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Consumer Behavior-6

Decision Making Process & More

Danny AbramovichMarketing Plan Specialist

1 .Management2 .Marketing

3 .Research4 .Segmentation

5 .Consumer Behavior-46 .Creativity

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Course Schedule Part 2

1. Management

2. Marketing

3. Research

4. Segmentation

5. Consumer Behavior

6. Creativitypart3

part2

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Course Main Topics

Management

Marketing

Research

Segmentation

Consumer Behavior

Creativity

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Management

Marketing

Marketing Research

Market Segmentation

Consumer Behavior

5. Consumer BehaviorMethodology

© Danny Abramovich

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5. CB Definition

Consumer

Behavior

How individuals or groups acquire, use and dispose of products, services, activities and ideas, in order to satisfy needs and desires over time.

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5. What Affects CB?

What Affects Consumer Behavior?

5.1 Psychological Core (Internal Process)

5.2 Decision Making Process

5.3 Consumer’s Culture (External Process)

5.4 Consumer Behavior Outcomes

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5. What Affects CB?

Decision Making Process

Consumer Behavior Outcomes

Psychological Core Internal Process

Consumer’s CultureExternal Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

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5.2 Decision Making Process

Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

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5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

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5.2 Decision Making Process

Researchers begin to realize thatdecision-makers evaluate the effort required to make a particular choice, and only than he or she chooses a strategy best suited to the level of effort required!

Less rational when choosing art, music,or even a spouse!

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-process

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Problem recognition occurs when the consumer realizes a difference between his or her current state of affairs and some desired/ ideal state:

becomes aware of a need !

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

seeks information on how to fulfill his needs !

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5.2 Decision Making Process

External Search

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Internal search

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

PersonalNot personal

CommercialSales PersonAdverts

Non commercialFriends(organic)

Ind. Articles

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Product knowledge

Am

ount

of

sear

ch

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Evaluation of Alternatives

analyzes the pro’s and con’s of most choices !

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Evaluation of Alternatives

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5.2 Decision Making Process

Types of perceived risk when evaluating alternatives: Functional Financial Physical-Safety Social Psychological Time

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Evaluation of Alternatives

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5.2 Decision Making Process

Inert Set - I am aware of the brandbut will not buy it.

Inept Set - I am aware of thebrand but will not consider buying it.

Evoked Set - Brands easily retrieved.

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Evaluation of Alternatives

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5.2 Decision Making Process

Decision-making-process

All available Brands

Brand A Brand B Brand C Brand D Brand E

Brand F Brand G Brand H Brand I Brand J

Brand Brand L Brand M Brand N Brand O

Evoked Set of Brands

Brand B Brand E

Brand I

Brand M

Brand F

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All Brands

Known Brands

Unknown Brands

Unacceptable Brands

Overlooked Brands

Indifferent Brands

Acceptable Brands

Not Purchased Brands

Purchased Brands

Evoked Set Inept Set Inert Set

5.2 Decision Making Process

Decision-making-processEvoked Set

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Problem recognition

Information Search

Evaluation of Alternatives

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Acceptable Brands

Not Purchased Brands

Purchased Brands

5.2 Decision Making Process

Decision-making-processEvoked Set & the Country of Origin

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Evoked Set

Problem recognition

Information Search

Evaluation of Alternatives

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Evaluation of Alternatives

Purchase Decision

chooses among the available options to satisfy his needs !

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-process

Choice

Problem Recognition

Search

Alternative Evaluation

Post acquisition evaluation

High-Involvement Decision

Low-Involvement Decision

Extensive Search Limited Search

Extended alternative evaluation

Limited alternative evaluation

Complex Choice Simple Choice

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processMarket place Market space

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processMarket place Market space

Actors = customer & shoppers web surfer

Cast = salespeople & shoppers www.auctions

Setting = store-ambiance e-music

Shoppers = Co-consumers = Social surroundings

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processMarket place Market space

Surroundings: social & physical social

Temporal factors: time & mood time

Shopping Experience: loyalty cards, shop-in-shop, one-stop-shop, theme shopping: POP Stimuli: “5 senses & perceptions” (ref. 2.1)

Sales Interactions: place-based media

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Outcomes

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Evaluation of Alternatives

Purchase Decision

Post Purchase Outcomes

compares expectations with the actual experience for future consideration to fulfill his needs !

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-processProblem recognition

Information Search

Post Purchase Outcomes

Purchase Decision

Evaluation of Alternatives

Ethical Issue: NeuroMarketingUses medical equipment such as fMRI (functional Magnetic Resonance Imaging) to identify the combinationof words & images thatpush the “buy buttons”.

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5.2 Decision Making Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Decision-making-process

Post-perception of quality: got vs. expected!

Cognitive dissonance (CD): as people havea need for consistency in their beliefs and behaviors, certain decisions may resultin psychological tension. This is called CD.

Product disposal: environmentalism per culture.

Market place Market space

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5.2 Decision Making Process

Decision-making-process

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5.2 Decision Making Process

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5. What Affects CB?

What Affects Consumer Behavior?

5.1 Psychological Core (Internal Process)

5.2 Decision Making Process

5.3 Consumer’s Culture (External Process)

5.4 Consumer Behavior Outcomes

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5. What Affects CB?

Decision Making Process

Consumer Behavior Outcomes

Psychological Core Internal Process

Consumer’s CultureExternal Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

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5.3 Consumer’s Culture

Consumer’s CultureExternal Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

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5.3 Consumer’s Culture

External Processes

Regional and Ethnic Influences

Age, Gender, and Household Influences

Reference Groups

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

External-process

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5.3 Consumer’s Culture

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5. What Affects CB?

What Affects Consumer Behavior?

5.1 Psychological Core (Internal Process)

5.2 Decision Making Process

5.3 Consumer’s Culture (External Process)

5.4 Consumer Behavior Outcomes.

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5. What Affects CB?

Decision Making Process

Consumer Behavior Outcomes

Psychological Core Internal Process

Consumer’s CultureExternal Process

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

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5.4 Consumer Behavior Outcomes

Consumer Behavior Outcomes

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

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5.4 CB Outcomes

CB Can Symbolize Who We Are.

CB Can Diffuse Throughout a Market.

CB Can Have Negative Chain Reactions.

5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes

Consumer’s-behavior-outcomes

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5.4 Consumer Behavior Outcomes

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5. What Affects CB?

What Affects Consumer Behavior?

5.1 Psychological Core (Internal Process)

5.2 Decision Making Process

5.3 Consumer’s Culture (External Process)

5.4 Consumer Behavior Outcomes

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Course Main Topics

Management

Marketing

Research

Segmentation

Consumer Behavior

Creativity

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Management

Marketing

Marketing Research

Market Segmentation

Consumer Behavior

Creativity

6. Creativity Methodology

© Danny Abramovich

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