Blackwell Ch03

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Blackwell Ch03

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  • CHAPTER 3The consumer decision process

  • The consumer decision processHow do consumers make purchase decisions?

    How do firms use this information to develop new products and marketing programs?

    The CDP represents a road map of consumers minds that marketers and managers can use to help guide product mix, communications, and sales strategies

  • The consumer decision processP&G used consumer information regarding various decision process stages to create and market Dryel

  • Consumer decision process modelPurchaseNeed recognitionSearch for informationConsumptionPost-consumption evaluationDivestmentPre-purchase evaluation of alternatives

  • Need recognitionAn individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairsConsumers recognise needs and seek to fulfill them, or seek a product to solve their problemsKnowing consumers needs helps firms develop products and marketing programs to reach them more effectively

  • Need recognitionIndividual differences- Consumer resources- Motivation- Knowledge- Attitudes- Personality, values and lifestyleEnvironmental Influences- Culture- Social class- Personal influence- Family - SituationMEMORYNeed recognition

  • SearchInternal search MEMORYIndividual differencesEnviron- mental influencesNeed recognitionAttentionComprehensionAcceptanceRetentionExposureStimuliConsumer decision process model

  • Search for informationInternal search: retrieving knowledge from memory or genetic tendencies

    External search: collecting information from peers, family, and the marketplace

    Search may be passive as consumers become more receptive to information around them, or active if they engage in search behaviour Search refers to a receptivity of information that solves problems or needs rather than a search for specific products

  • Search: Sources of information Marketer dominated- Advertising- Salespeople- Infomercials- Websites- Point-of-sales materials

    Non-marketer dominated stimuli- Friends- Family - Opinion leaders- Media

  • Information processingM EMORYAttentionComprehensionAcceptanceRetentionExposureStimuli:- Marketer dominated- Non-marketer dominatedAs a consumer is exposed to information from external search, they begin to process the stimuli

  • Pre-purchase evaluation of alternativesSearchInternal search MEMORYIndividual differencesEnviron- mental influencesNeed recognitionAttentionComprehensionAcceptanceRetentionExposureStimuliConsumer decision process model

  • Pre-purchase evaluation of alternativesThe process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumerCan use new or preexisting evaluations stored in memory Evaluative criteria: standards and specifications used to compare different products and brands Alternative can be considered on attributes that are salient or determinant

  • Pre-purchase evaluation of alternativesSalient attributes such as price and reliability are important to the consumer

    Determinant attributes such as a cars style and finish usually determine which brand or store consumers choose

  • Pre-purchase evaluation of alternativesSearchInternal search MEMORYIndividual differencesEnviron- mental influencesNeed recognitionAttentionComprehensionAcceptanceRetentionExposureStimuliPurchaseConsumer decision process model

  • Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices

    Purchase intention can change during the purchase stage it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

  • Pre-purchase evaluation of alternativesSearchInternal search MEMORYIndividual differencesEnviron- mental influencesNeed recognitionAttentionComprehensionAcceptanceRetentionExposureStimuliPurchaseConsumptionConsumer decision process model

  • Consumption The process of using the product or service purchased

    Consumption can either occur immediately or be delayed

    How consumers use a product affects satisfaction with product

    How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

  • An emotional appeal in product consumption

  • Pre-purchase evaluation of alternativesSearchInternal search MEMORYIndividual differencesEnviron- mental influencesNeed recognitionAttentionComprehensionAcceptanceRetentionExposureStimuliPurchaseConsumptionPost-consumption evaluationExternal searchSatisfactionDissatisfactionConsumer decision process model

  • Post-consumption evaluation Consumption is an important determinant of satisfaction

    Satisfaction: when consumers expectations are matched by perceived performance

    Dissatisfaction: when experiences and performance fall short of expectations

    Cognitive dissonance: questioning the purchase decision (post-purchase regret)

    Usually, the higher the price, the higher the level of cognitive dissonance

    Emotion strongly affects the evaluation of a product or transaction

  • Pre-purchase Evaluation of AlternativesSearchInternal Search MEMORYIndividual DifferencesEnviron- mental InfluencesNeed RecognitionAttentionComprehensionAcceptanceRetentionExposureStimuliPurchaseConsumptionPost-consumption EvaluationExternal SearchSatisfactionDissatisfactionDivestmentConsumer decision process model

  • Divestment How consumers dispose of the packaging or product after use

    Options include: Disposal Remarketing or reselling Recycling

  • Variables shaping the decision processIdentify relationships and variables that affect consumer decision making

    Identify topics for additional research

    Develop and implement marketing mix strategies

  • Variables shaping the decision processIndividual differences: Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes

    Culture Social class Family Personal influence Situation behavioursEnvironmental differences:

  • Variables Shaping the Decision ProcessPsychological processes influencing consumer behaviour Information processing Learning Attitude and behavior change

  • Consumer decision process continuumMidrange Problem SolvingLimited Problem Solving (LPS)Extended Problem Solving (EPS)HighLowDegree of complexity

  • Consumer decision process continuum: Repeat purchasesMidrange Problem SolvingHabitual Problem SolvingExtended Problem SolvingHighLowDegree of complexityLimited Problem Solving

  • Types of decision processesInitial purchase

    Extended Problem Solving (EPS): Problem solving of a higher degree of complexity that influences consumers actions

    Often occurs with expensive items or can be fueled by doubts and fears

    Importance in making the right choice

    All seven consumer decision making stages are often activated

    Dissatisfaction is often vocal

  • Types of decision processesInitial purchase

    Limited Problem Solving (LPS): Problem solving of a lower degree of complexity that influences consumers actions

    Consumers dont have motivation, time, or resources to engage in EPS

    Little search and evaluation before purchase

    Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance

  • Types of decision processesInitial purchase

    Midrange Problem Solving:

    Many decisions occur along the middle of the continuum

    Decisions are made with a minimal amount of time and only moderate deliberation

    Repeated Problem Solving

    Habitual Decision MakingRepeat purchases Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion

    Least complex form of LPS but differs in some important waysImpulse Buying

  • Types of decision processes Consumers may be satisfied with the present brand but still engage in brand switching

    Can be triggered because bored with current brand or because of special offerVariety seeking

  • Factors influencing problem solving extentDegree of involvement: Level of perceived personal importance and interest evoked by a stimulus in a specific situation (High-Low)

    Personal factors (self-image, health, beauty, or physical condition)

    Product factors (is there perceived risk in purchasing and using a particular brand or product?)

    Situational factors (is the product purchased for personal use or as a gift?)

  • Factors influencing problem solving extentDegree of Involvement (High-Low)

    Perceptions of differences among alternatives

    Time availability How much time is available to devote to solving the problem?How quickly does the decision need to be made?

    Consumers mood state How people feel at a particular moment Mood can reduce or increase length and complexity of decision process