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SU1- Consumer Behaviour/Decision Making - Coggle Diagram
SU1- Consumer Behaviour/Decision Making
Consumer Behaviour
What?
Behaviours (search, evaluate, purchase, use, dispose) in relation to needs-satisfying goods/services
Affects biz success
Influenced by internal (personal), external (group) factors
Marketing strategy relevance
Focus- consumer needs thru cust behaviour knowledge (motivations, perceptions, learning, attitudes, decision making)
Goal- long-term r/s
How?
Value- diff btw perceived costs and benefits
Satisfaction- performance exceed/meet expectation
STP steps
Targetting
Select most suitable segment (for max efficiency)
Criteria
Identifiable- distinct
Sizeable- profitable; purchasing power/potential
Stable/growing- to warrant R&D spending
Accessible- to marketing communication
Aligned- with marketing goal, resources
Segmenting
Divide market into homogeneous subsets (by common needs/characteristics)
Match products- max relevance
Bases
Consumer-intrinsic- personal attributes
Facts (objective)
Demographics
Easiest
Cost-effective- existing secondary data
Directly relates to consumption (behaviour, attitudes, media) patterns
Geo-demographic
Affects consumption patterns
E.g. location, climate, surroundings, culture
"birds of a feather flock together"
Cognition (subjective)- psychographics
Personality e.g. open-minded > early adopters > spokesperson
Lifestyle- activities, interests, opinions
Cultural values, beliefs
Consumption-specific- product-related
Facts (actual consumption)
Usage rate e.g. heavy/light/non users
Usage situation e.g. special occasions, event, dates
Cognition (product attitudes, preferences)
Benefits
Functional
Social
Special treatment
Confidence
Brand loyalty, r/s
Use reward programme
Identify prospects with similar characteristics
Positioning
Communicate differentiating/unique benefits from competitors
Establish clear competitive position
Informs marketing mix (4Ps)
Knowledge prerequisite- product perception, consumer behaviour/insights
Consumer decision making
Perspectives- based on adopted humankind assumptions
Rational
Basis- economic
Assumption- ppl follow systematic sequences to choose utilty-maximising option thru ranking
Too idealistic
Affective
Assumption- feelings, emotions underlie decisions
Basis- experiences, hedonic value
Behavioural
Basis- environmental learned responses e.g. lighting, music, POP displays
Assumption- humans as impulsive, irrational
Levels- based on required cognitive effort
Determinants
Involvement- how personally relevant
Purchase risk
Extensive problem solving
Info requirements- high (to establish a set of criteria)
Usage
Product category- new, unfamiliar
Purchases- infrequent
Products- expensive, high-ticket
Context- no prior product knowledge/experience
Limited problem solving
Context- alr have prior product category beliefs/evaluation criteria
Usage
Involvement- lower
Product- improved
Product category- familiar (but newly introduced brand)
Frequent- due to/constraint by limited time
Info requirements- additional info (fine-tuning)
Routinised response behaviour
Context- extensive product experiences
Info requirements- none (no info search)
Usage
Purchases- frequent
Involvement- least; minimal conscious effort
Product category- mature e.g. toothpaste
Model- based on psychological, socio-cultural
Variables
Input
External
Non-commercial (sociocultural) e.g. friends, family, society
Commercial (marketing)- (/perceptions of) marketing mix
Affects individual's product-related values, attitudes, behaviours
Delivery medium- communication channels e.g. mass/social media, word-of-mouth, etc.
Process- how cust makes decisions
Basis- internal/psychological characteristics (motivation, personality traits, perception, knowledge, experience, attitudes)
Steps- cognitive approach
Info search
Internal (memory)- for purchase-related knowledge
External
Only when internal info search insufficient to make decision
Info source- outside cust's mind e.g. internet, marcom, friends, sales personnel
Required amt- based on product/individual/situational factors
Alternatives evaluation
2 info types
List of (evoked set) brands
Sets
2 more items...
Evaluation criteria- to rate options
Decision rules
4 more items...
Need recognition
Trigger- problem
Actual state- product fails to perform satisfactorily
Desired state- from increased expectations (thus product falls short)
Output- satisfaction is goal
(Actual) purchase
Types
Trial- exploratory; evaluative attempt
Repeat- product meets cust's approval
Long-term commitment- for big-ticket/durable goods
(Post-purchase) evaluation- of product performance vs. expectations
Outcome
Neutral- performance = expectation
Positive disconfirmation (satisfied)- performance > expectation
Negative disconfirmation (dissatisfied)- performance < expectation
Awareness of better/comparable alternatives > cognitive dissonance (buyer's regret/discomfort)
(Discomfort) reduction strategies
Positive info- support decision
Negative info- dissuade alternatives
Persuade others to buy same choice
Seek reassurance from satisfied consumers
If unsuccessful- reverse purchase decision e.g. resell, return