the consumer decision process model
TRANSCRIPT
CONSUMER CONSUMER BEHAVIORBEHAVIOR
Refers to the Refers to the ACQUISITIONACQUISITION, , USEUSE, and , and DISPOSALDISPOSAL of of products, ideas, or services.products, ideas, or services.
CONSUMING GROUPS include CONSUMING GROUPS include families, clubs, organizations, families, clubs, organizations, corporations, and governments.corporations, and governments.
ACQUIRINGACQUIRING
ReceivingReceiving FindingFinding InheritingInheriting ProducingProducing purchasingpurchasing
CONSUMINGCONSUMING CollectingCollecting NurturingNurturing CleaningCleaning PreparingPreparing EvaluatingEvaluating ServingServing DisplayingDisplaying StoringStoring SharingSharing DevouringDevouring EatingEating
DISPOSINGDISPOSING GivingGiving Throwing awayThrowing away RecyclingRecycling depletingdepleting
Why SHOULD we study Why SHOULD we study CONSUMER BEHAVIOR?CONSUMER BEHAVIOR?
Businesses stay in business by Businesses stay in business by ATTRACTING AND RETAINING ATTRACTING AND RETAINING CUSTOMERS.CUSTOMERS.
The endless desire of businesses to The endless desire of businesses to attract and retain customers is attract and retain customers is important to COPYWRITERS.important to COPYWRITERS.
As individuals, we “market” As individuals, we “market” ourselves to the other members of ourselves to the other members of the society.the society.
THE CONSUMPTION THE CONSUMPTION PROCESSPROCESS
From disposal to acquisition From disposal to acquisition ((ukay-ukay ukay-ukay stylestyle))
From disposal to production (From disposal to production (recyclingrecycling))From disposal to consumption From disposal to consumption ((hand-me-hand-me-
down)down)
From production to consumption From production to consumption (starting (starting from scratch)from scratch)
From acquisition to consumption From acquisition to consumption (buying (buying meals from restaurant)meals from restaurant)
From acquisition to disposal From acquisition to disposal (buying for gift-(buying for gift-giving)giving)
THE CONSUMER THE CONSUMER DECISION DECISION
PROCESS MODELPROCESS MODEL
Need Recognition
Search for Information
Pre-purchase Evaluation of Alternatives
PURCHASE
Consumption
Post-consumption Evaluation
Feedback to future decisions
Stage One:Stage One: NEED RECOGNITIONNEED RECOGNITION
Occurs when an individual senses a Occurs when an individual senses a difference between what he or she difference between what he or she perceives to be the ideal versus the perceives to be the ideal versus the actual state of affairs.actual state of affairs.
Includes: Includes: NEEDS, DESIRESNEEDS, DESIRES Marketers should know the Marketers should know the
consumers “itch” so they’ll know consumers “itch” so they’ll know where to “scratch” new products.where to “scratch” new products.
Memory NeedRecognition
Environmental influencesCultureSocial classPersonal influencesFamilySituation
IndividualDifferencesConsumer resourcesMotivationKnowledgeAttitudesPersonality, valuesAnd lifestyle
THE THE SEGMENTATION SEGMENTATION
OF OF MARKETMARKET
GEOGRAPHIC SEGMENTATION
Divides the market into different geographical units such as regions, countries, or neighborhoods.
DEMOGRAPHIC SEGMENTATION
Consists of dividing the market into groups on the basis of variables as AGE, SEX, OCCUPATION, EDUCATION, RELIGION, FAMILY SIZE, ETHNICITY, INCOME, etc.
PSYCHOGRAPHIC SEGMENTATION
Buyers are divided into groups on the basis of differences in consumer lifestyle.
LIFESTYLE refers to how people live: INTERESTS, ACTIVITIES and OPINION.
BEHAVIORAL SEGMENTATION
Buyers are divided into groups on the basis of differences in their knowledge, attitude, use, or response to a product.
Segment Rich Yuppies Salary class
Working poor
Size of segment
100,000 60 million 300 million 840 million
Geographics Coastal urban areas
Major urban areas
Small cities
Small towns and rural areas, esp. in the west of China
Demographics
•HH income
•Age
•Education
•Occupation
Above $5,000
30-65
Various
Entrepreneur;
Government officials;
celebrities
$2,000-$5,000
25-45
College
Managers, professionals, technical
$1,000-$1,999
18-60
High school
Office clerks; factory workers
Less than $1,000
All age groups
Elementary
school
Manual laborers, peasants
Psycho-graphicsOrientation
Innovative-ness
Risk aversionReadiness for foreign goods
Optimistic
Innovators;
Trend-setters
Low
high
Hopeful
Early adopter; opinion leaders
Moderate
moderate
Status quo
Early majority;Emulators
High
low
Uncertain
Late majority; laggard
Very high
minimum
LifestylesMobilityActivities
Active
Wheel and deal, dine and wine in exclusive clubs, frequent shopping
MobileBusy work sked; frequent dining out and excursion
Confined
Trapped 8-5; limited disposable income; occasional outing; cameras and parks
Immobile
Menial labor; hand-to-mouth; mass entertainment such as sports on TV
CULTURE
Frameworks for action and understanding that enable one to operate in a manner acceptable to other members.
Includes VALUES, NORMS, LANGUAGE, OBJECTS, RITUALS, etc.
VALUES – enduring beliefs about desirable outcomes that transcend specific situations and shape one’s behavior. Example: honesty, dependability, etc.
NORMS – informal, usually unspoken rules that govern behavior.
Examine the following:
How do Filipinos and Westerners differ in terms of food consumption?
The “maid” cultureExamine vanity among people of different
culture Consumers in Netherlands and UK use three
times as much toothpaste as those in Spain and Greece. Spanish consumers view toothpaste as a cosmetic product.
Domestic animals vs livestock
Clothes represent cultural principles.We don’t wear cocktail dress at work.
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INSTRUMENTAL VALUES – shared beliefs about how people should behave
TERMINAL VALUES – desirable life goals
Examples of INSTRUMENTAL VALUES:
Free choice
Competence
Compassion
Integrity
independence
Examples of TERMINAL VALUES:
Personal gratification
Security
Love & affection
Self-actualization
Security
Social harmony
Core Japanese and American Values
Harmony
Hierarchy
Organization
Right action
Face-savingWarm,
accepting love
Japanese Values
Activity,Work Equality
Materialism
MOrality
Achievement
RomanticIndividualism
American Values
Thinking points:Thinking points:
Pick an instrumental or terminal value you Pick an instrumental or terminal value you believe is important in your culture. What believe is important in your culture. What product can support or promote that value?product can support or promote that value?
Think of a cultural ritual in your community. Think of a cultural ritual in your community. Describe the ritual. How does this ritual relate Describe the ritual. How does this ritual relate to important cultural values?to important cultural values?