2.0 to get rid of the product are: complete

2.0 Consumer Behavior Explanation

2.1. Consumer decision-making process

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Consumers
take a lot of interconnected decisions every day, choosing the options for
buying, using and disposing of the product. Options for buying decisions: buy
or save money, when to buy, what to buy – which product category and brand,
where to buy. Solutions for use also have a number of options: to consume or
not, when to consume, how to consume. Variants of solutions to get rid of the
product are: complete disposal, processing, remarketing (reselling the used
product).

The
decision-making process by consumers can be interpreted as solving the problem.
Often this process is considered as a rational decision-making. Thus there is a
careful weighing and an estimation of utilitarian, functional attributes of a
product. In other cases, the hedonic advantages of the object of choice
dominate emotions. Here the object of consumption has a symbolic meaning,
expressed in sensory pleasures, dreams and aesthetic impressions. Purchasing and
use basically reflect a mixture of both utilitarian and hedonic preferences.

 

Stages
of the consumer solution process

The
decision by the consumer is influenced by a number of external, or social, and
internal, or psychological, factors considered earlier. This process solves
problems of varying scale and complexity, but has a stable structure, including
the following stages: comprehension of need, information search, pre-purchase
evaluation of alternatives, purchase, post-purchase evaluation of alternatives,
disposal. Consider the meaning of each of the stages in the process of consumer
decision.

 

1.
Need recognition – the consumer’s perception of the difference between the
desired and the actual state, sufficient to activate the solution.

 

The
realization of need comes about as a result of the individual’s perception of
the difference between his ideal and real state. This perceived difference
appears as a result of the interaction of individual values ??and needs with
the surrounding social environment. So, for example, most people want to look
adequate in solemn situations and realize the need for dresses in anticipation
of such an event. Many consumers tend to be healthy and physically perfect.
They evaluate their health and appearance as being subject to excellence and
therefore realize the need for sports equipment.

 

2.
Search for information – search for information stored in memory (internal
search), or finding information related to the solution in the external
environment (external search).

 

Having
realized the need, the consumer turns to his memory and determines whether he
knows enough about the options for solving his needs. If your own knowledge is
not enough, the consumer makes an external search.

 

The
predisposition to external search depends on the type of product, the
individuality of the consumer and the influence of the environment. Simple
purchases require less information retrieval than complex ones. Some consumers
are more cautious and even in the case of simple purchases are not inclined to
act without extensive and detailed information. Other buyers make a choice
without evaluating alternatives.

 

All
sources of information search for a consumer can be divided into two
categories: 1) marketer-dominated and 2) all others. The first group includes
sources formed and managed by the marketer – advertising, including direct
answer and direct mail; sales promotion tools – coupons, lotteries, refund of
part of the price; format presentation “sales formula” in personal
sales, etc. The rest of the sources are not dominated by the marketer – he can
not completely manage them. These are editorial materials of the media (news,
reports, interviews, comments), information “by word of mouth”,
expert assessments, ratings, reference books.

 

3.
Pre-purchase alternative evaluation – evaluate options for choosing the
criteria for expected benefits and narrow the choice to the preferred
alternative.

 

At
this stage, consumers use evaluation criteria – standards and norms for
comparing different products or brands.

 

These
criteria are the desired results of purchase and consumption and are expressed
in the form of preferred attributes. The criteria depend on the individual
characteristics of consumers and the influence of the environment. They are a
product-specific manifestation of the needs, values, life style of the
consumer. For example, a consumer can emphasize in his preferences product
design or novelty of a technical solution, the duration of intensive use, the
price of a product. The availability of information on product attributes is a
significant factor in the success of sales.

 

4.
Purchase – the acquisition of a preferred alternative

or
an acceptable substitute.

 

The
purchase takes place in retail outlets, with the observed growth in the
developed countries of purchases at home, through electronic commerce systems.
At this stage of decision-making, an experienced salesperson plays a special
role. The decision to purchase is not necessarily taken at the cash desk; often
the consumer reflects and evaluates the final version long before the
calculation for the purchase.

 

5.
Consumption – use of the purchased alternative. Consumption can take many forms
– the product can be consumed immediately or its consumption can be postponed
for a certain period. The nature of consumption should be known to the marketer
and can be identified through a survey, observation, experiment. Traditionally,
consumption was of little interest to the seller, focused primarily on closing
the sale transaction. In the conditions of growing competition there is a
reorientation of marketers to the satisfaction and preservation of consumers.

 

6.
Post-purchase alternative evaluation – evaluation of the degree to which the
experience of consumption has brought satisfaction.

 

Consumption
and post-purchase evaluation of alternatives are closely related. The study of
the use of consumer purchases consists in getting answers to questions: what
does the consumer like the most in buying? What suggestions do consumers have
to modernize the product? why do consumers return?

 

The
consumer is satisfied if his expectations are justified – i.e. perceived
product execution corresponds to what he expected to receive. If the purchase
did not meet expectations in large measure, the consumer is dissatisfied. The
inability of the product to function properly causes discontent, claims and
claims for damages on the part of the consumer, especially if the purchase has
a high level of perceived significance for the consumer. Therefore, the quality
of after-sales service can play a decisive role in preserving the consumer.

 

7.
Deliverance (divestment) – disposal of not consumed to the end of the product
or its residues.

 

Disposal
is the final stage of the consumer decision process. Here the consumer faces a
choice of a complete disposal of the product, its processing or remarketing
(resale in the market of second-hand products). This decision-making stage is
also subject to producer competition – especially in developed countries, where
consumers and society as a whole are very concerned about preserving the
natural environment. Here, the companies-producers declare their friendly
ecology policy – the recycling of packaging, computer cases and waste cassettes
of printer cartridges.

 

2.2. Consumer decision under the influence of various factors 

 The behavior of buyers and their acceptance of
a purchase decision is influenced by the marketing environment and a
combination of factors, from which the following are highlighted:

 

1)
Personal

 

These
factors include age, stage of the family life cycle, occupation, economic
status (income per family and one family member), lifestyle, personality type
and self-presentation.

 

The
life cycle of the family is the sum of the individual stages that the family
has undergone since its inception (bachelors, a young family without children,
the youngest child is less than 6 years old, etc.).

 

Self-presentation
is a complex mental representation of a person about himself, about his own
“I”. For example, if someone thinks of himself as a creative and
active person, he will look for a product that meets these characteristics.

 

2)
Cultural factors include culture, subculture and belonging to the social class.

 

Under
the culture is understood the totality of basic values, concepts, desires and
behavior perceived by a member of society from the family and other public
institutions.

 

A
subculture is a group of people with a common value system based on common life
experiences and situations, for example national, religious, regional groups.
The social class is a relatively orderly and stable social group whose members
share common values, interests and behavior. Here the most frequently
investigated questions are: “Is this group of goods or a specific brand a
symbol of belonging to some social class, social group?”

 

3)
Social factors include small groups, divided into membership groups, reference
groups, family, social roles and status.

 

A
membership group is a group to which certain individuals belong and which
directly affects their behavior, for example, a family, co-workers, friends.

 

A
reference group is a group by which a person performs a direct or indirect
comparison when forming his relations and lines of conduct.

 

A
social role is defined as certain activities that are expected to be carried
out by an individual in relation to people around him. For example, the same
person can play the roles of son, father and director. Depending on what role a
person plays at a given moment, his buying behavior depends.

 

4)
Psychological factors include in their composition the motivation, perception,
assimilation, conviction and attitude. These factors have a strong impact on
consumer behavior.

 

Perception
is the process by which an individual selects, organizes and interprets
information to construct a meaningful picture of the real world.

 

Assimilation
consists in changing the behavior of individuals on the basis of their acquired
experience.

 

Consumer
behavior is influenced by their beliefs; certain ideas about the product.
Beliefs can be based on real knowledge, opinion, faith.

 

Attitudes
are stable favorable or unfavorable assessments, feelings and inclinations to
actions in relation to certain subjects and ideas; it strongly affects the
behavior of consumers.

 

5)
Natural and climatic and national peculiarities: national specificity of
consumer demand, consumption traditions, customs, conditions of national life.