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An understanding of consumer behavior is necessary for the long-term success and survival of a firm. Consumer decision making is viewed as the edifice of the marketing concept, an important orientation in marketing management.

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    Types of Consumer Decision MakingExtensive Problem SolvingLimited Problem SolvingRoutinized Response BehaviorViews of Consumer Decision MakingAn Economic ViewA Passive ViewA Cognitive ViewAn Emotional ViewSteps in the consumer decision process1. Problem recognition2. Information search3. Alternatives evaluation4. Purchase decision5. Post-purchase evaluationTools to better understand your customerCustomer journey mapEmpathy mapUser personasWhat are the 3 categories of influences on consumers?What are the 4 factors influencing a customer decision?What are the 5 influences on consumer decision process?What is the consumer problem solving process?

The marketer should be able to determine needs and wants of the target segment and provide product and service offerings more effectively and efficiently than competitors.

Types of Consumer Decision Making

The following are the types of decision making methods which can be used to analyze consumer behavior −

Extensive Problem Solving

In extensive decision making, the consumers have no established or set criteria for evaluating a product in a particular category. Here the consumers have not narrowed the number of brands from which they would like to consider and so their decision making efforts can be classified as extensive problem solving. In this particular set of problem solving phase, the consumer needs a lot of information to set a criteria on the basis of specific brands could be judged.

Limited Problem Solving

In limited problem solving, the consumers have already set the basic criteria or standard for evaluating the products. However, they have not fully set the established preferences and they search for additional information to discriminate among other products or brands.

Routinized Response Behavior

Here, in routinized response behavior, consumers have experience with the product and they have set the criteria for which they tend to evaluate the brands they are considering. In some situations, they may want to collect a small amount of additional information, while in others they may simply review what they are aware about. In extensive problem solving, consumer seeks for more information to make a choice, in limited problem solving consumers have the basic idea or the criteria set for evaluation, whereas in routinized response behavior consumers need only little additional information.

Views of Consumer Decision Making

An Economic View

Consumers have generally been assumed to make rational decisions. The economic view of consumer decision making is being criticized by researchers because a consumer is assumed to posses the following traits to behave rationally −

    Firstly, they need to be aware of all the alternatives present in the market

    Secondly, they must be able to efficiently rank the products as per their benefits.

    Lastly, they must also know the best alternative that suits them as per their requirements.

In the world of perfect competition, consumers rarely have all the information to make the so called ‘perfect decision.’

A Passive View

Passive view is totally opposite to the economic view. Here, it is assumed that consumers are impulsive and irrational while making a purchase. The main limitation of this view is that consumers also seek information about the alternatives available and make rational or wise decisions and purchase the products or services that provides the greatest satisfaction.

A Cognitive View

The cognitive model helps individuals to focus on the processes through which they can get information about selected brands. In the framework of cognitive view, the consumer very actively searches for such products or services that can fulfill all their requirements.

An Emotional View

Consumers are associated with deep feelings or emotions such as, fear, love, hope etc. These emotions are likely to be highly involving.

While the decision-making process itself appears quite standardized, no two people make a decision in exactly the same way. People have many beliefs and behavioral tendencies—some controllable, some beyond our control. How all these factors interact with each other ensures that each of us is unique in our consumer actions and choices.

Although it isn’t feasible for marketers to react to the complex, individual profiles of every single consumer, it is possible to identify factors that tend to influence most consumers in predictable ways.

The factors that influence the consumer problem-solving process are many and complex. For example, as groups, men and women express very different needs and behaviors regarding personal-care products. Families with young children tend to make different dining-out choices than single and married people with no children. A consumer with a lot of prior purchasing experience in a product category might approach the decision differently from someone with no experience. As marketers gain a better understanding of these influencing factors, they can draw more accurate conclusions about consumer behavior.

The consumer decision-making process can seem mysterious, but all consumers go through basic steps when making a purchase to determine what products and services will best fit their needs. 

Think about your own thought process when buying something—especially when it’s something big, like a car. You consider what you need, research, and compare your options before making the decision to buy. Afterward, you often wonder if you made the right call. 

If you work in sales or marketing, make more of an impact by putting yourself in the customer’s shoes and reviewing the steps in the consumer decision-making process.

Steps in the consumer decision process

Generally speaking, the consumer decision-making process involves five basic steps.

1. Problem recognition

The first step of the consumer decision-making process is recognizing the need for a service or product. Need recognition, whether prompted internally or externally, results in the same response: a want. Once consumers recognize a want, they need to gather information to understand how they can fulfill that want, which leads to step two.

But how can you influence consumers this stage? Since internal stimulus comes from within and includes basic impulses like hunger or a change in lifestyle, focus your sales and marketing efforts on external stimulus. 

Develop a comprehensive brand chiến dịch to build brand awareness and recognition––you want consumers to know you and trust you. Most importantly, you want them to feel like they have a problem only you can solve.

Example: Winter is coming. This particular customer has several light jackets, but she’ll need a heavy-duty winter coat if she’s going to survive the snow and lower temperatures.

When researching their options, consumers again rely on internal and external factors, as well as past interactions with a product or brand, both positive and negative. In the information stage, they may browse through options a physical location or consult online resources, such as Google or customer reviews.

Your job as a brand is to give the potential customer access to the information they want, with the hopes that they decide to purchase your product or service. Create a funnel and plan out the types of content that people will need. Present yourself as a trustworthy source of knowledge and information. 

Another important strategy is word of mouth—since consumers trust each other more than they do businesses, make sure to include consumer-generated content, like customer reviews or video testimonials, on your website.

Example: The customer searches “women’s winter coats” on Google to see what options are out there. When she sees someone with a cute coat, she asks them where they bought it and what they think of that brand.

3. Alternatives evaluation

At this point in the consumer decision-making process, prospective buyers have developed criteria for what they want in a product. Now they weigh their prospective choices against comparable alternatives.

Alternatives may present themselves in the form of lower prices, additional product benefits, product availability, or something as personal as color or style options. Your marketing material should be geared towards convincing consumers that your product is superior to other alternatives. Be ready to overcome objections—e.g., in sales calls, know your competitors so you can answer questions and compare benefits.

Example: The customer compares a few brands that she likes. She knows that she wants a brightly colored coat that will complement the rest of her wardrobe, and though she would rather spend less money, she also wants to find a coat made from sustainable materials.

4. Purchase decision

This is the moment the consumer has been waiting for: the purchase. Once they have gathered all the facts, including feedback from previous customers, consumers should arrive a logical conclusion on the product or service to purchase.

If you’ve done your job correctly, the consumer will recognize that your product is the best option and decide to purchase it.

Example: The customer finds a pink winter coat that’s on sale for 20% off. After confirming that the brand uses sustainable materials and asking friends for their feedback, she orders the coat online.

5. Post-purchase evaluation

This part of the consumer decision-making process involves reflection from both the consumer and the seller. As a seller, you should try to gauge the following:

    Did the purchase meet the need the consumer identified?Is the customer happy with the purchase?How can you continue to engage with this customer?

Remember, it’s your job to ensure your customer continues to have a positive experience with your product. Post-purchase engagement could include follow-up emails, discount coupons, and newsletters to entice the customer to make an additional purchase. You want to gain life-long customers, and in an age where anyone can leave an online review, it’s more important than ever to keep customers happy.

Tools to better understand your customer

Putting yourself in the customer’s shoes can help you steer consumers towards your product. Here are some tools to help you analyze their decision-making process and refine your brand marketing and sales tactics.

Customer journey map

A customer journey map visualizes a hypothetical customer’s actions. Use it to empathize with your customers as they go through a specific process or try to complete a purchase. Map out the actions the customer is likely to take.

Learn how to make a customer journey map to understand the decision-making process for your product/service.

Empathy map

Empathy maps help teams understand the customer’s mindset when dealing with a product or service. They can be used for personas or specific customer types. Empathy mapping is often most helpful the beginning of a new project. Collaborate as a team to quickly get inside the heads of your customers during every step of product development, testing, and release.

Learn how empathy maps work so you can understand your customers better and make customer-oriented decisions.

User personas

Based on user research or past user interactions, user persona cards construct fictional or composite personas that break down and organize your data into distinctive types of users. Build a more human picture of your users and understand your user base better by creating user personas for the various types of users for your product or service.

Understanding the consumer decision-making process is key if you want to attract more customers and get them to make that crucial purchase. Use this process and the tools above to tune in to consumers and genuinely understand how to reach them.

What are the 3 categories of influences on consumers?

Three major categories of influences affect the consumer buying decision process: situational, psychological, and social.

What are the 4 factors influencing a customer decision?

In general, there are four factors that influence consumer behaviour. These factors impact whether or not your target customer buys your product. They are cultural, social, personal and psychological.

What are the 5 influences on consumer decision process?

Typically, there are five core factors that influence the decision to buy which are:. Psychological Factors.. Social Factors.. Cultural Factors.. Economic Factors.. Personal Factors..

What is the consumer problem solving process?

What is the consumer decision making process. The consumer decision-making process involves five basic steps. This is the process by which consumers evaluate making a purchasing decision. The 5 steps are problem recognition, information search, alternatives evaluation, purchase decision and post-purchase evaluation. Tải thêm tài liệu liên quan đến nội dung bài viết Which of the following categories influence a customers problem solving process

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