Marketing Chapter 6

Front 1

What are the five steps in the consumer decision process?

Back 1

- 1. Need Recognition
- 2. Information Search
- 3. Evaluation of Alternatives
- 4. Purchase and Consumption
- 5. Postpurchase

Front 2

Elaborate on Step 1 of the consumer decision process.

Back 2

Need Recognition:
- the consumer decision process begins when they realize that they have an unsatisfied need
- functional need: pertain to the performance of a product or service (e.g. need waterproof gloves)
- psychological needs: pertain to the personal gratification consumers associate with a G/S (e.g. Manolo Blahnik shoes)

Front 3

Elaborate on Step 2 of the consumer decision process.

Back 3

Search for Information:
- consumers search for info about a product that will fill their need
- search is influenced by: perceived benefits versus costs; the locus of control; actual or perceived risk; type of product or service

Front 4

Elaborate on Step 3 of the consumer decision process.

Back 4

Evaluation of Alternatives:
- sift through all the possible options and evaluate alternatives
- evaluative criteria consist of what are the important attributes to a particular product
- determinant attributes are features that are important to the buyer
- there are three consumer decision rules (set of criteria that consumers use to quickly and efficiently select among several alternatives)

Front 5

What are the consumer decision rules?

Back 5

- compensatory decision rule: consumer evaluates alternatives and trade offs of one characteristic against another
- non-compensatory: when consumers choose a product or service on the basis of a subset of its characteristics regardless of the values of its other attributes
- decision heuristics: mental shortcuts that help narrow down choices (e.g. brand, price, product presentation)

Front 6

Elaborate on Step 4 of the consumer decision process.

Back 6

Purchase and Consumption:
- value is a strong driver in the purchase decision as consumers seek out the best value
- a special type of consumption exists, ritual consumption, where value has less of an impact

Front 7

Elaborate on Step 5 of the consumer decision process.

Back 7

Postpurchase:
- Customer Satisfaction: set reasonable expectations through advertising, personal selling, etc. so that customers are satisfied
- Postpurchase Dissonance: when expectations are not met, also called buyer's remorse
- Loyalty: solidify a loyal relationship with their customers by ensuring satisfaction
- Undesirable Consumer Behaviour: negative word of mouth, rumours

Front 8

What are the types of consumer buying decisions?

Back 8

- Complex: highly involved in the purchase and perceive significant differences among available brands (e.g. buy a car)
- Dissonance-Reducing:perceive few differences among brand when buying expensive, infrequent or risky products (e.g. flooring)
- Habitual: purchases with little or no thought (e.g. coffee)
- Variety-Seeking: low-involvement but perceive significant differences among brands (e.g. ice cream - Ben & Jerry's)

Front 9

What are the factors influencing consumer buying decisions?

Back 9

- Psychological
- Social
- Cultural
- Situational

Front 10

Elaborate on the psychological factors influencing consumer buying decisions.

Back 10

Psychological:
- buying is driven by motives which are driven by needs
- PSSP Model: physiological, safety, social, personal
- Attitudes: enduring feelings and behavioural tend toward an object or idea
- Learning: change in a person's thought process or behaviour that arises from experience and takes place throughout the consumer decision process
- Perceptions: process by which people select, organize, and interpret information to form a meaningful picture of the world

Front 11

Elaborate on the social factors in the consumer buying decision.

Back 11

Social factors:
- Family: influence buying decisions (e.g. kids want to go to Disneyland)
- Reference Groups: offer information, provide rewards for specific purchasing decisions and enhance a consumer's self-image

Front 12

Elaborate on the cultural factors in the consumer buying decision.

Back 12

- culture is the set of values, guiding beliefs, understandings and ways of doing things shared by members of a society, exists on two level: visible artifacts and underlying values
- marketing strategies that work on one culture may not work on another
- identify with consumers with culture

Front 13

Elaborate on the situational factors in the consumer buying decision.

Back 13

- Purchase Situation: customers may be predisposed to purchase certain products or services because of some underlying psychological trait or social factor
- Shopping Situation: impacts through store atmosphere, salespeople, crowding, demonstrations, promotions, packaging
- Temporal State: state of mind going into the purchase