Presentation on theme: "Consumer Decisions: Psychology for Profit"— Presentation transcript:
1 Consumer Decisions: Psychology for Profit Chapter 6 & 7
2 What is Consumer Behavior? Processes a consumer uses to make purchase decisions, as well as use and dispose of purchased goods or services; also includes factors that influences purchase decision and product use
3 Consumer Decision Making Process PostpurchaseBehaviorPurchaseEvaluationof AlternativesInformation SearchProblem RecognitionCultural, Social, Individual andPsychological Factors affect all steps
4 1: Problem RecognitionResult of an imbalance b/t actual and desired statesWhat is a need?What is a want?How to recognize unfilled wants?
5 2: Information SearchInternal Search – recalling past information stored in memoryExternal Search – seeking information in the outside environmentPrivate (non marketing sources)Public (non marketing sources)Marketing controlled sources
7 What drives Search? Perceived Risk Performance riskFinancial riskPhysical riskSocial riskTime loss risk
8 Less product experience More product experience Driving Search…Need More InformationMore RiskLess knowledgeLess product experienceHigh level of interestLess RiskMore knowledgeMore product experienceLow level of interestNeed Less Information
9 3: Evaluation of Alternatives Consideration setAnalyze product attributesUse cut off criteria [pros/cons]Multi-attribute models
10 4: Purchase To buy or not to buy… Marketing determines which attributes are most important in influencing a consumers’ choice (differentiation…later)
11 5: Post Purchase Behavior Cognitive dissonance:Did I make a good decision?Did I buy the right one? Get a good value?Marketing minimizes through:Effective communicationFollow upGuaranteesWarranties
15 Cultural FactorsCulture: set of values, norms, attitudes & other meaningful symbols that shape human behavior and their artifacts or products of that behavior as they are transmitted from generations.SubculturesSocial class [based on $, education and job]
16 Social Factors Social influences Family Reference groups Direct: primary and secondary groupsOpinion leadersFamily
17 Individual Factors Gender (behold the power of women) Age Family Life CyclePersonalitySelf conceptLifestyle
18 Psychological Factors Perception: process by which people select, organize and interpret stimuli into a meaningful pictureSelective exposureSelective distortionSelection retentionMotivationLearningValues, Beliefs & Attitudes – what can marketing influence?
19 Motivation and Maslow Self- Actualization Esteem Social Safety PhysiologicalSafetySocialEsteemSelf- Actualization
20 What do you need to know about your customers? What are five things that someone should know about me?Describe yourself demographicallyList 10 things you are thinking right now.