Consumer Decision Making Process
A key factor in successfully marketing new/existing products or
implementing a product
Extension is a thorough understanding of the motivation, learning,
memory, and decision
Processes that influence consumers purchasing behavior. Consumer
purchasing behavior theories have found their way into managerial
decision making to help companies more effectively develop and launch
new products, segment the market, determine market entrance and in
brand management.
Therefore, a better understanding of how consumers decide what to
purchase is critical to the success of a product. There are numerous
theories and models describing the consumer purchasing decision
process. The basic concept behind these theories and models are
similar.
Five steps describing the consumer purchase decision below followed by
a brief description.
1. Problem Recognition
2. Information Search
3. Evaluation of Criteria
4. Purchase Decision
5. Post Purchase Evaluation
Problem recognition is simply the awareness of a need. The need may be
perceived or real. The problem recognition process occurs every time
consumers decide they need something whether it is toilet paper or a
new home. This is the first and most basic step in the purchase
decision process. Marketers can effectively initiate consumers’
awareness of a need with the right advertising campaign. For instance,
the concession advertising prior to the start of a feature movie is
geared toward making movie goers aware that they” need” a drink and a
snack.
Information search is the process where consumers gather information
on a pro...
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...ucts. Reference groups can be thought
of as any group that has an influence, positive or negative, on an
individual. Social class impacts purchasing decision directly and
indirectly. Annual household income is used to define social status
and also places limits on household spending. Culture impacts the
purchasing decision process in that the values, ideas and attitudes of
people are shaped by the culture in which they reside.
Conclusion
Companies are better able to market their products to consumers if
they have a good
Understanding of the consumers and the basic purchase decision process.
By understanding the consumer and the type of purchasing behavior
associated with different products, marketers are more likely to
create a marketing campaign that positively impacts the consumer’s
purchasing decision.
The consumer decision process consists of these six steps. First, problem recognition: Awareness of an unmet need. Second, information search: Search for alternatives that will meet your needs. Third, alternative evaluation: Evaluate the alternatives. Forth, purchase decision: Decide on the best alternative for you based on your criteria. Fifth, post-purchase behavior: Determine if you are satisfied with your choice. Sixth, disposal of product: Determine if you will keep it, upgrade it, or get rid of
These data affect the consumer decision-making process through alternative evaluation, the consumer compares the different choices to best meet their individuals need. The consumer decides the criteria for judging the alternative products or services by evaluative criteria. Consumers use tangible and intangible criteria, and when evaluating alternatives, determine qualities that are important and evaluate the alternatives.
“Consumer 2.0” is a concept which describes the behaviors related to how consumers interact with information in the context of the purchase decision lifecycle.
Marketing is a system of business activates designed to plan, price, promote and distribute want-satisfying products, services and ideas to customers in order to achieve business objectives. Consumer law protects consumer’s rights in the marketplace as well as fair trading, competition and accurate information. On the other hand, ethical aspects of marketing are about making marketing decisions that are morally right. However, consumer law and ethical aspects of marketing have a lot of advantages and disadvantages in the marketplace, which impacts business 's sales and growth like it happened to: Harvey Norman, Nurofen, apple, etc.
Personal preference is another factor as some people prefer variety of goods whereas others prefer not having too many choices at all.
This report aims to provide a mix review of theories and personal case study. I will apply two consumer behaviour theories in relation to my own purchase decisions.
Every company wants to understand why people decide to buy its products or others. Firstly, we have to understand why people buy certain kind of product. People buy products because they need them. A need is activated and felt when there is a sufficient discrepancy between a desired or preferred state of being and the actual state. (Engle£¬Blackwell and Miniard. 1995. p407 ) For example, when you feel hungry, what you needs is some food. It is very important for marketer to understand the needs of consumers. All the consumers may have the same needs, but the ways which they satisfy what they need are different. Here is a example, Chinese people would choose rice when they feel hungry, whilst British people may choose bread to satisfy their needs.
Consumer Choice Theory is a division of macroeconomics. It relates preferences to the expenditures incurred on consumption and to the consumer demand curves. It makes the analysis of how consumers maximize their consumption as it is measured by their preferences subject to restrictions on their expenses. The latter can be achieved through maximizing utility dependent on a user budget constraint. Consumption is different from production.The law of demand is dependent on the price of the goods (Cartwright, 2014). As the price of goods raises the rate of consumption falls even when the rate even when the consumer is financially compensated for the effect of high pricing. The latter brings about the effect of substitution. In any case, there is
2. Today marketers can collect and analyze data about consumer behavior, one person at a time; this is the relationship approach to marketing.
In today’s competitive world where organizations looking for high profitability and market share, consumers have very important role. Companies are looking for capture consumers in order to get larger market share. For this reason organization developed a number of techniques and tools. One of such tools is consumer behavior which has been come from economic theory. Consumer behavior is mainly studying the factors and situations that can affect purchase decisions of consumers. Consumer behavior is being very important discipline of management sciences which help out to understand of customers’ decision making.
Customer analysis is the assessment of information associated with customer needs, habits, requirements, and market trends. This is usually completed in three phases, evaluating before, during and after the acquisition. These phases are typically accomplished through consumer focus groups, gratification measurements, and field-testing. Moreover, market analysis can be best described as a comprehensive examination designed to forecast or forestall the direction of stocks, bonds, and the product market, typically based on technical data.
would like to put you in a situation and show you how a consumer can
Conative way to determine consumer perception value is where the consumer's thought process about a product is based upon the likelihood of the brand purchase. It requires a company to understand the consumer’s perception about their product. And also what is the customer looking for in the product of his or her choice as compared to its competitors.
Consumer Decision Process From buying a hamburger to buying a house people use a process in order to make a decision on what to buy. (book cite) describes this as the consumer decision process (pg.175). Utilizing a consumer decision process model, marketers are able to better understand how consumers are purchasing products and services. The five step consumer decision process model includes need recognition, information search, alternative evaluation, purchase, and post purchase.
The research on consumer behavior assists the organization recognize and forecast the purchase behavior of the consumers while they are purchasing a product. Thus, the study of consumer behavior helps the marketers not only to understand what consumer's purchase, but helps to understand why they purchase it (Kumar, 2004). There are a lot of elements which can influence the purchase decision of consumers such as social influences, cultural influences, psychological factors and personal factors (Super Professeur, 2011). Understanding these factors helps the company to market the product on right time to the right consumers in order to generate more profits. On the other hand, if the marketers fail to understand these components that might influence consumers, they will fail to convince the consumers to purchase that product or will fail to meet the demands of consumers. However, consumer behavior is one of the stimulating and challenging areas in marketing studies being a human activity focused on the products and services. Thus understanding the behavior of the consumers is a great challenge. Moreover, it is not easy to get a full picture of consumer behavior as customers make plenty of different buying decision every day and they usually do not know exactly what influences their purchase. In short, basing on all