Banach Consumer Decision Prozess

Functional & Psychological Needs

Internal & External

Factors affecting the Search Process

- The perceived benefits of search

- The locus of control 

- Actual or perceived risk (Performance, Financial, Psychological risks)

- Type of product

- Speciality Good (considerable effort to search)

- Shopping goods (will spend time 
searching)

- Convenience goods (no effort) 

Evaluation criteria - A set of important attributes or evaluative criteria

Attribute Sets

- Universal sets: include all possible choices

- Retrieval Sets: brands/stores brought up from memory

- Evoked Set: brands/stores considered for purchase 

Decision rules

- Compensatory DR: trade off good characteristics against bad characteristics. 

- Noncompensatory DR: choose product  on the basis of a subset of its characteristics.

Decision Heuristics

- Price, Brand, Product presentation, etc

Impulse Purchase 

- A buying decision made on the spot 

Habitual Purchase

- Purchase decision with little conscious effort.

- Don’t even consider alternatives

Limited problem solving 

- moderate amount of effort and time 

- moderate Risk

- prior experience with the product or service

Extended problem solving 

- huge  Risk (financial, performanc, social)

- a lot of efford searching for information

Postpurchse Dissonance

- Buyers Remorse

- Negative Word of Mouth

Customer Satisfaction/Loyalty

- Build realistic expectations

- Encourage customer feedback

- Provide money back guarantees

- Customer relationship management (CRM)

Psychological Factors

Motive (PSSP Hierarchy)

- Physiological, Safety, Social and Personal needs

Attitude 

- Affective: what we feel 

- Behavioral:  action we undertake

- Cognitive: what we believe to be true

Perception 

- Our perceptual view of the world

Learning 

- change in a person’s thought process

Social Factors

- Family

- Reference Groups

- Culture

Situational Factors

- Purchase  Situation

- Shopping Situation

- Temporal State of Mind

... and The Marketing Mix!