This week our textbook reading was about what consumers look for in their product before buying it. Each of us have our own preferences on a variety of products, but we do not necessarily think about how we went about buying that certain item. There is a level of involvement and an extent of information search behind each purchase. This is known as the consumer decision-making process. It is a five step process used by consumers when buying goods or services which involves need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior.
Limited Decision Making is known as the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category. For example, I really like Sharpie pens. I feel comfortable using those pens, and enjoy the way my handwriting looks when I use this type of writing utensil. However, they are more expensive than other pens that are on clearance or just regularly cheaper. You may be thinking.. pens? Is she seriously talking about the price difference between pens? Well, it may just be a couples dollars or cents more, but in my opinion, all pens get the job done. Even though I prefer writing with Sharpie pens, I usually pick the cheaper option and the one that is already at the store I am in.
Extensive Decision Making is the most complex type of consumer decision making. It is used when buying an unfamiliar, expensive product or an infrequently bought item; and requires use of several criteria for evaluating options, and much time for seeking information. For example, I believe that this type of decision making would be utilized when purchasing an automobile. I have not bought a car before, but this is the type of decision model my parents would use when buying a long term item that comes with quite an expense. I do not know much about cars, nor do I necessarily have a lot of experience with buying such a grand item. I have only driven a couple of cars since having my license, and yes, I do already have my preferences. But, before spending a lot of money on something that will be used for a long time, I will need to put research into this. First, I would go to a car dealership and narrow down my options. This would probably be conducted by performing test drives of each car. After that, I would look at the reviews of each brand, and eliminate any bad reviews. then, I would probably discuss my potential purchase with my family and friends and consider their opinions. Another thing to consider is certain philosophies that were introduced by your family and friends and continued throughout generations. One of them is to buy American branded cars. This is similar to buying locally, to support the country you live in and let the money help the economy of America. My dad enforced this policy in my family, and because of my familiarity with this ideology, I probably will continue doing this when I purchase my own car. See how complex this is? There are a majority of factors that go into such a large investment or purchase. It certainly is not something done on the whim.
Routine Response Behavior is the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; and requires little search and decision time. When I think of a product that I buy through the routine response behavior decision making, I instantly think of paper products. This could be toilet paper, paper towels, or napkins. I do not have preference on any of these product, but I usually pick what is present, convenient, and cheapest. Their value is seen as consistent through a variety of brands. Usually I just buy Bounty paper products. It got the job done the first time so I did not feel the need to change the brand I used.
Brand loyalty is a practice that is seen as habitual by which a consumer sees very little difference between different brands of the same product. For example, this is shampoo for me. I do not necessarily see a difference in shampoo and conditioner. Usually I just get a brand that I see as a cheaper alternative to overpriced products. I choose the cheapest version because every shampoo cleans your hair. Since I don't have allergies or necessities when it comes to hair care, I just go based on habits in my past.
Consumer behavior is known as the processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; and also includes factors that influence purchase decisions and product use. Four of the techniques behind decision making were already discussed above. A majority of the decision making is based on information. A person's search for data could be based on internal information or external information. Internal information is found through the process of recalling past info stored in the memory. It is often based on personal experiences. External information is found through the process of seeking info in the outside environment. That could be from reviews of other people. It is important to be able to get your data behind a product from a reliable source. A marketing-controlled information source may not be as reliable as a non-marketing-controlled information source. When an information source is marketing controlled, it originates with marketers promoting the product, and with non marketing-controlled information sources, vice versa. It is important to look for information, and research not only the information behind a product, but also where you get that information from.
As all of our textbook chapter readings do, these concepts relate to our ability to market our inventions for the Smart Project. We were able to identify issues that may present themselves when creating and marketing our product. Sometimes we have blinders on to our own ideas. We often think that there could be nothing possibly wrong with our ideas. That is not the case. In our joint class, we were able to walk around the room and evaluate our peers Smart Projects. This was very helpful because we were questioned on components of our product that we would have never considered. When I was walking around and looking at other ideas, I also had the ability to provide constructive criticism regarding their product. I was acting as if I was a consumer, and went through the decision making process to see the need and value of the product, and how they would compare to their competitors.
It is difficult to join an industry and expect to succeed. Keeping your consumers in mind is key. Without extensively researching what the customer wants and needs, there will be no business. "Customer is boss." That is a life lesson for any entrepreneur to learn and accept, because without their customers, they have no one to sell to, and will ultimately make no money. By researching consumer behavior, the company and business will succeed in ways that other businesses won't. Some companies believe that their product trumps all, and that is not necessarily the case. When businesses accept that they are not the ones in charge, they will attain continuous success.
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