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Consumer decision making

model

Mamta Mohan

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Consumers typically spend 97% of their

earnings .

1/3 of their day sleeping

1/3 at work

1/3 spending their money.

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Consumer purchasing process (in

general)

1. Need/want recognition

2. Information search

3. Evaluate alternatives4. Purchase intentions /decision purchase

5. Product usage/evaluation

6. Disposal action7. New needs/wants

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Need/want recognition:

I am thirsty ( quench the thrust), can be influenced by marketingefforts , when companies understand the consumer needs.

Hierarchical model of needs and wants: basic premise of this researchis that most basic level of needs must be fulfilled before an individualcan concentrate on fulfilling higher or more complicated needs .

Another theory holds that humans never reach the apex of satisfaction,but constantly strive to do so ( motivates the consumer to procure aproduct or service )

The marketing process seeks to address existing and inspirational

needs with an appropriate product. product development and supplychain are geared to create ever better (price and quality) products.

Demand promotion (marketing communications) is geared to informingthe consumer of these products.

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The hierarchical approach may be depicted as an inverted pyramid indeveloped societies with a narrow base for needs and a broad top for wants, vice versa for less developed countries .

e.g. in a developed country , a neighbor Starbucks Coffee shop may positionitself to not only satisfy thirst with better tasting coffee but also satisfy abelongingness" need with a convivial atmosphere

e.g. Marketers of Gatorade associate their brand with professional athletes foresteem needs

Simultaneous model of (consumers motivation )needs and wants :states thatpeople need to protect /or enhance 4 fundamental resource needs; the body, material possessions, information social resources. Both safety needs (thedesire to protect a resource) and self actualization needs ( the desire toenhance a resource can operate simultaneously.

Segmentation studies typically investigate the context of the various times ineach day when people are thirsty. Classify various types of thrust ,thatpeople exhibit .

Marketer identifies the needs, classify the different ways it manifests itself, newproducts can be developed and existing repositioned

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Information search:

3 factors

-Amount of information needed: level ofinvolvement with the product (importance, usagefrequency, image, etc)

Price Complexity of the product

No of times product has been purchased before

Consequences of making a poor choice.

-Source: consumer will search their ownknowledge ,if not satisfactory , then look forexternal sources.

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The learning process - Marketers attempt

to influence the customers process of

learning culture , needs wants and

process selection.

3 Evaluate alternatives: is affected by

internal beliefs and attitude , external

influences

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There are 3 strategic options available to

brands;

1 upgrade the customers .

2 increase the frequency of usage

3 expand the overall market.