1. Need Recognition, Search, Prepurchase Alternative Evaluation, Purchase

2. Need Recognition
Depends on how much discrepancy exists between the actual state and the desired state

3. Need Recognition Process
Desired
State
Actual
State
Degree of
Discrepancy
At or above
Threshold
Below
Threshold
Need
Recognition
No Need
Recognition

4. Need must first be activated before it can be recognised
Such factors operate by altering the person’s actual / desired states

5. Need activation factors
Time
Changed circumstances
Product acquisition
Product consumption
Individual differences
Marketing Influences

6. Search
Motivated activation of knowledge stored in memory or acquisition of information from the environment

7. Search can be
Internal – memory, knowledge, habit, purchase, degree of satisfaction
External – when internal search is inadequate. External search could be pre-purchase search or on-going search

8. Dimensions of Search
Degree
Direction
sequence

9. Degree of Search How many brands? How many stores?
How many attributes?
No. of information sources?
How much time?

10. Direction of Search Which brands? Which stores? Which attributes?
Which information sources?

11. Sequence of Search In what order of brands considered?
In what order of stores visited?
In what order of attributes considered?
In what order of information sources processed?

12. Determinants of Search
Situational
Product
Retail
Consumer

13. “Age and income is often negatively related to search”
Consumers engage in more search as their attitude towards shopping become more favourable
“Age and income is often negatively related to search”

14. Prepurchase Alternative Evaluation
The process by which a choice alternative gets evaluated and selected

15. Evaluative criteria Price Brand name Country of origin
Situational influence
Similarity of choice alternatives
Motivation
Knowledge
Involvement

16. Decision Rules
Non-compensatory methods
Compensatory methods

17. Non-compensatory Decision Rules
Lexicographic
Elimination by aspects
Conjunctive

18. Compensatory Decision Rules
Simple additive
Weighted additive

19. Some learnings
Consumers typically have some determinant attributes that are salient to actually influence the evaluation process
Consumers use some cut-offs on attribute values. A brand that fails to meet a cut-off may be rejected regardless of how well it performs on the other attributes
Consumers make trade-offs between quality of their choice and the amount of time and effort necessary to reach a decision

20. Purchase Not all purchase intentions are fulfilled Reasons could be
Changed motivations
Changed circumstances
New information
Desired alternatives are no longer available

21. Choice of Alternative
Fully planned purchase – both product and brand are chosen in advance, Extended problem solving and high involvement (61%)
Partially planned purchase – intention to buy product but brand chosen at the time of purchase
Unplanned purchase – both product and brand are chosen at point of sale.(50%)

22. Options for the source of purchase
At home – travelling salesmen, internet, phone ordering, mail-order, catalogues
Retail

23. Shopping motivations Information acquisition Alleviating loneliness
Dispelling boredom
Escape
Fantasy fulfillment
Relieving depression

24. Shoppers are a dwindling species
Reasons
Less leisure time
Buying less
Shopping has ceased to be a pleasure
Spending less time at shops
Prefer to buy from home

25. Enhancing Relationship Marketing
Consumer value addition – quality, consistency, EDLP
Personal selling- perceived knowledge and expertise, perceived trustworthiness, customer knowledge, adaptability
Sales Promotion – to avoid the rigour of EPS
Databased marketing – ongoing personalized contact, loyalty programmes, direct mailers