Understanding Consumer Decision Making: Factors and Processes
School
Wilfrid Laurier University**We aren't endorsed by this school
Course
NAS 219
Subject
Marketing
Date
Dec 12, 2024
Pages
22
Uploaded by CountFire17605
Chapter 4 ObjectivesConsumer Behaviour•*Describe the decision making processa customer goes through when buying a product or service•*Discuss how psychological, social, and situationalfactorsinfluence consumer buying behaviour•Understand howinvolvement influences the consumer buying decision process
•John lives in a small town east of Toronto. He plans to buy a new vehicle for his family. After discussing with his wife and kids, he decided that a SUV will be the best type of vehicle to have. John hasn’t bought a SUV before, though he does know a few brands in the market.
The Consumer Decision Making ProcessDoes this process apply to all purchases? Why (not)?
The Consumer Decision Process:1. Need RecognitionFunctional Needs vs. Psychological Needs–Functional Needs: needs associated with the performanceof the product.–Psychological Needs: needs associated with personal gratification or self-expression.
The Consumer Decision Making Process:2. Information Search•John hasn’t bought a SUV before, he decided to gather enough information about SUV for family use. What sources of information that John could use to help him decide what the best make/model to buy?
Factors Affecting Consumers’ Search Processes•Benefits vs. Costs•How might this influence John’s search?•Locus of Control•What is it? How does it influence one’s info search?•Perceived Risks•What are the major types of risks?LO2
Perceived RisksPerformanceriskSocialriskFinancial riskPhysiologicalriskPsychologicalriskLO2Your textbook discussed five different types of risks. Take SUVfor example, what type of risk might be important to consider?
The Consumer Decision Process: 3. Alternative EvaluationThe process through which consumers sift through the choices available and evaluate the alternatives. Brand 1Brand 3Brand 2Brand 4 . . .Brand 3Brand 1Brand 4Brand 1Brand 4Evaluative criteria
Explain These Evaluative Rules•Compensatory decision rule•Non-compensatory decision rule•Decision Heuristics
Consumer Decision Process (4): Purchase Decision•What strategies can a retailer (such as Walmart) use to influence consumer purchase decision?
Consumer Decision Process (5): Post-purchase Outcomes
What can we do to ensure customer satisfaction?
Cognitive Dissonance•An internal conflict or tension arising from the inconsistency between two beliefs, or between beliefs and behaviors. •Consumers experience regret, guilt, uneasiness•Also called buyers’ remorse. Why should marketers watch out for consumer cognitive dissonance?
Major Factors That Influence Consumer Decision Process
Psychological factors: Attitude•A person’s enduring evaluation of his or her feelings about or behavioral tendencies toward an object or idea.Cognitive ComponentAffective ComponentBehavioral ComponentbeliefsLike/dislikeTry/buy/boycott
Perceptionis the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world.Psychological factors: PERCEPTION
•Learning refers to change in a person’s thought process and behavior arising from (1) repeated experience and/or (2) thinking.Psychological factors: LearningWhat marketers can do to facilitate consumer learning?
•Lifestyle: the way consumers spend their time and moneyPsychological factors: Lifestyle
Social FactorsHow one’s social environment might influence one’s choice of higher education? •Family•Reference groups•Culture
Situational FactorsFactors that are specific to the purchase situation. May overridethe influences of social and psychological factors. Can you name some of the situation influences on shoppers?
Store AtmosphericsThe controllable characteristics of a retail space that entice a customer to enter the store and influence a customer's mood so as to increase the odds of a purchase being made.LightingScentMerchandize layoutBackground musicSpaciousness
Involvement & Consumer buying decisionsExtended Problem SolvingLimited Problem Solving