BUAD307_L4_Consumer Behavior

BUAD307_L4_Consumer Behavior - CONSUMER DECISION MAKING Yi...

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C ONSUMER D ECISION M AKING Yi Zhu BUAD 307 June 1, 2011
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Today’s objective: Understand the components of the consumer decision-making process Understand the factors that affect the consumer decision-making process 1
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W HY S TUDY C ONSUMER D ECISION MAKING ? If you don’t understand WHY someone might want your product, you can’t accurately Position it or develop a unique Marketing Mix that helps convince them to Buy It!! 2
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The brain is complicated… Too many factors to predict how people react to stimuli. 3 For marketing, however, we are interested in a simpler, yet still difficult, problem of How Do Consumers Make a Purchase Decision?
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M ODEL OF C ONSUMER B EHAVIOR 4 Understand: Types of buying decisions Factors that influence buying decisions
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C ONSUMER D ECISION -M AKING P ROCESS 5) Post-purchase evaluation: Was Value Consumed? 4) Purchase decision: Choosing an Alternative 3) Evaluation: Evaluate Alternatives 2) Search: Search for Alternatives 1) Need recognition 5
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C ONSUMER D ECISION M AKING 1. N EED R ECOGNITION 6 WHAT Triggers the need? vs “What I Have” “What I Want or Need”
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C ONSUMER D ECISION M AKING 1. N EED R ECOGNITION 7 Marketing helps consumers recognize an imbalance between present status and preferred state. Present Status Preferred State
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8 Any unit of input affecting one or more of the five senses: sight smell taste touch hearing Stimulus
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R ECOGNITION OF U NFULFILLED W ANTS When a current product isn’t performing properly When the consumer is running out of a product When another product seems superior to the one currently used 9
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C ONSUMER D ECISION M AKING 2. I NFORMATION S EARCH Search for information about alternatives that might solve our problem Source of Information 10 Internal Information External Information Recall from your memory Non-marketing Controlled Personal Experience Personal Source Public Source Marketing Controlled Advertising Sales promotion Salesman Product Amount depends on: Perceived risk Knowledge Prior experience Level of interest Consideration Set
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C ONSUMER D ECISION M AKING 3. E VALUATION OF A LTERNATIVES Group of brands, resulting from an information search, from which a buyer can choose Evoked Set 11
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C ONSUMER D ECISION M AKING 3. E VALUATION OF A LTERNATIVES 12 Evoked Set Purchase! Analyze product attributes Rank attributes by importance Use cutoff criteria
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ONSUMER D ECISION M AKING 4. P URCHASE To buy or not to buy. .. Determines which attributes
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This note was uploaded on 11/01/2011 for the course BUAD 307 taught by Professor Morristowns during the Summer '07 term at USC.