Mahfud Achyar213121002

“Consumer behavior can be defined as the decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services.”

- (Mathin Khan, 2006: Consumer Behaviour)

The unique properties of the virtual environment make interaction in the virtual world comparatively inexpensive, painless, and simple.

The factors that influence consumer behaviour can be classified into internal or (individual determinants) and, external environmental factors.

Consumers of all products are engaged in low, medium and high involvement information search.

There are various questions to be considered.

• How do consumers choose among brand alternatives?

• Do they use any choice rules?

• Do they select best alternatives or reject bad ones?

• How do they find their way amidst many brand alternatives with different attributes?

“Attitude is the way we think, we feel and act towards some aspect of the environment.”

“A decision is the selection of an action from two or more alternative choices.”

The consumer-related models of decision making are discussed below:

(i) Economic Model: Customer is characterized as an Economic and he makes rational decision.

(ii) Passive Model: It is opposite to Economic model and describes the consumer as impulsive and irrational purchasers.

(iii) Cognitive Model: It portrays the consumer as a thinking problem solver. It focusses on the process by which consumers seek and evaluate information on selecting brands and retail outlets.

There are five stages in consumer decision making:

1. Problem recognition: A consumer recognizes a need to buy a product.

2. Information search: Attempt is made to gain knowledge about the product.

3. Evaluation and alternatives: The products which can fulfil the needs are evaluated in terms of plus and minus points.

4. Purchase action: The actual purchase is made from store after consideration of a number of factors.

5. Post-purchase behavior (followed sequentially): This is how a consumer feels after using the product, i.e., satisfaction or dissatisfaction.

Importance of Problem Recognition (Need Recognition) or Identification of Needs It is the first stage in decision-making.

Problem recognition explains:

1. Why a buyer buys.

2. Gives definite direction to subsequent purchase behavior.

3. Helps the marketer exert his influence, so that the need is to be recognized. A virtual circle exists between them (problem recognition and marketers stimuli).

The figure shows three types of decision-making:

Habitual decision-making or routinized response behavior: Here the information search is low, the risk is low and the involvement is also low.

Limited decision-making: This is for products which have a higher time, risk and money involvement.

Extended problem solving: In this category, the risk involved is high, the money involvement is much more.

Problem recognition is a perceived gap between existing and desired consumer position. Existing consumer position is how one feels presently about the product.

Desired position is his expectation and anticipation about the products.

Marketing stimuli influences the current or desired state of mind or both.

Perceived gap/discrepancy tension (threshold level) problem recognition

1. What problems consumers are facing.

2. Managers must know what market mix to develop to solve the problem.

3. They actually want the consumers to recognize the problem.

4. Sometime managers suppress problem recognition.

a.Activity analysis focusses on a particular activity—maintaining a lawn, preparing dinner, lighting the fire place.

b.Product analysis deals with the use of product.

c.Problem analysis takes an opposite approach.

d.Human factor research attempts to determine human capabilities in area of vision, strength, response time, fatigue.

e.Emotions research marketers find the role of emotions in decision-making, i.e., emotions associated with certain products or brands.

1. Khan, Matin. 2006. Consumer Behavior and Advertising Management. New Age International (P) Limited Publishers : India.

2. Solomon, R. Michael & Natalie T. Wood. 2009. Virtual Social Identity and Consumer Behaviour. Library of Congress Cataloging-in-Publication Data : United States of America.