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Prepared by:Prepared by:--

SumantSumant TiwariTiwari

SumitSumit KhannaKhannaSumitSumit KK UpadhyayUpadhyay

SwetaSweta JaiswalJaiswal

TanvirTanvir AhmadAhmad

MBAMBA--34 Group34 Group


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CONSUMER DECISION MAKING PROCESSCONSUMER DECISION MAKING PROCESS


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Processes a consumer uses

to make purchase decisions,

as well as to use and

dispose of purchased goods

or services; also includes

factors that influencepurchase decisions and

the product use.


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Analyze the componentsAnalyze the components

of the consumerof the consumerdecisiondecision--making process.making process.


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A five-step process usedby consumers when buying

goods or services.


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PostpurchaseBehavior

Purchase

Evaluation

of Alternatives

Infor ation earch

Need Recognition

Cultural, ocial,Cultural, ocial,Individual andIndividual andPsychologicalPsychological

FactorsFactorsaffectaffect

all stepsall steps


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Result of an imbalancebetween actual and

desired states.


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Internal StimuliInternal Stimuliandand

External StimuliExternal Stimuli

Present Status

Preferred State

Marketing helps

consumers

recognize animbalance between

present status and

preferred state


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Any unit of input affecting

one or more of the five

senses:

sight

smell

taste

touch

hearing


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Recognition of an

unfulfilled need and

a product

(or attribute or feature)

that will satisfy it.


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When a current product isnt

performing properly

When the consumer is running

out of an product

When another product seems superior

to the one currently used


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Process of recalling past

information stored

in the memory.

Internal

Process of seeking

information in the

outside environment.

External


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Internal Information Search

Recall information in memory

External Information search

Seek information in outside

environment

Non-marketing controlled Marketing controlled


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Need MoreNeed More

InformationInformation

More RiskMore RiskLess knowledgeLess knowledge

Less productLess productexperienceexperience

High level of interestHigh level of interest

Less RiskLess RiskMore knowledgeMore knowledge

More productMore productexperienceexperience

Low level of interestLow level of interest

Need LessNeed Less

InformationInformation


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Group of brands,

resulting from an

information search,

from which a buyer

can choose.


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Evoked SetEvoked Set

Purchase!Purchase!

Evaluation of ProductsEvaluation of Products

Analyze product attributesAnalyze product attributes

Use cutoff criteriaUse cutoff criteria

Rank attributes byRank attributes byimportanceimportance


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Determines which attributesDetermines which attributes

are most importantare most importantin influencing ain influencing a

consumers choiceconsumers choice

To buyTo buyor not to buy...or not to buy...


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Explain the consumersExplain the consumers

postpurchase evaluation process.postpurchase evaluation process.


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Inner tension that a

consumer experiences

after recognizing an

inconsistency between

behavior and values

or opinions.


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Can minimize through:Effective Communication

Follow-upGuarantees

Warranties

Cognitive DissonanceCognitive Dissonance

Did I make a good decision?Did I make a good decision?

Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?


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Identify the types ofIdentify the types of

consumer buying decisionsconsumer buying decisionsand discuss the significanceand discuss the significance

of consumer involvement.of consumer involvement.


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MoreInvolvement

LessInvolvement

Routine

ResponseBehavior

Limited

DecisionMaking

Extensive

DecisionMaking


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1.Level of consumer involvement

2.Length of time to make decision

3.Cost of good or service

4.Degree of information search

5.Number of alternatives considered


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Little involvement in selection process

Frequently purchased low cost goods

May stick with one brand

Buy first/evaluate later

Quick decision


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Low levels of involvement

Low to moderate cost goods

Evaluation of a few alternative brands

Short to moderate time to decide


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High levels of involvement

High cost goods

Evaluation of many brands

Long time to decide

May experience cognitive dissonance


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Situation

Social Visibility

Interest

Perceived Risk ofNegative

Consequences

PreviousExperience

FactorsDetermining

Level ofInvolvement


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Social

Factors

IndividualFactors

Psycho-logicalFactors

Cultural

Factors CONSUMERDECISION-

MAKINGPROCESS

BUY /

DONT BUY


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I

dentify and understand theI

dentify and understand thecultural factors that affectcultural factors that affect

consumer buying decisions.consumer buying decisions.


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Set of values norms,

attitudes, and other

meaningful symbols thatshape human behavior and

the artifacts, or products, of

that behavior as they are

transmitted from one

generation to the next.


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Values

Language

Myths

Customs

Rituals

Laws

Components ofComponents ofAmericanAmericanCultureCulture

Material Artifacts


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Learned

Functional

Pervasive

Dynamic


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Enduring belief that a

specific mode of conduct

is personally or socially

preferable to another

mode of conduct.


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Success

Materialism

Freedom

Progress

Youth

Capitalism

CoreCore

AmericanAmericanValuesValues


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Chevrolets Nova translated to No Go

Coors Turn it Loose became

Suffer from Diarrhea

Toyotas MR2 sounded like aswearword in French

Coca-Cola in Chinese meansbite the wax tadpole


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A homogeneous group

of people who share

elements of the overall

culture as well as

unique elements of

their own group.


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A group of people in a

society who are considered

nearly equal in status orcommunity esteem, who

regularly socialize among

themselves both formally

and informally, and who

share behavioral norms.


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Identify and understand theIdentify and understand the

social factors that affectsocial factors that affect



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ReferenceGroups

Opinion Leaders

Family Members

Social Influences onBuying Decisions


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A group in society that

influences an individuals

purchasing behavior.


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Types ofTypes ofReferenceReference

GroupsGroups

Direct

Indirect

Primary

Secondary

Aspirational

Non-aspirational


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They serve as information sources andinfluence perceptions

They affect an individuals aspirationlevels

Their norms either constrain orstimulate consumer behavior


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An individual who

influences the opinion

of others.


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Purchase Rolesin the Family

Instigators

Influencers

Decision-Makers

Purchasers

Consumers

ChildrenChildrenInfluenceInfluencePurchasePurchaseDecisionsDecisions


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individual factors that affectindividual factors that affect



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Gender

AgeFamily Life Cycle

Personality

Self-ConceptLifestyle

IndividualInfluences


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The analytical technique

used to examine consumer

lifestyles and to categorize

consumers.


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psychological factors that affectpsychological factors that affect



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PsychologicalPsychologicalInfluences onInfluences on

Buying DecisionsBuying Decisions

Perce tion

oti ation

Learning

Beliefs & Attitudes


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Process by which people

select, organize, and

interpret stimuli into

a meaningful and

coherent picture.


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SelectiveSelectiveExposureExposureSelectiveSelectiveExposureExposure SelectiveSelectiveDistortionDistortionSelectiveSelectiveDistortionDistortion

SelectiveSelectiveRetentionRetentionSelectiveSelectiveRetentionRetention


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Notices only11 to 20 ads

Exposure to over 250advertisement messages per day


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Important attributes

Higher price

Brand namesQuality and reliability

Threshold level of perception

Product changes


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A process that creates

changes in behavior,immediate or expected,

through experience

and practice.


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Types ofTypes ofLearningLearning

DescriptionDescription

Experienti l

Conceptu l

nexperience changesehavior

N

ot learned through directexperience


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A form of learning that

occurs when one responseis extended to a second

stimulus similar to the first.


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An organized pattern of

knowledge that an individual

holds as true about his

or her world.

Belief

Attitude

A learned tendency to

respond consistently

toward a given object.


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