BU352 Chapter Notes - Chapter 5: Determinant, Toothpaste, Decision Rule
Chapter 5
Consumer Behaviour
Without a deep understanding of their consumes’ behaviour, marketing managers can’t properly satisfy their
needs & wants
Consumer buying decision process changes according to the type of buying situation
The Consumer Decision Process
Step 1: Need Recognition
C.D.P. begins when consumers realize they have an unsatisfied need & want to go from actual needy state, to
different, desired state. The greater the discrepancy between the two the greater the need recognition.
o Functional Needs Pertain to performance of a product or service
o Psychological Needs pertains to personal gratification associated with a product or service
Most P/S will satisfy both types of needs
Key to successful marketing is the correct balance of the two needs that best appeals to firm's target markets
Step 2: Search for Information
What options exist to satisfy that need?
Consumers rely on two key types of information
o Internal search for information - buyer examines own memories & knowledge gathered through past
experiences
o External search for information – buyer seeks information from outside his or her personal knowledge
base to make buying decision
Factors that Affect Consumers’ Search Processes
o Perceived benefits vs. perceived costs of search
Is it worth the time and effort to search for information about a product or service?
o The Locus of Control
Internal locus of control – believe they have some control over the outcomes of their actions, in
which they generally engage in more searching
External locus of control – fate or other external factors controls all outcomes; little time
searching
o Actual or Perceived Risk - 5 types of risk associated with purchase decisions can delay or discourage a
purchase; the higher the risk the more searching consumers engage in
Performance – perceived danger in poorly performing product or service
Financial – monetary outlay of initial purchase and additional usage costs
Social – consumers suffer when they worry others might not regard their purchases positively
Physiological – fear of an actual harm should the product not perform properly
Psychological – the way people will feel if the product or service doesn’t convey the right image
o Type of Product/Service
Specialty -- product or service toward which the customer has a strong preference; will put forth
considerable effort in search (ie. home, or car) - marketers can make us more aware or informed
about the product
Shopping – spend time comparing alternatives (i.e. shoes; fragrances, etc.)
Convenience – no effort in evaluation before purchase; these items are frequently purchased i.e.
pop; candy (you don't really think about this purchase it's more habitual, so marketers need to
acquire more shelf space or make it more available at the point of sale)
Step 3: Evaluation of Alternatives
Consumers forego alternative evaluations when buying habitual products
Evaluative criteria - Search based on a set of important attributes of a particular product
Determinant attributes - Product or service features that are important to buyer and on which competing
brands/stores are perceived to differ
Consumer decision rules – the set of criteria consumers use consciously or subconsciously to quickly and
efficiently select among alternatives
Compensatory
o A compensatory decision rule occurs when the consumer is evaluating alternatives and trades off one
characteristic against another, such that good characteristics compensate for bad ones (i.e. high price for
nice style)
Noncompensatory
Document Summary
Without a deep understanding of their consumes" behaviour, marketing managers can"t properly satisfy their needs & wants. Consumer buying decision process changes according to the type of buying situation. C. d. p. begins when consumers realize they have an unsatisfied need & want to go from actual needy state, to different, desired state. The greater the discrepancy between the two the greater the need recognition: functional needs pertain to performance of a product or service, psychological needs pertains to personal gratification associated with a product or service. Most p/s will satisfy both types of needs. Key to successful marketing is the correct balance of the two needs that best appeals to firm"s target markets. Consumers rely on two key types of information. Internal search for information - buyer examines own memories & knowledge gathered through past experiences: external search for information buyer seeks information from outside his or her personal knowledge base to make buying decision.
