..."A consumer is a shopper who is sore about something." - Harold Coffin (1905 - 1981), American Humor Columnist for The Associated Press. Note on Consumer Decision Making Process is an Article by Ken Matsuno. In the article Ken has identified a five stage process by Source: Adopted from Kotler (1997), Schiffman and Kanuk (1997), and Solomon (1996). The steps in this model demonstrates the process in which consumer apply when seeking a product. The five steps of the model are: problem recognition, information search, evaluation and selection of alternatives decision implementation and post-purchase evaluation. "Even the once simple home mortgage now has so many flavors and styles and variations that it is difficult for people to make a decision." - Scott Cook, American Businessman, Co-Founder of Intuit, Inc. Problem Recognition is the stage in which the consumer recognizes a problem or a need. For example, a consumer may have an existing product that may be obsolete or it is unable to perform to the consumer’s individual need. Now this is where the consumer realizes there is a need for change or there is a new desired state. Information Search is the stage in the process where the consumer begins to seek information about products that may better serve their need and desires. Consumers may seek to ask their peers about the various products on the market or even those who may have already been through the process for a similar product. Another means of Information Search is that...
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...understanding of consumer behavior helped Groupon grow from 400 subscribers in Chicago in 2008 to 60 million subscribers in 40 countries today? Groupon knew that people want to try something new if the price is low. Business would offer low prices if they knew they could sell a large quantity. Groupon offer different type of values to the consumers and merchants respectively. First, Groupon gives low price and different type of experiences to fit their consumers through deal-of-the-day offering. Consumers receive an exceptional value. So, merchant could get new customers without advertising cost and Groupon get a revenue by linking both consumer and merchants. This is kind of win-win strategy in the new type of business model. All of them such as Groupon, merchants and consumers could get benefit from business model. Second, they knew that consumers don’t want to be asked when they return their products. So, they didn’t asked anything if consumers want to return. It makes consumers’ feel more comfortable. Third, Groupon creates Groupon store and mobile service called Groupon Now. This make more merchant to participate on a deal and Groupon could target to sell to specific customer. Because more merchant want to more revenue without high cost. So, Groupon make Groupon store. Also, consumer want to low price. So, Groupon can instant responsiveness marketing by offering a service called Groupon Now. Conclusively, Groupon knew both merchants and consumers behavior. So,...
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...INTRODUCTION We all have to make choices. One of those most important decisions made in our life are based on the market - buying goods. No one buy goods unless they have a problem, a need or a want. The Consumer Decision Making Model can be applied with any economics decision you have to make. The goal in creating this model was to analyze how individuals sort through facts and influences to make decisions that are logical and consistent for them. Think like an economist with this convenient tool. The CDP model consists of seven major stages: Need recognition, search for information, pre-purchase evaluation of alternatives, purchase, consumption, post-consumption evaluation and divestment. The aim of this paper is to discuss these processes with reference to a product and analyze the reason why marketers should understand the CDP model. 1. Need recognitions Need recognitions is the most important factor which leads to buying of products and services. Need in fact is the catalyst which triggers the buying decision of individuals. It occurs when an individual senses a different between what he or she perceives to be the ideal versus the actual state of affairs. Need recognition depends on how much discrepancy exists between the actual state (the consumer’s current situation) and the desired state (the situation the consumer want to be in). Consumer buy things when they believe a product’s ability to solve a problem are worth more than the cost of buying it. Imagine having...
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...Consumer Decision Making According to (Consumer decision making process, 2010) Consumer decision making is the process of choosing between two or more alternatives; consumer decision making may be defined as a process of gathering and processing information, evaluating it and selecting the best possible option, goods, services, organizations, people, places, and ideas that will best addressing their current need. Sometimes consumers go through these stages of gathering and processing the information without even realizing that they are going through the processes. (Alet, 2001), states that Consumer behaviour and consumer decision-making have become prominent research topics in the various fields of consumer science in recent years. Consumer Decision Making pertains to making decisions regarding product and service offerings. There are different consumer decision making models such as Bettman's Information Processing Model of Consumer Choice, the Howard-Sheth model of buying behavior, Kotler model and the Nicosia model. The Engel, Kollat & Blackwell (later Miniard) consumer decision making model will be looked at for the purpose of this research. Engel, Kollat & Blackwell (later Miniard) consumer decision making model According to (Sahney, 2005), the Engel, Kollat and Blackwell Model, also referred to as the EKB model was proposed to organize and describe the growing body of knowledge/research concerning consumer behavior. A comprehensive model, it shows the various components...
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...Problem Recognition. One model of consumer decision making involves several steps. The first one is problem recognition—you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information search—what are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days. Finally, we have thepurchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory). In reality, people may go back and forth between the stages. For example, a person may resume alternative identification during while evaluating already known alternatives. Consumer involvement will tend to vary dramatically depending on the type of product. In general, consumer involvement will be higher for products that are very expensive (e.g., a home, a car) or are highly significant in the consumer’s life in some other way (e.g., a word processing program or acne medication). It is important to consider the consumer’s motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein we consider a logical progression of consequences of product use that eventually...
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...Consumer Decision Making Process Any organization or company with a product or service to market to consumers needs to consider the decision making process individuals go through. Consumers go through a process when making choices. This paper will discuss the consumer decision making process and its importance to marketers. Awareness Before a consumer can even begin the decision making process he or she must be aware of the product or service. At this stage the consumer is aware of a problem. For example, someone may decide that they are hungry. The problem has been identified by the individual that they must eat to satisfy their hunger. The hunger example will show the steps of a nominal decision. A nominal decision is a very low involvement purchase. Limited decision making and extended decision making are for high involvement purchases, for example, the purchase of a vehicle, or a house. Information Search & Understanding The next step of the process is the information search phase. For a nominal decision, such as what to have for lunch, an individual would conduct a limited internal search for information. The individual could ask his or herself questions such as: What do I feel like eating? Is there anything I want to eat in the fridge? How much money will I spend on lunch? These are all questions which the individual should be able to answer for themselves. For high involvement purchases such as purchasing a vehicle, a consumer’s decision making process will follow...
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...Among the consumers who buy Meizu Pro6, the most of the consumers are using cognitive purchase decision behavior. A cognitive purchase decision is a purchase model that consumers base on a series of stages to select one product or suitable good over competing options. Consumers will be more deliberate, rational, and sequential when they select the product. We can analysis the reasons why consumers purchase the products, and from the following five stages to understand it. The 5 stages are: 1. Problem Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase 5. Post-Purchase Evaluation Stage1: Problem recognition In the consumer decision-making model, the first process is problem recognition which arise when a consumer sees...
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...Introduction One “official” definition of consumer behavior is “those activities directly involved in obtaining, consuming, and disposing of products and service, including the decision processes that precede and follow these actions”. Moreover, the consumer behavior display in searching for purchasing, using, evaluating, experiences, and idea which they expect will satisfy their needs. Therefore, knowing the factors which influence the buying behavior could increase the sales volume. The consumer behavior is an important factor to indicate the decision making process in buying a car. The buying behavior would influenced by the marketers. The job of the marketers is to “think what customer want” and to guide the company into developing offers, which are meaningful and attractive to target customers and creating solutions that deliver satisfaction to the customers, make profits to customer and benefits to the stakeholders. 2.0 Consumer purchases decision process In the role of consumer, they constantly face choices like how much to spend, what product to acquire, and where to purchase the product. Marketer need to understanding of how these decisions are in order to develop appropriate marketing strategies. The consumer buying decision process comprises five stages: problem recognition, information search/ search for alternatives, evaluation of alternatives, purchase decision, and post-purchase evaluation. The buying decision process is influenced by psychological factors...
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...Consumer Buying Behavior Process Institute of Business and Information Technology University of Punjab Submitted by:- Maria Mohni Ali Farooq Submitted to:- Sir Basit Afzal Date:- 31/01/2014 Contents Executive summary 3 Methodology:- 3 Consumer profile 4 Yankolovich mind base segmentation:- 5 Trait sum up them:- 5 Stages of the Consumer Buying Process:- 5 Need Recognition:- 6 Pre-purchase Search or Information Search:- 7 Internal influence:-………………………………………………………………………………………………………………………8 External influence:-……………………………………………………………………………………………………………………..8 Evaluation of Alternatives……………………………………………………………………………………………………………………….9 Evoked set:-…………………………………………………………………………………………………………………………………9 Inept set:-…………………………………………………………………………………………………………………………………….9 Inert set:-……………………………………………………………………………………………………………………………………..9 Criteria used for evaluating brand:-……………………………………………………………………………………………10 Consumer decision rules:-………………………………………………………………………………………………………….11 Purchase decision:- 11 Post purchase evaluation:- 12 Comparison:- 13 Conclusion:- 13 Executive summary Consumer behavior is more related to consumer psychology as every consumer has to make a decision while purchasing something and decision making is the process which includes many external or internal factors. When we talk about the consumer psychology we are more concerned about the black box (human brain) where these processes run simultaneously like creation of need...
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...Understanding consumer behaviour is fundamental to marketing. For this reason, a lot of research is underway to develop a wider understanding of the customer decision-making process in an increasingly complex market context {{57 Lye, Ashley 2005;}}. 2.1 VW Golf Buy a car is an extended problem-solving decision because it is a high-involvement purchase and requires a substantial amount of effort, extensive research and a meaningful evaluation of alternatives {{59 Solomon, Michael 2006;}}. According to Kotler (2009), the consumer decision-making process involves five steps that consumers move through when purchasing a good or a service. Firstly, when a problem recognition advances, the consumer becomes aware of his desires since he compares his actual condition with the ideal one, this process is the core aspect in motivating to purchase {{59 Solomon, Michael 2006;}}. Moreover, consumer behaviour is influenced by both internal and external stimuli like social, cultural, personal and psychological included gender, income, urban location, education, children or other characteristics. The potential buyer might have realised that the vehicle he owns is not meeting his needs anymore because it is old; it does not reflect his new lifestyle, or there is a recent and better model on the market {{58 Prieto, Marc 2013;}}. So his particular unfulfilled need is a compact family car, fuel-efficient, safe, comfortable, spacious and with a price range between £17.000-£23.000 {{60 Car 2015;}}...
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...C H A PTE R CONSUMER BEHAVIOUR AND TARGET AUDIENCE DECISIONS 3 Chapter Objectives • To understand the consumer decision-making process and how it varies for different types of purchases. • To understand various internal psychological processes, their influence on consumer decision making, and implications for advertising and promotion. • To understand the similarities and differences of target market and target audience. • To understand the various options for making a target audience decision for marketing communication. Marketers Seeking 50-Plus Consumers Nintendo is famous for its video games. DaimlerChrysler features a wide selection of car brands. Tabi is known for its classic women’s clothing. While seemingly unrelated, these brands have recently shared a similar strategy. As these established companies expanded beyond their current customer base, each brand attempted new marketing communication programs containing a more emotional message aimed at the 50-plus demographic. The 50-plus crowd not only is a sizable market, but also is a very lucrative one; they control 55 percent of all discretionary spending in Canada due to their relatively high net worth. And while the brands all looked toward the fifty-plus market, additional segmentation based on an understanding of consumer behaviour revealed subtle differences in their approach. For Nintendo, the saturated youth market proved to be a no-growth avenue. With industry sales hitting the billion-dollar level...
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...Cluster 2 Case Study Groupon: Helping Consumers with Purchase Decisions Question A: Yes I have used Groupon. Question B: My purchase decision process was pretty simple. A group of friends and I wanted to try a painting and wine class, we heard from some other ladies that it was a really good time, so we stared doing some research on places. The most important thing to us was how much would it cost and if the business offered a painting that we all wanted to do. One of my girlfriends looked on Groupon and found that there were some places that offered what were looking for. After finding the Groupon, we went to that business’s website and looked to see what paintings they offered. We liked what we saw and bought them. Question C: My Groupon experience was great. It got us all out, which we desperately needed and got to venture into the city, which we hardly ever do. It was a lot of fun to do something new, different and creative. I have not gone back since then but we have been talking about doing another painting class again soon. I’m not sure if we’d go back to the same place or if we would try somewhere different to see what kind of paintings they offer. Overall it was a great place and I would recommend others try it. Question D: I have not considered using any of Groupons competitors. I go on Facebook pretty much daily, but don’t look for deals there. Honestly, if I want to do something new and/or was looking for a deal...
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...Understanding consumer behavior is fundamental to marketing. For this reason, a lot of research is underway to develop a wider understanding of the customer decision-making process in an increasingly complex market context (Lye, Shao, et al. 2005). VW Golf Buying a car is an extended problem-solving decision because it is a high-involvement purchase and requires a substantial amount of effort, extensive research and a meaningful evaluation of alternatives (Solomon, Bamossy and Askegaard 2006). According to Kotler (2009), the consumer decision-making process involves five steps that consumers move through when purchasing goods or a service. Firstly, when a problem recognition advances, the consumer becomes aware of his desires since he compares his actual condition with the ideal one. This process is the core aspect in motivating to purchase (Solomon, Bamossy and Askegaard 2006). Secondly, consumer behaviour is influenced by both internal and external stimuli such as social, cultural, personal and psychological which includes gender, income, urban location, education, children or other characteristics. The potential buyer might have been realised that the vehicle he owns is not meeting his needs anymore because it is old; it does not reflect his new lifestyle, or there is a recent and better model on the market (Prieto and Caemmerer 2013). So his particular unfulfilled need is a compact family car, fuel-efficient, safe, comfortable, spacious and with a price range...
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...Consumer purchasing decision process Table of Contents A. Introduction 4 1. Steps in purchasing decision 4 1.1 Problem/Need Recognition 5 1.2 Information Search 5 1.3 Alternative Evaluation 7 1.4 Purchase 7 1.5 Post Purchase Evaluation 8 2. Analysis of computer industry business trends in SA 9 2.1 Industry overview (South Africa) 10 2.2 Market analysis 10 2.2.1 Supplier Power 11 2.2.2 Buyer Power 11 2.2.3 New Entrants Threat 11 2.2.4 Threat of Substitutes 12 2.2.5 Rivalry 13 2.2.6 Opportunities 13 3. DELL’S online only strategy in the 80s and 90s analysis 14 3.1 Dell’s online strategy 14 3.2 Online business value 15 3.3 Online Sales Growth 16 3.4 Convenience 16 3.5 Consumer behaviour intelligence 17 3.6 Was online only strategy suitable for under and developing nations? 17 4. Proposed Channel Strategy for Dell to be Market Leader In SA 18 4.1 Marketing Channel Selection 18 4.2 Market Research and Analysis 18 4.3 Distribution Channels 18 4.4 The Internet and disintermediation in the distribution channel 19 4.5 Channel Length 20 4.5.1 Consumer Channels 20 4.5.2 Business-to-Business Channels 21 4.6 Overcoming Limitations of shop floor space 21 4.7 Conflicts 21 4.8 Supply Chain 22 4.9 Distribution intensity 22 4.9.1 Selective Distribution 23 5. Conclusion 23 B. List of References 25 C. ANNEXURE 1 27 A. Introduction This report examines the consumer purchasing...
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...AIDA – CONSUMER DECISION MAKING AIDA is an acronym used in marketing that describes a common list of events that may be undergone when a person is selling a product or service. * A - Attention (Awareness): attract the attention of the consumer. * I - Interest: raise consumer interest by focusing on and demonstrating advantages and benefits (instead of focusing on features, as in traditional advertising). * D - Desire: convince consumers that they want and desire the product or service and that it will satisfy their expectations. * A - Action: lead consumers towards taking action, that is deciding to purchase. AIDA Marketing has been around for a long time. The idea is that a customer goes through these four independent stages before making a purchase. Let’s describe these steps further: The AIDA model consists of 4 different phases that aims the consumer to make the decision to buy a product or service. Attention Attention is the 1st phase that will spark the interest of a consumer. What sparks attention is usually by its unique design, pricing, and marketing. In our media-filled world, you need to be quick and direct to grab people's attention. Use powerful words, or a picture that will catch the reader's eye and make them stop and read what you have to say next. With most office workers suffering from e-mail overload, action-seeking e-mails need subject lines that will encourage recipients to open them and read the contents. For example, to encourage...
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