MKT 100 Chapter Notes - Chapter 5: Impulse Purchase, Cognitive Dissonance, Customer Satisfaction
28 Jun 2018
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MKT Chapter 5 - Consumer Behaviour
To understand consumer behaviour, we must ask why people buy products
The Consumer Decision Process:
Step 1 - Need Recognition
Need recognition - the beginning of the consumer decision process; occurs
when consumers recognize they have an unsatisfied need and want to go
from their actual needy state to a different, desired state
Functional needs - pertain to the performance of a product or service
Psychological needs - pertain to the personal gratification consumers
associate with a product of service
A key to successful marketing is determining the correct balance of
functional and psychological needs that best appeals to the target market
Step 2 - Information Search
Search for information about the various options that exist to satisfy a need
Internal search for information - occurs when the buyer examines their
own memory and knowledge about the product, gathered through past
experience
External search for information - occurs when the buyer seeks information
outside their personal knowledge base to help make the buying decision
Factors affecting consumer’s search processes
oPerceived benefits vs perceived costs of search - is it worth the
time/effort to search for information?
oThe locus of control - internal locus of control: when consumers
believe they have some control over the outcomes of their actions
(generally engage in more search activities). External locus of
control: when consumers believe that fate or other external factors
control all outcomes (less likely to search)
oActual or perceived risk - five types of risk associated with purchase
decisions
Performance risk - involves the perceived danger inherent in
a poorly performing product or service
Financial risk - risk associated with a monetary outlay (initial
cost and cost of use)
Social risk - fears that consumers suffer when they worry
others might not regard their purchases positively
Physiological (safety) risk - risk associated with the fear of
an actual harm should the product not perform properly
Psychological risk - the way people will feel if the product
doesn't convey the right image
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Document Summary
To understand consumer behaviour, we must ask why people buy products. Need recognition - the beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual needy state to a different, desired state. Functional needs - pertain to the performance of a product or service. Psychological needs - pertain to the personal gratification consumers associate with a product of service. A key to successful marketing is determining the correct balance of functional and psychological needs that best appeals to the target market. Search for information about the various options that exist to satisfy a need. Internal search for information - occurs when the buyer examines their own memory and knowledge about the product, gathered through past experience. External search for information - occurs when the buyer seeks information outside their personal knowledge base to help make the buying decision.
