Lecture 2

Lecture 2

1. Levels of Consumer Decision Making (Levels of Involvment)

   • 1. Extensive Problem Solving (Lots of information needed. Critieria for evaluation. E.g Buying a property).
   • 2. Limited Problem Solving (Criteria for evaluation. E.g Buying a car)
   • 3. Routinized Response Behaviour (Limited information required, E.g Buying toothpaste)

2. CONSUMER DECISION MAKING MODEL

   • PROCESS
     • 1. NEED RECOGNITION (What is the problem?)
       • Actual State? (Something they MUST have) OR Desired State (Would be NICE to have)
     • 2. PREPURCHASE SEARCH
       • Internal Search then External Search (Or just external)
       • Impact of the internet
     • 3. EVALUATION OF ALTERNATIVES (See breakdown!!)
     • PSYCHOLOGICAL FIELD
       • 1. MOTIVATION
         • DEFINITION: Motivation is the driving force (a need which is unfilled) within induviduals that impels them to action
         • Types of needs
           • Innate needs (Psychological, primary needs/motives)
           • Acquired needs (In response to our environment. Secondary needs)
         • Goals
           • Generic goals (General categories that consumers see as a way to fulfill their needs)
           • Product-specific goals (Specifically branded products consumers select as their goals)
         • Positive/Negative Motivation
           • P=Driving force TOWARDS. Join a gym to get healthy
           • N=Driving force AWAY. Join to a gym to avoid problems
         • Rational VS Emotional Motives
           • Rationality = Goals based on objective criteria, e.g size, price
           • Emotional = the selection of goods according to personal criteria
         • Dynamics of Motivation
           • Needs are never fully satisfied. New needs emerge as old ones are satisfied.
   • OUTPUT
     • PURCHASE
       • 1. Trial Purchases
       • 2. Repeat Purchases
     • POSTPURCHASE EVALUATION
       • Performance MATCHES expectations? EXCEEDS expectations? BELOW expectations?