C ONSUMER D ECISION M AKING Consumer Decision making is a central part of consumer behavior but the...
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Transcript of C ONSUMER D ECISION M AKING Consumer Decision making is a central part of consumer behavior but the...
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CONSUMER DECISION MAKING
Consumer Decision making is a central part of consumer behavior but the way we evaluate and choose products varies widely.
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How do you choose the food that you eat?
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Stages in CDM
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Decision making perspectives
Rational
Carefully integrating information about the product e.g cooking oil
Behavior influence
Based upon environmental cues
e.g attention grabbing packages.
Experiential
Offerings that create a positive emotional
response e.g. buying the same chocolate
again
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A continuum of buying decision behavior
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• Motivation:● Low risk vs. high risk● Low involvement vs. high involvement
• Information search● Little search vs. extensive search
• Alternative Evaluation● Weakly held beliefs vs. strongly held
beliefs• Purchase
● Limited time vs. ample time ● Influenced by store displays vs.
communication with store personnel
Characteristics of limited vs. extended problem solving
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STAGE 1: PROBLEM RECOGNITION
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K & Ns - Safe and Healthy chicken ( Opportunity)
Home cooked Chicken ( Actual State )
Chicken not available Market closed/ Bird flu ( Need )
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NO PROBLEM Acceptable state
OPPORTUNITY Ideal states goes up
NEEDActual state goes down
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STAGE 2: INFORMATION SEARCH• Deliberate Search
●Directed learning●Purchase based upon previous
knowledge
• Accidental Search● Incidental learning●Purchase based upon mere exposure
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DO WE ALWAYS SEARCH OR BUY RATIONALLY?
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MENTAL ACCOUNTING• This process demonstrates that the way we
pose a problem and whether it’s phrased in terms of gains or losses influences our decisions.
Add picture
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HOW MUCH DO WE SEARCH?
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STAGE 3: EVALUATION OF ALTERNATIVES
Purchase decision at the stage where we have to choose a product from several alternatives
● E.g different types of burgers of the same brand● Different franchises of burgers
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• Evoked Set:• Alternatives a consumer already knows about
(knowledge of the shampoo brands)
• Consideration Set:● Alternatives that a consumer actually considers
while purchasing (based upon price range, availability, past experience)
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PRODUCT CATEGORIZATION • First: Superordinate level (general category-
dessert)
• Second: Basic level (sugar vs. sugar free)
• Third: Subordinate level ● Sugar: brownies, donuts, bounty● Sugar-free: wheatables, mithai, chamam
ice cream
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STAGE 4: PRODUCT CHOICE
Once we assemble and evaluate the relative options in a category, eventually we have to choose one.
• Evaluative criteriaDimensions we use to judge the merits of competing options
● Determinant attributes: Features we use to differentiate among our choices (yoghurt: texture, taste, nutritional value, price, freshness, size of packaging)
● Differences in products carry more weightage in the decision process than do similarities
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HEURISTICS (RULE OF THUMB):
• If a salad is green, its fresh
• Nutritional chart given, high quality product
• Pioneer product (e.g national foods/ nestle)
What heuristic approach do you use while buying foods?
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MARKET BELIEFS
• Brand● The best brands are the ones purchased the
most• Store
● Larger stores offer more variety (Alfatah/Hyperstar)
• Price/discount/sale● Sales are typically run to get rid of slow moving
merchandise/ defected stuff• Advertising & sales promotion
● Items tied to giveaways are not a good value (Vim + maggie noodles) or (free product is of low quality)
• Product/packaging● Large size containers are cheaper compared to
individual small size packing ( coke vs. coke carton)
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DECISION RULES
• Consumers rely on different decision rules when they evaluate competing options
● Non-compensatory decision rules: When we feel that a product with a low standing of one attribute can’t compensate for this flaw even if there is another better attribute (e.g size of TV screen small, but good picture quality)
● Compensatory decision rules: When a product has a chance to make up for its shortcoming (though the pizza is small but good topping)
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STAGE 5: OUTCOMES
This is the final stage of decision making where you buy the product of your choice and leave the rest
Happy decision making! :D
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MARKETERS APPROACH