¶ … marketing managers understand consumer behavior?
It is essential for marketing managers to understand two critical elements: why consumers purchase the products they do and how exactly consumers intend to use those products. In general, the consumer decision-making process can be summed up as follows: need recognition; followed by information searching (otherwise known as research, such as combing reviews online or reading Consumer Reports); an evaluation of alternatives (formally or informally through vehicles such as a cost-benefit analysis); followed by the actual purchase, and finally the post-purchase behavior whereby the consumer evaluates the decision.
All purchases are motivated to some degree by need recognition. Needs recognition reflects the consumer's acknowledged state of imbalance between an actual and desired state. While this recognition may be consumer-driven and relatively internal (for example, a consumer with a cold deciding he or she needs to purchase tissues because he or she has 'run out') marketers can stimulate that need recognition such as when the consumer's current product is not performing as it should or when another product is superior for the same use (such as the desire for a new car based upon the sense that the driver's current car is not 'cool' enough after seeing an advertisement).
Consumers seek information in the external environment in a manner which can be controlled by marketers or they can do so in an uncontrolled fashion. Not all purchases bring about the same intensive search for information. When the purchase is high risk (say, an expensive appliance) and consumers have less knowledge and confidence about the item, they are more likely to embark upon an intensive research study of available information, versus a low risk purchase (say, for example, a new flavor of yogurt) in which they have more information about, less interest in, and greater confidence in their ability to make discerning choices. Evaluation of purchases may be more unconscious in these instances, such as a casual glance of the grocery aisles.
Routine purchases (usually for low-cost, everyday goods with few alternative brands that require little time for consumers to decide upon out of habit) involve a less tortured decision-making process; less routine purchases requires more involved (in time and effort) decision-making for high-cost goods with many brand offerings or options. The perceived social costs of the decision can also raise the stakes. For example, a bad purchase of a car in car-obsessed America is often seen to reflect poorly on the consumer. Previous experience can also create greater anxiety (the purchase of a first car is more stressful than the purchase of a third).
Marketers must determine what attributes are most important and influential upon a consumer's choice and also if consumers are satisfied with their post-purchase decision. Even if a consumer makes a purchase, if he or she is dissatisfied, this is not necessarily a successful sale. Ideally, the marketer desires to minimize any cognitive dissonance in the form of post-purchase regret the consumer might feel. Consumers usually wish to minimize dissonance or regret by seeking information to affirm their choice; avoiding information that contradicts it (i.e., not seeing if the product is advertised at a cheaper price elsewhere), or returning the product if the dissonance becomes unbearable (the worst case scenario for the retailer).
Not all levels of involvement are the same: products; situations; shopping context; the enduring nature of the brand; and emotional involvement can all color consumer perceptions. (A consumer might experience less regret overpaying for a restaurant meal at Disney World than near home, for example). Regardless, marketers must tailor their appeal to the nature of the level of the involvement and the decision. They must also understand the social, cultural, psychological, and individual factors that affect purchases. Personal values and membership within various subcultures as well as class (the consumer's job, level of income, education, etcetera) will determine the medium of advertising to which the consumer is most receptive as well as distribution of the product (i.e., elderly consumers will be less receptive to Internet advertising). Socially, direct influencers like friends and acquaintances or indirect influencers (like persons the individual aspires to become or wishes to avoid) will likewise affect product choice. For example, even though an upper middle class homemaker might be able to afford a 'monster' truck, she would not purchase it to avoid seeming like what her friends perceive to be 'lower class.'
Individual influences include gender, age, and personality self-concept. For example, someone might see him or herself as a 'foodie' and refuse to purchase cake mix or processed cheese based upon the image he or she has of these products. Psychological...
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