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Chapter 5

Chapter 5 BU352.docx

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Department
Business
Course
BU352
Professor
Dave Ashberry
Semester
Fall

Description
BU352 Chapter 5 – Consumer Behaviour Week 4 The Consumer Decision Process -Represents the steps that consumers go through before, during, and after making purchases Step 1: Need Recognition -The consumers must recognize they have an unsatisfied need and want to go from their actual, nedy state to a different, desired state -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 -Ex. Your stomach telling you, you are hungry Functional Needs -Functional needs- pertain to the performance of a product or service Psychological Needs -Psychological needs – pertain to the personal gratification consumers associate with a product or service -Ex. Red hot shoes make you attractive Step 2: Information Search -The consumer searches for information about the various options that exist to satisfy the need -The length and intensity of the search are based on several factors, including the degree of perceived risk associated with purchasing the product or service and the importance of the product to the consumer -Internal search for information – occurs when the buyer examines his or her own memory and knowledge about the product or service, fathered through past experiences -External search for information – occurs when the buyer seeks information outside his or her personal knowledge base to help make the buying decision Factors Affecting Consumers’ Search Processes -The perceived benefits vs. perceived costs of search – is it worth the time and effort to search for information about a product or service? Ex. You would spend the time for a car, but not for a tank top -The locus of control -Internal locus of control – refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities -External locus of control – refers to when consumes believe that fate or other external factors control all outcomes -Actual or perceived risk – the higher the risk, the more likely the consumer is to engage in an extended search -Performance risk – involves the perceived danger inherent in a poorly performing product or service -Financial risk – risk associated with a monetary outlay; includes the initial cost of the purchase as well as the costs of using the item or service -Social risk- involves the 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- associated with the way people will feel if the product of service does not convey the right image -Type of product or service -Specialty goods/services- products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best BU352 Chapter 5 – Consumer Behaviour Week 4 suppliers -Shopping goods/services- products or services, such as apparel, fragrances, and appliances, for which consumers will spend time comparing alternatives -Convenience goods/services – products or services for which the consumer is not willing to spend any effort to evaluate prior to purchase Step 3: Alternative Evaluation -Once consumers have recognized a problem and explored the possible options, they must sift through the choices available and evaluate the alternatives -Alternative evaluations often occurs while consumers are engaged in the process of information search -When consumers begin to evaluate different alternatives, they often base their evaluations on a set of important attributes or evaluative criteria -Evaluative criteria – consist of a set of salient or important, attributes about a particular product that are used to compare alternative products -To simplify the potentially complicated decision process, consumers use shortcuts such as determinant attributes and consumer decision rules -Determinant attributes- product or service features that are important to the buyer and on which competing brands or stores are perceived to differ -Consumer decision rules- the set of criteria consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives -Noncompensatory decision rule- is at work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes -Compensatory decision rule – is at work when the consumer is evaluating alternatives and trade-offs one characteristic against another, such that good characteristics compensate for bad ones -Decision heuristics- mental shortcuts that help consumers narrow down choices; examples include price, brand, and product presentation -Marketers can assist consumers in their evaluation process not only by educating them about the company’s products, but also by providing detailed comparison information on price, technical specifications, unique features and benefits, etc. -Marketers may even provide free samples or trials of their products which may enable consumers to compare the actual products Step 4: Purchase Decision -Once consumers have considered the possible alternative and evaluated the pros and cons of each, they can move toward a purchase decision -Customers seek out and purchase the products and services that they believe provide them with the best value -After consumers purchase the product or service, they usually consume it, or “put it to the test” -Ritual consumption- refers to a pattern of behaviours tied to life events that affect what and how people consume -Additional factors that affect whether the purchase decision is made immediately or later, such as store atmospherics, shopping situation, and temporal states Step 5: Postpurchase -The final step is postpurchase behaviour -Marketers are interested in postpurchase behaviour because it entails actual, rather than potential customers -Three possible postpurchase outcomes: Customer Satisfaction -Marketers should take the following steps to ensure satisfaction: BU352 Chapter 5 – Consumer Behaviour Week 4 -Build realistic expectations -Demonstrate correct product use -Stand behind the product by offering money back guarantees and warranties -Encourage consumer feedback -Periodically make contact with customers and thank them for their support Postpurchase Cognitive Dissonance -Postpurchase dissonance – an internal conflict that arises from an inconsistency between two beliefs, or between beliefs and behaviour; buyer’s remorse -It is a feeling of regret, gu
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