Presentation on theme: "Consumer Decisions: Psychology for Profit"— Presentation transcript:
1Consumer Decisions: Psychology for Profit Chapter 6 & 7
2What 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
3Consumer Decision Making Process PostpurchaseBehaviorPurchaseEvaluationof AlternativesInformation SearchProblem RecognitionCultural, Social, Individual andPsychological Factors affect all steps
41: Problem RecognitionResult of an imbalance b/t actual and desired statesWhat is a need?What is a want?How to recognize unfilled wants?
52: 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
8Less 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
93: Evaluation of Alternatives Consideration setAnalyze product attributesUse cut off criteria [pros/cons]Multi-attribute models
104: Purchase To buy or not to buy… Marketing determines which attributes are most important in influencing a consumers’ choice (differentiation…later)
115: 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
15Cultural 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]
16Social Factors Social influences Family Reference groups Direct: primary and secondary groupsOpinion leadersFamily
17Individual Factors Gender (behold the power of women) Age Family Life CyclePersonalitySelf conceptLifestyle
18Psychological Factors Perception: process by which people select, organize and interpret stimuli into a meaningful pictureSelective exposureSelective distortionSelection retentionMotivationLearningValues, Beliefs & Attitudes – what can marketing influence?
19Motivation and Maslow Self- Actualization Esteem Social Safety PhysiologicalSafetySocialEsteemSelf- Actualization
20What 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.