The consumer decision
making process is at the heart of strategic marketing plans. Marketers use this
process as a reference point, helping define the space they compete in, to
identify potential touch points for customers and how best to implement IMC campaigns.
It is important to consider which communication tools to utilise, when, to
deliver organisations the “biggest bang for their buck” by effectively
influencing consumer’s attitudes to their brands. Below shows how the consumer
decision making process progresses in its simplest form (Clow and Baack, 2014,
p. 68).
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| Figure: Consumer Decision Making Model based on Clow & Baack, 2014 |
As Funeral Insurance is not something that consumers generally search for, marketers induce problem recognition that encourages consumers not to be content with their current situation, running emotionally charged TV commercials during popular morning television programs targeting the 60+ age bracket.
Problem Recognition
The first phase of the
consumer decision making model (Clow and Baack, 2014, p. 68) is when the
consumer becomes aware of a need or want. This is sometimes driven from basic
needs (thirst, hunger) or from friends, colleagues or peers
recommendations. Other times marketers have to make the consumer aware that
they may need the product or service. Print and television media can be good
for generating this desire and is a good tool for the problem recognition
stage. Finding ways to influence the consumer purchasing process continues to
be a vital communications activity. To ensure that customers buy their
products, the brand must resonate in the problem recognition stage.
Since basic physiological needs are met in most developed countries,
marketers often sell products that fill basic physiological needs by appealing
to consumers ‘higher-level needs (Belch et al, 2009, p.110). Suncorp Insurance
helps to “reduce your family’s financial burden during what is an emotional
time”. By applying online customers also receive a free $50 Gift Card (SUNCORP
Insurance, 2013). SUNCORP focuses on the love between older generation partners
and their siblings (social needs) so that when someone passes, paying for a
funeral is not an issue.
Information Search
The information search
phase is essential to the consumer following through with a purchase. There are
now new formats for seeking information, particularly the internet.
“The internets greatest
strength… is also its greatest weakness” (Qualman, 2013). Search engines
provide a way to filter the wealth of information that is available on the
internet. The average searches per day on Google is over 500,000,000 making it
the top search engine with YouTube (also owned by google), second (Statistic
Brain, 2003). Businesses can take advantage of this by Google
Ad words, which is sponsored links and advertisements when certain words are
searched, making the relevant information more accessible to the
customer.Websites are advertising & informational - content is very
important, especially when consumers choose more complex purchases, at this
point the information-providing aspects of advertising are extremely important
(Belch et al, 2009, p.113).
Ease of navigation is
key to successful information searches on the internet.The Webby Awards is the
leading international award honouring excellence on the internet (The Webby
Awards, 2013). The Webby Awards give prizes for the best websites - nominee for
the commercial communications category was snowbird ski resorthttp://www.snowbird.com/ ,an informative and easy to navigate website.
Evaluation of Alternatives
When people are
evaluating the alternatives before purchases they are now asking friends
through twitter or facebook “what do you think of the new bugaboo pram?” Also
forums, review sites and blogs are ways of receiving evaluations of other
products. The findings of the 2012 Local Consumer Review
Survey (2012) show a positive shift in consumer trust and appreciation of
online reviews. Approximately 72% of consumers surveyed said that they trust
online reviews as much as personal recommendations, while 52% said that
positive online reviews make them more likely to use a local business
(Anderson, 2013) .
PayU2Blog is a company that pays you to blog/advertise about their
products. Some popular blogs are paid to plug particular brands and evaluate
them (PAYU2BLOG, 2013). Blister Gear Review is a paid ‘reviewer’ and was given Nike's boots to evaluate for free. People read his
blogs as a way of evaluating the alternatives (blister Gear Review, 2013).
Purchase Decision
The purchase decision
stage is about pricing, placement, customer service and ease of purchase,
ultimately persuading the customer to make a decision with a certain brand.
Consumers when making a purchase may choose specific brands that they have
built up a preference for (Belch et al, 2009). The Qantas frequent flyer scheme
is a good example of this and a good way to build brand loyalty and keep
customers flying with the airline. They have a great website where you can
easily track your points and see them grow. They have regular Special offers /
Discounts / Freebies and extras e.g. (purchase through the internet and save
10%) (Qantas Frequent Flyer, 2013).
Purchase decision is
also about ensuring ease of purchase for the customer. An example of tools
utilized by companies to aid this is free shipping and delivery particularly in
regards to online sales. Nextdirect.com an online fashion store offers free
express delivery in 5 days anywhere in Australia, easy local returns and
convenient and secure payment methods. By recommending a friend you also
receive $10 off your next purchase (Next Direct, 2013).
Post Purchase Evaluation
The consumer decision
making process does not end with the purchase. After using the product or
service, the consumer compares the level of performance with their expectations
and is either satisfied or dissatisfied. This is a very important time for
marketers, unhappy customers may not only not purchase the product or service
again they will spread negative-word-of-mouth information about the product.
Sending follow-up
letters and communication via email, or phone is important, in order to
reassure buyers and help reinforce the wisdom of their decision. Providing toll
free number, or e-mail addresses for consumers to contact if they have a
question or complaint about a product. Generous return and refund policies
combined with extended warranties and guarantees also help to ensure customer
satisfaction (Belch et al, 2009, p. 122).
Example: In order to prevent
post-purchase dissonance, members of the “Supercheap auto club plus +”
have the difference between items they have purchased and advertised
items credited to their account if items are advertised cheaper within two
weeks of the original purchase (Supercheap Auto, 2013).
Created by Brad Supple. Edited by Bianca Bowers and Karen Jousiffe.
References:
Belch, G., Belch, M., Kerr, G., and Powell, I.
(2009). Advertising and Promotion: An integrated marketing communication
perspective. Sydney: McGraw Hill.
Clow, K., and Baack, D. (2014). Integrated
Advertising, Promotion, and Marketing Communications. Sydney: PEARSON.
PAYU2BLOG. (2013). Retrieved September 16, 2013,
from PAYU2BLOG.com: http://www.payu2blog.com/
Qantas Frequent Flyer. (2013). Retrieved
September 16, 2013, from QANTAS:
http://www.qantas.com.au/fflyer/dyn/program/index
Qualman, E. (2013). Socialanomics: how social
media transforms the way we live and do business. 2nd Edition. John Wiley
& Sons, New Jersey
STATISTIC BRAIN. (2013). Retrieved September 16, 2013, from
www.statisticbrain.com: http://www.statisticbrain.com/google-searches/
SUNCORP Insurance. (2013). Funeral Insurance.
Retrieved September 9, 2013, from SUNCORP Insurance: http://www.suncorp.com.au/insurance/life-insurance/funeral-plan
Supercheap Auto (2013). Supercheap Auto Club
Plus +. Retrieved September 9, 2013, from Supercheap Auto: http://www.supercheapauto.com.au/clubplus/
The Webby Awards. (2013). Retrieved September
14, 2013, from webbyawards.com: www.webbyawards.com/about/
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