that drives us to satisfy needs Once we activate a need, a state of tension