BUSI 2204 Lecture Notes - Lecture 4: Herd Mentality, Influencer Marketing, Selective Exposure Theory
30 Sep 2020
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Week 3 part 2 -- consumer decision
making
Importance of understanding consumer behaviour
- Best product does not always win
- Many factors that influence purchase decisions and product use
Decision making process
- Not everyone follows all these steps, but companies should have them all covered
- Cultural social, individual, and psychological factors affect all steps
Need Recognition
- Need recognition occurs when consumers are faces with imbalance between actual and
desired state
- Are like this, want to be like that
- Internal and external
- Internal (ie im hungry)
- External (i'm hungry, someone says you should go here)
- Can engineer demand, we have a herd mentality, will do as others want.ie say everyone
has the product, or say that only a few elite people have it
Information search
- Recognize the need
- Search for alternatives to satisfy the need
- Source of info search?
- Internal vs external
- External
- Nonmarketing controlled info source
- Marketing controlled info source
- C2C reviews
Evaluating alternatives
- Using info you've gained to develop a set of criteria to evaluate and compare alternatives
- 3 factors when buying a car
- Quality
Document Summary
Many factors that influence purchase decisions and product use. Not everyone follows all these steps, but companies should have them all covered. Cultural social, individual, and psychological factors affect all steps. Need recognition occurs when consumers are faces with imbalance between actual and desired state. External (i"m hungry, someone says you should go here) Can engineer demand, we have a herd mentality, will do as others want. ie say everyone has the product, or say that only a few elite people have it. Search for alternatives to satisfy the need. Using info you"ve gained to develop a set of criteria to evaluate and compare alternatives. For marketer reducing doubts that purchaser may have is paramount, Buyers remorse induced by constant doubts about your choice of purchase. Set of values norms attitudes and meaningful symbols that shape human. Beliefs shared by a society here conduct is personally or socially preferable to another mode of conduct.
