Agenda
Module 4 – Consumer Behaviour Part 1
– Consumer Purchase Decision Process
Text Chapter 3
© 2015 McGraw-Hill Education
MODULE 4
PART 1
CONSUME
R
BEHAVIOU
R
Chapter 3
© 2015 McGraw-Hill Education
Learning Objectives
(Part 1)
1. Describe the stages in the consumer purchase
decision process
2. Distinguish among three variations of the
consumer purchase decision process: routine,
limited, and extended problem-solving
© 2015 McGraw-Hill Education 3
LO1
Adapting to
Consumers
Understanding how
prospective customers
think and anticipating
their actions is a key
element to business
success
“… by the time they reach the evaluation and purchase
stages, they may have been in contact with 14 touch points
of research.”
Nick Gaudreau, CMO of Yellow Pages Group
© 2015 McGraw-Hill Education 4
LO1
Consumer Purchase
Decision Process
Consumer Behaviour – actions a person
takes in purchasing and using products
and services
Online and mobile technology has allowed
consumers to make faster and more
informed decisions
© 2015 McGraw-Hill Education 5
LO 1
Consumer Purchase Decision
Process (p.67)
5 Stages a buyer passes through in making choices about
which products or services to buy.
How might this process
work if you are purchasing
a car?
6
Problem Recognition
LO 1
(p.67)
Realization that a difference between
what he/she has
and
what he/she would like to have
is big enough to actually do something about it 7
LO 1
Information Search
(p.67-8)
Internal
scan their
memory for
knowledge of or
previous External
experiences
Personal Public Marketer-
Sources Sources Dominated
• • Google
Relatives
• Friends •
Sources
Consumer reports • Company
• Government
websites
agencies • Advertising
8
LO 1
Alternative Evaluation
(p.69)
Evaluative criteria:
Objective
Features, attributes
Subjective
Status, feelings
Results in an evoked set
Marketers try to identify the evaluative criteria and include
them in the marketing mix to create customer value.
9
LO 1
Purchase Decision
(p.69)
Having examined the alternatives in the evoked set three choices
remain:
What brand
Who to buy from
When to buy
10
LO1
Post-Purchase
Behaviour (p. 70)
Consumers’ comparison of purchase to expectations.
Satisfied buyers tell three people
Dissatisfied buyers complain to nine people
Resolving customer issues can avoid their complaints on the
internet and in social media.
Good customer support/help available.
Help them avoid cognitive dissonance.
© 2015 McGraw-Hill Education 11
Cognitive Dissonance
Def: The feeling of post-purchase psychological tension or
anxiety, which is called cognitive dissonance.
Consumers are faced with two or more highly attractive
alternatives in their purchasing decision, which creates cognitive
dissonance.
• “Did I choose wisely?”
• State of anxiety, tension
12
Cognitive Dissonance
(p. 70)
• Often, close choices
• “Did I choose wisely?”
• Bought one – is it the best?
• State of anxiety, tension
• What to do?
Ask friends: good pick?
Read ads: clever me!
Do not ignore this in buyers!
13
2. Distinguish among three variations of the
consumer purchase decision process: routine,
limited, and extended problem-solving
© 2015 McGraw-Hill Education 14
Involvement and LO2
Problem-Solving (p. 70-
1)
Involvement - personal, social, and
economic significance of a purchase to
the consumer
Expensive
High level
of involvement: Reflects on
Bought
one’s social
infrequently
image
© 2015 McGraw-Hill Education 15
LO 2
Problem-Solving
Variations (p.72)
What would be the difference between the purchase of
a candy bar, a new pair of shoes and a new computer?
16
In-Class Activity:
Buying Process for a new cell
phone and/or plan.
Complete the worksheet individually
and submit before the end of class
© 2015 McGraw-Hill Education 17
Canadian Cell Phone
Industry
Wireless phone subscribers number over 28.4 million
There are >24 wireless service providers in Canada
More than 1 of 5 households in Canada have cell phones
as their only form of telephone service.
84.9% of Canadian households have access to a wireless
phone
Wireless revenues in Canada totalled $23.5 billion in
2014.
“Canada has the highest social media network
penetration in the
Source: Canadian Wireless world, with
Telecommunications 82% (2015).
Association of Canadians
Retrieved from using a
[Link]
social network.” 18
© 2015 McGraw-Hill Education
Cell Phone Carriers
TELUS mobility
KOODO mobility
Rogers mobility
WIND mobility
Bell Mobility
Source: [Link] (creative commons)
© 2014 McGraw-Hill Ryerson Ltd. All rights reserved.
LO1
Consumer Purchase
Decision Process
© 2015 McGraw-Hill Education 20
In-Class Activity:
Buying Process for a new cell
phone and/or plan.
1. What triggers the decision to buy a new cell phone (plan)?
Is it a need?
Is it a want?
2. How do you seek information about the purchase of a new
phone?
3. What evaluative criteria do you use when deciding to
purchase a particular brand?
4. What is your evoked set of cell phone brands?
5. When and where do you buy a new cell phone (plan)?
6. With respect to the purchase of your last cell phone (plan),
did you experience any cognitive dissonance?
If dissatisfied, what was deficient?
Did you tell anyone?
Will you go back?
What marketing activities could be undertaken to reduce
this?
© 2014 McGraw-Hill Ryerson Ltd. All rights reserved.