Ch 5 and 7 Consumer Decision Making, Segmenting and Targeting Markets

Ch 5 and 7 Consumer Decision Making, Segmenting and Targeting Markets

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1 Consumer Decision Making, Segmenting and Targeting Markets Chapters 5 and 7 Consumer Behavior Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use. Consumer Behavior Model Marketing stimuli (4 P’s) Buyer’s thought process Buyer’s actions
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2 Marketer’s want to predict and influence Buyer’s actions •Buy or not buy •Specific product •Specific brand •Specific dealer Details of the model Marketing stimuli Product, price, promotion, place Managers can control Buyer’s thought process (Black Box) (what goes on in the mind of the consumer) Influenced by: Degree of involvement Decision process Cultural, Social, Individual and Psychological Influences Managers can not control nor see:
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3 Purchase Involvement ± Definition z The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior Low Involvement Purchases ± Characteristics of low involvement purchases z Items are low cost z Items are purchased frequently z Consumers perceive very little risk; have little interest in the purchase ± Examples Low Involvement Purchases ± Type of buying process used: z Routine response behavior/habitual ± How marketers try to influence z Create brand loyalty - reinforce the habit z Provide strong in-store cues z Increase perceived risk of “wrong” choice
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4 High Involvement Purchases ± Characteristics z Financial, social, or performance risk is present z Purchase is perceived as very important z Consumers see substantial differences between alternatives ± Examples ± Ways marketers try to influence Continuum of Consumer Buying Decisions For high involvement purchases, the consumer decision making process is used A five-step process used by consumers when buying goods or services.
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5 Consumer Decision-Making Process Postpurchase Behavior Purchase Evaluation of Alternatives Information Search Need Recognition 1. Need Recognition Marketing helps consumers recognize an imbalance between present status and preferred state. Present Status Preferred State In t e r n a l S tim u li E x im Consumer Decision Making Process Consumer Decision Making Process 2. Information search z Collecting data to help make a reasonable decision ± Internal information search z External information search z Results in Evoked Set
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6 Consumer Decision Making Process 3. Evaluation of alternatives • Narrowing down and rating possible choices ± Evaluative criteria 4. Purchase z Based upon information received and the buyer’s decision rules, a final decision is made (to buy or not to buy. . . ) Evaluation of Alternatives and Purchase Evoked Set Evoked Set Purchase!
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Ch 5 and 7 Consumer Decision Making, Segmenting and Targeting Markets

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