MKT 100 Lecture Notes - Lecture 2: Subculture, Reference Group, Abraham Maslow
4 Jul 2018
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Chapter 4 Consumer process
The consumer decision process
Represents steps that consumers go through before, during, and after, making
purchases
Step 1: need recognition
Beings when consumers recognize they have an unsatisfied need and want to go from
their needy state to a different, desired state
Need recognition is the beginning of the consumer decision process; occurs when
consumers recognize they have an unsatisfied need and want to go from their needy
state to a different desired state
Consumer needs like these can be classified as functional, psychological, or both
Functional needs
Pertain to the performance of a product or service
Psychological needs
Pertain to the personal gratification consumers associate with a product or service
Consumer decision process
1) need recognition – information search – alternative evaluation – purchase decision –
post purchase
Step 2: information search
search for information about the various options that exists to satisfy that need
length and intensity of the search are based on several factors, including degree of
perceived risk associated with purchasing the product or service and importance of the
product to consumer
Internal search for information
occurs when the buyer examines his or her own memory and knowledge about the
product or service, gathered through past experiences
External search for information
occurs when the buyer seeks information outside his or her personal knowledge base to
help make the buying decision
Factors affecting consumers search processes
Perceived benefits versus perceived costs of its search
Internal locus of control refers to when consumers believe they have some control over
the outcomes of their actions, in which case they generally engage in more search
activities
External locus of control; refers to when consumers believe the fate or other external
factors control all outcomes
Actual or perceived risk: five types of risk associated with purchase decisions can delay
or discourage a purchase: performance, financial, social, physiological and psychological
Performance risk involves the perceived danger inherent in a poorly performing product
or service
Financial risk is risk associated with a monetary outlay; includes the initial cost of the
purchase, as well as the item of service
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Social risk involves the fears that consumers suffer when they worry others might not
regard their purchases positively
Physiological risk associated with the fear of an actual harm should the product not
perform properly
Psychological risk are those risks associated with the way people will feel if the product
or service does not convey the right image
Step 3: alternative evaluation
Evaluative criteria consist of a set of salient, or important, attributes about a particular
product that are used to compare alternative products
Often occurs while consumers are engaged in the process of information search
Determinant attributes are product or service features that are important to the buyer
and on which competing brands or stores are perceived to differ
Consumer decision rules are the set of criteria consumers use consciously or
subconsciously to quickly and efficiently select from among several alternatives
Compensatory
A compensatory decision rule assumes that the consumer, when evaluating alternatives,
trade-offs one characteristic against another, such that good characteristics compensate
for bad characteristics
Non-compensatory
Consumers use a non-compensatory decision rule in which they choose a product or
service on the basis of a subset of its characteristics, regardless of the values of its other
attributes
Decision heuristics
Not every use those two rules
Decision heuristics are mental shortcuts that help them narrow down their choices
Practice: consumers can choose the more expensive option, thinking they are getting
better quality along with the higher price or might buy the product priced in the middle
of the alternatives, neither the most expensive nor cheapest
Brand: always buying brand name goods allows some consumers to feel safe with their
choices
Product presentation; many times, the manner in which a product is presented can
influence the decision process
Step 4: Purchase decision
Retailers use various tactics to increase the chances that customers will convert their
positive evaluations into purchases
Special type of consumption is called ritual consumption refers to a pattern of
behaviours tied to life events that affect what and how people consume
Situational factors can help facilitate purchases: having merchandise in stock, offering
multiple payment options, having many checkout lanes open and placing the checkouts
conveniently in the store, installing digital displays to entertain customers waiting in
line, and offering tactics such as delivery, price-match guarantee, a warranty or a simple
return policy
Step 5: post purchase
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It entails actual customers
3 possible post purchase outcomes as follows
Customer satisfaction
setting unreal high consumer expectations of the product through advertising, personal
selling, or other types of promotion may lead to higher initial sales, but will eventually it
will result in dissatisfaction when the product fails to achieve these high-performance
expectations
marketers can take the following steps to ensure post purchase satisfaction
Build realistic expectations, demonstrate correct product use, stand behind the product
or service by providing money back guarantees and warranties, encourage customer
feedback, and periodically make contact with customers and thank them for their
support
Post purchase cognitive dissonance
is an internal conflict that arises from an inconsistency between two beliefs, or between
beliefs and behavior; buyer remorse
post purchase cognitive dissonance is a feeling of regret, guilt, or grave uneasiness,
which occurs when a consumer questions the appropriateness of a purchase after his or
her decision has been made
Customer loyalty
Develops over time with multiple repeat purchases of the product or brand from the
same marketer
Marketers attempt to build and nurture a loyal relationship with their customers from
the very first purchase every time and buy from the same company again
Loyal customer will buy only certain brands and shop at certain stores
Undesirable consumer behavior
Firms sometimes fail to attain customers
Passive customers are those who don’t repeat purchase or fail to recommend the
product to others
Negative word of mouth occurs when consumers spread negative information about a
product, service or store to others
When customers’ expectations are met or even exceeded, they often don’t tell anyone
about it
When consumers believe that they have been treated unfairly in some way, they usually
want to complain, often to many people
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Document Summary
Represents steps that consumers go through before, during, and after, making purchases. Beings when consumers recognize they have an unsatisfied need and want to go from their needy state to a different, desired state. Need recognition is the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their needy state to a different desired state. Consumer needs like these can be classified as functional, psychological, or both. Pertain to the performance of a product or service. Pertain to the personal gratification consumers associate with a product or service. Consumer decision process: need recognition information search alternative evaluation purchase decision post purchase. Internal search for information occurs when the buyer examines his or her own memory and knowledge about the product or service, gathered through past experiences. External search for information occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision.
