need recognition, search, pre purchase evaluation, purchase
TRANSCRIPT
Need Recognition, Search, Prepurchase
Alternative Evaluation, Purchase
Need Recognition
Depends on how much discrepancy exists between the
actual state and the desired state
Need Recognition Process
Degree ofDiscrepancy
DesiredState
ActualState
BelowThreshold
At or aboveThreshold
No Need Recognition
Need Recognition
Need must first be activated before it can
be recognised
Such factors operate by altering the person’s actual / desired
states
Need activation factors Time Changed circumstances Product acquisition Product consumption Individual differences Marketing Influences
Search
Motivated activation of knowledge stored in memory or acquisition of information from
the environment
Search can be Internal – memory, knowledge, habit,
purchase, degree of satisfaction External – when internal search is
inadequate. External search could be pre-purchase search or on-going search
Dimensions of Search Degree Direction sequence
Degree of Search How many brands? How many stores? How many attributes? No. of information sources? How much time?
Direction of Search Which brands? Which stores? Which attributes? Which information sources?
Sequence of Search In what order of brands considered? In what order of stores visited? In what order of attributes considered? In what order of information sources
processed?
Determinants of Search Situational Product Retail Consumer
Consumers engage in more search as their
attitude towards shopping become more favourable
“Age and income is often negatively related to search”
Prepurchase Alternative Evaluation
The process by which a choice alternative gets evaluated and
selected
Evaluative criteria Price Brand name Country of origin Situational influence Similarity of choice alternatives Motivation Knowledge Involvement
Decision Rules Non-compensatory methods Compensatory methods
Non-compensatory Decision Rules Lexicographic Elimination by aspects Conjunctive
Compensatory Decision Rules Simple additive Weighted additive
Some learnings Consumers typically have some
determinant attributes that are salient to actually influence the evaluation process
Consumers use some cut-offs on attribute values. A brand that fails to meet a cut-off may be rejected regardless of how well it performs on the other attributes
Consumers make trade-offs between quality of their choice and the amount of time and effort necessary to reach a decision
Purchase Not all purchase intentions are fulfilledReasons could be Changed motivations Changed circumstances New information Desired alternatives are no longer
available
Choice of Alternative Fully planned purchase – both product
and brand are chosen in advance, Extended problem solving and high involvement (61%)
Partially planned purchase – intention to buy product but brand chosen at the time of purchase
Unplanned purchase – both product and brand are chosen at point of sale.(50%)
Options for the source of purchase At home – travelling salesmen, internet,
phone ordering, mail-order, catalogues Retail
Shopping motivations Information acquisition Alleviating loneliness Dispelling boredom Escape Fantasy fulfillment Relieving depression
Shoppers are a dwindling species Reasons Less leisure time Buying less Shopping has ceased to be a pleasure Spending less time at shops Prefer to buy from home
Enhancing Relationship Marketing Consumer value addition – quality,
consistency, EDLP
Personal selling- perceived knowledge and expertise, perceived trustworthiness, customer knowledge, adaptability
Sales Promotion – to avoid the rigour of EPS
Databased marketing – ongoing personalized contact, loyalty programmes, direct mailers