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MKT - CH4 - Consumer Behavior - Coggle Diagram

- - - - remind customers of a need
      - create new needs
      - research and understand what products and services customers need or want and why.
  - - - Internal search for information, when the buyer examines his or her own memory and knowledge about a product or services, gathered through experiences
      - External search for information, when the buyer seeks information outside his or her personal knowledge base to help make the buying decision
    - - perceived benefits versus perceived costs of search
      - locus of control
        
        internal locus of control, when consumers believe they have some control over the outcomes of their actions, if they do, they tend to search more
        
        external locus of control, when consumers believe that fate or other external factors control all outcomes
      - Actual or perceived risk, the higher the risk, the more search the consumer will engage in
        
        Performance Risk
        
        perceived danger inherent in a poorly performing product or service, like a sports car that breaks down
        
        Financial Risk
        
        risk associated with a monetary outlay and includes initial cost of the purchase and the cost of using the item. Additional warranties can help diminish this risk
        
        Social Risk
        
        fears involving consumers suffering when they worry others might not regard their purchases positively, like a dress
        
        Physiological Risk (or safety risk)
        
        fear of actual harm should the product not perform properly, such as a brand new drug
        
        Psychological Risk
        
        risks associated with the way people will feel if the product or service does not convey the right image
        
        Based on the knowledge of these risks and the information from the consumer, marketers implement different tactics, providing information, educating customers, providing guarantees, using testimonials, etc.
  - - - Evaluative Criteria consist of a set of salient, or important, attributes about a particular product that are used to compare alternative products.
        
        to simplify a potentially complicated decision process, consumers use shortcuts such as determinant attributes and consumer decision rules.
        
        Determinant attributes are product or service features that are important to the buyer and on which competing brand or stores are perceived to differ, consumers look for something special
        
        Consumer decision rules, are set of criteria that consumers use consciously or subconsciously to quickly and efficiently select from among several alternatives.
        
        Compensatory, assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics
        
        Noncompensatory, assumes choosing a product or service on the basis of a subset of its characteristics, regardless of the values of its other attributes
        
        Decision Heuristics, mental shortcuts that help them narrow down their choices
        
        Price, choosing the more expensive option thinking better quality, or middle priced option thinking a compromise between quality and price is happening
        
        Brand, buying brand name goods allows some consumers to feel safe with their choices
        
        Product presentation the way a product is presented can influence the decision process, pretty presentation can sell a home even.
  - - - reduce number of abandoned carts by making it easier to purchase merch
      - having stock on hand of the merch that customers want
      - reduce wait time to buy merch, opening more checkoutlanes
      - reduce perceived wait times, installing digital TVs to entertain
    - - home delivery, price match guarantee, a warranty, a simple return policy, etc
  - - - Build realistic expectations, not to high, not to low, and DELIVER on those expectations
      - Demonstrate correct product use, improper usage can cause dissatisfaction
      - Stand behind the product or service by providing money-back guarantees and warranties
      - Encourage customer feedback, which cuts down negative word-of-mouth
      - Periodically make contact with customers and thank them for their support
    - - the internal conflict that arises from an inconsistency between two beliefs, or behaviors.
      - when you feel bad because you believed a sales person, or when they made a purchase without all the information they needed
      - Undesirable customer behavior, passive consumers that don't repeat purchase or fail to recommend the product to others.
        
        negative word-of-mouth
        
        occurs when consumers spread negative information about a product, service, or store to others
    - - develops over time, with multiple purchases of the product or brand from the same marketer.
      - marketers want customers to be satisfied with their purchase very time and buy from the same company again.
- - - - Physiological needs, deal with basic necessities in life
      - safety needs, deal with protection and physical well-being
      - love (social) needs, deal with our interactions with others
      - esteem needs, deal with satisfying our inner desires
      - self actualization, occurs when you feel completely satisfied with your life and how you live
    - - Cognitive component, reflects what we believe to be true
      - affective component, involves what we feel about the issue at hand
      - behavioural component, comprises the actions we take based on what we know and feel
      - cognitive dissonance occurs when when there's incongruence among the three.
    - - selective exposure, when people are exposed to an ad because they chose to not look at something else
      - selective retention when people do not remember all the information
      - selective comprehension when people, based on their perception, interpret a message in a certain way
      - selective attention, when people only listen to ads that are in line with their own beliefs
    - - Learning affects both Attitudes and Perceptions
    - - A person's perceptions and ability to learn are affected by their social experiences,
  - - - families make purchases in a different way
      - purchase is influenced by the whole family members
      - influencing an entire group is important
    - - RGs offer information
      - provide rewards for specific purchasing behaviors
      - enhance a consumers self image
    - - marketers work hard to understand consumer culture and respond with unique products
  - - - Store atmosphere
        
        retailers have created unique experiences in their store to promote purchase
      - Salespeople
        
        well-trained personnel can influence the sale at the point of purchase by pointing out advantages of one item over another, or pushing multiple purchases
      - Crowding
        
        customers can feel crowded because theres too much merchandise or people, and leave
      - In-store demonstration
        
        taste and smell can persuade customers to try something they wouldn't normally try
      - Promotions
        
        multi item discounts
        
        free gift with purchase
      - Packaging
        
        to stand out, marketers spend millions of dollars designing and updating their packages to be more appealing and eye catching than their competitors
      - Temporal state,
        
        mood swings
        
        during the morning purchase
        
        in a rush purchase
- - - - asking friends
      - online researching
      - visiting the store several times
    - - impulse buying, buying decisions made by customers on the spot when they see the merch
      - Habitual decision making, purchase decision process in which consumers engage with little conscious effort
        
        marketers strive to maintain habitual purchasers by creating strong brands and store loyalty because these customers don't even consider alternative brands or stores
        
        Marketers who are trying to get consumers to switch to their brands often use marketing tactics that require greater involvement in the purchase decisions