Foundations of Marketing Sinclair Assignment

1. Consumer Behavior
MRK 2100 Foundations of Marketing
Chapter 6
Source: Foundations of Marketing Seventh Edition, Pride, Ferrell

2. The Consumer
Decision Process:
There are 5
phases of the
consumer
decision process
1. The Need
Recognition
2. The
Information
Search
3. The
Alternative
Evaluation
4. The
Purchase and
Consumption
5. The Post-
Purchase

3. The Need Recognition:
 The first step begins when consumer recognizes they have an unsatisfied
need.
 These needs can be categorized into 2 different categories:
 Functional needs
And
 Psychological needs

4. Functional Needs:
 Pertain to the performance of a
product or service
Psychological Needs:
 Pertain to the personal
gratification consumers associate
with a product or service

5. The Search for information:
A consumer will typically go through 2 different processes to assess and gather all
desired information.
 Internal search for information
 External search for information
Then there are 3 factors that affect consumers search process
 Perceived benefits vs perceived cost
 The Locus of control
 Actual or perceived risk

6. Evaluation of Alternatives:
5 Different things that effect the evaluation of alternatives:
 Attribute sets
 Universal, retrieval, evoked
 Evaluative criteria
 Determinant attributes
 Consumer decision rules
 Choice Architecture

7. Purchase and Consumption:
Retailers turn to the conversion rate to measure how well they have converted
purchase intentions into purchases.
One method of measuring the conversion rate is the number of real or virtual
abandoned carts in the retailer’s store or website.

8. Post-Purchase
There are 3 possible post-purchase outcomes
 Customer satisfaction
 Post-purchase cognitive dissonance
 Customer loyalty

9. Factors Influencing The Consumer
Decision Process:
 Psychological Factors
 Motives
 Attitudes
 Learning and memory
 Lifestyle
 Social Factors
 Family
 Reference groups
 Culture
 Situational Factors
 Purchase situation
 Sensory situations
 Temporal Situations

10. Involvement and Consumer buying
decisions:
Extended Problem Solving
Spends a lot of time and effort
searching for information before
actually making a purchase.
Limited Problem solving
Usually when a consumer has had a
pervious experience with the product
or service and the perceived risk is
moderate.
This can consist of two scenarios:
 Impulse Buying
 Habitual decision making