Download Bangor Transfer Abroad Programme Consumer Behaviour

Searching
Cognitive Dissonance
Problem Solving – Search Alternatives
Set Theory
Week 1 Lecture 3
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Questions Faced By Consumers
• Are veggie burgers actually healthy?
• What makeup should you use to get an “even”
skin tone?
• Do I get any useful benefits from spending
more than 1300 RMB on a digital watch?
• Should I colour my hair?” What should I do?
• Is my car mechanic honest?
• Should I join Facebook?
• Should I give my wife roses, chocolate, or a
new iron?
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Consumer Problems and
Recognition
• Consumer problem:
Discrepancy between ideal and
actual state--e.g., consumer:
– Has insufficient hair
– Is hungry
– Has run out of ink in his or her
inkjet cartridge
• Problems can be solved in
several ways--e.g., stress reduction
<----- vacation, movie, hot bath,
medication
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CONSUMER DECISIONS:
Theory and Reality in Consumer Buying
PROBLEM
RECOGNITION
INFORMATION
SEARCH
EVALUATION OF
ALTERNATIVES
PURCHASE
POSTPURCHASE
EVALUATION/
BEHAVIORS
Theory
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Complications
Cognitive Dissonance
•
Cognitive dissonance is the term used in modern psychology to describe the
discomfort felt by a person seeking to hold two or more conflicting cognitions
(e.g., ideas, beliefs, values, emotional reactions) simultaneously. In a state of
dissonance, people may feel surprise, dread, guilt, anger, or embarrassment.[1] The
theory of cognitive dissonance in social psychology proposes that people have a
motivational drive to reduce dissonance by altering existing cognitions, adding
new ones to create a consistent belief system, or alternatively by reducing the
importance of any one of the dissonant elements.[1] An example of this would be
the conflict between wanting to smoke and knowing that smoking is unhealthy; a
person may try to change their feelings about the odds that they will actually
suffer the consequences, or they might add the consonant element that the short
term benefits of smoking outweigh the long term harm. The need to avoid
cognitive dissonance may bias one towards a certain decision even though other
factors favour an alternative.[2]
• WIKIPEDIA accessed 04092012
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Consumer Behaviour – MKT 201/202
Consumer Search and
Evaluation
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Consumer Behaviour – MKT 201/202
Stages of Search and Choice
• Information Search
– seeking values
• Evaluation of
Alternatives –
assessing value
• Purchase decision –
buying value
• Post Purchase –
value in use
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Consumer Behaviour – MKT 201/202
Three Problem Solving
Variants
• Routine
• Limited
• Extended
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Consumer Behaviour – MKT 201/202
Routine Problem
Solving
Almost a Habit
Little effort in buying
process
Low priced, frequently
used products
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Consumer Behaviour – MKT 201/202
Limited Problem Solving
Moderate effort
Buyer has little time or
effort to spend
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Consumer Behaviour – MKT 201/202
Extended Problem
Solving
All stages of decision
making process used
Time and effort spent on
search and evaluation
High involvement
purchases
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Consumer Behaviour – MKT 201/202
Information Search
• Internal
- memory of previous
experiences
• External
- personal sources
- public sources
- marketing sources
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Consumer Behaviour – MKT 201/202
Information Search aids
Consumer by:
•
•
•
Suggesting purchase criteria
Identifying possible brand
names
Developing value perceptions
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Consumer Behaviour – MKT 201/202
Alternative Evaluation
– Assessing Value
Consumers evaluation
criteria represent
• Objective / functional
attributes of product
• Symbolic/subjective
factors
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Consumer Behaviour – MKT 201/202
Purchase Decision –
Buying Value
Three possibilities:
• From whom to Buy
• When to Buy
• Do Not Buy
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Consumer Behaviour – MKT 201/202
From Whom…
• Terms of sale
• Past experience of
seller
• Returns policy
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Consumer Behaviour – MKT 201/202
When To Buy…
• Store experience
• Time pressure
• Sales process
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Consumer Behaviour – MKT 201/202
Five Situational Influences
•
Purchase Task
•
Social surroundings
•
Physical surroundings
•
Temporal effects
•
States (Mood)
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Problem Solving – Search Alternatives
•
•
•
•
Internal Search
External Search
Limited Decision Making
Extended Decision Making
• Ongoing search for pleasure as part of a hobby
and information for future use – Opinion
leaders
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Set Theory
All Brands
Awareness Set
Evoked Set
Inept Set
Acceptable
Brands
Unacceptable
Brands
Unawareness
Set
Inert Set
Neutral Brands
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Options Identified and Considered
UNIVERSAL SET
All possible options
RETRIEVED SET
Options that readily
come to mind
Options that will be
considered by the
consumer
Note: Retrieved and
evoked sets will vary
among different
consumers
EVOKED SET
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Approaches to Search for
Problem Solutions
INTERNAL
Long Term Memory
Remembering
Experience
EXTERNAL
Word of mouth, Opinion leaders,
media, internet – types of sites,
store visits, - sales people, POS,
Trial if possible
CATALOG
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Evaluative Criteria
•
•
•
•
•
•
May be part of the search process.
Refining of needs
EG Digital Camera.
Set theory before....
Desired Characteristics.
Specifically and general aspects.
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Evaluative Criteria -Specifically
• Technical specification....
– Performance
– Features
• Price / Cost of ownership
• Desired Characteristics.
• Other aspects >>>>
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Evaluative criteria -
Wider aspects.
Penult
• Visibility of purchase
• Emotional Purchase
• Maslow aspects
.
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• Review decision
Information sources
• Learn information
• Update memory
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Moore’s Law
Computer power growing exponentially
Prices remaining stable if not falling
Equals better value but when does the
consumer buy and how does this impact upon
new products and profits and the marketing
mix generally?
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Search Exercise
• Interview a person to find out what they are
considering purchasing and ask them to tell you
about the evaluative criteria they have – this will
mean that you will have to list the possible features /
and match these to their needs.
• In other words what do they want to do with the
product.
• EG Camera. (Electric) Bike, Trainers, MP3 player,
Notebook computer
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