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Chapter

COMM 296 - Class 5: Consumer Behaviour


Department
Commerce
Course Code
COMM 296
Professor
Tamar Milne

Page:
of 4
Comm 296: Chpt 5
Section 202
Class 5
Jan 23, 11
Chapter 5 Notes: Marketing. Consumer Behavio u r
Note. It’s not done in this exact order. We can cycle
The consumer Decision Process pg82-92
1. Needs Recognition
Recognizing unsatisfied need
Need state --. Desired state
Greater the discrepancy, greater the need recognition
Functional needs
Need to be able to run (runners)
Equipment to be able to do something
Psychological needs
Pertain to personal gratification
High heels not to walk but to look sexier
Spending more money than necessary
1. Information Search
Length of search depends on the perceival of risk associated with
purchasing the product
Internal search for information
Memory of how the purchase was
External search for information
Information from second hand (friends, family)
Commercial media
Internet
Factors affecting consumers’ search processes
The perceived benefits versus perceived costs of search
1. Need recognition
2. Information Search
3. Alternative
Evaluation
4. Purchase
5. Postpurchase
Is the time and effort searching worth it? Is the cost of
searching worth it
Locus of Control
Internal locus of control
Believe they have control of their actions
I can search and find the information I need to make a
purchasing decision?
External Locus of control
External factors control actions
I can’t search and find info, I’ll be forced to buy this
certain product
Actual/Perceived Risk
Performance Risk – will it work?
Financial risk – can I spend that much money? Warranty
make it better?
Psychological/emotional risks – I’m committing to 4 years
here, is this okay with me?
Social risks - will others perceive me the way I want them to
perceive me?
Type of product or service
Speciality goods/services – there is a preference to find the
best one (right car, right ring, could be right toothbrush). You
have a preference to one brand. May take a long time to get
the product, but no time in deciding it.
Shopping goods/services – there are many alternatives
(shoes), takes a while to find right one.
Convenience goods/service – frequently purchased
commodity items
1. Alternative Evaluation
Looking at alternatives and making a decision
Attribute Sets
Organizes + categorizes alternatives
Universal Sets all possible choices for product category
Retrieval Sets - the subset of the universal set that consumers can
bring forth in thought from memory (The acceptable and
Unacceptable Brands)
Evoked sets The alternative brands/stores that consumer will
think of when making a purchasing decision (increases chance of
being bought) (Known Brands)
Evaluative Criteria Consist of a set of salient/important attributes
about a product wished to be purchase. (ex. The TV must have a
certain brightness level/size, etc)
Determinant Attributes IMPORTANT features of the product that
competing products differ in (ex. Coke has more sugar than pepsi.
The sweetness factor. The health factor. Which one will you buy?
Ex. The colour of the shoes that look the same)
Consumer Decision Rules
Conscious or Subconscious criteria that consumer has to make
decisions quickly and efficiently
Compensatory Decision Rule – measures good and bad
characteristics and balances them against each other to evaluate
Noncompensatory decision Rules – Chooses product/service based
on one (or set of) characteristics (regardless of the values of its
other attributes)
Decision Heuristics – Elements that one looks at as mental
shortcuts to narrow down choices. Examples:
Prices
Brand
Product presentation
1. Purchase
The buying of the product that provides the best value, and then
consuming
Ritual Consumption The pattern of buying that forms from our lives (ex.
Buying starbucks in the morning. Birthday card buying)
1. PostPurchase
Three outcomes: Customer Satisfaction, Postpurchase Dissonance,
Customer Loyalty
Customer Satisfaction
Don’t over/undersell yourself (may lead to disappointment and
dissatisfied customers)
Build realistic expectations
Demonstrate correct product use
Stand behind product/service by selling guarantee + warranties
Encourage customer feedback (cuts down on negative word of
mouth, you can control more)
Periodically make contact with customers and thank them
Postpurchase Dissonance
Aka. Buyers remorse
Happens more with expensive products
THE GREATER THE RISK, THE GREATER THE REMORSE