marketing 260 - individual decision making - chp 9
TRANSCRIPT
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BUYER BEHAVIOURINDIVIDUAL DECISION MAKING
Chp. 9With Duane Weaver
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OUTLINE
Consumers as Problem SolversPerspectives on Individual Decision MakingStages in Consumer Decision MakingTypes of Consumer DecisionsProblem RecognitionMarketer’s Role in Problem CreationInformation SearchTypes of Perceived RiskStrategic Implications of Product CategorizationHeuristicsDecision RulesVideo
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Consumers as Problem Solvers
Purchase decisions steps:1. Problem Recognition2. Information Search3. Evaluate Alternatives4. Product/Service Selection
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Perspectives on Individual Decision Making
Rational Decision Making ApproachCalmly and carefully integrate knowledge
Behavioural Influence Perspectivelow involvement, learned response to environmental cues (promotions)
ExperientialHigh involvement, affective responses vs. rationalGestalt-totality of the product (Music,art)
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Stages in Consumer Decision Making
Problem Recognition
Information Search
Evaluation of Alternatives
Product Choice
Consumption and Learning
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Types of Consumer Decisions
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Problem Recognition
Problem Recognition occurs when the consumer realizes that their actual state is significantly different than their ideal state
Opportunity Recognition
Need Recognition
NO PROBLEM
Ideal State
Actual State
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Marketer’s Role in Problem Creation
Creating Primary DemandFocus on getting consumers to try a new product
Brand is not the focus
Secondary demandPrompting consumers to choose a specific brand
Create a problem-scenario & show the solution
Head & Shoulders
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Information Search
Biases
Deliberate vs.
Accidental
Amount of
Search
Internal vs.
External
Information Search
Non-Rational
Economics of
Information
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Psychological
Social
Physical
Functional
Monetary
Types of Perceived Risk
Get to together in groups of three and briefly (5 minutes) discuss and define an example for each of three out of five of the above areas of perceived risk. Present these ideas to the class.
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Strategic Implications of Product Categorization
Exemplar Products
Identifying CompetitorsProduct Positioning
Locating Products
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Heuristics
Heuristics: The mental rules of thumb that lead to a speedy decision
Product Signals Market Beliefs
Country of Origin
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Decision Rules
Non-compensatoryCompensatory
Weighted Additive
LexicographicBest Brand for most important attribute
Elimination by AspectsSpecific attribute cut-offs imposed
Conjunctive Rule
Choose by brand based on meeting all cutoffs
DisjunctiveRule
Standard of an attribute is higher
than minimal cut-off
SimpleAdditive
One attribute can compensate
One attribute alone cannot compensate
In groups of three take 5 minutes to provide one example of a Non-compensatory decision rule
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Thank You for your time
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