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Consumer Decision Processes

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Consumer Decision Processes What is decision making? Process of choosing between two or more alternatives General Models of Consumer Decision Making Economic ... – PowerPoint PPT presentation

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Title: Consumer Decision Processes


1
Consumer Decision Processes
2
Consumer Decision Processes
  • What is decision making?
  • Process of choosing between two or more
    alternatives
  • General Models of Consumer Decision Making
  • Economic Rational Consumer
  • Passive Consumer
  • Cognitive Consumer

3
Consumer Decision Processes
  • General Models of Consumer Decision Making
    (Cont.)
  • Emotional Consumer
  • Random Consumer
  • CB Consumer
  • Cs buy symbols as well as products
  • What is rational is in the eye of the beholder
  • Cs do not have, nor do they want, perfect
    information
  • Cs satisfyce, not optimize

4
Consumer Decision Processes
  • Howard-Sheth Model
  • Extended Problem Solving (EPS)
  • Limited Problem Solving (LPS)
  • Habitual Decision Making
  • Static or continuous categorizations?

5
Consumer Decision Processes
  • Habitual Decision Making
  • Brands Considered -- 1
  • Evaluative Criteria Simple (Is it available?)
  • Information Sources -- 1 (Self)
  • Types
  • Brand Loyalty
  • Involves repeat purchase with a high level of
    psychological commitment
  • Inertia (Spurious Loyalty)
  • Repeat purchase to minimize consumer effort

6
Consumer Decision Processes
  • Habitual Decision Making -- Implications
  • May need to break consumers habit
  • Sales promotion tools as incentives to switch
  • Sales efforts to change shelf space (position)
  • Retention of consumers
  • Distribution is key -- is loyalty is spurious,
    must have product on the shelf
  • Monitoring of competitive actions -- e.g., match
    price reductions
  • Reminder ads to keep brand on the top of mind

7
Consumer Decision Processes
  • Extended Problem Solving
  • Brands Considered -- Many
  • Evaluative Criteria -- Complex
  • Information Sources -- Many

8
Consumer Decision Processes
  • EPS Complex Decision Process

Psychological Field 1. Motivation 2.
Perception 3. Learning 4. Lifestyle 5. Attitudes
Experience
9
Consumer Decision Processes
  • EPS Complex Decision Process
  • Pre-Purchase Activities
  • Need Recognition (Cs actual state desired state)
  • Information Search
  • Internal
  • External
  • Evaluation of Alternatives
  • Compensatory --- lack of one attribute (taste)
    can be compensated by another (its effective)
  • Eliminate by Aspects (EBA) set minimum cut-off
    rule for the level of each attribute start with
    most important attribute if a brand does NOT
    meet the cutoff, it is out
  • Conjunctive Rule -- set minimum cut-off rule for
    the level of each attribute look at entire set
    of attributes (which exceeds the minimum on the
    MOST attributes)
  • Lexicographic Rule rank attributes choose
    brand that is best on most important attribute
    if a tie, go to second most important attribute,
    etc.
  • Affect Referral choose brand you feel best
    about

10
Consumer Decision Processes
  • Unplanned Decisions
  • Pure impulse What the heck!
  • Reminder/Suggested impulse walk through dairy
    aisle (ah yes, I need milk)
  • Planned impulse I always get yogurt
  • Marketers influence?????
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