Common Problems Met by Consumers.pptx

ppt

1. COMMON PROBLEMS MET BY THE CONSUMERS

2. 1. Problem or Need Recognition

3. The first step of the buyer decision process is the need recognition stage. Here the consumer recognizes a need or problem and feels a difference between the actual state and some desired state. They try to find goods to satisfy such needs.

4. At this stage, the marketer should study the buyer to find answers to some important questions. These are: ●What kinds of needs or problems arise? ●What is the root of these needs or problems? ●How they led the buyer or customer or consumers to a particular product?

5. This could be a simple as “I’m hungry; I need food.” The need may have been triggered by internal stimuli (such as hunger or thirst) or external stimuli (such as advertising or word of mouth).

6. Need or Problem Recognition Process When a consumer becomes aware that there is a difference between the desired state and an actual condition, problem recognition occurs. Every individual has unsatisfied needs and wants that create tension or discomfort. Certain needs can be satisfied by purchasing and consuming goods and services. Deciding what to buy starts when a need that can be satisfied through consumption becomes strong enough to stimulate a person.

7. Situations Leading to Problem Recognition There could be many situations that may lead a consumer to recognize a problem to exist. Major situations leading to problem recognition are; Insufficient Stock of Goods Dissatisfaction or Discontentment with the Stock Changes in the Environmental Characteristics Changes in the Financial Status Promotional Activities Consumer’s Previous Decisions Individual Development Efforts of Consumer Groups and Governmental Agencies

8. ●Insufficient Stock of Goods The most common situation leading to problem recognition by a consumer is the depletion of the stock of goods that he uses. If, for example, an individual runs out of necessities that he uses, he will identify a problem to exist.

9. ●Dissatisfaction or Discontentment with the Stock If a consumer becomes dissatisfied with the goods he owns or uses, he will recognize that he is having a problem. A family having a ten year’s old car may be willing to buy a late model car. Such a feeling will lead to discontent, and as a result, the family will recognize a car-related problem .

10. ● Changes in the Environmental Characteristics With the change in an individual’s or family’s environmental characteristics, the individual or the family may recognize a problem. For example, when a family moves from one stage of its life cycle to another stage, it requires different types of products and services, and as a result, problems occur.

11. ● Changes in the Financial Status Changes in the financial status or position of an individual or a family may also lead to problem recognition. For example, if an individual’s financial position improves or worsens or anticipates an improvement or deterioration, he may recognize a problem associated with his actual or anticipated changing financial position.

12. ● Promotional Activities By promotional activities, marketers try to trigger drives in consumers. Through different promotional activities, marketers try to create a discrepancy between actual and desired states of consumers. Such a situation will trigger problem recognition in consumers.

13. ● Consumer’s Previous Decisions Other purchases made by a consumer may also lead to problem recognition. For example, if an individual buys a television, it may trigger buying an antenna or a voltage stabilizer. The purchase of a computer may lead to the recognition of the problem of not having a printer .

14. Individual Development With an individual’s mental development and change in outlook, he may recognize not having certain products.

15. Efforts of Consumer Groups and Governmental Agencies Activities of different consumer interest groups and different government agencies may also lead to problem recognition. For example, if  consumer groups advocate environmentally friendly products , they may feel the need for such products creating problems. If the government puts an embargo on using private vehicles on the city’s main roads, consumers can buy bicycles, thus causing a problem.

16. ● Availability of Products The availability of a product makes customers aware of it, making them feel to have one of those. Such a feeling may also lead to problem recognition.

17. 2. Information Search

18. The second stage of the purchasing process is searching for information. Once the need is recognized, the consumer is aroused to seek more information and moves into the information search stage. The consumer may have heightened attention or may undertake an active search for information. The amount of searching a consumer will depend on the strength of his drive, the amount of information he starts with, the ease of obtaining more information, the value he places on additional information, and the satisfaction he gets from searching.

19. Buyers or customers can get information about goods from different sources. Personal sources: This includes family, friends, neighbors, acquaintance, etc. Commercial source : This includes advertising, salespeople, dealers, packaging, display, etc. Public sources : This includes mass media, consumer rating organizations, etc. they also become confidential to provide information. Experimental sources: This includes handling, examining, using, etc. Such information becomes decisive and confidential.

20. For example, doctors normally learn new drugs from commercial sources but turn to other doctors for evaluative information. The consumer’s awareness and knowledge of the available brands and features increase as they get more information. In designing the marketing mix, a company should make the target customers aware of its brand. Buyers’ sources of information should be carefully identified, and the importance of each source should also be assessed.

21. Nature of Consumer’s Information Search Consumers arrive at purchase decisions based on information gathered regarding the product under consideration. They collect information from many different sources. The effort, a consumer, will put into collecting information from external sources depends on several factors. Once information is gathered, the consumer evaluates them to arrive at the purchase decision. Understanding how consumers evaluate alternatives is essential from a marketing point of view.

22. The second step in the buying decision-making process is obtaining purchasing related information to solve the buyer’s problem. Once the consumer is aware of a problem or need, the consumer (if he decides to continue the decision-making process) searches for information. Such a search may focus on numerous dimensions, such as brands’ availability, product features, sellers’ characteristics, after-sales service, warranties, prices, quality, and use instructions.

23. 3. Evaluation of Alternatives

24. With the information in hand, the consumer proceeds to alternative evaluation, during which the information is used to evaluate” brands in the choice set. Evaluation of alternatives is the third stage of the buying process. Various points of information collected from different sources are used in evaluating different alternatives and their attractiveness.

25. Consumer evaluation processes can be explained with the help of some basic concepts .

26. First, it is assumed that each consumer sees a product as a bundle of product attributes. For refrigerators, product attributes might include cooling capacity, size, space, price, and other features. Buyers will pay more attention to those attributes relevant to their needs. Second, the importance of depending upon their needs and wants. Third, the consumer will develop a set of brand beliefs about where each brand stands on each attribute. The set of beliefs buyers hold about a particular brand is called brand image. Based on the buyer’s experience and the effects of selective perception, distortion, and retention, the consumers’ beliefs may differ from actual attributes. Fourth, the consumer’s expected total product satisfaction will vary with the changes at the levels of different attributes. Fifth, the consumer develops attitudes toward the different brands through some evaluation procedure. Buyers use one or more of several evaluation procedures, depending on the consumer and the buying decision.

27. Sometimes consumers themselves make buying decisions. At other times they rely on friends, consumer guides, or salespeople for buying advice. Marketers should study buyers to know how they evaluate brand alternatives. Marketers can take appropriate steps to influence the buyer’s decision to know what the buyers follow evaluative processes.

28. The relative influence of these information sources varies with the product and the buyer. Generally, the consumer receives the most information about a product from commercial sources-those controlled by the marketer. The most effective sources, however, tend to be personal. Personal sources appear to be even more important in influencing the purchase of services. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate products for the buyer.

29. 4. PURCHASE DECISION

30. Purchase decision is the thought process that leads a consumer from identifying a need, generating options, and choosing a specific product and brand. Some purchase decisions are minor, like buying toothpaste, while other purchases are major, like buying a house.

31. Example of Purchase Decision: For example, when a consumer is buying a car for the first time, it's a big decision as it involves high economic risk. There is a lot of thought on how it looks, how his friends and family will react, how will his social status change after buying the car, and so on.

32. 5. POST-PURCHASE EVALUATION

33. The post-purchase evaluation process is the final stage in the consumer purchasing process, one that's sometimes ignored by marketers. After purchasing a product, a customer will naturally evaluate it by comparing it and the purchasing process with their expectations.

34. What happens during post-purchase evaluation? The post-purchase evaluation process is the final stage in the consumer purchasing process, one that's sometimes ignored by marketers. After purchasing a product, a customer will naturally evaluate it by comparing it and the purchasing process with their expectations.