Description
Describes about consumer decision making process. It includes the topics like buyer characteristics, buyer decision process, experiential marketing, customer involvement.
OR
OR
Perfectionist High Quality Conscious Price and value for money Conscious Brand Conscious Price Equals Quality
Impulsive
Mental Characteristics
Novelty/ Fashion Conscious
Habitual Brand Loyal Confused by Over choice
Recreational
Buyer Characteristics Personal Psychological
Buyer’s Black Box
Buyer Decision Process Problem Recognition Information Search Evaluation Decision Post Purchase Behaviour
External Stimuli
Buyer Experience
Purchase Decision
Marketing Product Price Place Promotion
Environmental Economic Technological Political Socio-Cultural
Postpurchase Evaluation Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
Trial
Repeat Purchase
Decision Making Process
Problem Recognition Perceiving a difference between a person’s ideal and actual Perceiving a Need situation big enough to trigger a decision
Information Search
Clarifies the options open to consumers Seeking Value Word of Mouth, Advtg/Mktg efforts, Experience, Publicity
Analysis of Alternatives
Evaluate the parameters and options available for product Assessing Value purchase
Purchase Decision
Decision on ‘when, where and from whom to buy’ Buying Value
Post Purchase Behaviour
Evaluation duringValue in consumption/use consumption/ Use
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Problem Recognition
Ideal State
Simple Expectations Future goals/ Aspirations Motivations/ Self Image Culture Change in Personal Circumstances
Actual State
Difference
Physical factors Needs External Stimuli
Problem Recognition
Perceived difference between an ideal state and actual state Motivates the consumer to take actions
Marketing Implications
Putting customers in state of problem recognition
• May lead to acquisition, consumption or disposition of a product
Techniques to stimulate problem recognition
• Attempt to create new ideal state • Create dissatisfaction with the actual state
Without problem recognition the marketing efforts may not be that effective
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Information Search
Internal Search
Process of recalling stored information from memory Dependant on motivation, ability & opportunity More recall in high involvement, Perceived risk Information retrieved ?Brand ?Attribute ?Evaluation ?Experience
External Search
Using outside sources Types: ?Pre-purchase ? Due to problem recognition ?Ongoing ?Regular; Due to enduring involvement
Information Search
Retailer; Media; Experiential; Interpersonal; Independent
Personal Sources • Family • Friends • Neighbours
Commercial Sources • Advertising • Sales People • Retailer/ Dealers • Packaging
Public Sources • Newspaper • Radio/ Television • Consumer Organizations
Experiential Sources • Handling • Examination • Using the product
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Evaluation of Alternatives: Alternative Set
Total Set
Awareness Set
Consideration Set
Purchase Decision
Total Set
Awareness Set
Consideration Set
Purchase Decision
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Purchase Decision: Process
Initiator
Influencer
Decider
Buyer
User
Influencer plays an important role in consumer decision making. Roles played by members of the family varies with demographic Influencer does not have expertise but assume respective roles based on parameters as well as with the type of the products family dynamics
Decision Making Approaches
Economic: Rational
Cognitive: Information Processing
Decision Making Approaches
Passive: Marketer’s Influence
Emotional: Impulsive
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Post Purchase Behaviour
Consumer evaluates the product during consumption to see if it satisfies the need/expectation
Influenced by type of preceding decision making processes
Depends on the level of purchase involvement or the level of interest in a purchase
Cognitive dissonance and Experiential marketing plays an important role in shaping up these behaviours
Experiential Marketing
Identity Related
Logo/Names (NIKE)
Communication/ Advertising
(TASTE OF INDIA)
Product Presence
Design/ Packaging (FRAGRANCES)
Experiential Marketing
Website/ Electronic Media (ENCYCLOPEDIAS)
Co-Branding
Events/ Sponsorships (FEMINA MISS INDIA)
Spatial Environment Retail/ Office (BARISTA)
Consumer Involvement
Cars Furniture
Apparels Perfume
Toothpaste Salt
Low Involvement
Selective Problem Recognition
Information Search
Internal (Limited)
Analysis of Alternatives
Purchase Decision
No Dissonance
Post Purchase Behaviour
Medium Involvement
Generic Problem Recognition
Information Search
Internal External (Limited)
Few Simple
Analysis of Alternatives
Purchase Decision
Post Purchase Behaviour
No Dissonance
High Involvement
Generic Problem Recognition
Information Search
Internal External
Many Complex
Analysis of Alternatives
Purchase Decision
Post Purchase Behaviour
Dissonance
Culture peer group
Modified by situation
Evaluate extent to which brands attributes match situational consequences
Values
Desired consequences
Brand choice
Selective Search for Evidence
Gather facts that supports a particular decision Disregard facts that support other conclusion
Conservatism and inertia
Unwillingness to change thought pattern
Group Think
Peer pressure to conform to views held by a group
More attention on recent information Ignore/ Forget distant information
Recency
Experiential Limitations
Inability to look beyond the scope of past experiences Rejection of unfamiliar
doc_185672115.pptx
Describes about consumer decision making process. It includes the topics like buyer characteristics, buyer decision process, experiential marketing, customer involvement.
OR
OR
Perfectionist High Quality Conscious Price and value for money Conscious Brand Conscious Price Equals Quality
Impulsive
Mental Characteristics
Novelty/ Fashion Conscious
Habitual Brand Loyal Confused by Over choice
Recreational
Buyer Characteristics Personal Psychological
Buyer’s Black Box
Buyer Decision Process Problem Recognition Information Search Evaluation Decision Post Purchase Behaviour
External Stimuli
Buyer Experience
Purchase Decision
Marketing Product Price Place Promotion
Environmental Economic Technological Political Socio-Cultural
Postpurchase Evaluation Product Choice Brand Choice Dealer Choice Purchase Timing Purchase Amount
Trial
Repeat Purchase
Decision Making Process
Problem Recognition Perceiving a difference between a person’s ideal and actual Perceiving a Need situation big enough to trigger a decision
Information Search
Clarifies the options open to consumers Seeking Value Word of Mouth, Advtg/Mktg efforts, Experience, Publicity
Analysis of Alternatives
Evaluate the parameters and options available for product Assessing Value purchase
Purchase Decision
Decision on ‘when, where and from whom to buy’ Buying Value
Post Purchase Behaviour
Evaluation duringValue in consumption/use consumption/ Use
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Problem Recognition
Ideal State
Simple Expectations Future goals/ Aspirations Motivations/ Self Image Culture Change in Personal Circumstances
Actual State
Difference
Physical factors Needs External Stimuli
Problem Recognition
Perceived difference between an ideal state and actual state Motivates the consumer to take actions
Marketing Implications
Putting customers in state of problem recognition
• May lead to acquisition, consumption or disposition of a product
Techniques to stimulate problem recognition
• Attempt to create new ideal state • Create dissatisfaction with the actual state
Without problem recognition the marketing efforts may not be that effective
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Information Search
Internal Search
Process of recalling stored information from memory Dependant on motivation, ability & opportunity More recall in high involvement, Perceived risk Information retrieved ?Brand ?Attribute ?Evaluation ?Experience
External Search
Using outside sources Types: ?Pre-purchase ? Due to problem recognition ?Ongoing ?Regular; Due to enduring involvement
Information Search
Retailer; Media; Experiential; Interpersonal; Independent
Personal Sources • Family • Friends • Neighbours
Commercial Sources • Advertising • Sales People • Retailer/ Dealers • Packaging
Public Sources • Newspaper • Radio/ Television • Consumer Organizations
Experiential Sources • Handling • Examination • Using the product
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Evaluation of Alternatives: Alternative Set
Total Set
Awareness Set
Consideration Set
Purchase Decision
Total Set
Awareness Set
Consideration Set
Purchase Decision
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Purchase Decision: Process
Initiator
Influencer
Decider
Buyer
User
Influencer plays an important role in consumer decision making. Roles played by members of the family varies with demographic Influencer does not have expertise but assume respective roles based on parameters as well as with the type of the products family dynamics
Decision Making Approaches
Economic: Rational
Cognitive: Information Processing
Decision Making Approaches
Passive: Marketer’s Influence
Emotional: Impulsive
Problem Recognition
• Why do I need it?
Information Search • What exactly is this product? Analysis of Alternatives Purchase Decision Post-purchase Behaviour
• What options are available? • How exactly does purchase happen? • Did I make the right choice?
Post Purchase Behaviour
Consumer evaluates the product during consumption to see if it satisfies the need/expectation
Influenced by type of preceding decision making processes
Depends on the level of purchase involvement or the level of interest in a purchase
Cognitive dissonance and Experiential marketing plays an important role in shaping up these behaviours
Experiential Marketing
Identity Related
Logo/Names (NIKE)
Communication/ Advertising
(TASTE OF INDIA)
Product Presence
Design/ Packaging (FRAGRANCES)
Experiential Marketing
Website/ Electronic Media (ENCYCLOPEDIAS)
Co-Branding
Events/ Sponsorships (FEMINA MISS INDIA)
Spatial Environment Retail/ Office (BARISTA)
Consumer Involvement
Cars Furniture
Apparels Perfume
Toothpaste Salt
Low Involvement
Selective Problem Recognition
Information Search
Internal (Limited)
Analysis of Alternatives
Purchase Decision
No Dissonance
Post Purchase Behaviour
Medium Involvement
Generic Problem Recognition
Information Search
Internal External (Limited)
Few Simple
Analysis of Alternatives
Purchase Decision
Post Purchase Behaviour
No Dissonance
High Involvement
Generic Problem Recognition
Information Search
Internal External
Many Complex
Analysis of Alternatives
Purchase Decision
Post Purchase Behaviour
Dissonance
Culture peer group
Modified by situation
Evaluate extent to which brands attributes match situational consequences
Values
Desired consequences
Brand choice
Selective Search for Evidence
Gather facts that supports a particular decision Disregard facts that support other conclusion
Conservatism and inertia
Unwillingness to change thought pattern
Group Think
Peer pressure to conform to views held by a group
More attention on recent information Ignore/ Forget distant information
Recency
Experiential Limitations
Inability to look beyond the scope of past experiences Rejection of unfamiliar
doc_185672115.pptx