cons dec making process blackwell

8/3/2019 Cons Dec Making Process Blackwell

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The Consumer Decision Process

Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.


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OR


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A Model of Consumer Behaviour


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ARKETINGPsProductPricePlace

Promotion

ENVIRONMENTAL

EconomicTechnologicalPoliticalSocioCultural

Post-purchaseEvaluation

Product ChoiceBrand ChoiceDealer ChoicePurchase TimingPurchase Amount

Trial

PURCHASE

Buyer Decision ProcessProblem Recognition

Information Search

Evaluation Decision

Post-purchaseBehaviour

CulturalCharacteristicsPersonal

Psychological

BUYEREXPERIENCE


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How do consumers makepurchase decisions?

How do firms use this informationto develop new products andmarketing programs?



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Why do I need it?---- Problem Recognition

What exactly is this product?-- InformationSearchWhat options are available? --Analysis of

AlternativesHow exactly does purchase happen? --Purchase Decision

Did I make the right choice?--Postpurchase Behaviour


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Ideal StateSimple ExpectationsFuturegoals/AspirationsMotivations/Self ImageCultureChange in PersonalCircumstances

Actual State

Physical factorsNeed ExternalStimuli

Differences

Problemrecognition

Perceived difference between an ideal stateand actual state motivates the consumer totake actions.

PROBLEM RECOGNITION


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Marketing Implications


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P&G usedconsumerinformation

regardingvariousdecisionprocess stagesto create andmarket Dryel



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Influencer plays an important role in consumer decisionmaking.Influencer may not be an expert but he/she assumes a keyrole in consumer decision and his/her family dynamics.


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Post purchase Behaviour

Consumer evaluates the product during consumption to see if it

satisfies the need/expectation

Influenced by type of preceding decisionmakingprocesses.

Depends on the level of purchase involvement or thelevel of interest in a purchase

Cognitive dissonance and Experiential marketing play animportant role in shaping up these behaviours.


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Consumer Decision Process Stages



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Consumer Decision Process Model

Purchase

Need Recognition

Search for Information

Consumption

Post-consumption Evaluation

Divestment

Pre-purchase Evaluation of Alternatives


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Need Recognition



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Need Recognition

Need: the difference between what aperson perceives to be the idealversus the actual state of affairs



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Need Recognition

Need: the difference between what aperson perceives to be the idealversus the actual state of affairs

Consumers recognize needs andseek to fulfill them, or sometimesseek to solve their problems

Knowing consumers needs, helpsfirms develop products andmarketing programs to reach them

more effectively (itch and scratch)Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.


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Need Recognition

Communicatinga need andraisingconsumerawareness ofneed or

problemSpecial needsof baby teeth



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Need Recognition


Individual Differences-Consumer Resources

-Motivation-Knowledge-Attitudes-Personality, Values,and Lifestyle

Environmental

Influences-Culture

-Social Class-Personal Influence-Family-Situation

ME

MOR

Y

NeedRecognition


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Need Recognition




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SearchInternal

Search

ME

MORY

IndividualDifferences

Environ-mental

Influences

Need Recognition

Attention

Compre-hension

Acceptance

Retention

Exposure

CDP Model


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Search For Information

Internal search: retrieving know-ledge from memoryExternal search: collecting informa-tion from peers, family, and the

marketplace



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Internal search: retrieving know-ledge from memoryExternal search: collecting informa-tion from peers, family, and the

marketplace

Search may be passive asconsumers become more receptive

to information around them, orconsumers can engage in activesearch behavior



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NeedRecognition

Search

External

Search

InternalSearch

M

EMORY


EnvironmentalInfluences


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Search: Sources of Information

Marketer Dominated

Non-Marketer Dominated Stimuli



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Information Processing


ME

MOR

Y

Attention

Comprehension

Acceptance

Retention

Exposure

Stimuli:-Marketer

Dominated-NonmarketerDominated


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-Family and peers

-Publications

-Television ads

-Internet or

website-In-store displaysor salespersons

-Shopping

Search: Sources of Information

Marketer Dominated

Non-Marketer Dominated Stimuli



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Search: Information Processing

Exposure

Attention

Comprehension

Acceptance

Retention



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Need Recognition





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Pre-purchaseEvaluation ofAlternatives

SearchInternal

Search

ME

MORY


Environ-mental

Influences

Need Recognition

Attention

Compre-hension

Acceptance

Retention

Exposure

CDP Model

Stimuli:Friendsand

relatives


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Pre-purchase Evaluation ofAlternatives

The process of evaluating alter-natives identified from search,which leads to product or brand

most likely to satisfy the consumer



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The process of evaluating alter-natives identified from search,which leads to product or brand

most likely to satisfy the consumerCan use new or preexisting evalu-ations stored in memory

Evaluative criteria: standards andspecifications used to comparedifferent products and brands



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Aunt Jemimamaple syrupfocuses on theevaluativecriteria ofthickness in

thisadvertisement

C D i i P M d l


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Purchase

Need Recognition




N d R itiCDP M d l


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SearchInternal

Search

ME

MORY


Environ-mental

Influences

Purchase

Need Recognition

Attention

Compre-hension

Acceptance

Retention

Exposure

CDP Model

Stimuli


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Purchase

Purchase decisions involvechoosing a form of retailing, aspecific retailer, and a particularproduct and brand



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Purchase

Purchase decisions involvechoosing a form of retailing, aspecific retailer, and a particularproduct and brand

Purchase intention can changeduring the purchase stage--it can be

influenced by factors such as in-store promotions, discounts, orstock-outs


C D i i P M d l


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Purchase

Need Recognition


Consumption

Prepurchase Evaluation of Alternatives


Need RecognitionCDP M d l


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SearchInternal

Search

ME

MORY


Environ-mental

Influences

Purchase

Consumption

Need Recognition

Attention

Compre-hension

Acceptance

Retention

Exposure

CDP Model

Stimuli

C i


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Consumption

The process of using the product or

service purchased

Consumption can either occurimmediately or be delayed


C ti


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Consumption

The process of using the product or

service purchased

Consumption can either occurimmediately or be delayed

Consumers may use products asintended or as they choose,especially when instructions are

not included or not read

How consumers use a productaffects satisfaction with product


C ti


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Consumption

Appealing toconsumerswith easy-to-

use positioning

Consumption-oriented

product designand benefit




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Purchase

Need Recognition


Consumption




Need Recognition: choosing themode of investment in which

less risk and moderate return isCDP Model


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PrepurchaseEvaluation of Alternatives:lic, Idfc, hdfc, reliance tocheck the returns of past

five years

Search: website,through broker

newspaper

InternalSearch:(experienced to investin mutual fund)

MEMORY

IndividualDifferences: boom

in the market ,

expected morereturns(experience

d to invenst inreliance other

scheme)

Environ- mentalInfluences: broker,

agent

Purchase: finally made

a purchase of reliancesmall cap fund

Consumption:successfulusage of the product

Post-consumption Evaluation:successful usage of mutual fund

and it NAV is growing

less risk and moderate return is

involved

External Search:Financialmagazine

Attention: healthyreturns of reliancemutual funds

Comprehension:analysed thebenefits andfeatures of

mutual funds

Acceptance:liked the product

and accepted

Retention: risk diversification

Exposure:Awarenessabout themutual fund

products

Satisfaction:we cannot judge

CDP Model

Stimuli:By Broker

jjbyby

Divestment :

dissatisfied


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P t ti E l ti


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Satisfaction: when expectations are

met or exceeded by perceivedperformance

Dissatisfaction: when performance

falls short of expectationsConsumption is an importantdeterminant of satisfaction


Post cons mption E al ation


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Satisfaction: when expectations are

met or exceeded by perceivedperformance

Dissatisfaction: when performance

falls short of expectationsConsumption is an importantdeterminant of satisfaction

Cognitive dissonance: questioningdecision (post-purchase regret)

Emotion affects evaluation




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Purchase

Need Recognition


Consumption


Divestment



Divestment


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Divestment

How consumers dispose of the

packaging or product after use

Options include:Disposal

Remarketing or resellingRecycling

Consumers environmental

concerns about divestment mayaffect product choice


Divestment


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Divestment


Mentadent sells

toothpaste in adual-chamberedpump, whichcan be filledwith refills andreused rather

than thrownaway each time

Divestment


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Divestment

How consumers dispose of the

packaging or product after use

Options include:Disposal

Remarketing or resellingRecycling

Consumers environmental

concerns about divestment mayaffect product choice


Need RecognitionCDP Model


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Search

Stimuli

Internal

Search

ME

MORY


Environ-mental

Influences

Purchase

Consumption

Post-consumption

Evaluation

Divestment

Need Recognition

ExternalSearch

Attention

Compre-

hension

Acceptance

Retention

Exposure

SatisfactionDissatisfaction

CDP Model

Variables Shaping the Decision


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Variables Shaping the DecisionProcess




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Individual Differences:

Demographics, psychographics,values, and personality

Consumer resources

Motivation

KnowledgeAttitudes




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Environmental Differences:Culture: values, ideas, artifacts, andsymbols that help individuals interpret,

communicate, and evaluate asmembers of society

Social Class

FamilyPersonal Influence

SituationBlackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.



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Psychological ProcessesInfluencing Consumer Behavior

Information processing

Learning

Attitude and behavior change


Types of Decision Processes


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Consumer Decision Process


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Consumer Decision ProcessContinuum


MidrangeProblemSolving

LimitedProblemSolving

(LPS)

ExtendedProblemSolving

(EPS)

High Low

Degree of Complexity

Consumer Decision Process


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Consumer Decision ProcessContinuum: Repeat Purchases


MidrangeProblemSolving

HabitualProblemSolving

ExtendedProblemSolving

High Low

Degree of Complexity

LimitedProblemSolving



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Initial Purchase

Extended Problem Solving (EPS):

Often occurs with expensive items orcan be fueled by doubts and fears

Importance in making the right

decision

All seven consumer decision making

stages are often activated

Dissatisfaction is often vocal



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Repeat Purchase

Repeated Problem Solving

Habitual Decision Making




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Repeat Purchase

Impulse BuyingUnplanned, spur-of-the-moment actiontriggered by in-store display orpromotion (least complex form of LPS)






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Repeat Purchase

Impulse BuyingUnplanned, spur-of-the-moment actiontriggered by in-store display orpromotion (least complex form of LPS)

Variety SeekingBrand shiftsCan be triggered because bored withcurrent brand or because of special offer




Nestle


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Nestleappeals toconsumers

varietyseekingbehavior bypromoting avariety ofdesserts foreach day of

the week(varietywithoutbrand switch)


Factors Influencing Problem


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Factors Influencing ProblemSolving Extent



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Degree of Involvement (High-Low)Personal Factors (self-image, health,beauty or physical condition)

Product Factors (is there perceived riskin purchasing a particular brand orproduct?)

Situational Factors (is the productpurchased for personal use or as a gift?)




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Degree of Involvement (High-Low)

Perceptions of differences among

alternatives




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Time AvailabilityHow much time is available to devote tosolving the problem?

How quickly does the decision need tobe made?




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Time AvailabilityHow much time is available to devote tosolving the problem?

How quickly does the decision need tobe made?

Consumers Mood State

How people feel at a particular momentof time

Mood can reduce or increase length andcomplexity of decision process



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Consumer Behavior

cons dec making process blackwell

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