Chapter 4 Summary

Chapter 4 Summary

Perspectives on Consumer Behaviour

This chapter deals with the field of consumer behaviour and examined its relevance to promotional strategy. Consumer behaviour is best viewed as the process and activities that people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to satisfy their needs and desires.

A five-stage model of the consumer decision-making process consists of problem recognition, information search, alternative evaluation, purchase, and post purchase evaluation. Internal psychological processes that influence the consumer decision-making process include motivation, perception, attitude formation and change, and integration processes.

This was followed by in-depth discussion of each stage.

Problem Recognition & Motivation

Various sources of problem recognition, both internal and external, were discussed. The sources are:

·         Out of stock

·         Dissatisfaction

·         New Needs/Wants

·         Related Products/Purchases

·         Marketer-Induced Problem Recognition

·         New Products

Information Search & Perception

The second stage in the consumer decision-making process is information search. Once consumers perceive a problem or need that can be satisfied by the purchase of a product or service, they begin to search for information needed to make a purchase decision.

The initial search effort often consists of an attempt to scan information stored in memory to recall past experiences and/or knowledge regarding various purchase alternatives. This information retrieval is referred to as internal search. For many routine, repetitive purchases, previously acquired information that is stored in memory (such as past performance or outcomes from using a brand) is sufficient for comparing alternatives and making a choice.

If the internal search does not yield enough information, the consumer will seek additional information by engaging in external search. External sources of information include:

o   Personal sources, such as friends, relatives, or co-workers.

o   Marketer-controlled (commercial) sources, such as information from advertising,

o   Salespeople, or point-of-purchase displays and the Internet.

o   Public sources, including articles in magazines or newspapers and reports on TV.

o   Personal experience, such as actually handling, examining, or testing the product.

Alternative Evaluation & Attitude Formation

After acquiring information during the information search stage of the decision process, the consumer moves to alternative evaluation. In this stage, the consumer compares the various brands or products and services one has identified as being capable of solving the consumption problem and satisfying the needs or motives that initiated the decision process.

The various brands identified as purchase options to be considered during the alternative evaluation process are referred to as the consumer’s evoked set.

Purchase Decision & Integration

At some point in the buying process, the consumer must stop searching for and evaluating information about alternative brands in the evoked set and makes a purchase decision. As an outcome of the alternative evaluation stage, the consumer may develop a purchase intention or predisposition to buy a certain brand. Purchase intentions are generally based on a matching of purchase motives with attributes or characteristics of brands under consideration. Their formation involves many of the personal sub-processes discussed in this chapter, including motivation, perception, attitude formation and integration.

A purchase decision is not the same as an actual purchase. Once a consumer chooses which brand to buy, he or she must still implement the decision and make the actual purchase. Additional decisions may be needed, such as when to buy, where to buy, and how much money to spend. Often, there is a time delay between the formation of a purchase intention or decision and the actual purchase, particularly for highly involved and complex purchases such as automobiles, personal computers, and consumer durables.

Post-purchase Evaluation & Learning

The consumer decision process does not end with the purchase. After using the product or service, the consumer compares the level of performance with expectations and is either satisfied or dissatisfied. Satisfaction occurs when the consumer’s expectations are either met or exceeded; dissatisfaction results when performance is below expectations. The post-purchase evaluation process is important because the feedback acquired from actual use of a product will influence the likelihood of future purchases.

Positive performance means the brand is retained in the evoked set and increases the likelihood it will be purchased again. Unfavorable outcomes may lead the consumer to form negative attitudes toward the brand, lessening the likelihood it will be purchased again or even eliminating it from the consumer’s evoked set.

The decision process model views consumer behaviour primarily from a cognitive orientation. The chapter considered other perspectives by examining various approaches to consumer learning and their implications for advertising and promotion. Behavioural learning theories such as classical conditioning and operant (instrumental) conditioning were dis-cussed. Problems with behavioural learning theories were noted, and the alternative perspective of cognitive learning was discussed.

The chapter also examined relevant external factors that influence consumer decision making.

Culture, subculture, social class, reference groups, and situational determinants were discussed, along with their implications for the development of promotional strategies and programs. The chapter concluded with an introduction to alternative perspectives on the study of consumer behaviour.