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Consumer DecisionsMarketing Psychology for

Profit

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What is Consumer Behavior?

Processes a consumer uses to makepurchase decisions, as well as use and

dispose of purchased goods orservices; also includes factors thatinfluences purchase decision and

product use

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Consumer Decision Making

Process

Postpurchase

Behavior

Purchase

Evaluationof Alternatives

Information Search

Problem Recognition

Cultural, Social,Individual andPsychological

Factors

affectall steps

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1: Problem Recognition

Result of an imbalance b/t actual anddesired states

What is a need? What is a want?

How to recognize unfilled wants?

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2: Information Search

Internal Search recalling pastinformation stored in memory

External Search seekinginformation in the outsideenvironment

Private (non marketing sources) Public (non marketing sources)

Marketing controlled sources

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What drives Search?

Perceived Risk

Performance risk

Financial risk

Physical risk

Social risk Time loss risk

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Driving Search

Need More

Informat ion

More RiskLess knowledge

Less productexperience

High level of interest

Less RiskMore knowledge

More productexperience

Low level of interest

Need Less

Informat ion

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3: Evaluation of Alternatives

Consideration set

Analyze product attributes

Use cut off criteria [pros/cons]

Multi-attribute models

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4: Purchase

To buy or not to buy

Marketing determines whichattributes are most important ininfluencing a consumers choice(differentiationlater)

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5: Post Purchase Behavior

Cognitive dissonance: Did I make a good decision?

Did I buy the right one? Get a good value? Marketing minimizes through:

Effective communication

Follow up

Guarantees Warranties

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Types of Buying Decisions

Complex buying behavior

Dissonance reducing buying behavior

Habitual buying behavior

Variety seeking buying behavior

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Types of buyer behaviour

Complex buyer behaviour e.g. Intel Pentium

Processor

Dissonance-reducing behaviour (brand

reduces after-sales discomfort)

Habitual buying behaviour e.g. salt - little

difference

variety seeking behaviour - significant

brand differences e.g soap powder

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Factors that AffectInvolvement Levels

Situation

Social Visibility

Interest

Perceived Risk ofNegative

Consequences

PreviousExperience

FactorsDetermining

Level ofInvolvement

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Factors Influencing

Buying DecisionsSocialFactors

IndividualFactors

Psycho-logicalFactors

CulturalFactors

CONSUMERDECISION-MAKING

PROCESS

BUY /

DONT BUY

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Cultural Factors

Culture: set of values, norms,attitudes & other meaningful symbolsthat shape human behavior and theirartifacts or products of thatbehavior as they are transmittedfrom generations.

Subcultures Social class [based on $, education

and job]

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Social Factors

Social influences Reference groups

Direct: primary and secondary groups Opinion leaders

Family

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Individual Factors

Gender (behold the power of women)

Age

Family Life Cycle

Personality

Self concept Lifestyle

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Psychological Factors Perception: process by which people

select, organize and interpret stimuliinto a meaningful picture

Selective exposure Selective distortion Selection retention

Motivation Learning Values, Beliefs & Attitudes what can

marketing influence?

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Motivation and Maslow

Physiological

Safety

Social

Esteem

Self-Actualization

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What do you need to know

about your customers? What are five things that someone

should know about me?

Describe yourself demographically List 10 things you are thinking right

now.