Articulate the steps in the consumer buying process.

The consumer buying process consists of five main steps: (1) during need recognition, consumers simply realize they have an unsatisfied need or want that they hope to address, (2) they begin to search for information to determine how to satisfy that need, (3) during the alternative evaluation stage, they assess the various options available to them to determine which is the best for their purposes, (4) the purchase stage involves obtaining and using the product, (5) consumers enter the post-purchase stage, during which they determine whether they are satisfied or dissatisfied with their choice.

consumer decision process

Need recognition–>Information search–>Alternative evaluation–>Purchase–>Post purchase

need recognition

The beginning of the consumer decision process; occurs when consumers recognize they have an unsatisfied need and want to go from their actual, needy state to a different, desired state.

Describe the difference between functional and psychological needs.

Functional needs pertain to the performance of a product or service. Psychological needs pertain to the personal gratification consumers’ associate with a product or service.

functional needs

Pertain to the performance of a product or service.

psychological needs

Pertain to the personal gratification consumers associate with a product or service.

internal search for information

Occurs when the buyer examines his own memory and knowledge about the product or service, gathered through past experiences.

external search for information

Occurs when the buyer seeks information outside his personal knowledge base to help make the buying decision.

Describe factors that affect information search.

The information search that people undertake varies depending on both external and internal factors. Among the former, the type of product or service dictates whether people can make an easy, quick decision or instead must undertake significant research to find the best purchase option. A person’s perceptions of the benefits versus the costs of the search also determine how much effort they undertake. These perceptions often relate closely to their perception of the risk involved in their purchase. Finally, people’s locus of control, whether external or internal, strongly influences their information search actions.

internal locus of control

Refers to when consumers believe they have some control over the outcomes of their actions, in which case they generally engage in more search activities.

external locus of control

Refers to when consumers believe that fate or other external factors control all outcomes.

performance risk

Involves the perceived danger inherent in a poorly performing product or service.

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financial risk

Risk associated with a monetary outlay; includes the initial cost of the purchase, as well as the costs of using the item or service.

social risk

The fears that consumers suffer when they worry others might not regard their purchases positively.

physiological/safety risk

The fear of an actual harm should a product not perform properly.

psychological risk

Associated with the way people will feel if the product or service does not convey the right image.

universal sets

Includes all possible choices for a product-category.

retrieval sets

Includes those brands or stores that the consumer can readily bring forth from memory.

evoked set

Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

evaluative criteria

Consist of a set of salient, or important, attributes about a particular product.

determinant attributes

Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ.

consumer decision rules

the set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.

compensatory decision rule

At work when the consumer is evaluating alternatives and trades off one characteristic against another, such that good characteristics compensate for the bad ones.

multi-attribute model

A compensatory model of customer decision making based on the notion that customers see a product as a collection of attributes or characteristics. The model uses a weighted average score based on the importance of various attributes and performance on those issues.

noncompensatory decision rule

At work when consumers choose a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes

conversion rate

Percentage of consumers who buy a product after viewing it.

Discuss postpurchase outcomes.

Marketers hope that after their purchase, consumers are satisfied and pleased with their purchase, which can lead to customer loyalty, a positive post-purchase outcome. However, consumers also may suffer post-purchase dissonance, or buyer’s remorse.

postpurchase cognitive dissonance

The psychologically uncomfortable state produced by an inconsistency between beliefs and behaviors that in turn evokes a motivation to reduce the dissonance; buyer’s remorse.

Name the five stages in the consumer decision process.

Need recognition, Information search, Alternative evaluation, Purchase, and Post purchase.

What is the difference between a need and a want?

Wants are goods or services that are not necessarily needed but are desired.

Distinguish between functional and psychological needs.

Functional needs pertain to the performance of a product or service. Psychological needs pertain to the personal gratification consumers associate with a product or service.

What are the various types of perceived risks?

Performance, Financial, Social, Physiological, and Psychological.

What are the differences between compensatory and non-compensatory decision rules?

A compensatory decision rule assumes that the consumer, when evaluating alternatives, trades off one characteristic against another. On the other hand, in a non-compensatory decision rule, the consumer chooses a product or service on the basis of one or a subset of its characteristics, regardless of the values of its other attributes.

List the factors that affect the consumer decision process.

The elements of the marketing mix (product, price, place, and promotion) have significant effects, of course. In addition, social factors, such as family and culture, influence not only what a consumer buys buy also how a consumer goes about making a purchase decision. the psychological factors that influence purchase decisions include motives (which can be higher or lower on the hierarchy of needs), attitudes, perceptions, learning, and lifestyles. Finally, the specific factors that mark the purchase situation, like the store setting or even the time of day, can alter people’s decision process.

motive

A need or want that is strong enough to cause the person to seek satisfaction.

Maslow’s Hierarchy of Needs

A paradigm for classifying people’s motives. It argues that when lower-level, more basic needs (physiological and safety) are fulfilled, people turn to satisfying their higher-level human needs (social and personal).

physiological needs

Those relating to the basic biological necessities of life; food, drink, rest, and shelter.

safety needs

Pertains to protection and physical well-being

love needs

Needs expressed through interactions with others.

esteem needs

Needs that enable people to fulfill inner desires.

self-actualization

When a person is completely satisfied with his life.

attitude

A person’s enduring evaluation of his feelings about and behavioral tendencies toward an object or idea; consists of three components: cognitive, affective, and behavioral.

cognitive component

A component of attitude that reflects what a person believes to be true.

affective component

A component of attitude that reflects what a person feels about the issue at hand–his like or dislike of something.

behavioral component

A component of attitude that comprises the actions a person takes with regard to the issue at hand.

perception

The process by which people select, organize, and interpret information to form a meaningful picture of the world.

learning

Refers to a change in a person’s thought process or behavior that arises form experience and takes place throughout the consumer decision process.

reference group

One or more persons whom an individual uses as a basis for comparison regarding beliefs, feelings, and behaviors.

situational factors

Factors affecting the consumer decision process; those that are specific to the situation that may override, or at least influence, psychological and social issues.

What are some examples of specific needs suggested by Maslow’s Hierarchy of Needs?

Physiological (food, water, shelter), Safety (secure employment, health), Love (friendship, family), Esteem (confidence, respect), and Self-Actualization (people engage in personal growth activities and attempt to meet their intellectual, aesthetic, creative, and other such needs).

Which social factors likely have the most influence on (a) the purchase of a new outfit for a job interview and (b) the choice of a college to attend?

a. Reference groups and culture.
b. Family.

List some of the tactics stores can use to influence consumers’ decision processes.

Store atmosphere, crowding, in-store demos, promotions, and packaging.

Describe how involvement influences the consumer decision process.

More involved consumers, who are more interested or invested in the product or service they are considering, tend to engage in extended problem solving. They gather lots of information, scrutinize it carefully, and then make their decisions with caution to minimize any risk they may confront. In contrast, less involved consumers often engage in limited problem solving, undertake impulse purchases, or rely on habit to make their purchase decisions.

extended problem solving

A purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk.

limited problem solving

Occurs during a purchase decision that calls for, at most, a moderate amount of effort and time.

impulse buying

A buying decision made by customers on the spot when they see the merchandise.

habitual decision making

A purchase decision process in which consumers engage with little conscience effort.

How do low- versus high- involvement consumers’ process information in an advertisement?

The high involvement consumer will scrutinize all the information provided and process the key elements of the message more deeply. As a consequence, an involved consumer is likely to either end up judging the message to be truthful and will form a favorable impression for the product being advertised or alternatively view the message as superficial in nature and develop negative product thoughts.

What is the difference between extended versus limited problem solving?

Limited problem solving occurs during a purchase decision that calls for , at most, a moderate amount of effort and time. Consumers engaged in this type of buying process when they have had some prior experience with the product or service and the perceived risk is moderate. Limited problem solving usually relies on past experience more than on external information. Extended problem solving, which is common when the customer perceives that the purchase decision entails a lot of risk, and entails much external information.