Untitled Quiz

Consumer Decision-Making Process

• Stages: The duration of each stage varies based on the risk of the purchase and the buyer's prior experience with the product or other brands. Internal and external marketing factors also influence decisions.

• Need Recognition: Buyers identify a need. Marketing strategies should understand the factors creating these needs to develop effective marketing strategies.

• Information Search: Unless a purchase is highly desired, the buyer will seek information before making a purchase. This can involve actively searching for data or passively receiving information. Two types exist: (1) intensified attention to information about the product, and (2) active search for product information.

• Evaluation of Alternatives: Buyers use the available information to evaluate competing brands. Marketing professionals can influence the evaluation process with various techniques like psychological repositioning. This entails shaping consumer perceptions of product attributes (making attributes appear better or different from the reality).

• Purchase Decision: Factors influencing the decision to purchase include attitudes toward others, unexpected events, and varying budgets.

• Post-Purchase Behavior: Post-purchase actions can result in satisfaction or dissatisfaction, depending on how the product meets expectations. Customer satisfaction is when perceived value equals or exceeds expectations. Conversely, dissatisfaction arises when perceived value falls short of expectations.

Types of Consumer Buying Behavior

• High Involvement/Significant Differences: Complex buying behavior occurs in high-risk, infrequent purchases where consumers perceive significant differences between brands (e.g., expensive cars).

• High Involvement/Minor Differences: Dissonance-reducing buying behavior happens when consumers are highly involved but see little difference between brands (e.g., buying carpeting).

• Low Involvement/Significant Differences: Variety-seeking buying behavior occurs in low-risk, frequent purchases with substantial brand differences (e.g., choosing a flavor of ice cream).

• Low Involvement/Minor Differences: Habitual buying behavior occurs in low-risk, frequent purchases with negligible brand differences (e.g., buying table salt).

Consumer Buying Decision Influences (Internal)

• Socio-Demographic Factors: Characteristics like age, gender, marital status, occupation, income, and education impact buying behavior.

• Psychological Influences: These factors include personality, self-concept, lifestyle, and how a person interacts with their environment.

Consumer Buying Decision Influences (External)

• Cultural Factors: Culture, subculture, and social class influence various aspects of buying behavior, including norms, values, beliefs, and customs. This also encompasses the subgroups and societal categories.

• Social Factors: Reference groups (important to the consumer), family, roles, and status greatly impact buying decisions. This also includes opinion leaders, and the influence from primary (family, close friends) and secondary (larger groups) groups.

• Situational Factors: Environment, circumstances, and time-related factors that impact buying decisions. This includes physical and social variables.

Consumer Information Needs

• Consumers assess the need for information based on the perceived risk associated with a purchase. Four types of risk are: financial, temporal, physical, and psychological.
• Three information-seeking behaviors can occur, depending on the perceived risk. They are extensive, limited, and routine.

Consumer Response Levels

• Consumers exhibit cognitive, affective, and behavioral responses to external stimuli.
• Consumers use various factors (like degree of involvement, and how they process information) to analyze buying situations.
• Two types of response are intellectual and emotional.

Business Buyer Behavior

• Motivations: Business buyers are driven by factors like cost, service, and market information.

• Buying Process: Purchase processes for businesses typically involve recognizing needs, defining specifications, identifying potential suppliers, soliciting proposals, evaluating suppliers, selecting a supplier, placing a purchase order, and checking results.