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(1) need recognition (2) information search (3)evaluation of alternatives (4) purchase (5) post-purchase behavior *not always the case with order*

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consumer decision-making process

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result of an imbalance between actual and desired states. a want is the recognition of an unfulfilled need and a product that will satisfy it. need recognition is triggered when a consumer is to either external or internal stimulus

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need recognition

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occurances you experience, such as huger or thirst

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internal stimuli

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influences from an outside source, such as someone's recommendation to try a certain restaurant, the color of a car, or an ad on the radio

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external stimuli

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the imbalance between actual and desired states. there is a difference between what a customer has and what he or she wants to have. **gap must be big enough to cause action

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want-got gap

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get customer to recognize this want-got gap and marketers need to understand the target market's needs

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marketing manager's objective

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marketing managers can create ____ on the part of the customer

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wants

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view them as job statements or outcome statements

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a way to understand people's needs

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customers search for info. about various alternatives available to satisfy the need

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information search

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the person recalls info. stored in the memory which stems larger from previous experience from a product. ex: suppose you are traveling and you may choose to stay at a hotel you've stayed in before

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internal information search

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seeks info from outside environment. two basic types: nonmarketing controlled and market controllled the extent to which someone conducts an external search depends on the perceived risk, knowledge, experience, and level of interest in a good/svc. knowledgable people and confidence in decision making and people who have product experience search less. people who are more interested in a product will search more

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external information search

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product info. source that is not associated with marketing promoting a product. includes personal experience, sources, and public sources and other rating places. marketers gather info. on how these info. sources work and use it to attract people.

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nonmarketing controlled information source

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___% of US customers research electronics, computers and media online before making an in-store purchase

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80

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biased toward a specific product because it originates with marketers promoting a product includes mass media advertising, sales promotions, salespeople, product labels and packaging, and the Internet (most influential)

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marketing controlled information source

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a group of brands resulting from an information search form which a buyer can choose most preferred alternatives

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evoked or consideration set

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a consumer will use info stored in memory and obtained from outside sources to develop criteria set the environment, internal info, and external info help consumers evaluate and compare alternatives one way to begin narrowing: pick a product attribute and exclude all products that don't fit.. then use cutoffs (either max or min levels of an attribute that an alternative must pass) then rank the alternatives based on importance and evaluate them based on how well each performs on the most important attributes different way: categorization process categories can be general (motorcycle) or specific (harley davidson) these categories are associated with some degree of like/dislike. a product's evaluation depends on the category to which it is perceived to belong in. how a product is categorized can influence demand (soda for breakfast example)

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evaluation of alternatives and purchase

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a well known and respected brand from one product category is extended into other product categories. common business practice,

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brand extension

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for a marketer, an important element of any post-purchase evaluation is reducing any lingering doubts that the decision was sound.

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post-purchase behavior

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inner tension that a customer experiences after recognizing an inconsistency between behavior and values or opinions ex: prior to buying an iPad you may experience anxiety because of worry that the current top of the line technology will become obselete to reduce this, many people justify their decision marketing managers can reduce it by communicating with purchasers. ex: putting a letter in the package congratulating the wise decision or displaying a product's superiority over competing brands ex: Apple's Genius Bar for purchase support

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cognitive dissonance

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routine response, limited decision making, and extensive decision making

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consumer buying decisions categories

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1. level of consumer involvement (most important) 2. length of time to make decision 3. cost 4. degree of search for info 5. number of alt. considered

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5 factors in the three categories

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the amount of time and effort a buyer invests in the search, evaluation, and decision process of consumer behavior

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involvement

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frequently purchased, low cost goods and services are generally associated with _______. consumers spend little time on search and decision before purchasing buyers are familiar with many brands but stick with one.

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routine response behavior (low involvement products)

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typically occurs when a consumer has previous product experience but is unfamilar with current available brands. consumers expend moderate effort searching for information or in considering alternatives.

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limited decision making (moderate involvement)

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when buying unfamiliar, expensive, or infrequently bought items. usually where the most cognitive dissonance arises.

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extensive decision making (high involvement)

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previous experience interest perceived risk social visibility

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factors determining the level of consumer involvement

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more experience=less involvement with the purchase

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previous experience

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involvement is related to interest. a person highly involved in bike racing will be more interested in the type of bike she owns and will spend a lot of time evaluating

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interest

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as perceived risk goes up involvement goes up such as social, financial, and psychological

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perceived risk

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involvement increases as social visibility of the product increases such as a product on display at a store

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social visibility

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high involvement means that _____

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the customer cares about a product category or a specific good.

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a product category has high personal relevance. ex: the fashion industry has a lot of enthusiasts who keep up with the latest trends

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product involvement

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the circumstances of a purchase may temporarily transform a low involvement decision into a high involvement one. ex: you may usually buy cheap vodka, but theres more high involvement when you are visiting your friend

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situational involement

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represents the personal relevance of the process of shopping. some like to shop and some don't. many engage in showrooming

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shopping involvement

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marketing strategy varies according to the level of _____ associated with the product

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involvement

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managers have several objectives: promotion to the target should be extensive and informative a good ad gives info needed for making the decision and specifies the benefits and unique advantages for ex: ford has a vehicle with custom option that is marketed to small business owners

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for high product involvement purchases

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consumers may not recognize their wants until they are in the store. in-store promotion is important when promoting. managers focus on package design so the product will be eye catching. examples are campbells soup, Velveeta cheese and heinz ketchup. a good display can explain the products purpose and prompt recognition of a want. managers can also link a product to a higher-involvement issue, such as advertising text about cancer on the product.

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for low product involvement purchases

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exerts the broadest and deepest influence on consumer buying decisions

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cultural influences

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pervasive: what people eat, how they dress, what they think and feel and what language they speak are all dimensions. encompasses everything consumers do without conscious choice functional: by establishing common expectations, culture gives order to society. learned: consumers must know what is acceptable from family/friends. dynamic: adapts to changing needs and evolving environment. rapid growth of tech has accelerated rate of cultural change.

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culture

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the most defining element of a culture consumers with similar values tend to react alike to prices and other inducements. they also correspond to consumption patterns. for ex: americans like convenience->breakfast bars values also influence buying choice

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values

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a culture can be divided by a subculture on basis of demographic traits, geographic regions, national and ethnic background, political and religious beliefs. it is a homogenous group of people who share elements of the overall culture and elements unique to the group within them, people's attitudes, values and purchase decisions are more similar than they are within the broader culture ex: harley davidson bikers, military families, university professors

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subculture

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group of people considered equal in status of community esteem who share behavioral norms marketers are interested for two reasons: SC often indicates which medium to use for promotion and knowing what products appeal to which SC can help marketers determine where to best distribute products.

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social class

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many consumers seek out the opinions of others to reduce their search and evaluation effort or uncertainty, especially as the perceived risk increases. they react with reference groups, opinion leaders, and family members to obtain product information and decision approval.

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social influences on consumer buying decisions

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consists of all the formal and informal groups that influence the buying behavior of an individual. consumers sometimes use products/brands to identify with. they learn from observing how members of their reference group consume for marketers reference groups... 1. serve as info and influence perceptions 2. affect a person's aspiration levels 3. their norms either constraint of stimulate consumer behavior

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reference groups

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face to face membership groups that touch people's lives directly. they can be primary or secondary. primary includes all groups with which people interact regularly in an informal, face to face manner like family and friends. secondary is less consistent and more formal. these might include clubs, professional groups, and religious groups

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direct reference group

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an aspirational reference group is a group a person wants to join and they need to conform to its norms. non-aspirational influence our behavior when we try to maintain distance from them. a consumer may avoid buying a certain car to avoid being associated with a group.

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indirect reference group

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reference groups usually have this-someone who influences others its important for marketers to get these people to buy their product. difficult because opinion leaders in one field may not be in another. marketers try to create them instead such as using HS cheerleaders to model new fall fashions or use movie-stars to promote products. marketers look to social media to find them, but sheer volume makes it hard so they focus more on platforms frequented by teens

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opinion leaders

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the most important social institution for many consumers the family is responsible for the socialization process, the passing down of cultural values and norms family members have diffferent roles in the purchase price (initiator, influencer, decision maker, purchaser, consumer) marketers should consider family purchase situations along with the distribution of consumer and decision maker roles among family members. ordinary marketing views the individual as both decision maker and consumer

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family

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gender, age, life cycle stage, personality, self concept, lifestyle

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individual influences on consumer buying decisions

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trends in gender marketing are influenced by the changing roles of men and women in society

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gender

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marketers should be aware of these such as divorced parents, single parents, and childless couples.

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nontraditional life cycles

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includes psych makeup and environment forces self concept is how consumers perceive themselves including beliefs, self evaluations, and attitudes. by influencing the degree to which consumers perceive a good to be self-relevant, marketers can affect consumers' motivation to learn about, shop for, and buy a certain brand. self concept is important because it helps explain the relationship between individuals perceptions of themselves and their consumer behavior

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personality

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perception, motivation, learning, beliefs, and attitudes what consumers use to interact with their world. psych influences can be affected by a persona's environment bc they are applied on specific occasions ex: you will perceive differently and process differently depending if you are in class or at home

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psychological influences on consumer buying decisions

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people cant perceive every stimulus in their environment so they use selective exposure. the familiarity of an object, contrast, exposure, movement intensity and smell all influence. the shape of a product can influence perception.

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perception

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occurs when people change or distort info. that conflicts with their feelings or beliefs. for ex: say a college students buys a dell and then gets new info about apple. he or she might distort the info to make it consistent with the prior view that dell is just as good.

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selective distortion

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remembering only information that supports personal feelings or beliefs

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selective retention

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mktrs must recognize the importance of cues or signals in consumers' perception of products. managers first identify the important attributes and the design signals to communicate them. for ex: consumers will pay more for candy in expensive looking packages mktrs may use price to signal higher quality names influences too consumers also associate quality and reliability with certain brand names. companies watch their brand identity because a strong link has been established between perceived band value and customer loyalty

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marketing implications of perception

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by studying ______ marketers can analyze the major forces influencing customers to buy or not buy products

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motivation

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psychological needs safety needs social needs (where mktrs appeal to the most) esteem needs self-actualization

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Maslow's hierarchy of needs

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It is very important that, as marketers, we learn how our consumer's think, and behave... for it could shape _____

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our brands/firms in the future

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how consumers make purchase decisions how consumers use and dispose of product

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Consumer behavior

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Compensatory (you get what you pay for) • Trade-offs Non-compensatory • Decision heuristics: shortcuts to reduce the choices • Price, brand, product representation

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Consumer Decision Rules

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who am I buying for? how much time do I have? what kind of displays are in the store?

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situational factors

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