Gnarls Barkley - Crazy

Copyright 2007 McGraw-Hill Ryerson Limited

The Consumer Decision-Making Process

The Buying-Decision Process

Its a model Why do we need a model? Is it perfect? Time on each stage? In order?

The Buying-Decision Process

Need recognition
Comes about through inconvenience, discomfort, tension, dissatisfaction, desire Internal and/or external Wants & Needs

The Buying-Decision Process

Choice of involvement level
Often not conscious High when information lacking; product is important/significant benefits; practical, psychological or social risk of a bad decision is high; product has high social importance Low for impulse buys (how is impulse buying done on the internet?) Different for different consumers High when the interaction process itself is satisfying or enjoyable

The Buying-Decision Process

Identification of alternatives Influenced by how much information the consumer has, and their confidence in that information The time and money involved in getting more information is an issue What has the internet done to this process?

The Buying-Decision Process

Evaluation of alternatives Based on whats important to the consumer Single or multiple criteria based on past experience, feelings, opinions This is a key area for marketers: where is information lacking in the marketplace; trying to define the criteria by which alternatives are chosen

The Buying-Decision Process

Purchase and related decisions Where to buy, how to pay for, how to take delivery, etc. In connection with where to buy are patronage motives: why will you go to one place to buy versus another?

Examples of Patronage Motives

Convenience, location Appearance Selection Service/reliability Confidence/reputation Prices, credit terms Mix of other customers Physical appeal of premises Brand Web site

The Buying-Decision Process

Post-purchase
After buying, consumers satisfaction will affect future purchases Transaction satisfaction Consumption satisfaction Functional relationship Emotional relationship

The Buying-Decision Process

Post-purchase Anxiety or Regret (Cognitive Dissonance)
Consumer may experience a period of anxiety after purchase Dissonance is greater when: price is high, alternatives are similar, purchase is perceived as important Consumers seek to reduce dissonance through: avoiding information, seek out information that reinforces the purchase decision, spend more time in pre-decision evaluation

Psychological Forces Affecting the Buying Decision

Motives that consumers recognize and willing to talk about that consumers aware of but not willing to divulge that consumers are themselves not able to explain some examples

A Psychological Marketing Model

Psychological Forces Affecting the Buying Decision

Perception The result of stored experiences and references Very active in alternative-identification stage Selectivity limits perception:
Selective retention Selective distortion Selective attention

Psychological Forces Affecting the Buying Decision

Learning Learning plays a part in every stage of the buying-decision process. In fact, it plays a part in almost everything that we do in our daily lives. It shapes our responses to all that we encounter.

Psychological Forces Affecting the Buying Decision

Personality We often see peoples personalities in the clothes they wear, the cars they drive and the activities they enjoy Self-concept: actual versus ideal

Psychological Forces Affecting the Buying Decision

Attitudes: represent an individual's degree of like or dislike for something Learned Have an object Have direction (+ or -) and intensity The longer held, the more resistant to change Change product to match attitude, or change attitude to match product?

Psychological Forces Affecting the Buying Decision

Values and Lifestyle

The Elders Rational Traditionalists Extroverted Traditionalists Cosmopolitan Modernists GenXers Aimless Dependants Thrill-Seeking Materialists New Aquarians Autonomous PostMaterialists Hedonists The Boomers Autonomous Rebels Anxious Communicators Disengaged Darwinists GenYers

Social and Group Forces Affecting the Buying Decision

Culture/Subculture Groups that exhibit characteristic behaviour patterns sufficient The most obvious subculture in Canada is the French-Canadian one
Many other subcultures also exist

Social and Group Forces Affecting the Buying Decision

Reference Groups Those with whom we interact and who influence our attitudes, values and behaviour Family, union, religious group, athletic teams, friends, neighbours, church/mosque/synagogue, celebrities, work colleagues, etc. Innovators and opinion leaders
Particularly influential in small reference groups.

Situational Influences Affecting the Buying Decision

When they buy time (day, night, season ) Where they buy physical and social surroundings How they buy terms and conditions Conditions under which they buy states and moods

Quiz No. 2
Think of an important and/or large purchase you or someone you know made recently, or will be making Now list and explain 3 (or more if you like) reasons, including psychological motives, for making that purchase