The consumer decision-making process
Consumer behavior: the process involved when individuals or groups select, purchase, use, and
dispose of goods, services, ideas, or experiences to satisfy their needs and desires.
Not all decisions are the same
Involvement: the relative importance of perceived consequences of the purchase to a
Perceived risk: the belief that choice of a product has potentially negative
consequences, whether financial, physical, and/or social.
Step1: problem recognition
Problem recognition: the process that occurs whenever the consumer sees a significant
difference between his current state of affairs and some desired or ideal state; this
recognition initiates that decision-making process.
Step2: Information search
Information search: the process whereby a consumer searches for appropriate
information to make a reasonable decision.
The internet as a search tool
Search marketing: marketing strategies that involve the use of internet search
Search engine optimization (SEO): a systematic process of ensuring that your firm
comes up at or near the top of lists of typical search phrases related to your
Search engine marketing (SEM): search marketing strategy in which marketers pay
for ads or better positioning.
Sponsored search ads: paid ads that appear at the top or beside the internet search
Comparison shopping agents (shopbots): web applications that help online
shoppers find what they are looking for at the lowest price and provide customer
reviews and ratings of products and sellers.
Behavioral targeting: the marketing practice by which marketers deliver
advertisements for products a consumer is looking for by watching what the
consumer does online.
Step3: evaluation of alternatives
Evaluative criteria: the dimensions consumers use to compare competing product
Step4: Product choice
Heuristics: a mental rule of thumb that leads to a speedy decision by simplifying the
Brand loyalty: a pattern of repeat product purchases, accompanies by an underlying
positive attitude toward the brand, based on the belief that the brand makes products
superior to those of its competition.
Step5: Post purchase evaluation Consumer satisfaction/dissatisfaction: the overall feelings, or attitude, a person has
about a product after she purchases it.
Cognitive dissonance: the anxiety or regret a consumer may feel after choosing from
among several similar attractive choices.
Internal influences on consumers’ decisions
Perception: the process by which people select, organize, and interpret information from
the outside world.
Exposure: the extent to which a stimulus is capable of being registered by a person’s
Subliminal advertising: supposedly hidden messages in marketer’s’ communications.
Consideration set: the set of alternative brands the consumer is considering for the decision
Clickstream analysis: a means of measuring a web site’s success by tracking customers’
movement around the site.
Attention: the extent to which a person devotes mental processing to a
Interpretation: the process of assigning meaning to a stimulus based on prior
associations a person has with it and assumptions he or she makes about it.
Motivation: an internal state that derives us to satisfy needs by activating goal-
oriented behavior stimulus.
Hierarchy of needs: an approach that categorizes motives according to five
levels of importance, the more basic needs being on the bottom of the hierarchy
and the higher needs at the top.
Learning: a relatively permanent change in behavior caused by acquired information or
Behavioural learning theories: theories of learning that focus on how consumer
behavior is changed by external events or stimuli.
Classical conditioning: the learning that occurs when a stimulus eliciting a
response is paired with another stimulus that initially does not elicit a response
on its own but will cause a similar response over time because of its association
with the first stimulus. (dog+f