3. Need Recognition
Preferred State
Marketing helps
consumers recognize
(or create) an imbalance
between present status
and preferred state
• When a current product isn’t
performing properly
• When the consumer is running
out of an product
• When another product seems
superior to the one currently used
3Ratan Global Business School07/16/13
4. The information search stage
An internal search involves the
scanning of one's memory to recall previous
experiences or knowledge concerning
solutions to the problem-- often sufficient for
frequently purchased products.
An external search may be necessary
when past experience or knowledge is
insufficient, the risk of making a wrong
purchase decision is high, and/or the cost of
gathering information is low.
Personal sources
(friends and family)
Public sources (rating
services like Consumer
Reports)
Marketer-dominated
sources (advertising
or sales people)
The evoked set: a group of
brands from which the buyer can
choose 4Ratan Global Business School07/16/13
6. Buyer Behavior
• Initiator: the person who first suggests or thinks of the idea of buying a
particular product or service.
• Influencer: a person whose views or advice carry weight in making the
final buying decision
• Decider: the person who ultimately makes the final buying decision or any
part of it
• Buyer: the person who makes the actual purchase
• User: the person who consumes the product or service
Other people often influence a consumers purchase decision.
The marketer needs to know which people are involved in the
buying decision and what role each person plays, so that
marketing strategies can also be aimed at these people.
(Kotler et al, 1994).
Note: teens are increasingly assuming more of these roles
Think about your past purchase– who was in which role?
6Ratan Global Business School07/16/13
7. Consumer decision making
varies with the level of involvement in the
purchasing decision
• Extensive: problem solving occurs when
buyers purchase more expensive, less
frequently purchased products in an
unfamiliar product category requiring
information search & evaluation; may
experience cognitive dissonance.
• Limited: problem solving occurs when buyers are
confronted with an unfamiliar brand in a familiar product
category
• Routine: response behavior occurs
when buyers purchase low cost, low risk, brand loyal,
frequently purchased, low personal identification or
relevance, items with which they are familiar.
Increase in
Consumer
evaluation
processes
7Ratan Global Business School07/16/13
8. Factors affecting
Consumer involvement
• Previous experience: low level involvement
• Interest: high involvement
• Perceived risk of negative consequences: high involvement
• Situation: low to high due to risk
• Social visibility: involvement increases with product visibility
• Offer extensive information on high involvement products
• In-store promotion & placement is important for low involvement products
• Linking low-involvement product to high-involvement issue can increase sales
So…
8Ratan Global Business School07/16/13
9. Postpurchase Behavior
Can minimize through:
Effective Communication
Follow-up
Guarantees
Warranties
Underpromise &
overdeliver
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?
9Ratan Global Business School07/16/13
10. Sour Grapes–
a story of
cognitive
dissonance
…after being unable to reach the grapes the fox said, “these
grapes are probably sour, and if I had them I would not eat
them.”
--Aesop
10Ratan Global Business School07/16/13
13. Conclusion
There should be a good decision-
making units and the processes which
involves in acquiring, consuming,
and disposing of goods, services,
experiences, and ideas.
Ratan Global Business School 1307/16/13
