consumer decision process.ppt

7/30/2019 consumer decision process.ppt

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Consumer buying decision process


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Consumer Buying Decision Process

Who Makes the Buying Decision

Types of Buying Decisions

Stages in the Buying Process

Marketers Must Identify and Understand:


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Understand

Buying roles Buying behavior

Buying decision process

Initiator

Influencer

Decider

Buyer User


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Understand


Buying decision

process

Complex buying behavior

Dissonance-reducingbuying behavior

Habitual buying behavior

Variety-seeking buyingbehavior


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Understand


Buying decision

process

Five stages in the

consumer buying

process The amount of time

spent in each stage

varies according to

several factors


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Figu re 6-2:

Five-Stage Model of the Consumer Buy ing Process


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Figu re 6-3:

Successive Sets Involved in Consumer Decision Making


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Need Recognition

Preferred State

Marketing helps

consumers recognize

(or create) an imbalance

between present statusand preferred state

When a current product isnt

performing properly

When the consumer is runningout of an product

When another product seems

superior to the one currently used


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The information search stage

Search refers to mental as well as physical information

seeking and processing activities that one engages in to

facilitate decision making regarding some goal object in

the market place

search

Purpose of

search

Source of

search

Pre

purchase

search

Ongoing

search internal external


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Pre purchase search

Takes place when the consumer has

recognized the problem.

Ongoing search

Search activities which are independent of

specific needs and problems.

Problem has not been recognized.

Searching with interest, no demand ofproduct.


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The information search

stage

An internal search

Occurs when consumer recognizes

problem

involves the scanning of one's memory to

recall previous experiences or knowledge

concerning solutions to the problem--

often sufficient for frequently purchased

products.

An external search may be necessarywhen past experience or knowledge is

insufficient, the risk of making a wrongpurchase decision is high, and/or the cost of

gathering information is low.

Personal sources

(friends and family)

Public sources (rating

services like Consumer

Reports)

Marketer-dominated

sources (advertisingor sales people)

The evoked set: a group ofbrands evaluated positive for

purchase and consumption


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Factors influencing the external

search

a. Market conditions

Availability of information

alternatives to consider

Location of outlets

External search is greater when

Prices are higher and the price differences

between brands are greater Perception that there exists substantial

differences among product alternatives


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Individual factors-

Greater market experience with a product isassociated with lower degree of external search.

Socio economic characteristics e.g. high

educational level

Level of stimulation from environment Situational factors-

Search may be reduced if

There is urgency

Time available is less

Special opportunities, special prices


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Perceived risk-

Uncertainty regarding the most appropriate

purchase decision influences the information

gathered


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Information evaluation process

The alternatives found out in the previous

process are compared to find out the best

solution


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Information evaluation process

Evaluative or choice criteria There may be a number of

choice criteria

These are the standards andspecifications the consumeruses in evaluating theproducts and brands.

No. and type of criteria mayvary by product e.g.evaluation of grocery items &

of property or durables.


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Subsets of brands for evaluation of

alternatives

a. Evoked set- Those brands (few select

brands) evaluated positively forpurchase and consumption

b. Inert set Consists of those brands thatthe consumers have failed toperceive of any advantage ofbuying ( neitherve nor +ve)

c. Inept set- Brands that have been

rejected from purchaseconsideration because ofunpleasant experience


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Evaluating the alternatives

2 broad approaches-

Choice by processing

brands

Choice for processing

attributes

Buyer assesses one

brand and Examineseveral attributes and

Compares them with

other brands

Consumer examines

specific Attribute andcompares several

other brands on that

attribute

Brand processing Attribute processing

Evaluation of

alternatives

Consumers use compensatory/ non compensatory rules for this decision

making


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NON COMPENSATORY DECISION RULES

Good performance on one evaluativecriteria doesnt offset/ compensate the forthe poor performance of another

evaluative criteria of a brand.1.Disjunctive Rule

Consumer establishes the minimum acceptableperformance standards which each brandmust meet

Any brand will be acceptable if it exceeds theminimum standard/ criterion.


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2. Conjunctive rule

Requires the customers to establish

minimum levels of acceptability on

different attributes of each brand

Then for each criteria a cut off point will be

set below which the brand will not be

considered.


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3. Lexicographic Rule

Allows additional evaluative criteria to be

incorporated in addition if necessary

This happens when choice cant be made

by evaluating the important criterion


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COMPENSATORY DECISION

RULE

Allows perceived favorable brand

attributes or evaluative criterion to offset

unfavorable evaluations

Brand strengths can compensate for brand

weakness.

Finally , after evaluation the decision has to be made regarding buying or nonbuying of the product or brand


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Post-purchase Behavior:

Consumers expectations are compared to

performance

Post-purchase satisfaction influences future

behavior

Purchasing behavior

Word-of-mouth communications


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Marketers should attempt to influence andmonitor post-purchase behavior

Post-purchase communications reduce dissonance,

returns, and order cancellations

Talk with customers to discover new uses forexisting products

Investigate methods of product disposal


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Figu re 6-4:How Consumers Use or Dispose

of Products


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Discussion Scenario

Think about the Internet . . .

How can marketers capitalize on the Internet to

influence or monitor post-purchase behavior?Identify and discuss the different means bywhich the Internet has impacted how consumersuse or dispose of products.

consumer decision process.ppt

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