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Chapter 3 Instructor Shan A. Garib, S2013

The stages that consumers pass when making choices about which products/services to buy

1.Need recognition2.Information search3.Evaluation of alternatives4.Purchase5.Postpurchase behaviour

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The general process used as a guide for studying how consumers make decisions1.Needs recognition – when consumers are faced with an imbalance between actual and desired states

-consumer exposed to internal/external stimuliseg. Hunger or thirst or firend

recommendation

-marketing managers can create wants, an unfulfilled need

-marketing managers objective to create an imbalance through ads and promotion

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Marketing managers: -can create wants, an unfulfilled need

-observe trends in the marketplaceeg. IKEA tables for Gen Y

-objective to get consumers to recognize imbalance through ads and promotion

-surveys reveal this imbalance

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Consumers recognize unfulfilled needs and wants through:

-when current products not performing-or run out of product

eg. toilet paper-see a product that outperforms

eg. Car stereo now have mp3’s

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The general process used as a guide for studying how consumers make decisions

2. Information search – for information about alternatives available to satisfy needs

internal search: recall of info from memory on previous experience

external search: for info from marketing sources

-nonmarketed: not marketers promoting product but from experience

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The general process used as a guide for studying how consumers make decisions

external search: for info from marketing sources

-nonmarketed: not marketers promoting product but from experience or public sources like consumer reports

-marketed: biased towards a specific product because it’s from the makers

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The general process used as a guide for studying how consumers make decisionsFactors affecting external search:

-the greater the risk of failure and the greater the interest the more the consumer searches for information

-prior knowledge of product or service means less searching

-confidence in own’s decision making ability

-prior exprience with product eg west jet

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Info search should yield a buyer’s evoked set of perferred alternatives

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3&4. Evaluation of alternatives & Purchase Decision

-use internal and external info

-narrow down alternatives by:- attributes eg. 4X4 car-cut-offs eg. 23K CAD-rank based on performance

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Goal of marketing manager to determine which attributes have the most influence on choice

-eg. Price, brand name (set of promises)

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The general process used as a guide for studying how consumers make decisions

5. Postpurchase behaviour – how well product/service meets expectations determines whether satisfied or not

-marketing manager has to reduce any doubt

-when inconsistencey between values and behaviour it is called cognitive dissonance

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Involvement: level depends on personal, social, and economic consequences of the purchase at that momentAll consumer buying decisions fall within three categories:

1.Routine problem solving 2.Limited problem solving 3.Extended problem solving

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Frequently purchased, low cost products are associated with routine response behaviour

-such products can also be called low involvement products

-usually consumers are familiar with products in this category but stick with one brand/product

-usually don’t experience needs recognition until they see ads or see product on shelfs

-consumers here buy first and eval. Later-opposite of extensive decisions

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Extensive Decision Making – consumers buying unfamiliar, expensive products or infrequently bought item

-most complex type of consumer buying decision and is associated with high consumer involvement

-consumer wants to make the right decision so they want to know as much as possible about the product

-usually experience cognitave dissonance

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Limited Decision making – consumer has previous product experience but unfamiliar with current brands available

-associated with lower levels of involvment because consumers spend moderate amoun of searchign for information or considering alternatives

-if ususal brand is sold out then consumver will evaluate otehr brands before buying

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Social, cultural, individual and psychological factors strongly influence the decision process

Psycological factors determine how consumers percieve and interact with their environments -eg. Perception, motivation, learning, beliefs, attitudes

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An individuals buying decisions are further influenced by psychological factorsOne motivation theory is Maslow’s hierarchy of needs arranges needs in ascending order of importance:1. Self-actualization – reach a satitation point2. Esteem needs – recognition status3. Social needs - belonging4. Safety needs - security3. Physiological needs - hunger

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An individuals buying decisions are further influenced by psychological factors

Motivation – buy a product to fulfil a need, these needs become motives

eg. Motivated by hunger for McD’s

Motives: are the driving forces that cause to take action to satisfy a need

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Consumers are influenced by personal characterisitcs that are unique to individuals

Personality, self-concept – are reflected in a lifestyle, or mode of living by activities, interests and opinions

Psychographics is an analytical technique used to examine consumer lifestyles and to categorize consumers, segment into target markets

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An individuals buying decisions are further influenced by psychological factors

Learning – the process that creates in behaviour through experience and practice

Two types: 1.Eperiential – experiecne changes your behaviour2.Coneptual – no direct experience but changes your behaviour eg. Diet drinks

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Values, Beliefs and attitudes

Beliefs – organized pattern of knowledge that person holds true about the world

Closely related to brand image, a set of beliefs about a particular brand

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An individuals buying decisions are further influenced by psychological factors

Attitude – learned predisposition to respond to an object in a favourable or unfavourable way

-rest on individual’s value system which represents personal standards or good and bad, right and wrong eg credit card use in the EU

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Attitude change through:1.Changing beliefs about the extent to which a brand has certain attributes eg. Aspirin and upset stomach

2.Changing the perceived importance of attributes eg hours of sleep

3.Adding new attributes to the product eg antioxidants

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