con12thn - Consumer Decision Process Consumer Please...

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Unformatted text preview: Consumer Decision Process Consumer Please observe class policies Mkg 310 Input Input Process Output Input Input External Influences Firm’s Mkg Efforts • Product Product • Promotion Promotion • Price Price • Channels Channels • Culture Culture • Subculture Subculture • Social Class Social • Reference Reference Groups Groups • Family Family Process Process Consumer Decision Process Psychological Field • Need Recognition Recognition • Search for Info. Search • Alternative Evaluation Evaluation • Perception Perception • Motives Motives • Learning Learning • Attitudes Attitudes • Personality Personality Experience Experience Output Output Purchase 1. Trial 2. Repeat Purchase Postpurchase Evaluation Post decision Behavior Consumer Decision Process Problem or Need Problem Recognition Search for Information (internal and external) Alternative Evaluation Choice Post Purchase Evaluation Decisions made by individuals in the household Decisions and organizations Different roles played by the same individual: Decision maker, buyer, user, etc. Location and cost of an individual’s decision Consumption can occur in three places (1) at home: (2) in business organizations and (3) in public places (2) (airplane, restaurant) (airplane, Time span in three consumption places Criteria of choice changes whether the product is free or not. Three Types of Purchase Three Decisions Decisions Low-Purchase Involvement High-Purchase Involvement Note: There is a difference Note: between product involvement and purchase involvement: For example: In brand loyalty high product involvement and low purchase involvement. Steps in Consumer Purchase Steps Decisions Related to: Habitual Decision making Limited Decision Making Extended Decision Making Habitual Decision Making Habitual Problem Recognition Yes Problem Yes Search For Information Yes Search Yes (only internal) Alternative Evaluation No Alternative Purchase Yes Purchase Yes Postpurchase Evaluation (Very limited, No cognitive (see figure 14-1 Very page 511) page Dissonance ) Dissonance Nominal or Habitual Decision Nominal Making Making Brand Loyalty Purchase Repeat Purchase (See page 511) Limited Decision Making Limited Problem Recognition Yes Search For Information Yes (internal and limited External) Alternative Evaluation Yes (Few attributes, few alternatives simple decision rules) simple Purchase Yes Post purchase evaluation Yes No Dissonance, Limited Evaluation (See page 511) Extended Decision Making Extended Problem Recognition Problem Search For Information Search (Internal and External) Alternative Evaluation Alternative (Many attributes, complex Yes Yes Yes Yes Yes Yes Decision Rules, Many Alternatives) Purchase Post Purchase Evaluation Yes Post Yes Problem Recognition Problem or Need Satisfaction Problem recognition is defined as a significant discrepancy as significant between Ideal state (or desired) Ideal and actual state. and actual A note of the concept of “Problem” All human action is an on-going series of efforts All to solve problems. By “problems”we do not only mean the worries and dilemmas that bring people to the psychiatrist and the psychological clinic. Whether or not to accept a proffered drink, which Whether proffered which two ties to buy, what to do about the unexpected what guest or the “F”in algebra are problems too. guest The Ideal State: where we want to be where The Actual State: Where we are now! 1/2 E Actual State Full Full (ideal State) Discrepancy Opportunity Recognition Ideal Actual No Problem: Ideal and actuals are equal Need Recognition Stimuli for Problem Recognition Stimuli Problem Recognition can occur in two ways: 1. Due to an internal stimuli (example hunger, or boredom) 2. External stimuli (smell of coffee, ad. for Pizza Hut) Instead of using the terms internal and external stimuli (psychologist use very often) we may use: Solution-Stimuli and Problem stimuli A problem-stimulus is one in which the problem itself is the source of information. This source could lie within the source customer (as in hunger pangs), or outside (dirty laundry). outside The solution-stimulus is the information emanating from a The solution itself; exposure to a potential solution arouses the solution recognition of the need or the problem. Four situation for problem Recognition Vivid Vivid Familiar Novel Stock Stock depletion depletion Life Stage change latent Educational marketing New product Technology The level of one’s desire to The resolve a problem depends on two factors: 1. The magnitude of the discrepancy between the actual and desired between states; states; 2. The relative importance of the 2. problem. problem. Types of Consumer Problems Types Active Problem Inactive Problem (consumer is not yet aware of it) Non-marketing Factors Affecting Non-marketing Problem Recognition •Culture D D •Subculture E E •Social class S S •Ref. Groups II R R •Family E E •Previous Exp. D D •Individual Individual Development state Development state •Situation •Past Decisions A A •Normal Depl. C C Product Perfor. T T •Individual Individual U U A A Development Development L L •Availability of product state •Situation state Marketing Strategy and Marketing Problem Recognition 1. Identification of consumers’ problem problem 2. Developing appropriate marketing mix for that problem mix 3. To cause consumers to recognize a problem problem 4. To suppress consumers’ problem recognition recognition How to Identify Consumers’ How Problem? Available Methods: 1. Intuition or Common Sense 2. Survey 3. Focus Groups 4. Human Factor Research 1. Intuition The major limitation is that The management may identify management problems not important to problems the consumers. the 2. Survey Survey 3. Focus Group 3. Focus 4. Human Factor Research Impact of lighting, temp. sound etc. on human capabilities such as vision, response time etc. The nature of each approach Each method may use: Activity analysis Activity Product analysis Product Problem analysis Problem Activity Analysis: Activity Examines the problems Examines encountered in a particular encountered consumption activity such as maintaining lawn or banking. Product analysis: Similar to activity analysis but also examines the purchase and/or use of a particular and/or product product Problem Analysis: Problem This approach takes the opposite of the activity and product of analyses. analyses. It starts with a list of problems and asks the respondents to and indicate which activities or products are associated with those problems. Examples follow: those ------packages are hard to open ------packages ------does not pour well. Packages of ------ don’t fit on the shelf. Adjusting Marketing Mix to the Consumers’ Problems Consumers’ Changing the package Adding to or modifying an existing product attribute Modifying channels of Modifying distribution (Banks as an distribution example) example) Activating Problem Activating Recognition Generic vs. selective problem Recognition (primary vs. selective demand cultivation) Primary Demand Cultivation is Primary Appropriate: 1. Product is in introductory stage of product life cycle. stage 2. The company is the leader 3. Collective industry effort Selective Demand Cultivation Selective is appropriate: 1. Product is in the growth or maturity stage of life cycle maturity 2. The firm wants to increase its market share its 3. It may lead to an increase in profits in Activation of problem recognition can be recognition accomplished by increasing accomplished the magnitude of the the discrepancy between ideal and discrepancy actual states: Changing the ideal state Changing Changing the perception of Changing existing state existing The role of cognitive dissonance in activating problem recognition problem Suppressing Problem Suppressing Recognition Keeping the consumers satisfied. ...
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  • Fall '12
  • Pantel
  • Decision Making, Limited Evaluation, Human Factor Research

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