Study Group OAjay R 2011PGP055Mudit Agarwal 2011PGP081Padma N 2011PGP087Rahul Barwe 2011PGP091Shirish Jain 2011PGP097Umang Kulshrestha 2011PGP105

Chapter 4Perspectives on

Consumer Behavior

Consumer decision Making Process

Problem recognitionOccurs when the consumer perceives a need and becomes

motivated to solve the problem.Sources of Problem Recognition:

Out of stock – consumers use their existing supply and it must be replenished

Dissatisfaction – consumers become dissatisfied with the current state of affairs and/or product being used

New needs/wants – changes in consumers’ lives often result in new needs/wants

Related products/purchases – other needs are stimulated by the purchase of a product

Market-induced recognition – marketers encourage consumers to be dissatisfied with their current situation, and they try to create new needs and wants

New products – innovative products are introduced and brought to the attention of consumers

Motivation

Maslow’s Hierarchy of Needs

Freudian Psychoanalytic

Motivations in subconscious

• Strong inhibitions• Symbolic meaning of

products and brands• Surrogate behaviors• Complex and unclear motives

Probing the Minds of ConsumersIn-depth interviews Association testsProjective techniques Focus groups

Information SearchOnce consumers perceive a problem or need they

begin to search for information needed to make a purchase decision

sources of information Personal sources – friends, relative, co-workersMarket sources – information from advertisers,

salespeople, in-store displays and the InternetPublic sources, etc. – articles in magazines or

newspapersPersonal experience – handling, examining, or

using the product

Perception ProcessProcess by which an individual receives, selects, organizes,

and interprets information to create a meaningful picture of the world

It depends on internal factors, such as a person’s beliefs, experiences, needs, moods, and expectations.

Selective perception occurs as: Selective exposure – occurs as consumers choose whether to make

themselves available to information Selective attention – occurs when the consumer chooses whether

to focus attention on certain stimuli while excluding others. Selective comprehension – occurs when consumers interpret

information on the basis of their own attitudes, beliefs, motives, and experiences.

Selective retention – occurs as consumers cannot recall all of the information they receive but may choose to retain information of particular relevance.

Evaluation of Alternatives In this stage, the consumer compares the various brands or

products he or she has identified as being capable of solving the consumption problem or satisfying needs.

The brands identified as potential purchase options are referred to as the consumer’s evoked set.

The goal of most advertising and promotional strategies is to increase the likelihood that a brand will be included in the consumer’s evoked set and considered during alternative evaluation

Evaluative criteria are the dimensions or attributes of a product or service that are used to compare different alternatives. Objective– based on concrete attributes that are tangible and

can be directly judged or experienced by the consumer, such as price or warranty.

Subjective – based on abstract attributes that are intangible and more subjective in nature, such as style, appearance, or product image.

Attitude

How marketers can influence consumer attitudes, including: Increasing or changing the strength or belief rating of a brand

on a particular attribute. Changing consumers’ perceptions of the importance or value

of an attribute. Adding a new attribute to the attitude formation process. Changing perceptions of beliefs ratings for a competing brand.

Multiattribute Attitude Models

Purchase Decision and Evaluation

Integration processes

Pre-evaluation

Heuristics

Affect referral decision rule

Decision

Purchase intention

Brand loyalty

Post evaluation

Satisfaction

Cognitive dissonance

Dis-satisfaction

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