Chapter 6: consumer decision making

example of need recognition

1) internal- blisters from old shoes 2) external- commercial for new car

psychological factors

determine how a consumer perceives and interacts with their environment include perception, motivation , learning, beliefs and attitudes

psychological risk

occurs when consumer feels making the wrong decision may cause some concern or anxiety (regular ice cream vs fat free)

enduring involvement

ongoing interest in some product or activity consumer is looking to consume the product or participate in the activity the things the person cares about most

internal info search

person recalls info stored in the memory -may include fondly remembering a past experience with a product

shopping involvement

personal relevance of the shopping process i.e. doing research on exactly what you want to buy before even entering the store

levels of involvement

product, situational, enduring, emotional

external information search

seeking info from the outside environment two types: marketing control information search and non-marketing controlled info search

involvement

the amount of time and effort a buyer invests in the search, evaluation, and decision process

cultural factors

the broadest and deepest influence on consumer decision making -encompasses all things consumers do without conscious choice

need recognition

the first step in the consumer decision making process -activates the consumer decision making process by either an internal or external stimulus

want

the recognition of an unfulfilled need and a product that will satisfy it

limited decision making

consumer has previous product experience, but is unfamiliar with other current brands available -moderate effort in searching for info and considering alternative i.e. when a routine purchased product is sold out

routine response behavior

little time on search and decision, buy first evaluate later -consumer familiar with potential brands, but stick with one brand i.e. milk or orange juice

subculture

a homogenous group of people who share elements of the overall culture as well as cultural elements unique to their own group

product attribute

a method of the evaluating evoked set and making a decision that involves picking a product attribute and excluding all products that dont meet that attribute -cutoffs are minimum or maximum levels of that attribute

categorization process

a products evaluation depends upon the particular category it is perceived to belong to

brand extensions

a well known brand name extends its product category into other categories. i.e. radio chips in cell phones--> pet tracking devices

evoked set

after an information search, this is the group of brands from which the consumer will chose from

value

an enduring belief shared by a society that a specific mode of conduct is socially preferable

piecemeal process

evaluation is made by examining alternative advantages and disadvantages along important product attributes

financial risk

exposure to loss of wealth or purchasing power as price increases so does the level of involvement

product involvement

high personal relevance i.e. fashion industry

emotional involvement

how emotional a consumer gets when making a purchasing decision i.e sports fans

want-got gap

imbalance between actual and desired states -marketing manager wants consumer to recognize this want-got gap -gap must be large enough to drive the consumer into action

perceived risk

increased level of involvement -financial risk, social risk, and psychological risk

external stimuli

influences from outside sources such as a recommendation, a likable color, ad on t.v. or radio

non marketing controlled information source

info source not associated with a marketers promotion -include personal experiences (talking to friends about product, blogs, consumer opinion sites, etc)

marketing controlled information

info that originates with marketers promoting a product -mass media advertising (radio, newspaper, tv, all ads)

extensive decision making

when buying an expensive product or infrequently bought item, complex buying decision with high consumer involvement -leads to most cognitive dissonance i.e. switching brands, new dog new toys= more though initially

social risk

when buying products that can affect people's social opinions of them (wearing old clothes, driving ugly car)

situational involvement

when consumer perceives risk in a specific situation i.e. buying better alcohol for a first date than usually would for self

cognitive dissonance

when people recognize inconsistantcy between their values/opinions and their behavior "buyers remorse" -reduced if consumer can justify their decision -reduced when marketers communicate effectively

satisfied purchase

when the consumers expectations of certain outcomes is met