B3 - Consumer decision-making

Maslow’s Hierarchy of Needs

• Physiological needs: Food & water

• Safety needs: Security, protection

• Social needs: Belonging

• Esteem needs: Self-esteem, recognition

• Self-actualization needs: Self-development and realization

Steps in consumer making decisions

1. Need recognition

2. Information search

3. Information evaluation

4. Purchase decision

5. Post purchase evaluation

Needs vs wants vs demands

• Needs: basic human requirement

• Wants: needs to be directed towards specific objects that might satisfy the need

• Wants backed by an ability to pay

Needs and watns model in the case of food

How do needs and wants differ in different situations

• You don’t eat the same thing in a restaurant as at a movie theater.

What are the different roles that a decision-making unit consists of?

• Initiators - recognize the need

• Users - use the product

• Influencers - influence on the decision

• Decision makers - make the actual decision

• Approvers - approve a purchase

• Buyers - pay the purchase

• Gatekeepers - authority to reject or accept products

• Usually, different people play different roles, sometimes several at the same time.

• These roles also can exist within a food company

What are the two processing systems used when making a decision?

System 1	System 2
Automatic	Controlled
Unconscious	Conscious
Fast	Slow
Emotional	Rational
Intuitive	Analytic

How to consumers derive information that help them make purchasing decisions

• from their surroundings (shopping environment, product package)

• Internal (memory) sources

Customer value

• Customer values differ from objective facts, as the customer value is much more about how things are perceived, which differs per customer.

• How customer value is determined can be seen on the image.

• Customer value is not only individual but also situational

Post-purchase evaluation

• It is important that the product expectation are met

• Consumers evaluate if expectations are met.

Analyzing food products

1. Core product (consumer benefit): problem-solving services or core benefits that consumers buy when they purchase a product

2. Basic (actual) product: a product’s parts, quality level, features, design, brand name, packaging and other benefits that combine to deliver core benefits

3. Augmented product: Additional consumer services and benefits built around core and actual products.

Example analyzing product: hotel

1. Core: you have a bed and are able to get comfortable sleep so you have enough energy for the next day

2. Basic: Bed, bathroom, shower, maybe breakfast, things that are expected.

3. Augmented: Fancy decor, a bar, things beyond expectations

Core and basic products; Three-level analysis

Core product:

• Benefit: The basic positive experience that a consumer gets when consuming the food

Basic product:

• Attribute: the basic components of the food product that jointly shape the benefit

• Characteristic: The technical elements of the food product that jointly shape the attribute.

Core and basic products; Three-level analysis Example froyo

Types of attributes

• Search attributes: easily observable, help consumers make the right choice

• Experience attributes: only experienced during use of the product

• Credence attributes: neither observable, nor experienced, consumers should believe that they are there (often production elements in chain)