1. Week Three - Review

2. Basic Framework Motivation Perception Search Evaluation Choice
Learning

3. Motivation: Consumer Behaviour: “… the inner drive that reflects goal
-directed behaviour”
Consumer Behaviour:
The drive to satisfy needs and wants through the purchase and use of products and services

4. Bases of Motivation
Physiological +
Psychological
needs and wants

5. e.g. Maslow’s Hierarchy of needs

6. Functional
Symbolic +
Experience

7. Functional
Buying things for what they do
Physiological

8. Symbolic
Buying things for what they mean
Psychological

9. Experiential
The value from the experience
Physiological + Psychological

10. Perception
“How we see the world around us”

11. Elements of Perception
Sensation
Absolute threshold
Differential threshold
Subliminal perception

12. Sensation
Direct response of sensory organs to stimuli
Absolute threshold is the lowest level at which an individual can experience a sensation

13. Weber’s Law
The stronger the initial stimulus, the greater the intensity for the second stimulus to be perceived as different
Basis for “habituation”

14. Perceptual Selection Consumers selective in what they perceive
Selection depends on
- nature of stimulus
- expectations
- motives

15. Aspects of Selection
Selection
Organisation
Interpretation

16. Perceptions and Marketing
Basis for marketing decisions – strategy and operational
e.g. product positioning
communications media and
message

17. Search

18. Stages of Search and Choice
Information Search – seeking values
Evaluation of Alternatives – assessing value
Purchase decision – buying value
Post Purchase – value in use

19. Three Problem Solving Variants
Routine
Limited
Extended

20. Routine Problem Solving
Almost a Habit
Little effort in buying process
Low priced, frequently used products

21. Limited Problem Solving
Moderate effort
Buyer has little time or effort to spend

22. Extended Problem Solving
All stages of decision making process used
Time and effort spent on search and evaluation
High involvement purchases

23. Information Search Internal - memory of previous External
experiences
External
- personal sources
- public sources
- marketing sources

24. Alternative Evaluation – Assessing Value
Consumers evaluation criteria represent
Objective / functional attributes of product
Symbolic/subjective factors

25. Five Situational Influences
Purchase Task
Social surroundings
Physical surroundings
Temporal effects
States (Mood)

26. Purchase and Post-Purchase

27. Post – Purchase Evaluation
learned outcome from use/consumption
“cognitive dissonance”
Satisfaction / dissatisfaction

28. Cognitive Dissonance
Inner tension that consumer experiences after recognisng an inconsistency between expectation and experience

29. Dissonance and Post-Purchase
Did I make a good decision?
Did I buy the right product?
Did I get good value?

30. Satisfaction Consumer discovers after purchase that the product:
Unexpected features / benefits
Performs at a higher level than expected

31. Dissatisfaction Consumer discovers after purchase that product:
Does not have all expected features
Fails to perform as expected
Is defective or flawed

32. Learning
A process that creates changes in behaviour, immediate or expected, through experience and practice

33. Impact of Learning
Brand Loyalty
Lifetime Customer Value (LCV)

34. Brand Loyalty
No Preference
Brand Switcher
Brand Loyal
Brand Champion

35. Lifetime Customer Value
The total value of spending by a customer – and the impact of customer recommendation on revenue – over the period customer is in a market