consumer decision process.ppt
TRANSCRIPT
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Consumer buying decision process
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Consumer Buying Decision Process
Who Makes the Buying Decision
Types of Buying Decisions
Stages in the Buying Process
Marketers Must Identify and Understand:
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Consumer Buying Decision Process
Understand
Buying roles Buying behavior
Buying decision process
Initiator
Influencer
Decider
Buyer User
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Consumer Buying Decision Process
Understand
Buying roles Buying behavior
Buying decision
process
Complex buying behavior
Dissonance-reducingbuying behavior
Habitual buying behavior
Variety-seeking buyingbehavior
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Consumer Buying Decision Process
Understand
Buying roles Buying behavior
Buying decision
process
Five stages in the
consumer buying
process The amount of time
spent in each stage
varies according to
several factors
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Consumer Buying Decision Process
Figu re 6-2:
Five-Stage Model of the Consumer Buy ing Process
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Consumer Buying Decision Process
Figu re 6-3:
Successive Sets Involved in Consumer Decision Making
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Need Recognition
Preferred State
Marketing helps
consumers recognize
(or create) an imbalance
between present statusand preferred state
When a current product isnt
performing properly
When the consumer is runningout of an product
When another product seems
superior to the one currently used
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The information search stage
Search refers to mental as well as physical information
seeking and processing activities that one engages in to
facilitate decision making regarding some goal object in
the market place
search
Purpose of
search
Source of
search
Pre
purchase
search
Ongoing
search internal external
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Pre purchase search
Takes place when the consumer has
recognized the problem.
Ongoing search
Search activities which are independent of
specific needs and problems.
Problem has not been recognized.
Searching with interest, no demand ofproduct.
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The information search
stage
An internal search
Occurs when consumer recognizes
problem
involves the scanning of one's memory to
recall previous experiences or knowledge
concerning solutions to the problem--
often sufficient for frequently purchased
products.
An external search may be necessarywhen past experience or knowledge is
insufficient, the risk of making a wrongpurchase decision is high, and/or the cost of
gathering information is low.
Personal sources
(friends and family)
Public sources (rating
services like Consumer
Reports)
Marketer-dominated
sources (advertisingor sales people)
The evoked set: a group ofbrands evaluated positive for
purchase and consumption
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Factors influencing the external
search
a. Market conditions
Availability of information
alternatives to consider
Location of outlets
External search is greater when
Prices are higher and the price differences
between brands are greater Perception that there exists substantial
differences among product alternatives
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Individual factors-
Greater market experience with a product isassociated with lower degree of external search.
Socio economic characteristics e.g. high
educational level
Level of stimulation from environment Situational factors-
Search may be reduced if
There is urgency
Time available is less
Special opportunities, special prices
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Perceived risk-
Uncertainty regarding the most appropriate
purchase decision influences the information
gathered
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Information evaluation process
The alternatives found out in the previous
process are compared to find out the best
solution
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Information evaluation process
Evaluative or choice criteria There may be a number of
choice criteria
These are the standards andspecifications the consumeruses in evaluating theproducts and brands.
No. and type of criteria mayvary by product e.g.evaluation of grocery items &
of property or durables.
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Subsets of brands for evaluation of
alternatives
a. Evoked set- Those brands (few select
brands) evaluated positively forpurchase and consumption
b. Inert set Consists of those brands thatthe consumers have failed toperceive of any advantage ofbuying ( neitherve nor +ve)
c. Inept set- Brands that have been
rejected from purchaseconsideration because ofunpleasant experience
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Evaluating the alternatives
2 broad approaches-
Choice by processing
brands
Choice for processing
attributes
Buyer assesses one
brand and Examineseveral attributes and
Compares them with
other brands
Consumer examines
specific Attribute andcompares several
other brands on that
attribute
Brand processing Attribute processing
Evaluation of
alternatives
Consumers use compensatory/ non compensatory rules for this decision
making
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NON COMPENSATORY DECISION RULES
Good performance on one evaluativecriteria doesnt offset/ compensate the forthe poor performance of another
evaluative criteria of a brand.1.Disjunctive Rule
Consumer establishes the minimum acceptableperformance standards which each brandmust meet
Any brand will be acceptable if it exceeds theminimum standard/ criterion.
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2. Conjunctive rule
Requires the customers to establish
minimum levels of acceptability on
different attributes of each brand
Then for each criteria a cut off point will be
set below which the brand will not be
considered.
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3. Lexicographic Rule
Allows additional evaluative criteria to be
incorporated in addition if necessary
This happens when choice cant be made
by evaluating the important criterion
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COMPENSATORY DECISION
RULE
Allows perceived favorable brand
attributes or evaluative criterion to offset
unfavorable evaluations
Brand strengths can compensate for brand
weakness.
Finally , after evaluation the decision has to be made regarding buying or nonbuying of the product or brand
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Post-purchase Behavior:
Consumers expectations are compared to
performance
Post-purchase satisfaction influences future
behavior
Purchasing behavior
Word-of-mouth communications
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Consumer Buying Decision Process
Marketers should attempt to influence andmonitor post-purchase behavior
Post-purchase communications reduce dissonance,
returns, and order cancellations
Talk with customers to discover new uses forexisting products
Investigate methods of product disposal
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Consumer Buying Decision Process
Figu re 6-4:How Consumers Use or Dispose
of Products
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Discussion Scenario
Think about the Internet . . .
How can marketers capitalize on the Internet to
influence or monitor post-purchase behavior?Identify and discuss the different means bywhich the Internet has impacted how consumersuse or dispose of products.