Download Chapter 4 - Garnet Valley School District

Chapter 4
Consumers Decision Making
 Consumers make decision every day
 Decision is a choice among alternatives
o Made to satisfy a need or to solve a problem
 Consumers want to choose the alternatives that provide us the most satisfaction
or the greatest value
 If marketers want to satisfy customer needs, they must understand how
consumers choose what they will buy
 Different theories are made, but there is a general agreement that people follow
a series of decision making when purchasing
 These decisions become routine and simple when repeated
Stages of a Decision
Step 1. Recognize- Begins when a consumer recognizes that a need exists
 If the need is urgent the process is quick
 If not, then the consumer may take time before buying
Step 2. Identify- When the consumer becomes interested in finding a solution
 Identifying products or services that relate to the need
Step 3. Evaluate- When the consumer gathers information and uses it to evaluate
choices
 An evaluation is done to see if any choice is better, more available, or
more affordable
Step 4. Decide- When the consumer is comfortable with the evaluation, a decision
is made
 Decision will be to select one of the available choices, to gather more
information, or to do nothing
Step 5. Assess- When the consumer determines whether or not the choice was
correct
 Evaluated to see if it satisfied the need
 If it did the decision will likely be repeated the next time
Relying on Information
 Marketers are creative. Creativity is needed to plan the marketing mix, develop
new product features and uses, and prepare promotional materials and activities
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Conducting research is an important marketing activity
Need to be skilled in organizing research and using results
Most important part of research is the study of potential and current customers
Additionally, the research about competitors will identify the type of
competition and strengths and weaknesses of competing companies
Responding to Competition
1. Intense Competition
 Most difficulty type of competition businesses face is market in which
businesses compete with others offering very similar products
 Ex- Pure competition…many business offering the same product
(Agricultural)
2. Limited Competition
 Some businesses have the advantage of having little or no direct
competition
 Ex- Known as a monopoly
3. Monopolistic Competition
 Most business face competition somewhere between intense and
monopoly
 They have many competitors, but customers see differences among
choices
 The customers determine which product fits there wants and needs
Activity
Marketing Matters Page 105
Activity II
Make a list of 5 companies that operate in your neighborhood. Classify the kind of
competition each business faces, and some of their competitors. Example,
McDonald’s – Intense – Burger King, Wendy’s, Chik-fil-a.
Activity III
Why is understanding customers crucial to applying the marketing concept?
Activity IV
4-3 Assessment # 5 if there is time