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Customer decision process

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Information Search. What level of information does the customer start with? ... Influence on decisions for joint household consumption e.g. TV, car, house, etc. ... – PowerPoint PPT presentation

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Title: Customer decision process


1
Customer decision process
ProblemRecognition
InformationSearch
AlternativeEvaluation
Choice andPurchase
Post-purchaseExperience
2
Problem Recognition
  • Problem or solution stimuli (trigger)
  • Internal or external stimuli
  • Need state or Want state recognized
  • Does marketing create needs and wants?

3
Information Search
  • What level of information does the customer start
    with? How much does s/he realize is unknown?
  • Awareness set (A) evoked set (E) consideration
    set (C).

A
E
C
4
More on Info Search
  • Sources of information
  • Marketer sources
  • Nonmarketer sources
  • Search strategies
  • Routine problem solving
  • Limited problem solving
  • Extended problem solving

5
Still More on Info Search
  • Search strategies systematic vs. heuristic
  • Heuristics short-cuts, rules-of-thumb
  • For instance purchase a known brand
  • Amount of search
  • Involvement importance
  • Perceived risk
  • Familiarity and expertise
  • Time pressure
  • Functional vs. expressive product nature
  • Information overload

6
Alternative Evaluation
  • Compensatory vs. non-compensatory models
  • Compensatory used in extended problem solving
  • Non-compensatory used in routine or limited
    problem solving, or as a first stage in a two
    stage process

7
Choice and Purchase
  • Choice identification gt Purchase intentgt
    Purchase implementation
  • Why would a consumer delay or not purchase the
    alternative that is chosen?

8
Post Purchase Experience
  • Decision confirmation and cognitive dissonance
  • Evaluation of experience
  • Satisfaction or dissatisfaction -- expectations
  • Future response

9
Types of Households
10
Traditional Family Life Cycle
11
Why does role specialization occur in household
decisions?
  • Time pressures who has time to
  • Household roles decisions fit within an
    established division of activities
  • Experience, expertise
  • Preferences I like to do the grocery
    shopping.
  • Negotiated division of activities

12
Patterns of Joint Decisions
  • Autonomous decision by wife or husband
  • Decision dominated by wife
  • Decision dominated by husband
  • Syncratic decision

13
Factors influencinginter-spousal roles
  • Gender role orientation
  • Spouse employment status
  • Stage in family life cycle
  • Time pressure
  • Importance of purchase
  • Socioeconomic development of population

14
Influence of children
  • Influence on decisions for childs consumption
    e.g. cereal, clothing purchased by parent
  • Influence on decisions for joint household
    consumption e.g. TV, car, house, etc.
  • Direct purchase, using own money, for personal
    consumption (or gifts)

15
Development of Roles
  • Consumer Socialization
  • Intergenerational influence
  • Parent to child learning
  • Reverse influence
  • Across households
  • Relative influence affected by closeness of
    family relationship authority relationship

16
Conflict
  • Shared roles causes conflict
  • Distributed roles
  • Differences in goals (market values) or
    perceptions (evaluation of alternatives)
  • Resolution strategies
  • Problem solving I need this CD for when we go
    on trips.
  • Persuasion Youll like it, too.
  • Bargaining I wont complain about homework
    anymore.
  • Politicking Mom said I could get it.
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