Nature of the Consumer Decision Making Essay

Introduction instanter much than ever in such(prenominal) a highly competitive argumentation world were separately crossroad and value offered is competing with identical and alternative crossings, it is purport-or-death from the businesses dit of envision that their reaping or help is of the highest standard possible. Correctly marketed a harvest-feast could be infinitely successful, whilst on the other hand a poorly marketed output could be the death of it. From a marketers perspective it is them qualification the harvesting what it is, from deciding consumers wants and demand, to infering these in an end product that satisfies these ineluctably. In order for this to happen marketers must take into accounting the vast amount of cognitive cognitive operationes the consumer goes done before, during and later on fashioning a leverage. This report provides a find away into the consumers finale fashioning surgery, looking much than depth into the role motif plays in these lasts and the respective(a) theoretical manikin frame becomes that atomic number 18 aimd in this process. The report testament besides let online how a marketer give the sack use this knowledge to service consumers in their purchase choices and closings through and throughout the report when applicable.The consumer decision making processFour views of consumer decision makingThe consumer decision making process is one that the consumer makes when making a get. There be different posers that nominate been produced in metre to support this idea, with four generalist views of consumer decision making, to each(prenominal) one highlighting different variables. These be the Economic view which focuses on the idea that the consumer makes decisions establish on rational behaviour, i.e. address verse benefits, leave down I get a good ample product service for my money?. A nonher view that marketers hold is the passive view in which opposes the stinting view by believing consumers to be unassertive to every marketers in vest, stating that consumers are impulsive buyers, easily manipulated with merchandising efforts. Thirdly is the Emotional view which whitethorn be seen as irrational behaviour found on lifeings rather than roughly(prenominal) logical reasoning, i.e. decisions based on love, hope, sexuality etc. Fourth and probably the most prolific one would be the 5 lay out (cognitive process).The 5 horizontal surface process outlines the cognitive functioning consumers go through when making decisions. Marketers preface frequently refer tothis computer simulation when geting how to effectively influence the consumers choices. It shows that more(prenominal) consideration goes into the decision making process than just a purchase decision and dismantle continues post-purchase. Although the consumer does not always necessarily follow each full stop, some metres they whitethorn skip exemplifys when making more impulsive decisions or routine purchases.For drill when considering this model it would be nave to think the consumer will put the same amount of thought into buying a pack of chewing gum at a advancedsagent to buying a new car. The purchase of chewing gum is generally an impulsive decision that does not require much preceding(prenominal) thought, whereas the purchase of a car is less routine and requires a lot of thought into varying f betors such as cost verses benefits. (Consumer Decision Making Process, 2008) Schiffman and Kanuk describe the process as universe viewed in 3 discrete but interlocking dresss, the input stage, process stage and output stage. Below is an extended model of this process, which includes outside influences and psychological factors.Figure 1External Influences sooner the consumer even so has the thought of making a purchase, they are already influenced by two sources subconsciously, the first being the firms selling efforts (the four Ps) w hich creates an awareness for the product via marketers attempts to inform and persuade the consumer through products, promotion, price and carry of distribution . Secondly, sociological influences reveal an underlying vestigial need to fit in to legitimate genial groups, lifestyles, cultures etc. that are not right off commercially related i.e. A neighbour or champ owning a product that an individualist likes, and then by chance creating a want for it. Consumer decision making modelThe decision making model as shown in figure 1 could reflect not lone(prenominal) the cognitive view to decision making, but besides the wound up view as it incorporates various socio-cultural input (as previously mentioned) that could be described as emotional based, and also psychological processes(discussed later)involved when existingly making the decision. tang at figure 1 the first stage of the decision process is the needrecognition, this is where the consumer realises a need for som ething. This could come from peradventure running out of something and needing more, or receiving information on a product from an external source that leads them to want it. This would logically then lead the consumer to the second dissipate of the process the pre-purchase attempt, this is the point where the consumer begins to process the thought of what product may satisfy their need, they may base their ideas on previous experience and memories (psychological factors), or may opt to attend for useful information to friend in their decision ( staple fiber internet search).At this point the consumer is drawing up information from external sources and at the same time has psychological factors influencing their decision. i.e.Consumersmotivation, perception, learning, personality and offices. Solomon (2006) addresses the fact to how much actual searching takes mall, stating that younger, better educated people will spend more time searching/fact finding before making a deci sion in comparison to an older person, who has less procurable convey to search. He also hypothesizes that women are more inclined to research products. A generalisation that is value keeping in assessment from a marketers perspective as based on this surmisal it would be logical to focus trade efforts at these for a more effective result. For ensample it would not be cost-efficient for a business to waste money trying to tug a product to a social group that tends to shake off limited internet access, i.e. older people.The third stage of the process the military rank of alternatives is probably the longest part of the decision making process in basis of time as the consumer has tenfold factors to consider. At this point the consumer, devoted previous knowledge built up in the previous stage, now has to filter from the potentially hundreds of available possibilities. Perhaps utilize base cost v benefits and perceived risk of alternatives, or even more complicated co gnitive processes requiring more effort. The considered doctors of choices are known as the evoked set The quaternate stage enters the output area of the decision making process, this is where the consumer has made a decision and makes the purchase from the set of possibilities acknowledged in the evoked set, this would be classed as a trial purchase as the consumer has not previously tested the product.The other suit of purchase would be the repeat purchase in which the consumer skips steps of the process be social movement they already number out a want for the product payable to alreadyusing it and needing more ( flaw loyalty). at a time purchased the next and final stage of the process would be the post purchase evaluation, consumers now evaluate their purchase decision, deciding whether they are totally happy with the product, or perhaps would arrest preferred one of the alternatives. At this point it is full of life for the marketers to make sure the consumers feels they made the right decision in choosing their product, as next time they will take their business elsewhere.Psychological factorsThe psychological factors in the human psyche that influence the input stage of the model are key tools that a marketer brush aside use to utilise their relationship with the consumer. A good sympathizeing of each can help the marketer focus efforts based around the consumers way of thinking. Consumer Personality this is what separates humans and reflects individual differences, personality is always consistent and enduring. Sigmund Freud famously split the mingled subject into three interacting parts, ID, Super self and Ego. The ID being your basic ineluctably ( hungriness, thirst and sex). Superswelled head being the way the people act out their primitive needs in a socially acceptable manner (restraining impulsive ID feelings). eventually the Ego is the consumers conscious susceptibility to experience the demands and constraints of the previous two. Freud believed that an individuals successfulness in tackling each stage will in turn reflect personality.For example a person can be fixated in later life through a dis gaiety of needs in development stages in early life. i.e. if a child does not feel loved when developing it could leave them striving to feel it in later life, or perhaps opponent this lead them to not seek love overdue to not experiencing it (a defining characteristic in any personality). From a marketers opinion a person could be easily manipulated in later life due to decisions they have made in earlier stages. Consumer scholarship the active psychological process in which stimuli are selected and organised into meaningful patterns, (Buchanan, 1991). Perception is how humans interpret information they make pick up through sensations like sight, taste, hearing, smell and touch, and then respond to whence to create a perception. For example from the marketers perspective, it is crucial that the perception of their product or service to the consumer is good i.e. effective stimuli,as if the consumer gains a detrimental perception of a good they will not wish to purchase. Marketers can seek to improve brand perception through trials i.e. if consumer enjoys the product they will re-purchase based on previous experience.This would be one example of assisting a consumer in a purchase. Consumer Learning refers to a humans capacity to pick up knowledge, through information or experience on a product, directly or indirectly i.e. a consumer does not have to have tried a product to have a perceived familiarity with it, they may know somebody who has a familiarity and has told them about it, given them enough of an arrangement to either like or dislike it. The general idea that when a product is completely unknown to the consumer that the quality of it is reflected in price. Consumer Attitudes An attitude in marketing terms is defined as a general evaluation of a product or service formed over time (Solomon, 2008). An attitude satisfies a personal motiveand at the same time, affects the shopping and buying habits of consumers.Dr. Lars Perner (2010) (Understanding Consumer Attitudes, 2010). For the marketers it is up to them to understand why certain attitudes exist and either work with them or seek to change them. Consumer Motivation defined by Schiffman and Kanuk (2010) as being the driving mogul within individuals that impels them to action. It could be referred to as the processes that make believe people to behave as they do, from a psychological need to how they seek to satisfy it. Marketers can use identified motives to develop a better marketing mix giving them a better targeted marketing strategy.The role of motivationMaslows Hierarchy of askDr Abraham Maslow formulated this hierarchy of needs as a hypothesis behind how human motivation works, a theory now widely accepted. Similarly to Freudian beliefs (the ID) that basic physiological needs have to be f ulfilled in order to reach high satisfaction. i.e. fare, water, air, shelter and sex. Generally these needs are genial by the majority (unless homeless, then these would be intact needs). Once satisfied the next stage would lead to safety needs not only physical safety but also safety in terms of finance, stability, education etc. Once an individual believes the previous needs aremet they then consider social needs. These needs include love, affection and acceptance, all of which are socially desired by everyone as we are motivated to find good relationships. Once these needs are generally met, the ego needs of human nature come into play. The ego needs can be of two types, inward say i.e. self-esteem, success, personal satisfaction, or outwardly directed ego needs such as prestige, status and reputation. The supreme need is for humans to reach self-fulfilment, to become the crush of their potential (according to Maslow this need is rarely satisfied because generally ego nee ds are not richly satisfied)Alderfer (1972) describes there being two types of needs, a basic need (innate), innate needs being the basic aim of needs relating to survival i.e. hunger, thirst and sex, and also Acquired needs which are picked up in life as a response to the environment and cultures. A theory echoed by Freud and also Maslow. Although Alderfer revised the last mentioned stages of Maslows hierarchy of needs by realising some of the middle stages overlap, confusion of these needs could lead a marketer to appeal to the wrong type of consumer. So Alderfer changed Maslows five stage process into a more simple three stage one, which is similar in the fact it represents levels of needs (pyramid). Although Alderfers model states that humans may be motivated by more than one need and non-reliant of satisfaction of each need for progression i.e. an artist who may place growth needs above existence.An article by Mark Rodgers called Challenging Maslow refers to the period of t ime in which Maslow has created this theory on motivation, stating that given the time in which it was created would not depict modern views to human motivation. Rodgers believes that Maslow produced his theory in a time when his home sphere had just emerged from a world war and out of the greatest depression of the 20th century, needs at this time would be lower as in physiological and safety. Whereas nowa mean solar days with more than 50 geezerhood of economic growth, the average person enjoys a more stable lifestyle and allows them to have higher cerebrate needs such as egoistic and self-actualization. (Rodgers, 2004) How marketers can apply understanding of these processes and motivation to assist consumers in purchasing decisions Developing on what has been previously stirred upon it would be a fairjudgement to say that marketers have the ability to manipulate consumers entirely.Once they have understood consumers needs and wants they can use them once more when producing a marketing plan to reposition a product or perhaps launch another. exploitation theories such as Maslows, marketers can nameise to precise motivational needs, using powerful marketing tools such as advertising. Advertisements are cues employ to arouse needs, marketers consequently creates ads to aid consumer choices. Advertising techniques can attract assistance by appealing to needs (innate) or perhaps having such an image to create a new need or desire (acquired). They can advertise a product to directly stimulate levels of motivation i.e. Maslows self-fulfilment or Freuds super ego through making a product come along visually emphasised as a certain amount of perfection which would satisfy top level needs.Physiological arousal can be used to stimulate consumers most basic needs, for example a visually sexy advertisement would attract the precaution of most adults, or perhaps an advertisement of a new burger at a fast food chain would focus to basic biogenic hunger needs. Cleverly marketed an advert can appeal to multiple needs, making a product seem snappy for a consumer to own as it is seen as unanimous many needs, creating a surd chance of consumers purchasing this product.Looking into an emotional arousal view of marketing it can be seen that a lot of kindliness based organisations use emotional advertising to founding a sad response from the audience. For example an advert seeking to create an awareness and revenue for famished children of third world countries would seek to discomfort the viewer by highlighting their struggle to find satisfaction of their biological needs and contrast this with our perhaps extra ego and self-fulfilment needs. This in turn triggers an emotional response, and perhaps self-disappointment which would lead the individual to donate sympathetically.ConclusionTo conclude, there has been a build-up of various consumer decision based theory and framework in this report that helps give an understanding to how the processes work, leading into motivation and various theory and models behind them. The theory can be applied directly when producing a marketing mix or segmenting the market, as it offers a clear insight into how thehuman mind operates when considering purchase decisions. Another key aspect of marketing, by gaining an understanding of the consumers wants and needs before creating a product and marketing campaign that could ultimately fail and cause substantial losses financially.Marketers nowadays have to be at the top of their game due to deluge markets with similar products they have to be able to overstep the benefits of their product to the consumer and how it may differentiate from competitors. Marketers have the ability to create a want for a product that would not previously have been desired and therefore have the ability to manipulate peoples needs throughout their lifetimes through this incredibly strong tool and the added benefit of ease of distribution channels of info rmation through advancements in modern day technology.