Consumer Bahavior-6 a Marketing Plan prerequisite by www.marketingPlanNOW.com

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When studying consumer behavior, what often remains is the process of decision making, an internal processes that includes five main stages: problem recognition, information search, evaluation of alternatives, purchase decisions, post purchase outcomes.

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Consumer Bahavior-6 a Marketing Plan prerequisite by www.marketingPlanNOW.com

  1. 1. Consumer Behavior-6 Decision Making Process & More Danny Abramovich Marketing Plan Specialist 1. Management 2. Marketing 3. Research 4. Segmentation 5. Consumer Behavior-4 6. Creativity
  2. 2. Course Schedule  Part 2 1. Management 2. Marketing 3. Research 4. Segmentation 5. Consumer Behavior 6. Creativity part 3 part 2
  3. 3. Course Main Topics Management Marketing Research Segmentation Consumer Behavior Creativity    
  4. 4. 5. Consumer Behavior  M e t h o d o l o g y Management Marketing Marketing Research Market Segmentation Consumer Behavior © Danny Abramovich
  5. 5. 5. CB  Definition C onsumer B ehavior How individuals or groups acquire, use and dispose of products, services, activities and ideas, in order to satisfy needs and desires over time.
  6. 6. 5. What Affects CB ? <ul><li>What Affects Consumer Behavior? </li></ul><ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  7. 7. 5. What Affects CB ? D ecision Making Process C onsumer Behavior Outcomes   Psycho logical Core Internal Process C onsumer’s Culture External Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  8. 8. 5.2 Decision Making Process D ecision Making Process  <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  9. 9. <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  10. 10. 5.2 Decision Making Process R esearchers begin to realize that decision-makers evaluate the effort required to make a particular choice, and only than he or she chooses a strategy best suited to the level of effort required ! Less rational when choosing art, music, or even a spouse ! <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process
  11. 11. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Problem recognition occurs when the consumer realizes a difference between his or her current state of affairs and some desired/ ideal state :  becomes aware of a need !
  12. 12. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition
  13. 13. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search  seeks information on how to fulfill his needs !
  14. 14. 5.2 Decision Making Process External Search <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Internal search
  15. 15. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search I nd. Articles F riends (organic) Non commercial A dverts S ales Person Commercial Not personal Personal
  16. 16. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Product knowledge Amount of search
  17. 17. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Evaluation of Alternatives  analyzes the pro’s and con’s of most choices !
  18. 18. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Evaluation of Alternatives
  19. 19. 5.2 Decision Making Process Types of perceived risk when evaluating alternatives:  Functional  Financial  Physical-Safety  Social  Psychological  Time <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Evaluation of Alternatives
  20. 20. 5.2 Decision Making Process Ine r t Set - I am aware of the brand but will not buy it . Ine p t Set - I am aware of the brand but will not consider buying it . E voked Set - Brands easily retrieved . <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Evaluation of Alternatives
  21. 21. 5.2 Decision Making Process Decision-making-process Brand B Brand E Brand I Brand M Brand F All available Brands Brand A Brand B Brand C Brand D Brand E Brand F Brand G Brand H Brand I Brand J Brand Brand L Brand M Brand N Brand O Evoked Set of Brands
  22. 22. 5.2 Decision Making Process All Brands Known Brands Unknown Brands Unacceptable Brands Overlooked Brands Indifferent Brands Acceptable Brands Not Purchased Brands Purchased Brands E voked Set  Ine p t Set  Ine r t Set  Decision-making-process E voked Set  <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Problem recognition Information Search Evaluation of Alternatives
  23. 23. 5.2 Decision Making Process Acceptable Brands Not Purchased Brands Purchased Brands Decision-making-process E voked Set & the Country of Origin  <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>E voked Set  Problem recognition Information Search Evaluation of Alternatives
  24. 24. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Evaluation of Alternatives Purchase Decision  chooses among the available options to satisfy his needs !
  25. 25. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Choice Problem Recognition Search Alternative Evaluation Post acquisition evaluation Complex Choice Simple Choice High-Involvement Decision Low-Involvement Decision Extensive Search Limited Search Extended alternative evaluation Limited alternative evaluation
  26. 26. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Market place  Market space
  27. 27. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Market place  Market space Actors = customer & shoppers  web surfer Cast = salespeople & shoppers  www.auctions Setting = store-ambiance  e-music Shoppers = Co-consumers = Social surroundings
  28. 28. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Market place  Market space Surroundings: social & physical  social Temporal factors: time & mood  time Shopping Experience: loyalty cards, shop-in-shop, one-stop-shop, theme shopping: POP Stimuli: “5 senses & perceptions” (ref. 2.1) Sales Interactions: place-based media
  29. 29. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Evaluation of Alternatives Purchase Decision Post Purchase Outcomes
  30. 30. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Evaluation of Alternatives Purchase Decision Post Purchase Outcomes <ul><li>compares expectations with the actual experience for future consideration to fulfill his needs ! </li></ul>
  31. 31. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Problem recognition Information Search Post Purchase Outcomes Purchase Decision Evaluation of Alternatives Ethical Issue: NeuroMarketing Uses medical equipment such as fMRI (functional Magnetic Resonance Imaging) to identify the combination of words & images that push the “buy buttons”.
  32. 32. 5.2 Decision Making Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Decision-making-process Post-perception of quality: got vs. expected! Cognitive dissonance (CD): as people have a need for consistency in their beliefs and behaviors, certain decisions may result in psychological tension. This is called CD. Product disposal: environmentalism per culture. Market place  Market space
  33. 33. 5.2 Decision Making Process Decision-making-process
  34. 34. 5.2 Decision Making Process
  35. 35. 5. What Affects CB ? <ul><li>What Affects Consumer Behavior? </li></ul><ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul> 
  36. 36. 5. What Affects CB ? D ecision Making Process C onsumer Behavior Outcomes   Psycho logical Core Internal Process C onsumer’s Culture External Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  37. 37. 5.3 Consumer’s Culture C onsumer’s Culture External Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  38. 38. 5.3 Consumer’s Culture External Processes  Regional and Ethnic Influences  Age, Gender, and Household Influences  Reference Groups <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>External-process
  39. 39. 5.3 Consumer’s Culture
  40. 40. 5. What Affects CB ? <ul><li>What Affects Consumer Behavior? </li></ul><ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes. </li></ul></ul>  
  41. 41. 5. What Affects CB ? D ecision Making Process C onsumer Behavior Outcomes   Psycho logical Core Internal Process C onsumer’s Culture External Process <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  42. 42. 5.4 Consumer Behavior Outcomes C onsumer Behavior Outcomes  <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>
  43. 43. 5.4 CB Outcomes  CB Can Symbolize Who We Are.  CB Can Diffuse Throughout a Market.  CB Can Have Negative Chain Reactions. <ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>Consumer’s-behavior-outcomes
  44. 44. 5.4 Consumer Behavior Outcomes
  45. 45. 5. What Affects CB ? <ul><li>What Affects Consumer Behavior? </li></ul><ul><ul><li>5.1 Psychological Core (Internal Process) </li></ul></ul><ul><ul><li>5.2 Decision Making Process </li></ul></ul><ul><ul><li>5.3 Consumer’s Culture (External Process) </li></ul></ul><ul><ul><li>5.4 Consumer Behavior Outcomes </li></ul></ul>   
  46. 46. Course Main Topics Management Marketing Research Segmentation Consumer Behavior Creativity     
  47. 47. 6. Creativity  M e t h o d o l o g y Management Marketing Marketing Research Market Segmentation Consumer Behavior Creativity © Danny Abramovich

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