how do consumers make purchasing decisions
TRANSCRIPT
THE BUYING DECISION IS A
5 STAGE PROCESS
PROBLEM RECOGNITION
INFORMATION SEARCH
EVALUATION OF
ALTERNATIVES
PURCHASE DECISION
POSTPURCHASE BEHAVIOUR
PROBLEM RECOGNITION
THE BUYER RECOGNIZES A PROBLEM OR A NEED TRIGGERED BY:
INTERNAL STIMULI LIKE HUNGER OR THIRST
EXTERNAL STIMULI LIKE ADVERTISEMENTS
THIS RECOGNITION OF A PROBLEM ULTIMATELY INSPIRES THOUGHTS ABOUT POSSIBILITIES OF A PURCHASE
….OR TWO….
INFORMATION SEARCH
SURPRISINGLY CUSTOMERS OFTEN SEARCH FOR LIMITED NUMBER OF OPTIONS
50%50%
CUSTOMERS WHO LOOK ATONE STORE
CUSTOMERS WHO LOOK ATMORE THAN 1 STORE
CUSTOMERS WHO LOOK FOR MORE THAN ONE BRAND OF APPLIANCE
CUSTOMERS WHO LOOK FOR ONE BRAND OF APPLIANCE
Public: Mass media, consumer-rating organizations
Experimental: Handling, examining, using the product
SEARCH DYNAMICS
TOTAL SET(ALL BRANDS AVAILABLE)
AWARENESS SET (SUBSET OF TOTAL SET KNOWN TO THE INDIVIDUAL CONSUMER)
CONSIDERATION SET(SET WHICH MEETS INITIAL BUYING CRITERIA)
CHOICE SET(STRONG CONTENDERS)
DECISION
EVALUATION OF ALTERNATIVES
CONSUMERS SEE COMMODITIES AS A BUNDLE
OF ATTRIBUTES
CONSUMERS PAY ATTENTION TO
ATTRIBUTES THAT DELIVER THE MOST SOUGHT-AFTER
BENEFITS
MARKET FOR A PRODUCT MAY BE
SEGMENTED ACCORDING TO
ATTRIBUTES MOST IMPORTANT TO
DIFFERENT CONSUMER GROUPS
BELIEFS AND ATTITUDES
A BELIEF IS A DESCRIPTIVE THOUGHT THAT A PERSON HOLDS ON ABOUT SOMETHING
AN ATTITUDE IS AN ENDURING EVALUATION,EMOTIONAL FEELINGS AND ACTION TENDENCIES OF AN INDIVIDUAL TOWARDS SOME OBJECT OR IDEA
BELIEFS AND ATTITUDES
ATTITUDES CAN BE HARD TO CHANGE AS THEY ECONOMIZE ON THOUGHT AND ENERGY
FOR ANY COMPANY IT IS FAR MORE ADVISABLE TO FIT ITS PRODUCTS INTO EXISTING ATTITUDES RATHER THAN TRY TO CHANGE ATTITUDES
EXPECTANCY-VALUE MODEL
THIS MODEL POSITS THAT THE CONUMER
EVALUATES THE PRODUCTS AND SERVICES BY
COMBINING THEIR POSTIVE AND NEGATIVE
BRAND BELIEFS ACCORDING TO IMPORTANCE
EXCELLENT CAR POOR SERVICE
?
PURCHASE DECISION
NON COMPENSATORY MODEL: POSITIVE AND
NEGATIVE ATTRIBUTES DO NOT NECESSARILY
NET OUT.THE CHOICE IS MAD BASED BY
EVALUATING SOME SINGLE PARTICULAR
CRITERIA IN ISOLATION
PURCHASE DECISION
.....IS ALSO AFFECTED BY INTERVENING FACTORS SUCH AS
1) ATTITUDES OF OTHERS
2) UNANTICIPATED SITUATIONAL FACTORS
3) PERCEIVED RISK
ATTITUDES OF OTHERS INFLUENCE PURCHASES BECAUSE OF TWO REASONS
1)INTENSITY OF OTHER PERSON’S NEGATIVITY TOWARDS THE CHOICE OF PRODUCT
2)MOTIVATION OF BUYER TO COMPLY WITH THAT OTHER PERSON’S WISHES
WHAT???YOU’RE CHOSING A HYUNDAI OVER A
HONDA?OBVIOUSLY YOU DON’T KNOW THE FIRST THING ABOUT CARS!!!!
HMMM…MAYBE DAD’S
RIGHT
PERCEIVED RISKS INCLUDE…
1) FUNCTIONAL RISK
2)PHYSICAL RISK
3)FINANCIAL RISK
4)SOCIAL RISK
5)PSYCHOLOGICAL RISK
6)TIME RISK
STEPS BETWEEN EVALUATION OF ALTERNATIVES AND A PURCHASE
DECISION
EVALUATION OF ALTERNATIVES
PURCHASE INTENTION
ATTITUDE OF OTHERS
UNANTICIPATED FACTORS
PURCHASE DECISION
POSTPURCHASE BEHAVIOUR
POSTPURCHASE SATISFACTION IS A FUNCTION OF THE GAP BEWEEN EXPECTATION AND THE PRODUCT’S PERCEIVED PERFORMANCE
IF PERCEIVED PERFORMANCE FALLS SHORT OF EXPECTATIONS,CONSUMER IS DISSATISFIED
IF MATCHES EXPECTATION,THEN SATISFIED
IF EXCEEDS EXPECTATIONS THHEN DELIGHTED
THESE FEELING HAVE A HUGE IMPACT ABOUT WHETHER THE CONSUMER BUYS THE PRODUCT AGAIN OR ENDORSES IT TO OTHERS.
POSTPURCHASE BEHAVIOUR
OF A CONSUMER ARE GOVERNED BY
THE SATISFACTION GENERATED FROM USING THE PRODUCT
A SATISFIED CONSUMER WILL BUY THE PRODUCT AGAIN AND ENDORSE IT TO OTHERS
A DISSATISFIED CONSUMER WILL ABANDON THE PRODUCT OR RETURN IT.IN EXTREME CASES THEY MAY TAKE PUBLIC ACTION AGAINST THE COMPANY PRODUCING THE PRODUCT