BSB126 Chapter Notes - Chapter 5: Marketing Mix, Impulse Purchase, Customer Satisfaction
Chapter 5: Consumer Behaviour
- Ask why people buy goods/services
- Ratio of benefits to costs
- The consumer decision process
oNeed recognition
Consumers recognise they have an unsatisfied need and would like to attain
a desired state
The greater the discrepancy between the needy and desired states, the
greater the need recognition
Wants – goods/services that are not needed but are desired
Functional needs – performance of a product
Psychological needs – personal gratification consumers associate with a
product/service
Key to successful marketing is determining the correct balance of functional
and psychological needs
oSearch for information
Length/intensity are based on degree of perceived risk
Internal – buyer examines their own memory and knowledge
External – buyer seeks information outside personal knowledge base
Talk with friends, family, salesperson
Scour commercial media
Peruse sponsored media
Blogs, social media, search engines, magazines, T.V etc.
Factors affecting search process
Perceived benefits vs. perceived costs
Locus on control
oInternal – have some control over their actions
oExternal – fate controls their actions
Actual/perceived risk
oPerformance
oFinancial
oSocial
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oPhysiological
oPsychological
oEvaluation of alternatives
Occurs while the consumer is engaged in the search
Attribute sets
Universal – includes all possible choices
Retrieval – brands/stores that can be recalled from memory
Evoked – alternative brands/stores the consumer would consider
oAchieving evoked set increases the likelihood of purchase
Evaluative criteria – important attributes about a product e.g. price, quality,
brand reputation, retailer service etc.
Determinant attributes – features important to the buyer (competing brands
differ)
Consumer decision rules
Set of criteria consumers consciously/subconsciously use to select
from several attributes
Compensatory – assumes the consumer trades off one characteristic
against another (good compensates for bad)
Non-compensatory – choose a product based on one characteristic
regardless of other attributes
oPurchase and consumption
Conversion rate – how well retailers turn purchase intentions into purchases
Retailers should have plenty of stock on-hand
Open more check-out lanes to reduce wait time = increased purchases
Conversion rates are lower for consumers using internet
oPost-purchase
Entails actual rather than perceived customers
Satisfied customers become loyal and spread positive word of mouth
Customer satisfaction
Setting high consumer expectations increases risk of negative word
of mouth
Setting low consumer expectations decreases number of purchases
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Document Summary
Consumers recognise they have an unsatisfied need and would like to attain a desired state. The greater the discrepancy between the needy and desired states, the greater the need recognition. Wants goods/services that are not needed but are desired. Psychological needs personal gratification consumers associate with a product/service. Key to successful marketing is determining the correct balance of functional and psychological needs: search for information. Length/intensity are based on degree of perceived risk. Internal buyer examines their own memory and knowledge. External buyer seeks information outside personal knowledge base. Blogs, social media, search engines, magazines, t. v etc. Locus on control: internal have some control over their actions, external fate controls their actions. Actual/perceived risk: performance, financial, social, physiological, psychological, evaluation of alternatives. Occurs while the consumer is engaged in the search. Retrieval brands/stores that can be recalled from memory. Evoked alternative brands/stores the consumer would consider: achieving evoked set increases the likelihood of purchase.
