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Consumer decision Making Process
Problem recognition
 Occurs when the consumer perceives a need and becomes
  motivated to solve the problem.
 Sources of Problem Recognition:
    Out of stock – consumers use their existing supply and it must be
       replenished
      Dissatisfaction – consumers become dissatisfied with the current
       state of affairs and/or product being used
      New needs/wants – changes in consumers’ lives often result in new
       needs/wants
      Related products/purchases – other needs are stimulated by the
       purchase of a product
      Market-induced recognition – marketers encourage consumers to
       be dissatisfied with their current situation, and they try to create
       new needs and wants
      New products – innovative products are introduced and brought to
       the attention of consumers
Motivation
                                       Motivations in subconscious


                                       • Strong inhibitions
                                       • Symbolic meaning of products and
                                         brands
                                       • Surrogate behaviors
                                       • Complex and unclear motives


Maslow’s Hierarchy of Needs                   Freudian Psychoanalytic



                     Probing the Minds of Consumers
  In-depth interviews                          Association tests
  Projective techniques                        Focus groups
Information Search
 Once consumers perceive a problem or need they begin to
  search for information needed to make a purchase decision
 sources of information
    Personal sources – friends, relative, co-workers
    Market sources – information from advertisers,
     salespeople, in-store displays and the Internet
    Public sources, etc. – articles in magazines or
     newspapers
    Personal experience – handling, examining, or using the
     product
Perception Process
 Process by which an individual receives, selects, organizes, and
  interprets information to create a meaningful picture of the world
 It depends on internal factors, such as a person’s beliefs, experiences,
  needs, moods, and expectations.
 Selective perception occurs as:
    Selective exposure – occurs as consumers choose whether to make
     themselves available to information
    Selective attention – occurs when the consumer chooses whether to focus
     attention on certain stimuli while excluding others.
    Selective comprehension – occurs when consumers interpret information
     on the basis of their own attitudes, beliefs, motives, and experiences.
    Selective retention – occurs as consumers cannot recall all of the
     information they receive but may choose to retain information of particular
     relevance.
Evaluation of Alternatives
 In this stage, the consumer compares the various brands or products he or
  she has identified as being capable of solving the consumption problem or
  satisfying needs.
 The brands identified as potential purchase options are referred to as the
  consumer’s evoked set.
 The goal of most advertising and promotional strategies is to increase the
  likelihood that a brand will be included in the consumer’s evoked set and
  considered during alternative evaluation
 Evaluative criteria are the dimensions or attributes of a product or service
  that are used to compare different alternatives.
     Objective– based on concrete attributes that are tangible and can be
      directly judged or experienced by the consumer, such as price or
      warranty.
     Subjective – based on abstract attributes that are intangible and more
      subjective in nature, such as style, appearance, or product image.
Attitude
                                           Multiattribute Attitude Models




 How marketers can influence consumer attitudes, including:
    Increasing or changing the strength or belief rating of a brand on a
     particular attribute.
    Changing consumers’ perceptions of the importance or value of an
     attribute.
    Adding a new attribute to the attitude formation process.
    Changing perceptions of beliefs ratings for a competing brand.
Purchase Decision and Evaluation
Pre-evaluation       Decision          Post evaluation


                                          Satisfaction
  Integration     Purchase intention
   processes

                                        Dis-satisfaction
  Heuristics
                    Brand loyalty



Affect referral                            Cognitive
decision rule                             dissonance
Thank you

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Perspectives on consumer Behaviour

  • 1.
  • 3. Problem recognition  Occurs when the consumer perceives a need and becomes motivated to solve the problem.  Sources of Problem Recognition:  Out of stock – consumers use their existing supply and it must be replenished  Dissatisfaction – consumers become dissatisfied with the current state of affairs and/or product being used  New needs/wants – changes in consumers’ lives often result in new needs/wants  Related products/purchases – other needs are stimulated by the purchase of a product  Market-induced recognition – marketers encourage consumers to be dissatisfied with their current situation, and they try to create new needs and wants  New products – innovative products are introduced and brought to the attention of consumers
  • 4. Motivation Motivations in subconscious • Strong inhibitions • Symbolic meaning of products and brands • Surrogate behaviors • Complex and unclear motives Maslow’s Hierarchy of Needs Freudian Psychoanalytic Probing the Minds of Consumers In-depth interviews Association tests Projective techniques Focus groups
  • 5. Information Search  Once consumers perceive a problem or need they begin to search for information needed to make a purchase decision  sources of information  Personal sources – friends, relative, co-workers  Market sources – information from advertisers, salespeople, in-store displays and the Internet  Public sources, etc. – articles in magazines or newspapers  Personal experience – handling, examining, or using the product
  • 6. Perception Process  Process by which an individual receives, selects, organizes, and interprets information to create a meaningful picture of the world  It depends on internal factors, such as a person’s beliefs, experiences, needs, moods, and expectations.  Selective perception occurs as:  Selective exposure – occurs as consumers choose whether to make themselves available to information  Selective attention – occurs when the consumer chooses whether to focus attention on certain stimuli while excluding others.  Selective comprehension – occurs when consumers interpret information on the basis of their own attitudes, beliefs, motives, and experiences.  Selective retention – occurs as consumers cannot recall all of the information they receive but may choose to retain information of particular relevance.
  • 7. Evaluation of Alternatives  In this stage, the consumer compares the various brands or products he or she has identified as being capable of solving the consumption problem or satisfying needs.  The brands identified as potential purchase options are referred to as the consumer’s evoked set.  The goal of most advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumer’s evoked set and considered during alternative evaluation  Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives.  Objective– based on concrete attributes that are tangible and can be directly judged or experienced by the consumer, such as price or warranty.  Subjective – based on abstract attributes that are intangible and more subjective in nature, such as style, appearance, or product image.
  • 8. Attitude Multiattribute Attitude Models  How marketers can influence consumer attitudes, including:  Increasing or changing the strength or belief rating of a brand on a particular attribute.  Changing consumers’ perceptions of the importance or value of an attribute.  Adding a new attribute to the attitude formation process.  Changing perceptions of beliefs ratings for a competing brand.
  • 9. Purchase Decision and Evaluation Pre-evaluation Decision Post evaluation Satisfaction Integration Purchase intention processes Dis-satisfaction Heuristics Brand loyalty Affect referral Cognitive decision rule dissonance