Consumer behaviour
MKT
Consumer behaviour
Use principles and theories from sociology , anthropology and physiology understand consumer actions develop basic strategic to deal with those actions understand why people buy products or services ( what can we do to make them buy more)
The consumer decision process
1) Need recognition ( you realize i need this)
Functional need psychological need ( heels, you feel you need heels to dress well)
2)Information search
Now you know i need something then you research . ( what kind of brand do i want to buy)
Internal - the consumer ( my experience from buying previous things)
External Search ( asking my sister , outsiders)
Factors affecting consumers search process
Internal locus of control- control= more search activities (people tend to spend more time when doing research) “ they question their self why did i buy this”
External locus of control - fate, external factors= why bother ( They blame the store . they don't blame their self . if something goes wrong they say “something is wrong with the store”)
Actual versus perceived risk Performance risk- what if it goes bad after one risk
Financial risk - i will loose money ( what if it does not work)
Social risk- (people look at you what are you wearing, peer pressure , worried about what people will say about your dressing ) physiological risk - ( what if you get hurt , ) phycological risk- ( why did i buy this ? , complaining, )
Strategies to reduce Perceived risk
Obtain seals of approval secure endorsement provide free trial/samples give extensive instruction provide warranties/guarantees
Factors affecting consumers search process
Type of product or service
Convenience goods/services - it is cheap , convenient , people don't spend time . ( convenient store ) shopping goods/ services - you spend more time, ( furnitures, clothes , electronics) specialty goods/services- spend lot more time, design , research find different price and brands ( wedding rings)
3) Alternative Evaluation
Evaluation of alternatives consumer decision rules
Compensatory decision rule -
Non-compensatory rule - no need to calculate .
4) Purchase
Ritual consumption- (Christmas, valentine , halloween, weeding )
5) Post-purchase evaluation
Customer satisfaction
Post purchase : Dissonance firm’s attempt to reduce dissonance by reinforcing the decision
Thank you letters congratulations letters. quality rating. customers have a certain expectation so when company does not meet it they become .. Dissonance . so for instance company send certain letters such as “thank you “ letters and reward cards or they may give you warranty on their products or coupons, discounts etc..
Factors influencing consumer decision making. consumer perception- most important thing. if consumers think your service is not good your out. socia factors situation factors
