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ConsumerBehavior-6
Decision Making Process & More
Danny AbramovichMarketing Plan Specialist
1. Management2. Marketing3. Research4. Segmentation5. Consumer Behavior-46. Creativity
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Course Schedule 4 Part 2
1. Management2. Marketing3. Research4. Segmentation5. Consumer Behavior6. Creativity
part3
part2
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Management
Marketing
Marketing Research
Market Segmentation
Consumer Behavior
5. Consumer Behavior4Methodology
© Danny Abramovich
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5. CB 4 DefinitionConsumer
Behavior
How individuals or groups acquire, use and dispose of products, services, activities and ideas, in order to satisfy needs and desires over time.
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5. What Affects CB?
What Affects Consumer Behavior?
5.1 Psychological Core (Internal Process)
5.2 Decision Making Process5.3 Consumer’s Culture (External Process)
5.4 Consumer Behavior Outcomes
üü
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5. What Affects CB?
Decision Making Process
Consumer Behavior Outcomes
Ø
Ú
Psychological CoreInternal Process
Consumer’s CultureExternal Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
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5.2 Decision Making Process
Decision Making Process
Ø
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
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5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
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5.2 Decision Making ProcessResearchers begin to realize thatdecision-makers evaluate the effort required to make a particular choice, and only than he or she chooses a strategy best suited to the level of effort required!
Less rational when choosing art, music,or even a spouse!
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-process
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Problem recognition occurs when the consumer realizes a difference between his or her current state of affairs and some desired/ ideal state:
Çbecomes aware of a need!
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Ç seeks information on how to fulfill his needs!
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5.2 Decision Making Process
External Search
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Internal search
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Ind. ArticlesFriends(organic)
Non commercial
AdvertsSales PersonCommercial
Not personalPersonal
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Product knowledge
Am
ount
of s
earc
h
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Evaluation of Alternatives
Çanalyzes the pro’s and con’s of most choices!
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Evaluation of Alternatives
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5.2 Decision Making Process
Types of perceived risk when evaluating alternatives:ü Functionalü Financialü Physical-Safetyü Socialü Psychologicalü Time
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Evaluation of Alternatives
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5.2 Decision Making Process
Inert Set - I am aware of the brandbut will not buy it.
Inept Set - I am aware of thebrand but will not consider buying it.
Evoked Set - Brands easily retrieved.
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Evaluation of Alternatives
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5.2 Decision Making Process
Decision-making-processAll available Brands
Brand A Brand B Brand C Brand D Brand E
Brand F Brand G Brand H Brand I Brand J
Brand Brand L Brand M Brand N Brand O
Evoked Set of BrandsBrand B Brand E
Brand I
Brand M
Brand F
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All Brands
Known Brands
Unknown Brands
Unacceptable Brands
Overlooked Brands
Indifferent Brands
Acceptable Brands
Not Purchased Brands
Purchased Brands
Evoked Set J Inept Set K Inert Set L
5.2 Decision Making Process
Decision-making-processEvoked Set
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5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Problem recognition
Information Search
Evaluation of Alternatives
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Acceptable Brands
Not Purchased Brands
Purchased Brands
5.2 Decision Making Process
Decision-making-processEvoked Set & the Country of Origin
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5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Evoked Set J
Problem recognition
Information Search
Evaluation of Alternatives
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Ç chooses among the available options to satisfy his needs!
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-process
Choice
Problem Recognition
Search
Alternative Evaluation
Post acquisition evaluation
High-Involvement Decision
Low-InvolvementDecision
Extensive Search Limited Search
Extended alternative evaluation
Limited alternative evaluation
Complex Choice Simple Choice
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processMarket place §Market space
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processMarket place §Market spaceActors = customer & shoppers § web surfer
Cast = salespeople & shoppers § www.auctions
Setting = store-ambiance § e-music
Shoppers = Co-consumers = Social surroundings
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processMarket place §Market spaceSurroundings: social & physical § socialTemporal factors: time & mood § timeShopping Experience: loyalty cards, shop-in-shop, one-stop-shop, theme shopping: POP Stimuli: “5 senses & perceptions” (ref. 2.1)Sales Interactions: place-based media
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Outcomes
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Evaluation of Alternatives
Purchase Decision
Post Purchase Outcomes
Çcompares expectations with the actual experience for future consideration to fulfill his needs!
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-processProblem recognition
Information Search
Post Purchase Outcomes
Purchase Decision
Evaluation of Alternatives
Ethical Issue: NeuroMarketingUses medical equipment such as fMRI (functional Magnetic Resonance Imaging) to identify the combinationof words & images thatpush the “buy buttons”.
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5.2 Decision Making Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Decision-making-process
Post-perception of quality: got vs. expected!Cognitive dissonance (CD): as people havea need for consistency in their beliefs and behaviors, certain decisions may resultin psychological tension. This is called CD.Product disposal: environmentalism per culture.
Market place §Market space
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5. What Affects CB?
What Affects Consumer Behavior?
5.1 Psychological Core (Internal Process)
5.2 Decision Making Process5.3 Consumer’s Culture (External Process)
5.4 Consumer Behavior Outcomes
üüüü
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5. What Affects CB?
Decision Making Process
Consumer Behavior Outcomes
Ø
Ú
Psychological CoreInternal Process
Consumer’s CultureExternal Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
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5.3 Consumer’s Culture
Consumer’s CultureExternal Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
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5.3 Consumer’s Culture
External Processesü Regional and Ethnic Influencesü Age, Gender, and Household Influencesü Reference Groups
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
External-process
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5. What Affects CB?
What Affects Consumer Behavior?
5.1 Psychological Core (Internal Process)
5.2 Decision Making Process5.3 Consumer’s Culture (External Process)
5.4 Consumer Behavior Outcomes.
üüüü üü
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5. What Affects CB?
Decision Making Process
Consumer Behavior Outcomes
Ø
Ú
Psychological CoreInternal Process
Consumer’s CultureExternal Process
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
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5.4 Consumer Behavior Outcomes
Consumer Behavior Outcomes
Ú
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
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5.4 CB Outcomes
ü CB Can Symbolize Who We Are.
ü CB Can Diffuse Throughout a Market.
ü CB Can Have Negative Chain Reactions.
5.1 Psychological Core (Internal Process)5.2 Decision Making Process5.3 Consumer’s Culture (External Process)5.4 Consumer Behavior Outcomes
Consumer’s-behavior-outcomes
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5. What Affects CB?
What Affects Consumer Behavior?
5.1 Psychological Core (Internal Process)
5.2 Decision Making Process5.3 Consumer’s Culture (External Process)
5.4 Consumer Behavior Outcomes
üüüü üüüü
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Management
Marketing
Marketing Research
Market Segmentation
Consumer Behavior
Creativity
6. Creativity 4 Methodology
© Danny Abramovich