Ch. 3 - Consumer Behaviour Flashcards
What are the three types of customers?
- Final buyers/consumers
- Business buyers who buy for the use of the company
- Government buyers who buy on behalf of public services
Final Consumers
Individuals and households who buy goods and services for personal consumption
Black Box of the Consumer
The idea that we don’t know why consumers buy certain goods. Businesses need to do market research to hypothesize why consumers behave the way they do.
Purchase Decision-Making Process
- Need Recognition
- Information Search
- Evaluation of Alternatives
- Purchase Decision
- Post-purchase Evaluation
Need Recognition
An individual becomes aware of a difference between a desired state and an actual state. This is the first stage of the purchase decision-making process.
How is need recognition triggered?
Two ways: consumer level and marketer level.
Consumer level: e.g. something breaks, product solves a problem in your life
Marketer level: e.g. owned product is out of date, visually appealing
What are some examples of needs to fulfill?
Examples include: physiological, inventory, reference group change, dissatisfaction, boredom (variety seeking)
Information Search
The second stage of the purchase decision-making process. Involves looking for products to satisfy the need recognized in stage one.
What are the different sources of information?
- Personal
- Experiential
- Commercial
- Public
Personal Source of Information
Family, friends, neighbours
Experiential Source of Information
Handling/using a product yourself
Commercial Source of Information
A firm-controlled source of information (informative, but less influential). Examples include: advertising, salespeople
Public Source of Information
An independent source of information (informative and influential). Examples include: government agencies, consumer groups
Consideration Set
The products or brands that consumers evaluate when purchasing
Evaluation of Alternatives
The third stage of the purchase decision-making process. Consumers rank the products in their consideration set usually based on a set of criteria. Consumers will often follow their heart/intuition
Purchase Decision
The fourth stage of the purchase decision-making process. Consumers choose their highest ranked product in their consideration set. A consumer’s purchase intention does not always match their actual purchase decision.
Why might a consumer’s purchase intention not turn into their actual purchase decision?
- Not easy to justify/get others’ approval
- Price hikes
- Negative word of mouth
- Out of stock
- Run into more desirable alternatives before purchase is made
Post-purchase Evaluation
The fifth and final stage of the purchase decision-making process. Consumers evaluate their purchase decision based on product performance compared to their expectations. Consumers will take action based on their satisfaction.
What is a consumer’s satisfaction level based on a product’s performance compared to their expectations?
Performance < Expectations - Dissatisfaction
Performance = Expectations - Satisfaction
Performance > Expectations - Delight
What actions might a consumer take based on their level of satisfaction with their purchase?
Complaining (dissatisfied), spread positive/negative word of mouth, repeat purchasing (satisfied/delighted)
What factors affect a consumer’s purchasing decision?
- Marketing mix influences
- Psychological influences
- Socio-cultural influences
- Situational influences
Marketing mix influences on the consumer decision-making process
Product, Price, Promotion, Place
High Involvement Purchases
- Purchases that consumers research extensively before purchasing
- Need to stand out and fulfill their purpose
- Expensive, buy once and you’re good for a while
Low Involvement Purchases
- Purchases that are habitual and low risk
- Need to fulfill their purpose
- Cheap, consumed (need to be repurchased regularly)
