Marketing, Consumer Behavior, Decision Making Process

1. Consumer Behavior
BY MIRANDA FLANIGAN

2. Marketing has taught me about consumer behavior,
the decision making process and the factors
affecting that process
This Photo by Unknown Author is licensed under CC BY-ND

3. The Consumer Decision Process
Need Recognition
Search for
Information
Evaluation of
Alternatives
Purchase and
Consumption
Postpurchase

4. Need Recognition
Needs and wants can be functional, psychological or both
• Functional Needs- based on performance and practical
uses for good or service
• Automobile
• Furniture
• Psychological Needs- based on levels of personal
gratification received from good or service
• High fashion items
• Extravagant vacation

5. Information Search
Can be internal or external, with depth based on risk
• Internal- based on experience
• Memories
• Knowledge of product or service
• External- based on outside information
• Advice from friends and family
• Internet search This Photo by Unknown Author is licensed
under CC BY-ND

6. Evaluation of Alternatives
Determined by personal attribute sets and consumer decision rules
• Attribute Sets
• Universal- all possible choices
• Retrieval- easily remembered
• Evoked- considered when making
current decision
• Consumer Decision Rules
• Compensatory- trade off one
feature for another
• Noncompensatory- choice based on
one feature, regardless of others

7. Purchase and Consumption
The prior steps lead the consumer to
making a decision and purchasing the
product or service they believe will
satisfy their need.
This Photo by Unknown Author is licensed under CC BY-SA-NC
This Photo by Unknown Author is
licensed under CC BY-NC-ND

8. Postpurchase Behavior
• Realistic expectations were met
• Product usage understood or corrected
Customer
Satisfaction
• Satisfied customers become loyal
• Relationship is solidified
Customer
Loyalty
• Internal conflict from inconsistency in
beliefs and/or behavior
• Customer is unsatisfied with purchase
Cognitive
Dissonance

9. Factors Affecting Decisions
• Purchase
Situation
• Sensory
Situation
• Temporal
State
• Product
• Price
• Place
• Promotion
• Family
• Reference
Groups
• Culture
• Motives
• Attitudes
• Perceptions
• Learning and
Memory
• Lifestyle Psychological
Factors
Social Factors
Situational
Factors
Marketing
Mix

10. Problem Solving
EXTENDED PROBLEM SOLVING
• Used when the customer feels
there are higher risks involved
• High involvement
• Strong attitudes and intentions
LIMITED PROBLEM SOLVING
• Used when purchase is habitual
or low risk
• Low involvement
• Weaker attitudes and
intentions

11. Sources
Grewal, & Levy. (n.d.). Marketing (7th ed.). McGraw-Hill.