Brad Turner's slideshow on Consumer Behavior.

1. By: Brad Turner
Consumer Behavior
A Comprehensive Slideshow Guide To Better Understanding
Your Customers

2. Why Consumer Behavior?
Understanding consumer behavior starts with understanding why consumers buy goods or services.
Consumers go through multiple steps before, during, and after making purchases. These steps are known as
The Consumer Decision Process

3. Consumer Decision Process
• Need Recognition
• Information Search
• Alternative Evaluation
• Purchase and Consumption
• Post Purchase
The steps in which a consumer goes through before, during, and after making a purchase:

4. Need Recognition
• Functional Needs: Needs that relate to the performance of a product or service.
• Psychological Needs: Needs that relate to the personal gratification consumers
associate with product and/or service.
The first step in the consumer decision process in which a consumer realizes that they
have an unsatisfied need that they would like to alter.
Two Types of Needs:

5. Search for Information
• Internal vs External search for info: Internal searches for info rely on the consumers
past experiences whereas external searches use outside methods.
• Perceived Benefits vs perceived Cost: Is it worth taking the time to search for?
• Internal vs External Locus of Control: Searching for info to prepare vs “winging it”
• 5 Types of Risks to search for: Performance, Financial, Social, Physiological, and
Psychological.
Once a consumer recognizes a need, they search for information about the options that
exist in order to satisfy that need. This is the second step in the consumer decision
process.

6. Evaluation of Alternatives
• Attribute Sets: Sets in which a consumer’s mind organizes and categorizes
alternatives to aide their decision process.
• Compensentory vs Noncompensatory: Assumes that the consumer, when weighing
options, trades off one characteristic against another, vs when a consumer makes a
decision on the basis of just one characteristic.
• Choice Architecture: Physical design of the environment meant to influence
consumer’s purchase decisions.
The third step of the consumer decision process in which a consumer considers the
choices available and evaluates the alternatives.

7. Purchase and Consumption
• Conversion Rate: What retailers use to measure how well they have converted
purchase intentions into purchases.
Step four of the consumer decision process in which the consumer is ready to buy.

8. Post Purchase
• Customer Satisfaction
• Postpurchase Cognitive Dissonance
• Customer Loyalty
The final step of the consumer decision process. This involves there possible outcomes:

9. Factors That Influence The Consumer Decision Process
• Psychological Factors
• Social Factors
• Situational Factors
• Marketing Mix
There are four factors that effect the consumer decision process that are:

10. Involvement And Consumer Buying Decisions
• Extended Problem Solving: Used when the customer perceives that the purchase
decision entails a lot of risk.
• Limited Problem Solving: Used when a purchase decision calls for a moderate
amount of effort and time.
There are two types of buying decisions which are: