MKTG10001 Lecture Notes - Lecture 3: Marketing Mix, Cognitive Dissonance, Officeworks
6 Jun 2018
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MKTG10001 - PRINCIPLES OF MARKETING
LECTURE 3 – CONSUMER BEHAVIOUR
Why it’s important to study consumer behaviour:
• Helps identify target markets & segments
• Helps understand how customers choose products
• Can see how consumers perceive brands & stores
• Helps identify unmet (latent) needs
• Can discover how attitudes can be changed
Decision Making Hierarchy:
1. Need Recognition: occurs when there’s a discrepancy between a
desired state & an actual state the is sufficient to activate the decision
process (e.g. we’ve run out of cereal, need to get cereal)
• Purchase & usage motives: different motives can have different
implications for how we configure & communicate the product
• Negative originated (informational) motives: (inspirational) problem removal (hunger),
problem avoidance (insurance), incomplete satisfaction, normal depletion
• Positive originated (transformational) motives: (uplifting) sensory gratification (just like
it), intellectual stimulation / mastery (classes), social approval
2. Info Search: effort directed toward obtaining data/info related to purchase under consideration
• Extensiveness of search depends on:
• Product attributes:
• Search: able to evaluate before purchase (e.g. test a pen at Officeworks – colour)
• Experience: what you learn about after purchase (e.g. how long the ink lasts)
• Credence: don’t know before, during, or after purchase (e.g. will, marketing expert)
• Involvement: the perceived relevance of the product to the consumer based on their inherent
needs, values, & interests
• Higher involvement / risk, increases extensiveness of search
• Functional risk, financial risk, social risk, physical risk, obsolescence risk
• Memory: reduces the search (remember it being good, don’t search much, just buy)
• Expertise & experience: high expert customers value Technical Service Quality, whereas
low expert clients value Functional Service Quality (e.g. customer service). High expert
customers often conduct more extensive search
• Purchase situation
3. Alternative Evaluation: analyse the alternatives available
• Evoked set: a mental list of acceptable brands (only evaluate those alternatives)
• Heuristics: rules consumers employ to simplify the decision-making process
• Compensatory rule: one feature compensates for another, trade them up & hope one comes
out on top
• Non-compensatory rule: set on one feature (e.g. price) & don’t budge on it
4. Purchase Decision:
• Product trials are important for high involvement & new products
5. Post-purchase Cognition & Behaviour:
• Cognitive Dissonance: feel post-purchase psychological tension/anxiety resulting from an
imbalance among your knowledge, beliefs, & attitudes after an action or decision is taken
• Can help reduce cognitive dissonance through communicating after
the purchase
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