Consumer As Decision Makers

Consumer as Decision Makers

Consumer decision-making
Stage 1: Need recognition
Stage 2: Pre-purchase search
Stage 3: Evaluation of alternatives
Stage 4: Purchase
Stage 5: Post-purchase behavior

Stage 1: Need recognition

Needs  Motivation  Goal
If goals not achieved, renewed motivations

Motivation – the driving force to take action produced by a state of tension due to unfulfilled needs.

How to identify consumer needs?
Consumer research
Activity analysis (process-oriented)
Problem analysis (problem-oriented)

Stage 2: Pre-purchase search

*Evoked vs inert vs inept need to know where your brand sits. Evoked is where u want it to site. At evoked, is higher chance of getting chosen.

Stage 3: Evaluation of alternatives

Judgment vs decision (JDM)
Low effort and high effort. High effort basically is for the more big ticket stuff where u give more ‘effort’ to make decisions.

So for high effort,
Compensatory  consumer evaluates each brand in terms of each relevant attribute and selects the brand with the highest weighted score.

Non compensatory  positive evaluation of one attribute does not affect negative evaluation of some other attributes. E.g. ** lexicographic rule (see the feature that was most important and choose the holiday destination that ranked highest on that attribute. )

Consumer biases
Consumer framing  the way consumers look at problems in their mind. Recall consumers pay more attention to losses (movie ticket concept). Hence we should try to minimize losses than highlight gains.

Stage 4: Purchase
Stage 5: Post-purchase behavior