The document summarizes two common models of consumer decision making:
1) The consumer information processing model views consumers as rational problem-solvers who pass through stages of problem recognition, information search, evaluation of alternatives, decision implementation, and post-purchase evaluation.
2) The hierarchy of effects model proposes consumers progress psychologically from awareness to knowledge to liking to preference to conviction before purchase. Both models assume cognition precedes emotion but some argue feelings can form before thoughts.
The stages in the business organizational decision making process are:
1. Problem recognition - recognizing a need within the organization
2. Information search - gathering information from various sources to learn more about options
3. Evaluation of alternatives - evaluating options based on attributes and how they meet the organization's needs
4. Purchase decision - selecting the best option to move forward with
5. Post-purchase evaluation - assessing after the purchase whether the selected option met expectations
The document discusses traditional models of consumer decision making that view consumers as rational information processors going through stages like problem recognition, information search, evaluation of alternatives, decision implementation, and post-purchase evaluation. It also discusses two common models - the hierarchy of effects model and the consumer information processing model. Both models view consumers as cognitively driven thinkers who develop brand awareness, knowledge, liking, preference, and conviction before making a purchase. However, some argue people do not always progress linearly through the stages or form preferences only after developing cognitive judgments.
BB Project Guidelines (Part Three : Consumer Decision Process) BBAdvisor
This document provides guidelines for a marketing project on consumer decision making. It outlines 6 sections to be addressed: (1) the level of consumer involvement and information search; (2) how consumers evaluate brands based on important attributes; (3) factors that influence shopping behavior; (4) how consumers experience post-purchase satisfaction or dissonance; (5) how the product is disposed of after use; and (6) differences in loyalty between consumer segments and ways to encourage brand loyalty. The guidelines reference chapters 2-7 and provide interpretations of the tasks based on concepts from the course textbook.
The document summarizes several early models of consumer behavior:
1) The EKB model focuses on the decision making process and how it is impacted by inputs, information processing, decision variables, and external factors.
2) The Howard-Sheth model deals with different buying categories and factors like inputs, perceptions, learning, and outputs.
3) Bettman's model emphasizes information processing and includes constructs like motivation, attention, information acquisition and evaluation, and decision processes.
4) The HCB model incorporates external and internal influences, self-concept, desires, needs, and the consumer decision making process from problem recognition to post-purchase.
Business marketing differs from consumer marketing in several key ways. Business markets have fewer but larger customers that account for a higher percentage of revenue. Sales are made through personal relationships rather than remotely. Products are often customized and service is highly valued. Purchases are made for others down the supply chain. Costs include those of use beyond the purchase. Exchanges involve negotiation and a strategic long-term view. Marketing must understand the customer's customer to identify opportunities in the value chain.
This document discusses consumer decision making and problem recognition. It covers types of involvement in decision making including purchase involvement and product involvement. It also outlines the process of problem recognition and factors that affect it. Finally, it discusses identifying consumer problems, activating problem recognition, and whether to take generic or selective approaches in marketing responses.
The document discusses consumer decision making and alternative evaluation. It describes 3 types of consumer choice processes: affective choice based on emotions, attitude-based choice using general impressions rather than attributes, and attribute-based choice involving direct attribute comparisons. It also discusses evaluative criteria that consumers use to evaluate alternatives, including determining the criteria, measuring brand performance on criteria, and determining criteria importance. Finally, it outlines several decision rules consumers may use for attribute-based choices like conjunctive, disjunctive, elimination-by-aspects, and lexicographic rules.
The stages in the business organizational decision making process are:
1. Problem recognition - recognizing a need within the organization
2. Information search - gathering information from various sources to learn more about options
3. Evaluation of alternatives - evaluating options based on attributes and how they meet the organization's needs
4. Purchase decision - selecting the best option to move forward with
5. Post-purchase evaluation - assessing after the purchase whether the selected option met expectations
The document discusses traditional models of consumer decision making that view consumers as rational information processors going through stages like problem recognition, information search, evaluation of alternatives, decision implementation, and post-purchase evaluation. It also discusses two common models - the hierarchy of effects model and the consumer information processing model. Both models view consumers as cognitively driven thinkers who develop brand awareness, knowledge, liking, preference, and conviction before making a purchase. However, some argue people do not always progress linearly through the stages or form preferences only after developing cognitive judgments.
BB Project Guidelines (Part Three : Consumer Decision Process) BBAdvisor
This document provides guidelines for a marketing project on consumer decision making. It outlines 6 sections to be addressed: (1) the level of consumer involvement and information search; (2) how consumers evaluate brands based on important attributes; (3) factors that influence shopping behavior; (4) how consumers experience post-purchase satisfaction or dissonance; (5) how the product is disposed of after use; and (6) differences in loyalty between consumer segments and ways to encourage brand loyalty. The guidelines reference chapters 2-7 and provide interpretations of the tasks based on concepts from the course textbook.
The document summarizes several early models of consumer behavior:
1) The EKB model focuses on the decision making process and how it is impacted by inputs, information processing, decision variables, and external factors.
2) The Howard-Sheth model deals with different buying categories and factors like inputs, perceptions, learning, and outputs.
3) Bettman's model emphasizes information processing and includes constructs like motivation, attention, information acquisition and evaluation, and decision processes.
4) The HCB model incorporates external and internal influences, self-concept, desires, needs, and the consumer decision making process from problem recognition to post-purchase.
Business marketing differs from consumer marketing in several key ways. Business markets have fewer but larger customers that account for a higher percentage of revenue. Sales are made through personal relationships rather than remotely. Products are often customized and service is highly valued. Purchases are made for others down the supply chain. Costs include those of use beyond the purchase. Exchanges involve negotiation and a strategic long-term view. Marketing must understand the customer's customer to identify opportunities in the value chain.
This document discusses consumer decision making and problem recognition. It covers types of involvement in decision making including purchase involvement and product involvement. It also outlines the process of problem recognition and factors that affect it. Finally, it discusses identifying consumer problems, activating problem recognition, and whether to take generic or selective approaches in marketing responses.
The document discusses consumer decision making and alternative evaluation. It describes 3 types of consumer choice processes: affective choice based on emotions, attitude-based choice using general impressions rather than attributes, and attribute-based choice involving direct attribute comparisons. It also discusses evaluative criteria that consumers use to evaluate alternatives, including determining the criteria, measuring brand performance on criteria, and determining criteria importance. Finally, it outlines several decision rules consumers may use for attribute-based choices like conjunctive, disjunctive, elimination-by-aspects, and lexicographic rules.
This document provides guidelines for a marketing project analyzing buyer behavior for a selected product and target segment. It outlines requirements to examine external influences like culture, demographics, and group influence. It also requires an analysis of internal influences, specifically how the product meets needs and motives using Maslow's hierarchy, how perception theory applies, and which learning theories are most relevant to promote the product. The guidelines provide interpretation and direction on what to research and discuss for each requirement.
The document provides guidelines for students to analyze and evaluate the marketing strategies of two competing products in their project report. It outlines the key areas to compare in terms of the current marketing approaches, how the marketing mix supports positioning, and recommendations for improvement. Students are advised to apply consumer behavior concepts to explain how the marketing strategies influence purchase decisions and brand success. The last section involves assessing each brand's strategy effectiveness and providing a justified recommendation for the most impactful campaign.
BB Chapter Eleven : Attitude and Attitude ChangeBBAdvisor
This chapter discusses attitudes and attitude change. It defines attitudes as enduring combinations of motivational, emotional, perceptual and cognitive processes regarding aspects of the environment. Attitudes have three main components - cognitive, affective, and behavioral. Marketers can influence attitudes by changing one or more of these components. The chapter outlines different strategies for changing each component, such as using classical conditioning to change affect, providing information to change beliefs, or encouraging trial usage to change behavior. It also discusses factors that can weaken the relationship between attitudes and behaviors.
BB Chapter Five : Evaluating and Selecting AlternativesBBAdvisor
This chapter discusses how consumers evaluate and select alternatives. It covers the key steps in the consumer decision-making process: (1) identifying evaluative criteria, (2) measuring consumer perceptions of alternatives based on those criteria, and (3) applying decision rules to select an alternative. The chapter also examines how individual judgments can lack accuracy and be influenced by surrogate indicators. Marketers must understand consumers' evaluative criteria, perceptions, and decision rules in order to effectively position products.
The interaction between a sales personnel and the customer is crucial in shaping the customer's perception of the store and purchase experience. A knowledgeable, helpful and trustworthy salesperson can help address customer needs and queries, facilitate the purchase process, and leave the customer satisfied with an overall positive impression of the store.
Consumer online shopping behavior stats e briks infotechebriksinfotech
This document discusses consumer behavior and the consumer decision-making process. It describes the typical steps consumers go through as: 1) need recognition, 2) information search, 3) evaluation of alternatives, and 4) purchase. It notes that cultural, social, individual, and psychological factors influence consumers at each step. The document then provides more details on specific aspects of the consumer decision process, such as the types of internal and external sources used for information search and how involvement levels affect decision-making.
BB Practice Essay Questions And MCQ (Part Two Chapters 8-11)BBAdvisor
The document provides a summary of key concepts from chapters 8-11 on consumer perception and behavior. It includes review questions from the chapters on perception, learning, and memory. Multiple choice questions are also provided but without answers, for students to practice on their own. The document emphasizes applying knowledge of perception, learning, and memory to guide marketing decisions.
The document discusses how much product innovation and choice is optimal for consumers. It notes that while some choice is good, more choice does not necessarily mean better. Extensive choice can decrease satisfaction and motivation by overwhelming consumers with options. When assortments have many dimensions of variation, this leads to cognitive overload and regret with decisions. The level of choice should match consumer needs, and simplicity in offerings can help guide decisions. Product type also impacts the appropriate pace of refresh, with services requiring more transparency than durables.
This document summarizes the consumer decision making process. It involves 5 stages: need recognition, information search, alternatives evaluation, purchase decision, and post-purchase evaluation. In need recognition, internal or external stimuli motivate a need. In information search, consumers gather information from recommendations, experiences, and risk management. Alternatives are then evaluated based on factors like price, benefits, availability. The purchase decision involves choosing a product, brand, dealer, amount and time. Post-purchase involves evaluating performance versus expectations. Decision making can be extensive problem solving, limited problem solving, or routine response behavior based on involvement level.
The document provides guidelines for students to analyze buyer behavior concepts and their application to marketing strategy for a selected product. Students must choose a current product, as well as a competing brand, and analyze: 1) the relevant market and competitors, 2) the product's target markets based on demographics, psychographics, and behavioral segmentation, and 3) any potential target markets. The analysis should apply buyer behavior concepts to demonstrate differences between the marketing strategies of the chosen and competing brands.
This document summarizes key concepts about consumer decision making from a marketing lecture. It discusses:
1) The five stages of the consumer decision making process: need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.
2) Types of consumer buying decisions based on involvement: routine response, limited decision making, and extensive decision making. More involved purchases require more search and consideration of alternatives.
3) Cultural, social, and psychological factors that influence consumer decisions at each stage of the process, such as recommendations from personal contacts, brand perceptions, and efforts to reduce cognitive dissonance after purchase.
The document discusses key stages in a buyer's journey and how marketers can engage customers at each stage. It outlines three stages - the opportunity zones where buyers begin thinking about a need and notice casual solutions, the competitive zone where most marketers focus as buyers actively research options, and the opportunity zone again as buyers make decisions, use products, and become loyal or referred customers. The document emphasizes that most marketers focus on the competitive middle zone but greater opportunities exist in the early and late zones through strategies like lead nurturing, referral campaigns, and customer retention marketing.
The document summarizes the basic stages of a consumer's decision making process: 1) need recognition, 2) information search, 3) alternative evaluation, 4) purchase, and 5) post-purchase behavior. It describes each stage, including that a need arises when a consumer's current state differs from their desired state, and that consumers conduct internal and external searches to gather information on alternatives before making a purchase decision. The document stresses the importance of understanding the consumer buying process to determine effective marketing activities.
This document discusses various perspectives on consumer behavior, including:
1. It defines consumer behavior as the process people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services.
2. It discusses psychological processes like motivation, perception, learning, attitude formation, and decision-making that influence consumer behavior.
3. It explores external influences on consumer behavior including culture, subcultures, social class, reference groups, and situational determinants.
This document summarizes key concepts from Chapter 11 on situational influences on consumer behavior. It discusses how consumer situations consist of temporary environmental factors that form the context for consumer activities. It identifies different types of situational influences including physical surroundings, social surroundings, time, task definition, and antecedent states. It provides various examples of how these situational factors can influence behaviors like shopping, gift giving, and product choices.
Exposure, Attention and Interpretation -Consumer BehaviorAqib Syed
Exposure, Attention and Interpretation -Consumer Behavior
Exposure provides consumers with the opportunity to pay attention to available information but in no way guarantees it.
Exposure
Kinds of Exposure
Examples of exposure
Attention
Kinds of Attention
Examples of Attention
Interpretation
Kinds of Interpretation
Examples of Interpretation
The document discusses situational influences on buyer behavior and perception. It describes situational influences as factors outside the individual buyer that affect purchase decisions. These include physical surroundings, social surroundings, temporal perspectives, task definition, and antecedent states. Marketers should consider how these situational factors interact with products and buyers to influence choices. The document also discusses perception and how individuals select, organize, and interpret information differently based on their needs, experiences, and expectations. Marketers must be aware of perceptual biases and how customers perceive products relative to their self-image.
This document provides an overview of low-effort judgment and decision-making processes used by consumers for products they are not highly involved with or interested in. It discusses how consumers use shortcuts and heuristics to make quick judgments. These include the representativeness heuristic where consumers compare options to what is representative of a category, and the availability heuristic where judgments are based on what is easily recalled. The document also outlines various low-effort decision-making processes and choice tactics consumers may use, such as satisficing to find an option good enough, not best. It discusses how feelings and habits can influence low-involvement choices as well as the marketing implications of targeting such consumers.
Consumer behavior involves understanding why, what, who, when, and how consumers make purchasing decisions. It is influenced by internal factors like motivation, emotion, perception, and attitude, as well as external factors like culture and groups. Understanding consumer behavior allows businesses to create better marketing strategies by speaking directly to consumer needs and influencing their decision making process.
The document discusses the consumer buying decision-making process and buying motives. It describes the 5 stages of the consumer decision making process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also categorizes buying motives as either emotional or rational for both products and retail patronage. The different types of emotional and rational motives that influence consumer purchasing decisions are explained.
Consumer behavior by Santanu Mukherjee (musan007@gmail.com)musan007
This document discusses consumer behaviour and the factors that influence it. It covers topics like the psychological processes underlying purchasing decisions, how consumers choose between brands, and their post-purchase behaviors. It also examines the various internal and external factors that shape perception and motivation, such as demographics, psychographics, culture, and reference groups. Models of consumer decision making are presented, including the five stage model of need recognition, information search, evaluation, purchase, and post-purchase evaluation. Segmentation is also discussed as a key part of marketing strategy.
The document summarizes several models of buyer behavior:
1. The economic model views buyers as rational actors seeking to maximize utility within their budget.
2. The learning model sees buying influenced by learned stimuli and responses.
3. The psychoanalytical model draws on Freudian psychology, viewing buyers as having deep-seated motives driving behavior.
4. The sociological model recognizes social influences like groups and class on buying decisions.
5. Systems models like the Nicosia and Howard-Sheth models conceptualize buyers as systems processing marketing stimuli into responses.
This document provides guidelines for a marketing project analyzing buyer behavior for a selected product and target segment. It outlines requirements to examine external influences like culture, demographics, and group influence. It also requires an analysis of internal influences, specifically how the product meets needs and motives using Maslow's hierarchy, how perception theory applies, and which learning theories are most relevant to promote the product. The guidelines provide interpretation and direction on what to research and discuss for each requirement.
The document provides guidelines for students to analyze and evaluate the marketing strategies of two competing products in their project report. It outlines the key areas to compare in terms of the current marketing approaches, how the marketing mix supports positioning, and recommendations for improvement. Students are advised to apply consumer behavior concepts to explain how the marketing strategies influence purchase decisions and brand success. The last section involves assessing each brand's strategy effectiveness and providing a justified recommendation for the most impactful campaign.
BB Chapter Eleven : Attitude and Attitude ChangeBBAdvisor
This chapter discusses attitudes and attitude change. It defines attitudes as enduring combinations of motivational, emotional, perceptual and cognitive processes regarding aspects of the environment. Attitudes have three main components - cognitive, affective, and behavioral. Marketers can influence attitudes by changing one or more of these components. The chapter outlines different strategies for changing each component, such as using classical conditioning to change affect, providing information to change beliefs, or encouraging trial usage to change behavior. It also discusses factors that can weaken the relationship between attitudes and behaviors.
BB Chapter Five : Evaluating and Selecting AlternativesBBAdvisor
This chapter discusses how consumers evaluate and select alternatives. It covers the key steps in the consumer decision-making process: (1) identifying evaluative criteria, (2) measuring consumer perceptions of alternatives based on those criteria, and (3) applying decision rules to select an alternative. The chapter also examines how individual judgments can lack accuracy and be influenced by surrogate indicators. Marketers must understand consumers' evaluative criteria, perceptions, and decision rules in order to effectively position products.
The interaction between a sales personnel and the customer is crucial in shaping the customer's perception of the store and purchase experience. A knowledgeable, helpful and trustworthy salesperson can help address customer needs and queries, facilitate the purchase process, and leave the customer satisfied with an overall positive impression of the store.
Consumer online shopping behavior stats e briks infotechebriksinfotech
This document discusses consumer behavior and the consumer decision-making process. It describes the typical steps consumers go through as: 1) need recognition, 2) information search, 3) evaluation of alternatives, and 4) purchase. It notes that cultural, social, individual, and psychological factors influence consumers at each step. The document then provides more details on specific aspects of the consumer decision process, such as the types of internal and external sources used for information search and how involvement levels affect decision-making.
BB Practice Essay Questions And MCQ (Part Two Chapters 8-11)BBAdvisor
The document provides a summary of key concepts from chapters 8-11 on consumer perception and behavior. It includes review questions from the chapters on perception, learning, and memory. Multiple choice questions are also provided but without answers, for students to practice on their own. The document emphasizes applying knowledge of perception, learning, and memory to guide marketing decisions.
The document discusses how much product innovation and choice is optimal for consumers. It notes that while some choice is good, more choice does not necessarily mean better. Extensive choice can decrease satisfaction and motivation by overwhelming consumers with options. When assortments have many dimensions of variation, this leads to cognitive overload and regret with decisions. The level of choice should match consumer needs, and simplicity in offerings can help guide decisions. Product type also impacts the appropriate pace of refresh, with services requiring more transparency than durables.
This document summarizes the consumer decision making process. It involves 5 stages: need recognition, information search, alternatives evaluation, purchase decision, and post-purchase evaluation. In need recognition, internal or external stimuli motivate a need. In information search, consumers gather information from recommendations, experiences, and risk management. Alternatives are then evaluated based on factors like price, benefits, availability. The purchase decision involves choosing a product, brand, dealer, amount and time. Post-purchase involves evaluating performance versus expectations. Decision making can be extensive problem solving, limited problem solving, or routine response behavior based on involvement level.
The document provides guidelines for students to analyze buyer behavior concepts and their application to marketing strategy for a selected product. Students must choose a current product, as well as a competing brand, and analyze: 1) the relevant market and competitors, 2) the product's target markets based on demographics, psychographics, and behavioral segmentation, and 3) any potential target markets. The analysis should apply buyer behavior concepts to demonstrate differences between the marketing strategies of the chosen and competing brands.
This document summarizes key concepts about consumer decision making from a marketing lecture. It discusses:
1) The five stages of the consumer decision making process: need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.
2) Types of consumer buying decisions based on involvement: routine response, limited decision making, and extensive decision making. More involved purchases require more search and consideration of alternatives.
3) Cultural, social, and psychological factors that influence consumer decisions at each stage of the process, such as recommendations from personal contacts, brand perceptions, and efforts to reduce cognitive dissonance after purchase.
The document discusses key stages in a buyer's journey and how marketers can engage customers at each stage. It outlines three stages - the opportunity zones where buyers begin thinking about a need and notice casual solutions, the competitive zone where most marketers focus as buyers actively research options, and the opportunity zone again as buyers make decisions, use products, and become loyal or referred customers. The document emphasizes that most marketers focus on the competitive middle zone but greater opportunities exist in the early and late zones through strategies like lead nurturing, referral campaigns, and customer retention marketing.
The document summarizes the basic stages of a consumer's decision making process: 1) need recognition, 2) information search, 3) alternative evaluation, 4) purchase, and 5) post-purchase behavior. It describes each stage, including that a need arises when a consumer's current state differs from their desired state, and that consumers conduct internal and external searches to gather information on alternatives before making a purchase decision. The document stresses the importance of understanding the consumer buying process to determine effective marketing activities.
This document discusses various perspectives on consumer behavior, including:
1. It defines consumer behavior as the process people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services.
2. It discusses psychological processes like motivation, perception, learning, attitude formation, and decision-making that influence consumer behavior.
3. It explores external influences on consumer behavior including culture, subcultures, social class, reference groups, and situational determinants.
This document summarizes key concepts from Chapter 11 on situational influences on consumer behavior. It discusses how consumer situations consist of temporary environmental factors that form the context for consumer activities. It identifies different types of situational influences including physical surroundings, social surroundings, time, task definition, and antecedent states. It provides various examples of how these situational factors can influence behaviors like shopping, gift giving, and product choices.
Exposure, Attention and Interpretation -Consumer BehaviorAqib Syed
Exposure, Attention and Interpretation -Consumer Behavior
Exposure provides consumers with the opportunity to pay attention to available information but in no way guarantees it.
Exposure
Kinds of Exposure
Examples of exposure
Attention
Kinds of Attention
Examples of Attention
Interpretation
Kinds of Interpretation
Examples of Interpretation
The document discusses situational influences on buyer behavior and perception. It describes situational influences as factors outside the individual buyer that affect purchase decisions. These include physical surroundings, social surroundings, temporal perspectives, task definition, and antecedent states. Marketers should consider how these situational factors interact with products and buyers to influence choices. The document also discusses perception and how individuals select, organize, and interpret information differently based on their needs, experiences, and expectations. Marketers must be aware of perceptual biases and how customers perceive products relative to their self-image.
This document provides an overview of low-effort judgment and decision-making processes used by consumers for products they are not highly involved with or interested in. It discusses how consumers use shortcuts and heuristics to make quick judgments. These include the representativeness heuristic where consumers compare options to what is representative of a category, and the availability heuristic where judgments are based on what is easily recalled. The document also outlines various low-effort decision-making processes and choice tactics consumers may use, such as satisficing to find an option good enough, not best. It discusses how feelings and habits can influence low-involvement choices as well as the marketing implications of targeting such consumers.
Consumer behavior involves understanding why, what, who, when, and how consumers make purchasing decisions. It is influenced by internal factors like motivation, emotion, perception, and attitude, as well as external factors like culture and groups. Understanding consumer behavior allows businesses to create better marketing strategies by speaking directly to consumer needs and influencing their decision making process.
The document discusses the consumer buying decision-making process and buying motives. It describes the 5 stages of the consumer decision making process: problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase evaluation. It also categorizes buying motives as either emotional or rational for both products and retail patronage. The different types of emotional and rational motives that influence consumer purchasing decisions are explained.
Consumer behavior by Santanu Mukherjee (musan007@gmail.com)musan007
This document discusses consumer behaviour and the factors that influence it. It covers topics like the psychological processes underlying purchasing decisions, how consumers choose between brands, and their post-purchase behaviors. It also examines the various internal and external factors that shape perception and motivation, such as demographics, psychographics, culture, and reference groups. Models of consumer decision making are presented, including the five stage model of need recognition, information search, evaluation, purchase, and post-purchase evaluation. Segmentation is also discussed as a key part of marketing strategy.
The document summarizes several models of buyer behavior:
1. The economic model views buyers as rational actors seeking to maximize utility within their budget.
2. The learning model sees buying influenced by learned stimuli and responses.
3. The psychoanalytical model draws on Freudian psychology, viewing buyers as having deep-seated motives driving behavior.
4. The sociological model recognizes social influences like groups and class on buying decisions.
5. Systems models like the Nicosia and Howard-Sheth models conceptualize buyers as systems processing marketing stimuli into responses.
This document discusses factors that influence consumer behavior, including marketing mix, individual influences, and interpersonal influences. It outlines the consumer purchase decision process and different buying roles within families. It also summarizes different types of buying behavior such as high involvement, low involvement, variety seeking, and habitual buying. The stages of the consumer purchase decision process are identified as recognition of a problem, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. Social and cultural influences on consumer behavior are also briefly described.
The document discusses consumer buying behavior and the factors that influence purchase decisions. It describes the consumer buying decision process as having 5 stages: need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior. It then lists and explains the cultural, social, personal, and psychological factors that affect consumer decisions at each stage of the process. Finally, it outlines 4 types of buying behavior: complex, dissonance, habitual, and variety-seeking.
Chapter 12 Influence Of Culture On Consumer BehaviorAvinash Kumar
The document discusses how culture influences consumer behavior. It defines culture as the learned beliefs, values and customs shared by members of a society. Culture is transmitted through enculturation, acculturation, language, symbols, rituals and sharing. Marketers must understand a target culture to effectively appeal to consumers within that culture.
Family and its Influence : Consumer BehaviorKaushik Deb
With the exception of those very few people who are classified as hermits, most individuals interact with other people on daily basis, especially with members of their own families. The family commonly provides the opportunity for product exposure and trial and imparts consumption values to its members. As a major consumption group, the family is also a prime target for many product and services.
The document discusses several models of consumer behaviour, including Lawson's model of buying behaviour, factors that influence consumer behaviour, and the buyer decision process. It also covers behaviourist and cognitivist theories of consumer behaviour, and discusses models like the Engel-Kollat-Blackwell model, Howard & Sheth model, and Maslow's hierarchy of needs model.
The document provides an overview of chapters in a book on consumer behavior, including introductions to consumer behavior, the consumer research process, market segmentation and targeting, consumer motivation, personality and consumer behavior, consumer perception, consumer learning, attitude formation and change, communication processes, factors influencing consumer behavior, opinion leadership, and the consumer decision-making process. It lists the chapter titles and page numbers for each of the 11 chapters covered in the book. The document serves as a table of contents that outlines the topics and structure of the consumer behavior book.
Consumer behavior is studied based on concepts from psychology, sociology, anthropology, marketing, and economics. It is important to study consumer behavior because customers can no longer be taken for granted. Failure rates of new products are high, with only 56% of new products remaining on the market after 5 years and only 8% of new concepts making it to market, with 83% of those failing to meet objectives. All managers must become skilled at analyzing consumer motivation and behavior in order to succeed.
The document discusses consumer buying behavior and factors that influence purchase decisions. It covers various models of consumer behavior including the economic model, learning model, psychoanalytical model, and sociological model. It also discusses Maslow's hierarchy of needs, characteristics affecting consumer behavior, motives, habits, the buying process, and factors like culture, social groups, and personality that influence consumer decisions. Finally, it analyzes the Indian consumer market and classifications based on economic status.
The document discusses consumer buying behavior and the factors that influence consumer purchase decisions. It outlines a simple model of consumer behavior involving marketing stimuli, the buyer's black box of characteristics and decision making processes, and the buyer's response. It then discusses the psychological, social, cultural, and personal characteristics affecting consumer behavior and lists the stages in the buyer decision process.
This presentation discusses family decision-making. It defines a family as two or more related persons living together. It outlines the traditional family life cycle stages from bachelor to solitary survivor. It also discusses modernized life cycles. Family purchasing decisions are influenced by roles, power structures, stage in the family life cycle, and characteristics like culture and location. Marketing implications are that understanding the family life cycle helps with segmentation, promotions and effective channels. Studying the family life cycle provides insights into consumption at different stages.
The document discusses various factors that influence consumer behavior and models of consumer behavior. It describes cultural, social, personal, and psychological factors. It then explains several traditional and contemporary models of consumer behavior, including the economic model, learning model, psychoanalytical model, sociological model, Howard Sheth model, Nicosia model, Engel-Blackwell-Minard model, and Webster-Wind model. Each model is summarized with an example to illustrate how it applies to understanding consumer decisions.
The document outlines learning objectives and describes different types of buyer behavior, including consumers and business buyers. It then discusses the consumer buying decision process in 3 stages: need recognition, information search, and evaluation of alternatives leading to a purchase decision. It also describes factors that influence consumer behavior such as cultural, social, personal, psychological factors and types of buying behavior.
Consumer Behaviour- Influence of culturerainbowlink
Culture refers to the learned beliefs, values, and customs that regulate consumer behavior within a society. Culture provides order and guidance for important consumer decisions like what and where to eat. Cultural learning occurs through both formal and informal means. Issues in culture include enculturation, acculturation, the role of language and symbols, and the sharing of cultural rituals and artifacts. Common rituals include weddings, birthdays, and holidays, each with typical artifacts. Advertising aims to socialize consumers on topics like fashion, home decorating, and food and wine choices. Researchers measure culture through content analysis, consumer fieldwork, and value measurement instruments like the Rokeach Value Survey.
This document discusses several models of consumer buying behavior:
- Traditional models include the economic, learning, psychological, and sociological models.
- Contemporary models include the Howard-Sheth model, Nicosia model, Engle-Kollat-Blackwell model, EBM model, and organizational buying models.
- The Nicosia model explains consumer behavior as a system with stimuli as input and behavior as output across four fields: consumer/firm attributes, search/evaluation, purchase, and post-purchase.
The document discusses the consumer decision-making process of evaluating alternatives. It is the third step where consumers compare different solutions to a problem by looking at attributes such as performance, design, price and value for computers. Consumers will evaluate each brand based on these attributes and form beliefs about how each brand rates. They may consult others or salespeople for information. Consumers will compare brands in their consideration set based on relevant criteria to make their choice. Common criteria include country of origin, price, and brand reputation. Consumers may use decision heuristics or rules of thumb to make choices quickly.
The document discusses the consumer decision-making process of evaluating alternatives. It is the third step where consumers compare different solutions to a problem by looking at attributes such as performance, design, price and value for computers. Consumers will evaluate each brand based on attributes and form beliefs, consulting others or salespeople for information. They will consider brands in their evoked set and evaluate them based on determinate attributes that products differ on. Common evaluative criteria include country of origin, price, and brand reputation. Consumers may use heuristics, decision rules or cognitive models like compensatory or non-compensatory models to evaluate alternatives quickly and make a decision.
Presentation of material on Consumer Decision-Making, this presentation is suitable for students and lecturers majoring in production management and marketing, industrial engineering etc
The document summarizes key concepts in consumer behavior including:
1) The three phases of the consumer purchase process: pre-purchase, purchase, and post-purchase.
2) The different types of purchases consumers make: convenience shopping purchases and specialty purchases for consumers, and straight rebuy, modified rebuy, and new buy for business-to-business customers.
3) How consumers make decisions and marketers can use this information, including understanding the consumer decision-making process in detail.
Integrated Advertising Promotion and Marketing Communications 8th Edition Clo...LoisPeterss
This chapter discusses buyer behavior models for both consumers and businesses. For consumers, the key stages of the purchasing process are the information search stage and the evaluation of alternatives stage. There are three models that explain how consumers evaluate alternatives: the evoked set approach, the multiattribute approach, and affect referral. For businesses, purchasing decisions involve a buying center made up of various roles. The business purchasing process involves seven steps for new purchases.
Virtual Social Identity and Consumer BehaviourMahfud Achyar
“Consumer behavior can be defined as the decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services.”
- (Mathin Khan, 2006: Consumer Behaviour)
The document discusses consumer decision making. It outlines the consumer decision making process which includes need recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation. It also discusses the types of consumer decisions and factors that influence consumer decision making like marketing efforts, psychological factors, and socio-cultural environment. The goal is to understand the "how" and "why" of consumers' experiences with products and services.
This document discusses attitudes, persuasion, and decision making. It defines attitudes as lasting evaluations of people, objects, or issues. It also outlines Daniel Katz's four functions of attitudes: utilitarian, value-expressive, ego-defensive, and knowledge. The three components of attitudes are affect, behavior, and cognition. Hierarchy of effects models how these components impact one another. Attitudes can form through compliance, identification, or internalization. Major attitude theories and the managerial implications of persuasion are also summarized. Finally, the document outlines different types of consumer decisions and information search as well as how mental shortcuts and heuristics influence decision making.
Consumer's Choice: Brand Choice and Store Choice factors, Post purchase dissonance, Product use and non-use, Product disposition, Satisfaction and Dissatisfaction, Consumer Complaint Behavior, Satisfaction and Brand Loyalty, Strategic implications of post purchase behavior
The document discusses various aspects of consumer behavior, including the consumer decision-making process. It describes the stages consumers go through from need recognition to post-purchase evaluation. It discusses factors that influence consumer decisions at each stage, such as cultural, social, individual and psychological factors. It also discusses sources of information that consumers use during the information search stage, including personal sources, public sources, and marketer-dominated sources.
The document discusses various aspects of consumer behavior, including:
1. It outlines the consumer decision-making process and factors that influence it such as culture, personal characteristics, and psychological factors.
2. It describes the different stages consumers go through from need recognition to post-purchase evaluation, and the internal and external information sources that influence each stage.
3. It discusses concepts like cognitive dissonance and the different levels of involvement consumers have for various purchase decisions.
The document discusses various aspects of consumer behavior, including:
1. It outlines the typical consumer decision-making process that consumers go through, from need recognition to post-purchase behavior. This includes information search, evaluation of alternatives, and purchase.
2. It discusses factors that influence consumer behavior, such as cultural, social, individual, and psychological factors. It also discusses the roles of different individuals (initiator, influencer, decider, buyer, user) in purchase decisions.
3. It covers concepts like involvement levels, decision rules used by consumers when evaluating options, and ways to reduce post-purchase dissonance.
Consumer Decision Process and Problem Recognition.pdfMace47
When consumers want to buy something, they go through a series of steps to make a decision. These steps typically include:
Problem Recognition: This is the first step where consumers realize they have a need or want for something. It could be triggered by various factors like running out of a product, seeing an advertisement, or feeling a desire for something new.
Information Search: After recognizing the need, consumers start looking for information about possible solutions. They might ask friends, search online, read reviews, or visit stores to gather information about different options.
Evaluation of Alternatives: Once they have gathered information, consumers evaluate different options based on factors like price, quality, brand reputation, and personal preferences.
Purchase Decision: After comparing alternatives, consumers make a decision and purchase the product or service they believe will best satisfy their needs or wants.
Post-Purchase Evaluation: After buying the product, consumers evaluate whether it meets their expectations. If it does, they are likely to become satisfied customers and may even become repeat buyers. If not, they may experience buyer's remorse or seek alternative solutions.
Problem Recognition:
Problem recognition is the first stage in the consumer decision process where consumers become aware of a need or want. This can occur due to various factors such as:
Running out of a product or service.
Noticing a difference between the current state (what they have) and the desired state (what they want).
Experiencing a problem or discomfort that needs to be addressed.
Being influenced by external factors such as advertisements, recommendations, or social influences.
For example, someone might realize they need a new laptop because their current one is slow and outdated. This recognition of the problem triggers the consumer decision process, leading them to start searching for information and evaluating different options to fulfill their need for a new laptop.
This report summarizes Colin Dunn's work experience at Staples Business Advantage during his 4th co-op term. As a Sales and Marketing Associate, Colin was responsible for qualifying new business and maintaining existing accounts. The report focuses on understanding the five stages of the consumer purchase decision process: 1) need recognition, 2) information search, 3) alternative evaluation, 4) purchase decision, and 5) post-purchase evaluation. It provides examples of how Colin was able to apply his understanding of these stages to effectively market and sell products to customers at Staples Business Advantage.
Running Head CONSUMER DECISION-MAKING PROCESS .docxjoellemurphey
Running Head: CONSUMER DECISION-MAKING PROCESS 1
CONSUMER DECISION-MAKING PROCESS 7
Consumer Decision-Making Process
Name
Institution
The Consumer Decision-Making Process
Consumer decision making is an intricate process that comprises of different stages that include problem recognition, information search, and evaluation of alternatives. Different types of customers have their individual needs/requirements in their lives that make them to come up with varying decisions. At times, the decisions made by consumers can be complex depending on the views of a consumer concerning a particular product. In this regard, comprehending the critical issues underlying the consumer decision making process and making effective use of the current theories in practice is a common viewpoint by both the consumers and businesses (Connell, 2008).
There is a collective consensus among academics and researchers that the theory of consumer purchasing comprises of many varying stages. Based on different factors, researchers have formulated models and the theories that help to increase the general understanding on the consumer decision making process. Although these theories and models might show some variations at certain points, they lead to a similar understanding on the purchasing theory of consumers. Many models on consumer decision making process comprise of five main stages namely problem/need recognition, information search, alternatives comparison, purchase, and post-purchase assessment (Kim, 2007).
Apart from relying on the consumer purchasing models, marketing managers and businesses use the AIDA (Attention, Interest, Desire, and Action) model to acquire a solid understanding of the consumer decision making process. By applying the AIDA Model, individual businesses and marketing managers find it easier developing appropriate communication strategies and enhance their ability to communicate with consumers in a manner that responds to their desires and needs better (Barker & Angelopulo, 2005). This analysis provides a comprehensive analysis of all the stages of the consumer decision making process and establishes the significance of enhanced sales communication in each stage. The analysis includes a brief discussion on how sales persons can use the AIDA model to assist consumers in making decisions.
Need/Problem Recognition
Need/problem recognition is the first stage of the consumer decision making process. As stated by Kim (2007), problem recognition arises when a person comprehends the disparity between the desirable state of affairs and the real state of affair. The recognition of a need or problem depends on a wide range of situations such as the characteristics or behavior of an individual that eventually results of an idea or decision to purchase a given product or service. As an example, a potential customer may comprehend the ...
The document discusses consumer behavior and the consumer decision-making process. It covers topics like need recognition, information search, purchase evaluation, and post-purchase behavior. It also discusses factors that influence consumer decisions at different stages, like cultural, social, individual, and psychological factors.
Consumer decision making involves multiple stages and is influenced by both internal and external factors. The stages typically include problem recognition, information search, evaluation of alternatives, and product choice. Consumers draw on their beliefs, personality, attitudes, memories, and experiences during the decision making process. External influences like friends, salespeople, and media can also impact decisions and introduce uncertainty. While some argue consumers make choices randomly, there is evidence people generally follow a decision making process influenced by cognitive, behavioral, and social perspectives.
Assignment needs to make sure it relates to this week’s readings a.docxrock73
Assignment needs to make sure it relates to this week’s readings and lecture. The assignment also needs demonstrate an understanding of lesson concept and clearly present well-reasoned ideas and concepts.
Consumer Decision Making
Welcome class to week six of the course, we only have three weeks left to go, yeah. We have officially covered over the last five weeks the foundations of what marketing is, along with discussing in depth the elements (four P’s) of the marketing mix. This week, we are going to discover what I like to call the fifth P of the marketing mix, “people.” We are going to learn all about the consumer this week and the vital role “People,” also known as the consumers play within the wonderful world of marketing. Let’s not waste anymore time and jump right into the role of a consumer.
The Importance of Understanding Consumer Behavior
Consumers’ product and service preferences are constantly changing. Marketing managers must understand these desires in order to create a proper marketing mix for a well-defined market. So it is critical that marketing managers have a thorough knowledge of consumer behavior. Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the purchased goods or services. Understanding how consumers make purchase decisions can help marketing managers know how to meet the demands, needs, and criterion of the consumer.
The Consumer Decision Making Process
When buying products, particularly new or expensive items, consumers generally follow the consumer decision-making process, a five-step process used by consumers when buying goods or services. The five steps of the consumer decision-making process are: (1) need recognition, (2) information search, (3) evaluation of alternatives, (4) purchase, and (5) post-purchase behavior.
These five steps represent a general process that can be used as a guide for studying how consumers make decisions. It is important to note, though that consumers’ decisions do not always proceed in order through all of these steps. In fact, the consumer may end the process at any time or may not even make a purchase. Let’s discuss the five steps of the consumer decision-making process in greater detail.
1. Need Recognition
The first stage in the consumer decision-making process is need recognition. Need recognition is the result of an imbalance between actual and desired states. The imbalance arouses and activates the consumer decision-making process. Need recognition is triggered when a consumer is exposed to either an internal or an external stimulus, which is any unit of input affecting one or more of the five senses: sight, smell, taste, touch, and hearing.
Internal stimuli are occurrences you experience such as hunger or thirst. External stimuli are influences from an outside source such as someone’s recommendation of a new restaurant, the color of an automobile, the design of a package, a brand name mentioned by a friend, or a ...
1. The document provides an overview of a course on consumer education, including the course description, units, outcomes, and modules.
2. Module 1 focuses on consumer behavior and includes lessons on introduction to consumer behavior and perception.
3. The lesson on introduction to consumer behavior defines consumer behavior and discusses the consumer decision-making process and models used to evaluate alternatives.
Procrastination is a common challenge that many individuals face when it comes to completing tasks and achieving goals. It can hinder productivity and lead to feelings of stress and frustration.
However, with the right strategies and mindset, it is possible to overcome procrastination and increase productivity.
In this article, we will explore the causes of procrastination, how to recognize the signs of procrastination in oneself, and effective strategies for overcoming procrastination and boosting productivity.
As we navigate through the ebbs and flows of life, it is natural to experience moments of low motivation and dwindling passion for our goals.
However, it is important to remember that this is a common hurdle that can be overcome with the right strategies in place.
In this guide, we will explore ways to rekindle the fire within you and stay motivated towards your aspirations.
Inspire: Igniting the Spark of Human Potentialgauravingole9
Inspire: Igniting the Spark of Human Potential
Inspiration is the force that propels individuals from ordinary to extraordinary. It transforms ideas into innovations, dreams into realities, and individuals into icons. This article delves into the multifaceted nature of inspiration, exploring its sources such as nature, art, personal experiences, and the achievements of others, and its profound impact on personal growth, societal progress, and cultural evolution. Through the lens of historical figures and timeless quotes, we uncover how inspiration fuels creativity, drives societal change, and ignites the spark of human potential.
Understanding of Self - Applied Social Psychology - Psychology SuperNotesPsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
You may be stressed about revealing your cancer diagnosis to your child or children.
Children love stories and these often provide parents with a means of broaching tricky subjects and so the ‘The Secret Warrior’ book was especially written for CANSA TLC, by creative writer and social worker, Sally Ann Carter.
Find out more:
https://cansa.org.za/resources-to-help-share-a-parent-or-loved-ones-cancer-diagnosis-with-a-child/
2. Note on Consumer Decision Making Process
problem that we as consumers encounter all the time. When we found out a difference
between the actual state and a desired state, a problem is recognized. When we find a
problem, we usually try to solve the problem. We, in other words, recognize the need to
solve the problem. But how?
Information Search
When a consumer discovers a problem, he/she is likely to search for more information.
Kathleen may simply pay more attention to product information of a personal computer.
She becomes more attentive to computer ads, computers purchased by her friends, and
peer conversations about computers. Or, she may more actively seek information by
visiting stores, talking to friends, or reading computer magazines, among others.
Through gathering information, the consumer learns more about some brands that
compete in the market and their features and characteristics. Theoretically, there is a total
set of brands available to Kathleen, but she will become aware of only a subset of the
brands (awareness set) in the market. Some of these brands may satisfy her initial buying
criteria, such as price and processing speed (consideration set). As Kathleen proceeds to
more information search, only a few will remain as strong candidates (choice set).
Evaluation and Selection of Alternatives
How does the consumer process competitive brand information and evaluate the value of
the brands? Unfortunately there is no single, simple evaluation process applied by all
consumers or by one consumer in all buying situations.
One dominant view, however, is to see the evaluation process as being cognitively driven
and rational. Under this view, a consumer is trying to solve the problem and ultimately
satisfying his/her need. In other words, he/she will look for problem-solving benefits
from the product. The consumer, then, looks for products with a certain set of attributes
that deliver the benefits. Thus, the consumer sees each product as a bundle of attributes
with different levels of ability of delivering the problem solving benefits to satisfy his/her
need. The distinctions among the need, benefits, and attributes are very important. One
useful way to organize the relationships among the three is a hierarchical one (Figure 2).
Although simplified, Figure 2 is an example of how a bundle of attributes (i.e., a product
or, more specifically, personal computer) relates to the benefits and underlying needs of
Kathleen.
2
3. Note on Consumer Decision Making Process
Helps Me Survive
Underlying Needs Babson MBA Pogram
Doesn’t Break Computational
Benefits Portability Economy Horse Power
down
Warranty
Attributes Size
Brand Software CPU Speed
Reputation Price
Bundle
Hard Drive Size
GlobeNet
Ready
Figure 2 Hierarchical View of Needs, Benefits, and Attributes
From this figure and the preceding discussion, you might recognize that the product
attributes are relevant and important only to the extent that they lead to a certain set of
benefits. Likewise, benefits are meaningful only if they can address the problem and be
instrumental to satisfy the underlying need. As the underlying need is often personal,
consumers differ as to their beliefs about what product benefits and attributes are more
(or less) important and relevant in satisfying their needs. Based on their personal
judgment on importance of benefits and attributes, consumers develop a set of attitudes
(or preferences) toward the various brands. One may express his/her preferences of the
brands in terms of ranking, probability of choice, and so forth.
Decision Implementation
To actually implement the purchase decision, however, a consumer needs to select both
specific items (brands) and specific outlets (where to buy) to resolve the problems. There
are, in fact, three ways these decisions can be made: 1) simultaneously; 2) item first,
outlet second; or 3) outlet first, item second.2 In many situations, consumers engage in a
simultaneous selection process of stores3 and brands. For example, in our Kathleen’s
personal computer case, she may select a set of brands based on both the product’s
technical features (attributes) and availability of brands in the computer stores and mail-
order catalogs she knows well. It is also possible, that she decides where to buy (e.g.,
CompUSA in her neighborhood) and then chooses one or two brands the store carries.
Once the brand and outlet have been decided, the consumer moves on to the transaction
(“buying”).
3
4. Note on Consumer Decision Making Process
Post-purchase Evaluation
Post-purchase evaluation processes are directly influenced by the type of preceding
decision-making process. Directly relevant here is the level of purchase involvement of
the consumer. Purchase involvement is often referred to as “the level of concern for or
interest in the purchase” 4 situation, and it determines how extensively the consumer
searches information in making a purchase decision.5 Although purchase involvement is
viewed as a continuum (from low to high), it is useful to consider two extreme cases here.
Suppose one buys a certain brand of product (e.g., Diet Pepsi) as a matter of habit
(habitual purchase). For him/her, buying a cola drink is a very low purchase involvement
situation, and he/she is not likely to search and evaluate product information extensively.
In such a case, the consumer would simply purchase, consume and/or dispose of the
product with very limited post-purchase evaluation, and generally maintain a high level of
repeat purchase motivation (Figure 3).
Simple Repeat Purchase
Purchase Product Use Disposition
Evaluation Motivation
Figure 3 Low Involvement Purchase
Source: Hawkins, Best, and Coney (1983)
However, if the purchase involvement is high and the consumer is involved in extensive
purchase decision making (e.g., personal computer), he/she is more likely to be involved
in more elaborate post-purchase evaluation – often by questioning the rightness of the
decision: “Did I make the right choice? Should I have gone with other brand?” This is a
common reaction after making a difficult, complex, relatively permanent decision. This
type of doubt and anxiety is referred to as post-purchase cognitive dissonance (Figure 4).
Post-purchase
Dissonance Dissatisfaction
Elaborate Repeat Purchase
Purchase Product Use Disposition
Evaluation Motivation
Figure 4 Elaborate Post-purchase Evaluation
Source: Adopted from Hawkins, Best, and Coney (1983)
According to the research, the likelihood of experiencing this kind of dissonance and the
magnitude of it is a function of:6
The degree of commitment or irrevocability of the decision,
The importance of the decision to the consumer,
4
5. Note on Consumer Decision Making Process
The difficulty of choosing among the alternatives, and
The individual’s tendency to experience anxiety.
Because dissonance is uncomfortable, the consumer may use one or more of the
following approaches to reduce it:7
Increase the desirability of the brand purchased.
Decrease the desirability of rejected alternatives.
Decrease the importance of the purchase decision.
Reject the negative data on the brand purchased.
If the dissonance about the purchase is not reduced, the anxiety may transform into a
dissatisfaction (general or specific). Certainly, this negative experience leads to a new
problem recognition (Figure 1), and the consumer will engage in another problem solving
process. The difference, however, is that in the next round of process, memory of the
previous negative experience and dissatisfaction will be used as part of information.
Therefore, the probability for the unsatisfactory brand to be re-selected and repurchased
will be significantly lower than before.
The Hierarchy of Effects
Another widely-used model in marketing that attempts to explain consumer decision
making process is called the hierarchy of effects model. Although different researchers
developed slightly different models, the basic idea is the same: people experience a
sequence of psychological stages before purchasing a product. Such a model is provided
in Figure 5. 8
Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Unawareness
Figure 5 A General Model of the Hierarchy of Effects
Source: Adopted from Delozier (1976)
5
6. Note on Consumer Decision Making Process
Originally conceived to explain how advertising affects consumer’s purchase decisions,
the hierarchy of effects (HOE) model focuses on consumer learning that takes place as
he/she processes information from the external world. The HOE model begins with the
state where a consumer has no awareness about the brand (unaware) then develops
awareness triggered by external stimuli, such as advertising message or “word of mouth.”
As he/she obtains and processes more information, the consumer develops more specific
knowledge about the brand. The knowledge, then, is used as basis to form a liking (or
disliking), leading to a preference of brand(s) relative to the others. However, people
need to be pushed beyond the preference stage to actually buy the brand of preference.
The preference stage, after all, simply means that the consumer has formed a preference
psychologically. Now it takes conviction for him/her before actually buying the brand.
By now, you might have realized at least two points. One, it seems reasonable that not all
the consumers are at the same stage. For example, Susan may be in the unawareness
stage relative to Samuel Adams beer, but Melissa may be in the preference stage. Two, it
also seems reasonable that not all people at one stage move onto the next stage. For
example, some consumers who have formed preference to Contadina pasta may not form
any conviction to buy the product. Furthermore, some people may need more time before
moving onto the next stage than others.
The HOE model is quite similar to the consumer information processing model because it
also assumes that people are cognitively driven, thinking information processors.
Controversy exists,9 of course, as to whether that is necessarily true. Some may claim
that they often form liking and preference (emotional response or feeling) toward brands
before developing cognitive judgment (knowledge or thinking) on them. Others argue
that people form preference and knowledge simultaneously. Although each argument has
its own support, the general model (cognition first, preference second) seems to be valid
especially in relatively complex – or high-involvement – decision making situations (e.g.,
cars, computers), providing a conceptual framework for thinking about the sequence of
events which begins from the initial awareness to the final action (i.e., purchasing).
Now, so what?
We have reviewed two of the most widely accepted models of consumer decision making
process. These are based on theories and research of social psychology, consumer
behavior, and marketing. As managers rather than academics, however, we have several
more tough questions to ask. Here are some of them:
The idea of the information processing model seems reasonable. But, we know that
we as individuals are not living in a vacuum. That is, when we are making a purchase
decision, we are constantly influenced by other factors than just information, such as
family, friends, cultural values, social class, or subculture. Oh, what about
physiological needs, such as sex, hunger, safety? Might these also affect which brand
6
7. Note on Consumer Decision Making Process
we choose and buy? How and where do these factors play roles in the information
processing model?
What would be some of the practical implications of the information processing
model for a marketing manager who is trying to market, say, mountain bikes? If
he/she knows about the information processing model, what could he/she do
differently in, for example, the new product introduction?
What would be the implications of the HOE model for marketing managers? For
example, what should an advertising manager measure to know the “effectiveness” of
his/her advertising campaign? Should he/she measure “sales”?
Under what circumstances consumers are more likely to develop “liking (feeling)”
first, “knowing (thinking)” second? What would be some of the products/services in
those situations? Why?
7
8. Note on Consumer Decision Making Process
NOTES
1
See also Schiffman, Leon G. and Leslie Lazar Kanuk (1997), Consumer Behavior, Upper Saddle River,
New Jersey: Prentice Hall. and Solomon, Michael R. (1996), Consumer Behavior: Buying, Having, and
Being, Englewood Cliffs, New Jersey: Prentice Hall. For more detailed discussions and paper citations,
refer to Engel, James F., Roger D. Blackwell, and Paul W. Minard (1993), Consumer Behavior, 7th ed., Fort
Worth, Texas: Dryden Press. and Wilkie, William L. (1990), Consumer Behavior, 2nd ed., New York, New
York: John Wiley & Sons.
2
Hawkins, Del I., R. J. Best, and K. A. Coney (1983), Consumer Behavior: Implications for Marketing
Strategy, Plano, Texas: Business Publications Inc.
3
Consumers may also consider non-store shopping (internet web pages, catalogues, CUC International,
etc.).
4
Hawkins, Del I., R. J. Best, and K. A. Coney (1983), Consumer Behavior: Implications for Marketing
Strategy, Plano, Texas: Business Publications Inc.
5
Another type of involvement that influences the extent to which the information is processed is called
product involvement. The product involvement is referred to as the importance the consumer attaches to a
particular product, as opposed to the purchase situation (purchase involvement). For example, one may
have a low product involvement (e.g., mustard) but have a high purchase involvement because he/she has
invited important friends for a cook-out this weekend and he/she wants to make sure that he/she can impress
them with a gourmet Dijon mustard, not with the usual “yellow kind.” A high level of product involvement
also increases the extent to which the consumer is engaged in information search, evaluation, and post-
purchase evaluation.
6
Hawkins, Del I., R. J. Best, and K. A. Coney (1983), Consumer Behavior: Implications for Marketing
Strategy, Plano, Texas: Business Publications Inc.
7
Ibid.
8
The figure is adopted from DeLozier, M. Wayne(1976), The Marketing Communications Process, New
York, New York: McGraw-Hill, Inc. For a more academic treatment, see Lavidge, R. J. and Steiner (1961),
“A Model for Predictive Measurements of Advertising Effectiveness,” Journal of Marketing, vol. 25,
October, pp. 59-62. And Palda, Kristian S.(1966), “The Hypothesis of a Hierarchy of Effects: A Partial
Evaluatio,” Journal of Marketing Research, vol. 3, February, pp. 13-24.
9
See also Farris, Paul W. and John A. Quelch (1987), Advertising and Promotion Management: A
Manager’s Guide to Theory & Practice, Malabar, Florida: R. E. Krueger Publishing Co.
8