CB 10 (Consumer Decision Making)

8/7/2019 CB 10 (Consumer Decision Making)

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What is Opinion

Leadership? ,Opinion leaders filter interpret

or provide information for individuals within groups

Situations in which opinion

:leadership occurs one individual exchanges information with another

one individual volunteers

information -as a by product of normal group

interaction



" ord of mouth is the business;orld's equivalent of gossip hich may explain why it is so

ikely to be repeated when it."s negative

- hip Walker



ONSUMER ECISION

AKING PROCESS



-Consumer Decision Making Process

A five-step processused

by consumers when

buying goods or services.



Types of Consumer Choices

Six Generic Consumer Behavior Choices:

1.Product

2.Brand

3.Shopping area4.Store type

5.Store

6.Nonstore source (catalogs, PC, & TVshopping)



Decision Making Process



Consumer-Decision Making Process

PostpurchaseBehavior

PostpurchaseBehavior

PurchasePurchase

Evaluationof Alternatives

Evaluationof Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

FactorsFactorsaffectaffect

all stepsall steps

Cultural, Social,Cultural, Social,Individual andIndividual andPsychologicalPsychological

FactorsFactorsaffectaffect

all stepsall steps



Need Recognition

Result of an imbalance

between actual anddesired states.

Internal Stimuli Internal Stimuli and and

External Stimuli External Stimuli

PresentStatus

Preferred

State

Marketing helpsconsumers recognize an

imbalance betweenpresent status and

preferred state



t mu us Any unit of input affecting one or

more of the five senses:

Sight, Smell, taste, touch, hearing

Want Recognition of an

unfulfilled need and

a product

(or attribute or feature)

that will satisfy it.



Recognition of Unfulfilled Wants

’hen a current product isn t erforming properly

hen the consumer is running ut of a product

hen another product seems uperior to the one currently

used

f h



Information Searches

Process of recalling past

information stored

in the memory.

Process of seeking information in

theoutside environment.

Internal

External



Internal Information Search

uRecall information inmemory

External Information search

uSeek information in outsideenvironment

uNon-marketing controlleduMarketing controlled

E k d S



Evoked Set Group of brands,

resulting from an information search

from which a buyer

can choose.

Evaluation of Alternatives

Evoked Set Evoked Set Analyze product attributesAnalyze product attributesAnalyze product attributesAnalyze product attributes

Rank attributes byRank attributes byimportanceimportance

Rank attributes byRank attributes by

importanceimportance

Use cutoff criteriaUse cutoff criteriaUse cutoff criteriaUse cutoff criteria



Purchase

To buy To buy or not to buy...or not to buy...

Determines which attributesDetermines which attributesare most importantare most important

in influencing ain influencing aconsumer’s choiceconsumer’s choice

Marketing



Cognitive Dissonance

Inner tension that a

consumer experiences

after recognizing aninconsistency between

behavior and values

or opinions.



Cognitive DissonanceCognitive Dissonance

??Did I make a good decision?Did I make a good decision?

Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?

Postpurchase Behavior

Can minimize through:Can minimize through:Effective CommunicationEffective Communication

Follow-upFollow-upGuaranteesGuarantees

WarrantiesWarranties

Marketing



Five Factors Influencing Decisions

. evel of consumer

involvement

. ength of time to makedecision

. ost of good or service

. egree of information search

. umber of alternatives

considered



High-and Low-Involvement Decisions

High-involvement Decisions:

Characterized by high levels of importance thorough information processing, and substantial

differences between alternatives.Low-involvementDecisions:

Occur whenrelatively little

personal interest,relevance, or importance isassociated with

a purchase.



Firm’s Marketing Efforts1. Product2. Promotion

3. Price4. Channels of distribution

Sociocultural Environment1. Family2. Informal sources3. Other noncommercial

sources4. Social class5. Subculture and culture

External

I

nfluence

C o n s u m e r D e c i s i o n

M a k i n g

Post-Decision

Behavior

Postpurchase Evaluation

Purchase1. Trial2. Repeat purchase

NeedRecognition

PrepurchaseSearch

Evaluation of Alternatives

Psychological Field1. Motivation

2. Perception3. Learning4. Personality5. Attitudes

Experience

Output

Process

Input

Figure 1-1:

A Model of ConsumerDecisionMaking

CB 10 (Consumer Decision Making)

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