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CONSUMER DECISION MAKING PROCESS

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Confirmation bias. External Search. Consumers acquire information from outside sources. ... 2. Media search. 3. Interpersonal search. 4. Independent search. 5. ... – PowerPoint PPT presentation

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Title: CONSUMER DECISION MAKING PROCESS


1
CONSUMER DECISION MAKING PROCESS
2
Learning Objectives
  • Understand the three problem solving variations
    and when consumers use them.
  • Thoroughly understand each stage of the consumer
    decision making process.
  • Be familiar with low effort decision making
    tactics.
  • Understand how situational influences affect the
    decision making process.

3
Problem Solving Variations
  • Extended Problem Solving
  • High perceived risk
  • Typically expensive, infrequently purchased
    products
  • Routine Problem Solving
  • Low perceived risk
  • Purchases made out of habit or brand loyalty
  • Typically inexpensive, frequently purchased
    product
  • Limited Problem Solving
  • Moderate perceived risk
  • Consumer has limited time or energy

4
Stages in the Consumer Decision Making Process
  • Problem recognition
  • Information search
  • Alternative evaluation
  • Decision
  • Post decision evaluation

5
Problem Recognition
  • Occurs when the consumer sees a significant
    difference between his or her actual and ideal
    state.
  • Where do we get our notion of what is ideal?
  • personal expectations
  • personal aspirations
  • culture
  • reference group
  • marketing

6
Internal Search
  • Recalling information, experiences, and feelings
    concerning products and brands.
  • How much do we engage in internal search?
  • What kind of information is recalled?
  • 1. Brands
  • evoked set
  • brand familiarity and retrieval cues increase
    chances of being in the evoked set
  • 2. Attributes
  • 3. Evaluations
  • 4. Experiences
  • Is internal search always accurate?
  • Confirmation bias

7
External Search
  • Consumers acquire information from outside
    sources.
  • Engage in pre-purchase and ongoing search
  • External Sources
  • 1. Retailer search
  • 2. Media search
  • 3. Interpersonal search
  • 4. Independent search
  • 5. Internet source
  • effects of information overload
  • Is external search always accurate?

8
How Much do We Engage in External Search?
  • Motivation to Process Information
  • Ability to Process Information
  • Opportunity to Process Information

9
Evaluation of Alternatives
  • Identifying Alternatives
  • evoked set and consideration set
  • Identifying Evaluative Criteria
  • information search suggests criteria and
    identifies brands
  • Evaluative criteria includes those criteria that
    are important to the consumer when rating product
    alternatives
  • Firms try to identify evaluative criteria through
    market research.

10
Decision
  • Consumers select and purchase the product
    alternative that best meets his or her evaluative
    criteria.
  • Noncompensatory decision rules
  • Compensatory decision rules

11
Post Decision Evaluation
  • Process where consumer reevaluates the product as
    he uses it.
  • Product performance is compared with consumer
    expectations.
  • Satisfied customers
  • Dissatisfied customers
  • Cognitive dissonance

12
Low Effort Decision Making
  • Heuristics
  • Market Beliefs
  • Brand Loyalty
  • Habit
  • Impulse Purchases
  • Variety Seeking

13
Situational Influences
  • Consumer behavior is influenced by the
    circumstances surrounding the purchase of a
    product.
  • Social surroundings
  • Physical surroundings
  • Temporal effects
  • Purchase task
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