Download - sem3 unit-5
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Consumer Decision Making I:The Process
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Levels of Consumer Decision
MakingExtensive Problem
Solving
Limited ProblemSolving
Routine ResponseBehaviour
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Factors That Affect the Type of Decision Making Process Used
Importance of the decisionExtent of previous experienceExistence of well-established decisioncriteriaAmount of information at hand about eachalternative
The number of alternatives availableModel of consumption being followed
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Consumer Decision Making The
ProcessNeed RecognitionPre-purchase SearchEvaluation of Alternatives
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Need or Problem Recognition
The realization that there is a differencebetween actual and desired states The higher the gap, the stronger the need (or
bigger the problem)
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Types of Problems
Active Versus Inactive problems Active: those you are aware of
Inactive: those that you are not yet aware of (but exist)
Those that require immediate solutions and
those that do not require immediatesolutions
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Problem Recognition and
Marketing StrategyIdentify existing consumer problems and findsolutions for these
Lower the actual stateIncrease the desired stateIncrease the importance of the gap between actualand desired states
Convert inactive problems to active problemsConvert problems into ones requiring animmediate solution
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Pre-Purchase Search
Types of Information SourcesTypes of Information SoughtFactors Affecting Extent of InformationSearch
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Types of Information Sources
PERSONAL
Friends
NeighborsRelativesCo-workersComputer salespeopleCalling the electronics
store
IMPERSONAL
Newspaper articles
Magazine articlesConsumer Reports Direct-mail brochuresInformation from productadvertisements
Internal web site
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Types of Information Sought
Brands or alternatives availableEvaluative criteria to be used Generally, product features
Ratings of brands on evaluative criteria
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Factors that Increase the Level of Pre-purchase Search
Product Factors: Higher search when It is a long-lasting or infrequently used
product
There are frequent changes in product styling Large volume is purchased The price is high There are many alternative brands There is much variation in features
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Factors that Increase the Level of Pre-purchase Search
Situational Factors: Higher search when: Experience is lower Previous experience was unsatisfactory
Social Acceptability: Higher search when: Purchase is a gift Product is socially visible in use
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Factors that Increase the Level of Pre-purchase Search
Value-Related Factors: Higher searchwhen: Purchase is discretionary All alternatives have both positive and
negative qualities
No agreement among users exists Conflicting information is available Other considerations exist
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Factors that Increase the Level of Pre-purchase Search
Consumer Factors: Higher search when: Consumers are well-educated, have higher
income levels and are younger
Consumers are low in dogmatism and riskperception
Level of involvement is high
Shopping is seen as an enjoyable activity
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Nature of Evaluative Criteria
Can be tangible or intangibleInclude surrogate indicators readily observable attribute of a product used to
represent the performance level of a lessobservable attribute
Are often ranked in order of importance
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Consumer Decision Rules
Procedures used by consumers to facilitatebrand or other consumption-related choices
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Consumer Decision Rules
Compensatory Rules Non-compensatory Rules
Conjunctive decision Rule Lexicographic Decision Rule
Disjunctive Rule
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Compensatory Decision Rules
One of the major decision rule used by consumersfor evaluating alternative brands with respect to
how they performs on relevant or salientattributes and the importance of each attribute.This decision rule allows for a negativeevaluation or performance on a particularattribute to be compensated for by a positiveevaluation on another attribute.
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Non-compensatory Decision Rule
Decision rules are said to be noncompensatory when good performance on
one evaluative criterion does not offset orcompensate from poor performance onanother evaluative criterion, of the brand.
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Non-Compensatory Consumer
Decision RulesConjunctive Decision Rule Product attributes are identified
a minimally acceptable cutoff point isestablished for each attribute
brands that fall below the cutoff point on
any one attribute are eliminated fromfurther consideration.
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Non-Compensatory Consumer
Decision RulesDisjunctive Decision Rule consumers identify product attributes
establish a minimally acceptable cutoff point for each attribute
accept the brand that meets or exceeds
the cutoff for any one attribute
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Non-Compensatory ConsumerDecision Rules
Lexicographic Decision Rule Product attributes are identified Product attributes are ranked in terms of
importance brands are compared in terms of the attribute
considered most important Brand that scores highest on the first attribute is
chosen If there is a tie, the scores on the next attribute
are considered
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Issues in Alternative Evaluation
Lifestyles as a Consumer Decision StrategyIncomplete Information
Non-comparable AlternativesSeries of DecisionsConsumption Vision
Mental picture of the consequences of using aparticular product
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Coping with Missing Information
Delay decision until missing information isobtained
Ignore missing information and useavailable informationChange the decision strategy to one thatbetter accommodates for the missinginformationInfer the missing information
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Information Search and
Marketing StrategyGet products into consumers evoked set Limit information search if your brand isthe preferred brandIncrease information search if youralternative is not the preferred brandUse point-of-purchase advertisingeffectively
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Alternative Evaluation and
Marketing StrategyIdentify decision rule used by target market anduse suitable promotional messages
Influence the choice of evaluative criteriaInfluence the rating of your product on evaluativecriteria usedUse surrogate indicators effectivelyUse consumption vision