MAIN Consumer Decision Making Copy

8/8/2019 MAIN Consumer Decision Making Copy

1/43

CONSUMER DECISION

MAKING


2/43

What is Decision ?

A decision is a choice between two or morealternative actions or behaviors.

Example : A housewife goes to purchase a midpriced range of tea, than making a selection fromthe various brands of tea like Taj Mahal, Tata Tea,Red label, Yellow label, etc. than she is makingdecision.


3/43

Consumer decisions are decisions consumers m ak e in th e

marke tpla ce : invo lving

whether to purchase

what to purchasewhen to purchase

F rom whom to purchase

how to pay for the purchase


4/43

Outl ines

Leve ls of Consumer Decision M ak ing

Mode ls of Consumer DecisionMak ing

Consumer Gif t ing Be ha vior

Relat ions h ip Marke t ing


5/43

Leve ls of Consumer Decision

Mak ingExtensive Problem Solving

A lot of information neededMust establish a set of criteria for evaluation

Limited Problem SolvingCriteria for evaluation establishedF ine tuning with additional information

Routinized Response Behavior Usually review what they already know


6/43

T h is Site He lps You Se arch and Es tabl ish Criteri a for

Choosing a Doctor

web link


7/43

Ads of ten app eal to

consumers w ho are

loo king for

inform at ion to he lp

th em ev aluat e

p roduc ts.


8/43

Mode ls of Consumers: Four Views of

Consumer Decision M ak ingAn Economic View how much satisfied, better money/price for thepurchases.

A Passive View consumer are perceived as impulsive purchasers, readyto yield to the aims and into the arms of marketers.

A Cognit ive View focused on the processes by which consumers seekand evaluate information about selected brands and retail outlets.

An Emo t ion al Viewassociate deep feeling or emotion such as joy,

love fear, hope, love, sexuality, fantasy and even a little magic.


9/43

Goal Sett ing and Pursui t


10/43

A Simple Mode l of Consumer Decision M ak ing


11/43

T he Process of Consumer Decision

Mak

ing

N eed Recognition

Prepurchase SearchEvaluation of Alternatives


12/43

Need Recogni t ion

Usually occurs when consumer has a problem

N eed recognition styles

Actual stateDesired state


13/43

Pre purc ha se Se arch

Begins with internal search and then moves toexternal search

The impact of the InternetSearch may be personal or impersonal


14/43

Issues in A ltern at ive Evaluat ion

Evoked se t Criteri a used for ev aluat ing brands Consumer decision ru les and th eir appl icat ion Decisions by func t ion ally illiter at e populat ion Going on line for decision-m ak ing assis ta nce Lifestyl es as a consumer decision s t rat eg y Incom ple te inform at ion Series of decisions Decision ru les and m arke t ing s t rat eg y


15/43

T he Evoked Se t


16/43


Evoked Se t Criteri a used for ev aluat ing brands Consumer decision ru les and th eir appl icat ion Decisions by func t ion ally illiter at e populat ion Going on line for decision-m ak ing assis ta nce Lifestyl es as a consumer decision s t rat eg y Incom ple te inform at ion Series of decisions Decision ru les and m arke t ing s t rat eg y


17/43

Consumer Decision Ru les

Compensatory

N oncompensatory

Conjunctive Decision RuleDisjunctive Decision RuleLexicographic Rule


18/43

CompensatoryDecision Rules

A type of decisionrule in which a

consumer evaluateseach brand in terms

of each relevantattribute and thenselects the brand

with the highestweighted score.


19/43

N on-

compensatoryDecision

Rules

A type of consumer decision rule by which positive evaluation of

a brand attribute doesnot compensate for anegative evaluation of

the same brand onsome other attribute.


20/43

ConjunctiveDecision

Rule

A noncompensatory

decision rule in whichconsumers establish aminimally acceptablecutoff point for eachattribute evaluated.

Brands that fall belowthe cutoff point on any

one attribute areeliminated from further

consideration.


21/43

DisjunctiveRule

A noncompensatorydecision rule in whichconsumers establish aminimally acceptablecutoff point for each

relevant product

attribute.


22/43

L exicographicRule

A noncompensatorydecision rule -

consumers first rank product attributes interms of importance,then compare brands

in terms of the

attribute consideredmost important.


23/43

Aff ect

Re f erralDecision

Rule

A simplified decisionrule by which consumers

make a product choiceon the basis of their

previously establishedoverall ratings of the

brands considered, rather

than on specificattributes.


24/43


Evoked Se t Criteri a used for ev aluat ing brands Consumer decision ru les and th eir appl icat ion

Decisions by func t ion ally illiter at e populat ion Going on line for decision-m ak ing assis ta nce Lifestyl es as a consumer decision s t rat eg y Incom ple te inform at ion Series of decisions Decision ru les and m arke t ing s t rat eg y


25/43

T he Decision Process for Func t ion ally Illiter at e

Consumers


26/43





27/43

T here Are a Growing Num ber of Web Sites to

Help Consumers C hoose Produc ts

web link


28/43





29/43

Cop ing wi th Missing Inform at ion

Delay decision until missing information is obtained

may Ignore missing information and use availableinformation

may Change the decision strategy to one that better accommodates for the missing information

Infer (construct) the missing information


30/43

Issues in A ltern at ive Evaluat ion Evoked set

Criteria used for evaluating brands

Consumer decision rules and their application

Decisions by functionally illiterate population Going online for decision making assistance

Lifestyles as a consumer decision strategy

Incomplete information

Series of decisions

Decision ru les and m arke t ing s t rat eg y


31/43

A Purcha se Can Invo lve a Num ber ofDecisions.

Wh en purc ha sing c ar, th e buyer is

invo lved in a num ber of decisions th e

mak e, mode l, coun t ry of origin, th e

de aler, th e fin ancing, and differen t

opt ions.


32/43

Outp ut of Consumer DecisionMak ing

Purchase behavior

Post purchase evaluation


33/43

Purc ha se Be ha vior

Three types of behavior Trial purchasesRepeat purchasesLong-term commitment


34/43

Pos t purc ha se Evaluat ion

Actual Performance Matches ExpectationsN eutral F eeling

Actual Performance Exceeds ExpectationsPositive Disconfirmation of Expectations

Performance Is Below ExpectationsN egative Disconfirmation of Expectations


35/43

T h is art icle in Cargois designed to he lp

a re ader reduceth eir pos t purc ha se

de p ression.


36/43

Gift ing Be ha vior

Gifting is an act of symbolic communication, withexplicit and implicit meanings ranging fromcongratulations and love, to regret, obligation, and

dominance.


37/43

An Incre asing Num ber of Gif t Purc ha ses Are Now

Made On line

web link


38/43

Reported Circumstances and Motivationsfor Self-Gift Behavior

CIRCUMST AN CES

P ersonal accomplishmentFeeling downHolidayFeeling stressedHave some extra money

NeedHad not bought for self in a whileAttainment of a desired goalOthers

MOTIV A TIO N S

To reward oneself To be nice to oneself To cheer up oneself To fulfill a needTo celebrateTo relieve stressTo maintain a good feelingTo provide an incentive toward a goalOthers


39/43

Gifting Relationships

G IFTI N G G IFTI N G RE LA TIO N SHIPRE LA TIO N SHIPIntergroup

Intercategory

EX A MP L EEX A MP L EDEFI N ITIO NDEFI N ITIO N

A Christmas gift from onefamily to another family

A group giving a gift toanother group

A group of friends chips into buy a new mother a babygift

An individual giving a gift to agroup or a group giving a giftto an individual

Intragroup

Interpersonal

A family buys a VCR for itself as a Christmas gift

A group giving a gift to itself or its members

Valentines Day chocolates presented from a boyfriendto a girlfriend

An individual giving a gift toanother individual

Intrapersonal A woman buys herself jewelry to cheer herself up

Self-gift


40/43

A Simple Mode l of Consum pt ion


41/43

RelationshipMarketing

M arketing aimed at

creating strong,lasting relationshipswith a core group of customers by makingthem feel good aboutthe company and by

giving them some

kind of personalconnection with the

business.


42/43

Proc tor & Gamble Builds

Relat ions h ips wi th T

heir Br ands


43/43

Stat e Farm

Insur ance s t resses

re lat ions h ip

marke t ing in th eir

adver t ising.

MAIN Consumer Decision Making Copy

Documents

Transcript of MAIN Consumer Decision Making Copy