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Thaksin University Consumer decision making process
Chapter 11 Consumer decision making process Consumer Behavior
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What is a decision?
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Levels of consumer decision making
Extensive problem solving Limited problem solving Routinized response behavior Chapter 2 Consumer Behavior Analysis
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Types of purchase or consumption decisions
Decision category Alternative A Alternative B Basic purchase or consumption decision brand purchase pr consumption decision To purchase or consume a product (or service) To purchase or consume a standard quantity Not to purchase or consumer a product (or service) To purchase or consume more or less than a standard quantity
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Models of consumers : four views of consumer decision making
An economic view A passive view A cognitive view An emotional view
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An economic view Economic man theory
To behave rationally in the economic sense Be aware of all available product alternatives Be capable of correctly ranking each alternative in terms of its benefits and disadvantages Be able to identify the one best alternative
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A passive view The passive model of the consumer
Quite opposite to the rational economic view of consumer
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A cognitive view The cognitive model
Consumers are viewed as information processors.
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An emotional view The emotional or impulsive model of consumer decision making Feedback reactions Goal setting Formation Of a goal intention Action planning Action Initiation and control Goal attainment/ failure
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6Ws 1H Who is target market? What does the market buy?
Why does the market buy? Who participates in the buying? When does the market buy? Where does the market buy? How does the market buy? 6Ws 1H Occupant Objects Objectives Organization Occasion Outlets Operation 7Os
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A Model of Consumer Decision Marking
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Consumer Decision Making
External Influence Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Input Consumer Decision Making Psychological Field 1. Motivation Self concept 2. Perception Life Style 3. Learning Values 4. Personality 5. Attitudes Need Recognition Prepurchase Search Evaluation of Alternatives Process Experience Postdecision Behavior Purchase 1. Trial 2. Repeat purchase A Simple Model of Consumer Decision Making Output Postpurchase Evaluation
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Input Marketing inputs Sociocultural inputs
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Evaluation of Alternatives
Process Need Recognition Prepurchase Search Evaluation of Alternatives
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Need Recognition Need Recognition Occurs By : Running Out of
Consumer’s ideal State Need Recognition Occurs By : Running Out of a Product Inadequate Product Creating New Needs Consumer’s Actual State Opportunity Recognition Exposure to Different or Better-Quality Products
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Prepurchase search Types of Search Information sources
Prepurchase- an explicit search for information. Ongoing search - browsing used by veteran shoppers for up- to-date information. Information sources Internal sources - memory scan to assemble information. External sources - information obtained from advertisements, friends or people watching.
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Prepurchase search Information searches
Deliberate search is the result of directed learning. Accidental search is the result of incidental learning.
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Alternative prepurchase information sources for laptop
Personal Impersonal Friends Neighbors Relatives Coworkers Computer salespeople Newspaper articles Magazine articles Consumer reports Direct-mail brochures Information from product advertisements Internal web sites
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How much search occours?
Purchase is important Value style and image Need to learn more about purchase Search activity is greater when : Information is easily obtained Consumers are younger, Better-educated Women shop more than men
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Experience First-time purchase No past experience because the product is new Unsatisfactory past experience within the product category Social acceptability The purchase is for a gift The product is socially visible
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Evaluation of Alternatives
Pre-Purchase Evaluation of Alternatives Product feature must match decision criteria What are my options? Which is best? Compare and contrast Evaluation attributes Salient attributes Determinant attributes
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Evaluation of Alternatives
All alternatives Evoked Set Actively Considered Inert Set Not Entering consideration Inept Set Aware of, but would not buy Selected Rejected
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Heuristics Common Heuristics Country of Origin Brand Loyalty Retail
Outlets Product Signal Price/Quality Relationship Market Beliefs Brand Names
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Evaluative Criteria Location Assortment breadth and depth Price
Advertising and promotion Store personnel Services Customer characteristics Store atmosphere
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Postpurchase evaluation
Output Purchase behavior Postpurchase evaluation
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Purchase behavior Consumers make three types of purchases
Trial purchases Repeat purchases Long-term commitment purchases
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Postpurchase evaluation
Actual performance matches expectations Neutral feeling Performance exceeds expectations Positive disconfirmation of expectations Performances is below expectations Negative disconfirmation of expectations
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The importance of customer satisfaction
It influences repeat buying It shapes word-of-mouth communication Dissatisfaction leads to complaints Implications for competitive strategy
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Any Questions?
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