1: Problem Recognition
Result of an imbalance of actual and desired states
What is a need?
What is a want?
How to recognize unfilled wants?
2: Information Search
Internal Search – recalling past information stored in memory
External Search – seeking information in the outside environment
Private (non marketing sources)
Public (non marketing sources)
Marketing controlled sources
What drives Search? Perceived Risk
Performance risk
Financial risk
Physical risk
Social risk
Time loss risk
Driving Search…
Need Less Information
Less Risk
More knowledge
More product experience
Low level of interest
Need More Information
More Risk
Less knowledge
Less product experience
High level of interest
3: Evaluation of Alternatives
Consideration set
Analyze product attributes
Use cut off criteria [pros/cons]
Multi-attribute models
4: Purchase
To buy or not to buy…
Marketing determines which attributes are most important in influencing a consumers’ choice (differentiation…later)
5: Post Purchase Behavior
Cognitive dissonance:
Did I make a good decision?
Did I buy the right one? Get a good value?
Marketing minimizes through:
Effective communication
Follow up
Guarantees
Warranties
Types of Buying Decisions
Complex buying behavior
Dissonance reducing buying behavior
Habitual buying behavior
Variety seeking buying behavior
Factors that Affect Involvement Levels
Factors Determining Level of Involvement
1. Previous Experience
2. Interest
3. Perceived Risk of Negative Consequences
4. Situation
5. Social Visibility