MBA404 Consumer Behaviour& Marketing Psychology
Consumer Decision –Making Process
Workshop 2
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This Topic’s Big Idea
“Individuals engage in a different decision-making process”
Learning Objectives
1.
Explain why marketing managers should understand Consumer Behaviour.
2.
Analyse the components of the consumer decision-making process.
3.
Identify the types of consumer buying decisions and explain how they relate to consumer involvement.
4.
Identify and understand the cultural, social, individual and psychological factors that affect consumer buying decisions.
To recap:
Consumer Behaviour–Processes a consumer uses to make purchase decisions, as well as use and dispose of purchased goods or services.
•
Includes factors that influence purchase decisions and product use.
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Consumer Decision Making Process
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Step 1: Need Recognition
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Occurs when a consumer is faced with an imbalance between actual and desired states.
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Stimulus: Any unit of input affecting one or more of the five senses
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Sight, smell, taste, touch or hearing.
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Want: Recognition of an unfilled need and a product that will satisfy it.
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Engage Learning, pp 46 -56
Workshop Activity -Step 1
In this workshop activity students are required to discuss each of the consumer decision-making process steps,based on a product or a service of their choice.This activity requires the use of a laptop/tablet/mobile phone.Formapairorasmallgroupof3peopleanddiscussthefollowing:
Identify stimuli, a need, and a want that you associate with the selected product or service.
Please note that you can have more than one stimuli, need and want.
Step 2: Information Search
Internal information search:
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Process of recalling information stored in their memory.
External information search:
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Process of seeking information in the outside environment.
Non-marketing controlled information source:
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Product information source that is not associated with advertising.
Marketing controlled information source:
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Product information source that originates with marketers promoting the product.
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Step 2: Information Search
Evoked set: Group of brands, resulting from an information search, from which a buyer can choose
•
Perceived risk:

Knowledge;

Confidence;

Product experience;

Interest in outcome.
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Workshop Activity –Step 2
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What do you know or recall about this product/service offering? Discuss with your fellow students and make some notes.
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Using your telecommunication device, conduct a search for information about this product/service offering. Record information in the notes section.
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Now your task is to group this information into the following two categories:
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Non-marketing information
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Marketing information
Step 3: Evaluation of Alternatives
Potential Alternatives:
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Awareness Set
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Evoked Set (considered alternatives)
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Inert Set (back up alternatives)
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Inept Set (avoided alternatives)
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Unawareness Set
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Workshop Activity –Step 3
Based on the information gathered in the second step, construct an awareness set and identify the unawareness set
Evoked Set Inert Set Inept Set
Step 4: Purchase
Different considerations in regards to how will you purchase product/service:
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Use of individual income
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Credit Cards
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Personal Secured/Unsecured Loans
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Home Loans
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Lease Agreement/Rent Agreement
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Lay-by/ClicknCollect/Afterpay
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Workshop Activity –Step 4
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Based on the evoked set of alternatives, identify purchasing method/s available to you as a consumer.
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Which purchasing method/s is/are most appealing to you? Why? Provide reasons for your answer.
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Please consider individual circumstances such as yearly income and affordability before making a decision about your preferred method of purchase
Step 5: Post Purchase Behavior
Cognitive dissonance:
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Inner tension that a consumer experiences after recognising an inconsistency between behavior and values or opinions.
Marketing can minimise this through:
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Effective communication
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Follow-up
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Guarantees
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Warranties
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Workshop Activity 1 –Step 5
Cognitive Dissonance
Watch me:

•
After you have purchased the product/service of your choice, did you experience cognitive dissonance? Why? Provide a detailed explanation.
•
Did the company that sold you this product/service attempt to minimise the effect of cognitive dissonance? If yes, how so? Provide an example.
Types of Consumer Buying Decisions
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Determining the level of consumer involvement
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Previous experience
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Interest
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Perceived risk of negative consequences
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Situation
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Social Visibility
Adopted from: Lamb WC, et all 2016, Consumer decision-making, MKTG3, Asia-Pacific Edition, Cengage Learning, pp 46 -56
Workshop Activity 2
Type of Consumer Buying Decision
Based on the information gathered in the previous activity, identify the type of consumer buying decision using criteria such as involvement, time, cost, information search and number of alternatives available.
Provide reasons for your answer.
Assessment 1 Overview
Assessment Title
Individual Video Project
Length
7 minutes (no more)
Weighting
25%
Total Marks
100
Submission
Online via Moodle
Due Date
Week 6
Description
In this individual assignment, you will be given an opportunity to explore contemporary marketing issues related to consumer behaviour. You are required to create a 7-minute video, in which you must discuss and critically analyse your recent purchase of a product or service based on the 5-step Consumer Decision Making Process.
Next Week
Psychological Factors: Motivation, Needs, Beliefs and Attitudes.