Consumer Decision Making Process
A key factor in successfully marketing new/existing products or
implementing a product
Extension is a thorough understanding of the motivation, learning,
memory, and decision
Processes that influence consumers purchasing behavior. Consumer
purchasing behavior theories have found their way into managerial
decision making to help companies more effectively develop and launch
new products, segment the market, determine market entrance and in
brand management.
Therefore, a better understanding of how consumers decide what to
purchase is critical to the success of a product. There are numerous
theories and models describing the consumer purchasing decision
process. The basic concept behind these theories and models are
similar.
Five steps describing the consumer purchase decision below followed by
a brief description.
1. Problem Recognition
2. Information Search
3. Evaluation of Criteria
4. Purchase Decision
5. Post Purchase Evaluation
Problem recognition is simply the awareness of a need. The need may be
perceived or real. The problem recognition process occurs every time
consumers decide they need something whether it is toilet paper or a
new home. This is the first and most basic step in the purchase
decision process. Marketers can effectively initiate consumers’
awareness of a need with the right advertising campaign. For instance,
the concession advertising prior to the start of a feature movie is
geared toward making movie goers aware that they” need” a drink and a
snack.
Information search is the process where consumers gather information
on a pro...
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...ucts. Reference groups can be thought
of as any group that has an influence, positive or negative, on an
individual. Social class impacts purchasing decision directly and
indirectly. Annual household income is used to define social status
and also places limits on household spending. Culture impacts the
purchasing decision process in that the values, ideas and attitudes of
people are shaped by the culture in which they reside.
Conclusion
Companies are better able to market their products to consumers if
they have a good
Understanding of the consumers and the basic purchase decision process.
By understanding the consumer and the type of purchasing behavior
associated with different products, marketers are more likely to
create a marketing campaign that positively impacts the consumer’s
purchasing decision.
“Consumer 2.0” is a concept which describes the behaviors related to how consumers interact with information in the context of the purchase decision lifecycle.
2) Selection of Solution – this is the second part of the sales process. In this step involves finding the proper product/service for the customer. After the first step, discovering what the customer is looking for, the salesperson 's must find the correct product/services that satisfies the customers needs at a maximum.
We are all consumers, and we buy diverse products every day. But, do you know what the main factor is that influences us to choose a product? If someone selects a cloth, maybe he pays attention to its quality! Customers’ decisions can be changed depending on what the main factors they are looking at. Various influences can cause consumers to select different products.
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
Marketing is a system of business activates designed to plan, price, promote and distribute want-satisfying products, services and ideas to customers in order to achieve business objectives. Consumer law protects consumer’s rights in the marketplace as well as fair trading, competition and accurate information. On the other hand, ethical aspects of marketing are about making marketing decisions that are morally right. However, consumer law and ethical aspects of marketing have a lot of advantages and disadvantages in the marketplace, which impacts business 's sales and growth like it happened to: Harvey Norman, Nurofen, apple, etc.
Personal preference is another factor as some people prefer variety of goods whereas others prefer not having too many choices at all.
Furthermore, I will explain the application of theory relating to me and my purchase. I will also review the marketing activity of the organization where I purchased from. This is to explain how the two theories have been used in the marketing strategy. In addition, recommendations regarding how the marketing strategy could have been improved by applying the 2 buyer behaviour theories are given.
In today’s cut throat competition among business competitors, the knowledge about consumer behavior is the first step toward an effective and successful competitive strategy. The study of consumer behavior is necessary for companies to get the knowledge about their target market. It helps them to gather knowledge about the consumer that how they behave, what process they follow to make a decision and what influences them in making a decision.
The investigation of decision making models assumes an indispensable part in breaking down the level of sanity of customer decision making. Behind a straightforward decision making process, there are numerous points of view which impact the decision making. A buyer may take a passionate, last minute decision, or he may take a well thoroughly considered and looked into decision. Taking into account his perception, distinctive procedures can be characterized for decision making. Decision making mostly relies on upon the contribution of the customer. There are high inclusion products and there are low association products. So also, there are consumer products and modern products. Contribution in mechanical products will by and large be higher when contrasted with business products in light of the fact that the measure of interest in modern products is additionally colossal. The ideas of four methods of consumer decision making is proposed by O'Guinn
Consumer Choice Theory is a division of macroeconomics. It relates preferences to the expenditures incurred on consumption and to the consumer demand curves. It makes the analysis of how consumers maximize their consumption as it is measured by their preferences subject to restrictions on their expenses. The latter can be achieved through maximizing utility dependent on a user budget constraint. Consumption is different from production.The law of demand is dependent on the price of the goods (Cartwright, 2014). As the price of goods raises the rate of consumption falls even when the rate even when the consumer is financially compensated for the effect of high pricing. The latter brings about the effect of substitution. In any case, there is
would like to put you in a situation and show you how a consumer can
Customer analysis is the assessment of information associated with customer needs, habits, requirements, and market trends. This is usually completed in three phases, evaluating before, during and after the acquisition. These phases are typically accomplished through consumer focus groups, gratification measurements, and field-testing. Moreover, market analysis can be best described as a comprehensive examination designed to forecast or forestall the direction of stocks, bonds, and the product market, typically based on technical data.
Marketing professionals create, manage and/or enhance brands in order to create or bolster demand for the product. A successful marketing plan will help assure that consumers look beyond just the price or function of a product when making a purchasing decision, in part, a well planned marketing effort will create a “feel good” association about the product the consumer is about to purchase (Petty) A key part of a career in marketing is to understand the needs, preferences, and constraints that define the target group of consumers or the market niche corresponding to the brand. This is done by market research. This is accomplished through market research, essentially using survey techniques, statistics, psychology and social understanding to help gather information on what consumers want and/or need, and then designing products, or services, to hopefully meet ...
Customer behavior can be defined as the process used by organizations, individuals and groups, to select, buy or use particular products or services to satisfy their needs and the impact it has on the society (Wikipedia, consumer behavior). Every product in the market is given a different value by an individual user based on the need it satisfies and also the level of the want. For example a person may put choosing a car as just for a means of transport from point A to point B but for another individual a car is not only used as a mode of transport but also as a means of his lifestyle. Many marketers use these difference of needs in consumers to create different marketing campaigns to attract consumers that use their products.
According to Shimp (2007), there are five important factors which determine the purpose of advertisement in terms of marketers’ communication with consumers. He listed these five factors as follows: “(1) informing, (2) influencing, (3) reminding and increasing salience, (4) adding value, and (5) assisting other company efforts.” (p.246). To clarify that, the first most important aspect is informing people which means company needs to enhance the awareness of the consumer about their products by mentioning its advantages and features. Advertising also affect the products in two ways. Firstly, by basic demand, which build consumer desires for old products of the company and secondly, refers to a new brand of the company. In addition, effective advertising can retain consumer’s mind fresh about the image of a brand which develops the trace of the memory where consumers have to choose between two or more products. Moreover, it may change the product quality, create new, well-designed and elegant product and change consumers view towards the product. Lastly, by effective advertising program, company may save money and time as s...