IN WHAT WAYS DO CONSUMERS STRAY AWAY FROM A DELIBERATIVE , RATIONAL THINKING?

LOW INVOLVEMENT CONSUMER DECISION MAKING

Can be classified into two routes

1

Peripheral RouteResults from consumers association to peripheral cues (celebrity endorsements , credible sources)

Low Involvement

Central RouteBased on consumer’s digilent,rational consideration

of the most important product information

High Involvement

VARIETY SEEKING BUYING BEHAVIOUR

Consumers do brand switching for the sake of variety !

2

Consumers base their prediction on the following

Heuristics Involved

REPRESENTATIVE

On how similar the outcome is to the example.

AVAILABILITY

On quickess and ease with which a simulated example of an outcome comes to mind.

ANCHORING AND ADJUSTMENT

Consumer arrives on initial judgement and then , adjusts himself to the product based on additional information.

FRAMINGThe manner in which choices are presented to and seen by the

customer

3

MENTAL ACCOUTINGThe process whereby people code,categorize, evaluate economic

outcomes

4

MENTAL ACCOUNTING

It occurs when we assign different values to equal monetary amounts due to psychological reasons.

PROSPECTIVE THEORY

Alternate decisions can be taken accoring to the circumstances

5

“Customers frame their decision

alternatives in terms of gains and losses according to a value

function.

VALUE FUNCTION CHARACTERISTICS

⊡ Segregate gains

⊡ Integrate losses

⊡ Segregate small gains from large losses

SUMMARYLet’s put it simple !

“● Customers are constructive decision makers and are subjected to many contextual influences.

● They often exhibit low involvement in their decision using many heuristics as results.

THANK YOU!I hope you learnt something useful :)

CREDITS

Special thanks to all the people who made and released these awesome resources for free:

⊡ Presentation template by SlidesCarnival⊡ Photographs by Unsplash⊡ Google Images

PRESENTATION DESIGN

Created By ,

PRANEETH PONNEKANTI , IIITD&M KANCHEEPURAM

During an internship under ,

Prof. SAMEER MATHUR , IIM LUCKNOW

www.IIMInternship.com