Chapter 6 - M a rketing Chapter 6 The Consumer Decision P...

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Marketing Chapter 6 The Consumer Decision Process: to understand consumer behaviour we must ascertain why people buy products or services. People will buy one products over another because they perceive it to be a better value Step 1: Need Recognition: Beginning of the consumer decision process , occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different state Functional Need: Pertain to the performance of a product or service. Consumers seek out products that they perceive perform really well Psychological Needs: Pertain to the personal gratification consumer’s associate with a product or service. People will buy expensive items over similar inexpensive items because they are seeking to satisfy psychological needs. o One person might value getting a really good deal of going to cheap salon, while others might enjoy the extra attention/amenities associated with going to a fancy salon Step 2: Search for Information: Must search for information on the various options that exist to satisfy the need. Consumers might fill in their personal knowledge gaps by talking with friends, family, salespeople etc. Internal Search for Information: Occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences External Search for Information: Occurs when the buyer seeks information outside his or her personal knowledge base to make the buying decisions Factors Affecting Consumer Search Process: Perceived Benefits vs. Perceived costs of search: Is it worth time and effort to search for information about product or service? Usually depends on price of product in question Internal Locus of control: refers to when consumers believe that they have some degree of control over the outcomes of their actions, in which case they generally engage in more search activities.
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External Locus of Control: Refers to when consumers believe that fate or other external factors control all outcomes o Believe it doesn’t matter how much information they gather, if they make a wise decision, it isn’t to their credit or a bad decision, it isn’t their fault Actual or Perceived Risk: Three types of risk that delay or discourage a purchase o Performance Risk: Involves the perceived danger inherent in a poorly performing product or service o Financial Risk: risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service o Psychological Risk : Associated with the way people will feel if the product or service does not convey their image. People want others to perceive their purchase choices as good ones.
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Chapter 6 - M a rketing Chapter 6 The Consumer Decision P...

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