COPYRIGHT © 2012 Cengage Learning Asia Week 2CHAPTER 3 The Consumer Decision Process COPYRIGHT © 2012 Cengage Learning Asia A )The Consumer Decision Process The CDP represents a road map of consumers’ minds that marketers and managers can use to help guide product mix, communications, and sales strategies COPYRIGHT © 2012 Cengage Learning Asia Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment COPYRIGHT © 2012 Cengage Learning Asia 1) Need / Problem Recognition M E M O R Y Need Recognition COPYRIGHT © 2012 Cengage Learning Asia Environmental Influences - Culture - Social Class - Personal Influence - Family - Situation Individual Differences - Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle 2) Search for Information Need Recognition Internal Search M E M O R Y COPYRIGHT © 2012 Cengage Learning Asia Search External Search Environmental Influences Individual Differences Search: Sources of Information COPYRIGHT © 2012 Cengage Learning Asia Information Processing Exposure Stimuli: - Marketer Dominated - Nonmarketer Dominated Attention Comprehension Acceptance Retention COPYRIGHT © 2012 Cengage Learning Asia M E M O R Y Ad that creates a brand image COPYRIGHT © 2012 Cengage Learning Asia Need Recognition 3) CDP Model Internal Search Exposure Stimuli Attention Comprehension Acceptance Retention M E M O R Y COPYRIGHT © 2012 Cengage Learning Asia Search Pre-purchase Evaluation of Alternatives Environmental Influences Individual Differences Pre-purchase Evaluation of Alternatives based on: Salient/ important attributes such as price and reliability are important to the consumer Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose COPYRIGHT © 2012 Cengage Learning Asia Need Recognition 4) CDP Model Internal Search Exposure Stimuli Attention Comprehension Acceptance Retention M E M O R Y COPYRIGHT © 2012 Cengage Learning Asia Search Pre-purchase Evaluation of Alternatives Purchase Environmental Influences Individual Differences Need Recognition 5) CDP Model Internal Search Exposure Stimuli Attention Comprehension Acceptance Retention M E M O R Y COPYRIGHT © 2012 Cengage Learning Asia Search Pre-purchase Evaluation of Alternatives Purchase Consumption Environmental Influences Individual Differences Need Recognition 6) CDP Model Internal Search Exposure Stimuli Attention Comprehension Acceptance Retention External Search M E M O R Y Search Pre-purchase Evaluation of Alternatives Purchase Individual Differences Consumption Post-consumption Evaluation Dissatisfaction COPYRIGHT © 2012 Cengage Learning Asia Environmental Influences Satisfaction Post-Consumption Evaluation Cognitive dissonance: questioning the purchase decision (postpurchase regret) Usually, the higher the price, the higher the level of cognitive dissonance Emotion strongly affects the evaluation of a product or transaction COPYRIGHT © 2012 Cengage Learning Asia 7) Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Purchase Consumption Post-consumption Evaluation Divestment COPYRIGHT © 2012 Cengage Learning Asia Divestment How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling COPYRIGHT © 2012 Cengage Learning Asia B) Variables Shaping the Decision Process Individual Differences: Demographics, psychographics, values, and personality Consumer resources- money, time, info reception Motivation Knowledge Attitudes COPYRIGHT © 2012 Cengage Learning Asia Variables Shaping the Decision Process Environmental Differences: Culture Social Class Family Personal Influence – affected with people closely associate Situation behaviors COPYRIGHT © 2012 Cengage Learning Asia Variables Shaping the Decision Process Psychological Processes Influencing Consumer Behavior Information processing – how people digest information Learning – how people learn? Attitude and behavior change - how people able to change COPYRIGHT © 2012 Cengage Learning Asia c) Types of Decision Processes 1 COPYRIGHT © 2012 Cengage Learning Asia Types of Decision Processes Initial Purchase Extended Problem Solving (EPS): Often occurs with expensive items or can be fueled by doubts and fears Importance in making the “right choice” All seven consumer decision making stages are often activated Dissatisfaction is often vocal COPYRIGHT © 2012 Cengage Learning Asia Types of Decision Processes Initial Purchase Limited Problem Solving (LPS): Consumers don’t have motivation, time, or resources to engage in EPS Little search and evaluation before purchase Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance COPYRIGHT © 2012 Cengage Learning Asia Types of Decision Processes 4 Repeat Purchases Repeated Problem Solving Habitual Decision Making 5 Impulse Buying Variety Seeking Consumers may be satisfied with the 6 present brand but still engage in brand switching Can be triggered because bored with current brand or because of special offer COPYRIGHT © 2012 Cengage Learning Asia D) Factors Influencing Problem Solving Extent Degree of Involvement (High-Low) Personal Factors (high if effect selfimage, health, beauty, or physical condition) Product Factors (high if perceived risk in purchasing and using a particular brand or product) Situational Factors (is the product purchased for personal use or as a gift?) COPYRIGHT © 2012 Cengage Learning Asia Factors Influencing Problem Solving Extent Perceptions of differences among alternatives COPYRIGHT © 2012 Cengage Learning Asia Buying a dream car is a high involvement purchase Fin COPYRIGHT © 2012 Cengage Learning Asia
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