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consumer behavior
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© Open Mentis 2007
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C.O.N.S.U.M.E.R D.E.C.I.S.I.O.N. M.A.K.I.N.G
MyCBBook
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© Open Mentis 2007
Chapter
Consumer
Decision Making
11
IVPART
Consumer as Chooser and Shopper
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MyCBBook
Consumer Decisions Whether to Buy a Product at all?What Feature (versus price) trade-
offs to Accept?Which Brand to Buy?Where to Buy it from?………………..And in Deciding on all this, How
Much Effort to Put In?
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Consumer Decision Process
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STEP 1: What is PROBLEM RECOGNITION? Gap Concept of Needs
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STEP 1: What is PROBLEM RECOGNITION?
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How PROBLEM RECOGNITION Occurs? Types of Stimuli•A Problem Stimulus•A Solution StimulusSources of Stimuli•Internal Stimuli•External StimuliProblem Recognition SituationsStock DepletionLife-stage ChangesDeveloping New Tastes
Opportunity Recognition
Discuss:Student Examples
© Open Mentis 2007
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MyCBBook
STEP 2: INFORMATION SEARCHBRANDS WE KNOW
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STEP 2: INFORMATION SEARCH (Contd.)Sources of Information Marketer Sources Non-Marketer Sources Personal Independent
Q. Which Source is Called Advocate Source?
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STEP 2: INFORMATION SEARCH (Contd.)Sources of Information
Q. Do Knowledgeable Consumers Depend More on Some Sources than Others (Compared to Not-so-knowledgeable sources)?
(Read p. 313)
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STEP 2: INFORMATION SEARCH (contd.)SEARCH STRATEGIES
Rules of Thumb
Quick Inference
Brand Name
Past Experience
Recommendation
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MyCBBook
STEP 2: INFORMATION SEARCH (contd.)
Simplifiers Vs. Extenders (Depends on) Cognitive StyleProblem Complexity –Routine, Limited, and ExtendedAre You A Simplifier or Extenders?
Q. Have You Ever Wished You Were (For a Specific Decision)
an Extender (Or Even more of an Extender)? Explain?
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STEP 2: INFORMATION SEARCH (contd.)
Discuss: Place a + or – sign to
indicate each factor’s increase/decrease direction of influence?
Name various shopping styles
Familiarity & Expertise: Same thing, similar effect?
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STEP 2: INFORMATION SEARCH (contd.) Some Key Concepts in “Determinants of Search” Perceived Risk and Types Difference between Familiarity and Expertise Are Effects of Familiarity and Expertise
Different? Deficit Hypothesis Shopping Style Ignorance Paradox
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STEP 3: ALTERNATIVE EVALUATION
How Do YouKnowWhat FeaturesYouWant? Or Should want?
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STEP 3: ALTERNATIVE EVALUATION (contd.)
Judgment Models (Decision Rules or Models)Compensatory ModelNon-Compensatory Models Conjunctive Disjunctive Lexicographic Elimination by Aspect (EBA)
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STEP 3: STEP 3: ALTERNATIVE EVALUATION (contd.)
Imperfections in Consumer Judgment
FRAMING EFFECTS
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STEP 3: ALTERNATIVE EVALUATION (contd.)
Imperfections in Consumer Judgment (Contd.)TOP DOWN vs. BOTTOM UP Customization
(Which one makes you spend more?)
WHY IT HAPPENS: Cognitive Effort Anchoring Effect
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STEP 3: ALTERNATIVE EVALUATION (contd.)Imperfections in Consumer Judgment (Contd.) Inference Making:1. Intra-attribute inference 2. Evaluative Consistency 3. Negative Cue Alternative Evaluation Phase Concluded by SATISFICING The Chosen Alternative is NOT OPTIMUM Yet We Are Satisfied, even Relieved Describe Your Own “Moments of Satisficing”
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How We Choose Expressive Products?
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STEP 4: PURCHASE
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Decision Process by Involvement
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Problem recognition opens new markets for innovative and insightful marketers.
All consumers are satisfiers,not optimizers?
Are you an extender or a simplifier? Discuss. Is it better to be an extender than a simplifier?
We use judgment models/decision rules all the time. There is nothing theoretical about them
Heuristics are very handy; they serve us by allocating our effort judiciously.
Involvement is the big arbiter of all decision processes.
OVERVIEW
