MGCR 352: Chapter 4 Behaviour Processes and Factors that influence the consumers buying decisions

what is the importance of consumer behaviour

• Consumer drive marketing strategies

• must change for product concepts to be successful

• listen & learn from your customers Feedback

Consumer Purchase decision Process

1) Problem recognition

2) information search

3) Alternative Evaluation

4) Purchase decision

5) Post- purchase behaviour

Factors Influencing Consumer Buying Decisions

• Psychological influences

• Socio-cultural influences

• Marketing Mix Influences

• Situational influences

Psychological factors

• motives

• personality

• perceptions

• learning

• VALS

Social Factors

• family

• reference groups

• culture (subculture)

• social class

• personal influence

Marketing Mix Influences

• Product

• Price

• Promotion

• Place

Situational Factors

• purchase task

• social surroundings

• physical surroundings

• shopping situation

• Antecedent states

• temporal effects

Factors Affecting Consumers’ Search Processes

• risk

• cost

• benefits

involvement and consumer buying decisions

• High Involvement

  • Greater attention

  • Deeper processing

Develops strong attitudes and purchase intentions

• Low involvement

  • Less attention

  • peripheral processing

Generates weak attitudes and increased use of cues

Types of Buying Decisions

• impulse buying

• habitual decision making

Limited problem solving

purchase decision calls for a moderate amount of effort and time

Extended problem solving

purchase decision takes considerable amount of time and effort (risk, alternatives)

Step 1: Need Recognition

recognition of a functional needs

motivation

energizing force that causes behaviour to satisfy a need

Personality

a persons consistent behaviours/responses to recurring situation

Step 2: Information Search

• internal search for information

• external search for information

Hierarchy of Needs

• Self-actualization needs

• Personal Needs

• Social needs

• Safety needs

• Physiological Needs

perception

process by which individuals select, organize, interpret information to create meaningful picture of the world

culture, tradition, upbringing determine our perceptual view of the world

selective perception

filtering process that we use:

• selective exposure

• selective attention

• selective comprehension

• selective retention

Internal Locus of Control

• amount of control you may have

• more control over outcomes

• engage in more search activities

External Locus of Control

• fate, trust,

• external factors in quality of information and ultimate control over outcomes

Factors affecting consumers search processes

• Performance risk

• Financial Risk

• Social Risk

• Physiological risk

• Psychological

Step 3: Alternative Evaluation

• consumers must sift through choices available and evaluate alternatives

• determinant different alternatives, base off of diff attributes to simplify decisions

decision heuristics

mental shortcuts

Step 4: Purchase decision

• when consumers are ready to buy

• process of making the final decision

in order for retailers to increase conversion rates(intention to buy) they:

• reduce real/virtual abandoned carts

• increase merchandise in stock

• reduce wait time

Step 5: Postpurchase

• possibility of 3 different potential outcomes

  • customer satisfaction → +

  • postpurchase dissonance → -

  • customer loyalty → +

customer loyalty

• develops over time w multiple repeat purchases of the product or brand from the same marketer

• will buy only certain brands and shop at certain stores

• do not consider other brands or firms in their decision

• very valuable

Undesirable Consumer Behaviour

• negative word-of-mouth and rumours can be damaging

• positive evaluation + ratings are influential

• internet is effective way to spread negativity

physiological needs

deals with basic biological necessities of life

what is a component of psychological factors

attitude

• affective, behavioural, and cognitive components should work together to avoid cognitive dissonance

affective

likes, dislikes, what you feel

behavioural

the action we take based on what we know, learned/long-lasting but can change abruptly

cognitive

inner self satisfaction

Social Factors: family

• decision process is influenced by external, social environment, which consists of customers family, reference groups and culture

what is a reference group

one/more persons whom individual uses as a basis for comparison regarding beliefs, feelings, behaviours

types of reference groups + what do they provide

• family

• friends

• co-workers

• famous people

information, rewards, self-image