The Consumer Decision Making, Segmentation and Target Market selection.
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Transcript of The Consumer Decision Making, Segmentation and Target Market selection.
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The Consumer
Decision Making, Segmentation and Target Market selection
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Why Consumer Behavior?
Consumer behavior
consumers make purchase decisions
consumers use anddispose of product
= HOW
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Purchase Example
• You have decided you need to buy the following:– New laptop– Tablet– A taco– New pair of jeans– Bottle of shampoo– Gnocchi
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Consumer Decision Process
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A Simple “Value” Example
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Social Media Application
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Need Recognition
• Difference between current state and desired state– Physical/Functional– Psychological– Product Issues (running out, try new, need new)
• Stimuli– External Marketing Saw a Wendy’s ad– Internal YOU Stomach growling
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Information Search
• Internal– What you know– Previous experience– Information you’ve been made
aware of previously
• External– Research collect information
• Other People Friends, Family, etc.• Marketing Advertising, company
websites, etc.• Non Marketing Reviews, specialty
sites, etc.
• Involvement– High– Low
• Risk– Performance– Social– Financial
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Information Search: Involvement
High-involvement purchases require:
Extensive and informative promotion to target market
Low-involvement purchases require:
In-store promotion, eye-catching package design, and good displays.Coupons, cents-off,2-for-1 offers
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Evaluation of Alternatives
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Evaluation of Alternatives
• Attributes• Cutoff Criteria• Ranking
• What attributes must it have?• Which are more important?• Which can you live without?
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Evaluation of Alternatives
• Mentally Taxing Use of Heuristics (shortcuts)– Price– Brand– Packaging/Presentation
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Purchase and Consumption
• Whether to buy• When to buy• What to buy (product type and brand)• Where to buy (type of retailer, specific retailer,
online or in store)• How to pay
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Post Purchase
• Did product deliver promise?• Was it worth the price?• Cognitive Dissonance/Buyers remorse
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Influences on CDM
Social Factors
Individual Factors
Psycho-logical Factors
Cultural Factors CONSUMER
DECISION-MAKINGPROCESS
BUY / DON’T BUY
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Social Factors
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Social Factors
• Opinion Leaders
• Family Members
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Psychological Factors
• Motives• Attitudes• Perceptions• Learning
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Motives
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Perception
• Select• Organize• Interpret
Selective Exposure
SelectiveDistortion
Selective Retention
Consumer notices certain stimuli and ignores others
Consumer changes or distorts information that conflicts
with feelings or beliefsConsumer remembers only
that information that supports personal beliefs
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Why should we care about these?
• Important attributes• Price• Brand names • Quality and reliability• Threshold level of perception• Product or repositioning changes• Foreign consumer perception• Subliminal perception
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Attitudes
• Affect• Cognitive• Conative
EmotionsThoughtsBehavior/Action
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Individual Factors
• Age• Lifestyle/Personality• Lifecycle– Single– Married– Married w/kids– Empty nesters– Retired
Age of kids• Babies• Toddlers• Teenagers• College
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Additionally….
• Purchase Situation– What occasion am I buying for?– Who am I buying for?
• Shopping Situation– Store atmosphere– Salespeople– Crowding– In-Store Demos– Promotions– Packaging
• Temporal State– mood
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SWOT & Industry Analysis
• SWOT in Table form– Short concise statements
• Discussion section– Implications of above statements
• Industry Analysis– Sales– Market share– Trends