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Consumer DecisionsMarketing Psychology for
Profit
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What is Consumer Behavior?
Processes a consumer uses to makepurchase decisions, as well as use and
dispose of purchased goods orservices; also includes factors thatinfluences purchase decision and
product use
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Consumer Decision Making
Process
Postpurchase
Behavior
Purchase
Evaluationof Alternatives
Information Search
Problem Recognition
Cultural, Social,Individual andPsychological
Factors
affectall steps
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1: Problem Recognition
Result of an imbalance b/t actual anddesired states
What is a need? What is a want?
How to recognize unfilled wants?
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2: Information Search
Internal Search recalling pastinformation stored in memory
External Search seekinginformation in the outsideenvironment
Private (non marketing sources) Public (non marketing sources)
Marketing controlled sources
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What drives Search?
Perceived Risk
Performance risk
Financial risk
Physical risk
Social risk Time loss risk
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Driving Search
Need More
Informat ion
More RiskLess knowledge
Less productexperience
High level of interest
Less RiskMore knowledge
More productexperience
Low level of interest
Need Less
Informat ion
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3: Evaluation of Alternatives
Consideration set
Analyze product attributes
Use cut off criteria [pros/cons]
Multi-attribute models
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4: Purchase
To buy or not to buy
Marketing determines whichattributes are most important ininfluencing a consumers choice(differentiationlater)
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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 communication
Follow up
Guarantees Warranties
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Types of Buying Decisions
Complex buying behavior
Dissonance reducing buying behavior
Habitual buying behavior
Variety seeking buying behavior
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Types of buyer behaviour
Complex buyer behaviour e.g. Intel Pentium
Processor
Dissonance-reducing behaviour (brand
reduces after-sales discomfort)
Habitual buying behaviour e.g. salt - little
difference
variety seeking behaviour - significant
brand differences e.g soap powder
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Factors that AffectInvolvement Levels
Situation
Social Visibility
Interest
Perceived Risk ofNegative
Consequences
PreviousExperience
FactorsDetermining
Level ofInvolvement
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Factors Influencing
Buying DecisionsSocialFactors
IndividualFactors
Psycho-logicalFactors
CulturalFactors
CONSUMERDECISION-MAKING
PROCESS
BUY /
DONT BUY
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Cultural Factors
Culture: set of values, norms,attitudes & other meaningful symbolsthat shape human behavior and theirartifacts or products of thatbehavior as they are transmittedfrom generations.
Subcultures Social class [based on $, education
and job]
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Social Factors
Social influences Reference groups
Direct: primary and secondary groups Opinion leaders
Family
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Individual Factors
Gender (behold the power of women)
Age
Family Life Cycle
Personality
Self concept Lifestyle
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Psychological Factors Perception: process by which people
select, organize and interpret stimuliinto a meaningful picture
Selective exposure Selective distortion Selection retention
Motivation Learning Values, Beliefs & Attitudes what can
marketing influence?
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Motivation and Maslow
Physiological
Safety
Social
Esteem
Self-Actualization
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What do you need to know
about your customers? What are five things that someone
should know about me?
Describe yourself demographically List 10 things you are thinking right
now.