SUBMITTED TO: SUBMITTED BY:

Ms. MONIKA SHARMA Meenakshi N. 109337

Ramji Keshari 109319

1. Find two print advertisements, one that illustrates the cognitive model of consumer decision making and another one that illustrates the emotional decision making. Explain your choices. In your view, why did the marketers choose the approaches depicted in the advertisement?

Cognitive Decision Making

Cognitive decision-making (D-M) is a human-like complex mental process. It is the essential aspect/property of  (high-)intelligence. Decision making is the cognitive process of selecting a course of action from among multiple alternatives.

Cognition is the scientific term for "the process of thought". Usage of the term varies in different disciplines; for example in psychology and cognitive science, it usually refers to an information processing view of an individual's psychological functions.

This Print advertisement of Sony VAIO Laptop will definitely activate the mental process of Human watching this ad. This VIAO Laptop advertisement is showing that the Laptops are as light as the A4 papers which triggers as a stimuli in human brain and activates thinking process as RESPONSE to that stimuli.

As Sony is already a well known brand and this advertisement is showing that their laptops are very light in weight so here those customers who wants to purchase good quality branded laptops will be attracted. The attributes shown by Sony VIAO Laptops are- brand, quality, light weight, portability etc. hence, consumer can make SATISFACTORY DECISION.

This advertisement is mainly showing the power of protein in Cheese and those customers who have a bad health will be attracted to this advertisement. Especially mothers will surely think of giving this healthy protein substitute to their children, sportsperson, weak teenagers, all these will be attracted through this advertisement. It is not only the nutritional value but also the brand perception (AMUL- The Taste of India) which will trigger the consumers mind. Hence resulting into satisfactory purchase.

Emotional Advertisement

a) Vodafone Zoozoo

Under Emotional decision making model, consumer makes decision involving his mood, feelings and emotions. Consumer gives less emphasis on pre-purchase information. Emotional view of decision making focuses on the emotional aspects of the consumers like love, hate , joy , happiness, sorrow , sympathy etc which are inherent in any human beings.

The above is the advertisement of VODAFONE featuring ZOOZOO and showing love as emotion. In this ad there is a boy who wants to express his love to her beloved and to express his love he presents a bunch of red roses to her and the girl is also showing happiness on receiving the bunch of red roses. This emotion of love acts as STIMULI which is targeting Youth as CUSTOMERS for Vodafone. Here Emotional consumers are those breed of consumers who do not follow the cognitive approach and are impulsive buyers.

along with new

2. For each of these products- chocolate bars and cereals- describe how marketer can apply their knowledge of differential threshold to packaging, pricing and promotional claims during period of -

a. rising ingredients and material cost

b. increasing competition. (Just notable difference webner law)

INTRODUCTION: The minimal difference that can be detected between two similar stimuli is called differential threshold or, just noticeable difference. It is important to endeavor to determine the relevant J.N.D. for their products for 2 different reasons-

1. So that negative changes (eg. Reductions in product size or quality, or increase in product price) are not readily discernible to the public(i.e. remain below the J.N.D.)

2. So that the product improvements ( eg. Improved or updated packaging, larger size or lower price) are very apparent to consumers without being wastefully extravagant (i.e. they are at or just above the J.N.D.).

CHCLATE BARS

a. Rising ingredients and material cost

Packaging: Packaging of chocolate should be such that some weight of bar is reduced(below JND) but the size of pack should remain almost same such that it does not effect the customer’s perception in negative way.

Pricing: There should not be any change made in the pricing of the chocolate bar, its only the weight of chocolate which should be reduced. Pricing of chocolate is generally the psychological price to attract customers, hence no changes must be made in the price of chocolate bar.

Promotional Claim: Promotional claim should not at all be changed because when every one is cutting cost on these factors than we can have edge on this factor. Hence, with rise in the cost of material and ingredients the promotional claim must not be reduced.

b. Increasing competition

Packaging: Packaging of chocolate should be improved i.e. it should be made more attractive eg. Cadbury Dairy Milk – has improved its packaging and have made it more attractive(above JND) such that it does effect the customer’s perception in positive way.

Pricing: Pricing of chocolate should be made psychological price to attract customers, hence a little bit of changes must be made in the price of chocolate bar i.e. price must be decreased below the J.N.D.

Promotional Claim: Promotional claim should be enhanced because when competition is very high then to sustain in the competition promotion has to be rigorous i.e. above the JND.

CEREALS

a. Rising ingredients and material cost

Packaging: Packaging should not be changed at all rather the quantity inside the pack must be decreased below J.N.D. so that it does not effect the buying decision of customer.

Pricing: Price of the cereals must be increased up to a certain level i.e. below J.N.D. such that there is no change in consumer perception and buying decision and on the same time we are able to maintain our profits.

Promotional Change: Promotional scheme must not be changed but cost cutting must be done, for example: if we were giving free gift for Rs. 35 on purchase of around Rs. 500 then the free gift should be replaced with other gift costing lesser than Rs. 35.

b. Increasing Competition

Assumption:- Competitor Price is below ours.

Packaging: Packaging of cereals must not be changed with the increasing price competition .

Pricing: Company should take consumers perception in account and change prices in the form of discounts rather then decreasing it directly because if company decreases the price directly and not in the form of discount then

customer may take it in negative way and the BRAND PERCEPTION of our product may fall down.

Promotional Change: As explained above price should be changed in the form of discount.

Packaging: Packaging of cereals must be enhanced and made attractive.