Marketing

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Table of Contents
Chapter I
* Consumer decision making model
* Need recognition and problem awareness
* Information search
* Evaluation and alternatives
* Purchase
* Post purchase evaluation

Chapter 2
A thorough critique of the consumer decision-making model.
Chapter 3
Market segmentation
* Geographic segmentation
* Demographic segmentation
* Psychographic segmentation
* Positive market segmentation
* Behavioral segmentation
* Occasions

“consumer behaviour is the study of the processes involved when individuals or groups select, purchase, use or dispose of products, services, ideas or experiences to satisfy needs and desires.” (Solomon,Bamossy et al. 2006, p6). Process by which  consumers identify their needs,  collect information,  evaluate alternatives, and  make the purchase decision. These actions are determined by psychological and economical factors, and are influenced by environmental factors such as cultural, group, and social values.

The Business decision making has following parts

The first stage involves information search, where the consumer recognizes a problem and tries to search for solution (purchase). According to Belch and Belch (2007) consumers use both internal (memory) search as well as external search. There are various sources available to consumers for information gathering like personal sources (family, friends), commercial sources (advertisements), public sources (announcements) or past experience (memory). The information is evaluated by the consumer by brand to brand or product to product comparison between the options selected in terms of the benefits, both functional (usage) and psychological (satisfaction) being offered. After the evaluation of options, Purchase decision (Jakola, 2008) is made by the consumers. Which can be influenced by the organization in terms of the sales promotion,  ease of payment or any other incentive. The purchase decision is very important as this is the point where the customer shells out the money and is the income source point for the organization. Post Purchase evaluation is the next stage, which not handled properly leads to erosion of the loyal customer base. In this stage it is necessary to ensure that the client has made the right decision and the alternatives would never have been preferable. The concept called “cognitive dissonance” is associated with it.

The decision-making process that customers go through a five-stage decision-making process in any purchase. This is summarised in the diagram below:

1. Need recognition and Problem awareness.|
2. Information search.|
3. Evaluation of Alternatives.|
4. Purchase.|
5. Post purchase evaluation.|

This model is important for making marketing decisions. It forces the marketer to consider the whole buying process rather than just the purchase decision. The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages.A student buying a favourite hamburger would recognise the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. Need recognition and Problem awareness.

The very first step in the process is when consumers realize that they have a need for something. Marketers want to create an imbalance in consumers between their present status and their preferred status. This imbalance will create a need and make a consumers search out and buy a product or service. Need recognition occurs when a consumer is faced with a difference between an actual and a desired state. A need can occur immediately and can be a very basic impulse that you experience, such as when the ninja develops hunger pains. This is called an internal stimulus. Or it can be...
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