Week 4

Consumer Behaviour

WEEK 4

Decision Making Process

1.Choose a recent, relatively large purchase that you made

2.Jot down the different steps you went through to make your decision

1: Need Recognition

“Difference between ideal and actual state”Sources:

Personally-Induced Need Recognition Marketer-Induced Need Recognition

Reason for both inbound & outbound marketing tactics!

Reason for both inbound & outbound marketing tactics!

2: Information Search

Internal Search Scan information stored in memory

External Search Additional information through personal sources,

online, browsing, salespeople, and trial

Evoked Set: the subset of brands that a consumer is aware of and considers for purchase Get your company’s name ‘top of mind’

3: Alternative Evaluation

Use of Rational Criteria Price Features/Function Recommendations/Ratings

Attitudes Positive and Negative Influencers Tastes Beliefs & Loyalty

4 & 5: Purchase Decision & Post-Purchase Evaluation

Exchange of Goods or Services

Evaluation of Purchase Post-purchase dissonance Brand loyalty adjustment

Need Recognitio

n

Information Search

Alternative

Evaluation

Purchase Decision

Post-purchase Evaluatio

n

ConnectConnect

ConvinceConvince

CultivateCultivate

Decision Making

The Marketing Mix

Marketing Mix

The blend of the 4 components of marketing to satisfy the chosen market segment.

ProductAll attributes of the offering that lead to want satisfaction – both tangible and intangible.

PriceThe value that a consumer exchanges for a good or service.

PlaceThe channel and distribution infrastructure that facilitates the exchange process.

PromotionActivities and messages to persuade and influence the consumer’s decision making.

Product Considerations

Physical GoodsTangiblePre-developedConsistencyPost-consumedOwnership

ServicesIntangibleCustomer

InvolvementVariability/FlexibilityDelivered in Real-

timeNo Ownership

How do web-based businesses fit in?

How do web-based businesses fit in?

Product Decisions

Core Product + Supplementary Services

Features and Functions

DesignService

Online Catalog

Shopping

Online Catalog

Shopping

ProductRecommendations

Transaction Security

Product Rating System

Search Tools

When Product = Website

Decisions focus on user experience: Information Architecture: organize your content in a

way that satisfies the customer Features and Functionality: support your product

offering or promotional objectives Supporting Technology Design Layout and Writing for the Web

Reputation and Attention is Currency

Who is your product team?Who is your product team?

When Product = Website

Price Considerations

Profitability – Target ReturnVolume – Maximize Sales/Market ShareCompetition PricingMarketing Mix Consistency

Pricing Decisions

Policies Skimming vs. Penetration Flexible Pricing (bargaining) Relative to Market (Winners) Price Lining (dollar stores) Promotional Pricing (liquidation centres) Prestige Pricing (BMW) Freemium Models (LinkedIn)

Distribution Decisions

Direct vs. Indirect (Retail, etc.) Control Flexibility Positioning Cost/Risk

Online vs. Offline “Place”

Value Chain & Fulfillment

Promotion Decisions

Other P’s?

PeopleProcessProductivity and

QualityPhysical Evidence