Understanding Consumer Behaviour

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Understanding Consumer Behaviour
We’ll be implying 3 factors of consumer behaviour.
The 3 factors are,
* Consumer Purchase Decision Process
* Consumer Involvement & Problem Solving Variation
* Psychological Influence on Consumer Behaviour

Consumer Purchase Decision Process
The stages in which a consumer passes through in making a decision which product or service to buy is called the purchase decision process. This process consists of 5 stages. They are problem recognition, information search, alternative evaluation, purchase decision and postpurchase behaviour. Let’s consider a situation whereby our consumer is deciding to buy an Internet TV. Stage 1: Problem Recognition (Perceiving a need)

Problem recognition refers to perceiving a difference between a person’s ideal and actual situation that is BIG enough to trigger a decision. This is the stage whereby the thought of wanting the product or service is implanted in the consumers mind which no brands or specifics are thought of yet. In the eyes of marketing, advertisements or salespeople can trigger the consumer’s decision process by showing shortcomings of competing products. The Internet TV is a fairly new product in the market, comprising of the components of watching the TV as well as surfing the internet all in one screen. And when there’s a new product in the market, one can assure you that those IT fanatics will have the dying urge to get their hands on the latest IT gadgets. Other than IT fanatics, the average consumer would also buy an internet TV. This is in the case whereby the consumer’s current television or personal computer is broken down or fairly old. What’s better than to buy 1 product which consists of 2? Therefore, the initial stage is one of the most critical stages in the decision process as the thought of wanting to purchase one must first be instilled in the consumers mind before any other decision can occur. Thus the consumer perceives a need for the product.

Stage 2: Information Search (Seeking value)
With the initial stage of the decision process started, the consumer begins to search for information about the product. Firstly, scanning past experiences with products and brands owned. This is known as the internal search. In reference to our product, the customer sources for information on the Internet TV. There are 3 types of sources which a consumer can source from, personal, public or market-dominated sources. This is known as the external search, when internal searching is insufficient. Personal sources would refer to friends, relatives sharing their insight on what they know of the Internet TV. Perhaps one of them owns one and can give his/her valid opinion on the product. Public sources are sources like consumer reports or product reviews that can easily be found online using a search engine like Yahoo or Google. Market-dominated sources would be advertisements, company websites or point-of-purchase displays at stores like Best Denki, Harvey Norman, Courts or any other electronic stores which carry the Internet TV. This is also the time where brands are considered to the consumers mind but this would only be searching for brands that are selling the Internet TV. Samsung would have to get the attention of the consumers via the market-dominated sources like advertising or company’s website. Therefore, this stage is where the consumer gathers information of the Internet TV and since it is a new product in the market, more time might be spent gathering information as compared to other products.

Stage 3: Alternative evaluation (Assessing value)
This is the stage clarifies the problem for the consumer by suggesting the criteria to use for the purchase, yielding brand names that might meet the criteria as well as developing the consumer value perceptions. The evaluative criteria represents both the objective attributes of the brand and subjective ones to compare the different products and brands. This aids...
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