MKT 100 Chapter Notes - Chapter 4: Determinant, Problem Solving

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Chapter 4 - Consumer Behaviour
The Two Sides of Marketing
Marketing: Activities, institutions, and processes for creating, communication, delivering, and
exchanging offering that have value for customers, clients, partner and society at large
Consumption: Activities, institutions, and processes for searching, acquiring, consuming and
disposing of marketing offering that have value for marketers, consumers and society at large
Consumer Behaviour
-Study of the processes involved when individuals or groups select, purchase, use or dispose of
products, services, ideas or experiences to satisfy need and desires
-Who consumes? What? Why? Where & How? What can we do once we know?
Model of Consumer Behaviour
Interdisciplinary Perspective
-Economics, Psychology, Sociology, and Anthropology
Buyer Decision Process
-Activities, institutions, and processes for searching, acquiring, consuming and disposing
-Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decisions, Post
purchase behaviour
Habitual Behaviour
-If it worked in the past, it’s like to work again
-Habits allow us to save time making decisions
-Shopping routines are are execute more efficiently than new behaviours
-Habitual shopping provides a sense of discipline and order and control
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Complex Shopping Behaviour
-It often involves professional advisors
-Internet has increased returns from search effort: desired features, best quality, lowest price.
That has hugely increased the efficiency and competitiveness of markets
The Consumer Decision Process
Step 1- Need Recognition
-Functional Needs & Psychological Needs
Step 2- Information Search
-Internal & External search for information
Step 3 - Alternative Evaluation
-Evaluate Criteria & Determinant Attributes
Step 4 - Purchase Decision
-Purchase decision
Step 5- Post Purchase
-Post Purchase
Factors Affecting Consumers Search
-Internal Locus of control
-External locus of control
-Actual Vs Perceived Risks ( Perfomance, Financial, Social, Psychological, & Physiological
Purchase in Consumption
Increase conversion rate by:
-Reduce real or virtual abandoned carts
-Plenty of merchandise in stock
-Reduce the actual wait time by opening ore checkouts
Post Purchase Outcomes
-Customer Satisfaction (+)
-Customer Loyalty (+)
-Post purchase Dissonance (-)
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find more resources at oneclass.com
Factors Influencing Consumer Buying Decisions
Psychological Factors
Motives
-Maslow's’ Hierarchy of Needs
Attitudes
-Your evaluation or attitude toward an object or idea
-Learned and long-lasting but can change abruptly
-Affective vs Behavioural component
Perception
-Ex, How has society perception of people with tattoos changed?
Learning & Lifestyle
-Affected by both attitudes and perception
-Also affected by social experiments
Social Factors
Family
-Decision Makers
-Influencers
Reference Groups
-Groups: Family, Friends, Co-workers, Famous people
-They Provide: Information ,Rewards, Self- Image
Culture
-Shared meanings, beliefs, morals & customs
-Your culture could be your school, country, or religion
-Culture greatly influences customer behaviour
-Marketers must understand the difference between countries
Situational Factors
-Purchase Situation
-Shopping Situation
-Temporal State
Involvement and Consumer Buying
High involvement
-Greater attention & Deeper processing
-It develops strong attitudes and purchase intentions
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find more resources at oneclass.com