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Complex Decision Making

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(little or no information search, consideration of only one brand) COMPLEX DECISION ... (cars, electronics) (soft drinks, snack foods) (athletic shoes) ... – PowerPoint PPT presentation

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Title: Complex Decision Making


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(No Transcript)
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HIGH INVOLVEMENT PURCHASE DECISION
LOW INVOLVEMENT PURCHASE DECISION
COMPLEX DECISION MAKING
LIMITED DECISION MAKING
DECISION MAKING (information search, consideration
of many brand alternatives)
(cars, electronics)
(soft drinks, snack foods)
BRAND LOYALTY
INERTIA
HABIT (little or no information search,
consideration of only one brand)
(athletic shoes)
(toothpaste)
3
Topic List Complex Decision Making
  • Involvement (Assael pg. 65-75)
  • Problem Recognition/Need Arousal (Readings
    handout)
  • Information Acquisition (Assael 241-254)
  • Comparative Evaluations (Readings handout)
  • Post Purchase Issues (Assael 90-91)

4
Purchase Involvement
  • Causes
  • Product Usefulness Example??
  • Badge Value Example??
  • Perceived Risk Example??
  • Continuous Interest Example??
  • Types of Involvement Enduring / Situational
  • Effects More info. search more comparison
    complex decision making

5
Complex Decision Making
Information Acquisition
Information Processing
Problem Recognition/Need Arousal
Comparative Evaluation/ Purchase
Post-Purchase Evaluations
6
INFORMATION
MEANING
BRAND NAME
Toyota
Reliable
Reasonable
HK200,000
PRICE
35mpg
Efficient
MILEAGE
Evaluation Good
7
Complex Decision Making
Information Acquisition
Information Processing
Problem Recognition/Need Arousal
Comparative Evaluation/ Purchase
Post-Purchase Evaluations
8
Problem Recognition/Need Arousal
  • Consumer perceives discrepancy between actual
    state (what he has) and desired state (what he
    wants to have)
  • Discrepancy Tension
  • Motivated to resolve tension Activate
    decision making process
  • So Shift in Either AS or DS can lead to Problem
    Recognition

9
Causes of Problem Recognition I
  • Changes in Actual State
  • Examples??? (dont look at notes!)

10
Causes of Problem Recognition II
  • Changes in Desired State
  • Examples???
  • Marketing strategy Introduce a new product or a
    new attribute
  • Question How often do marketers introduce
    really new products??

11
Inducing Problem Recognition
  • Typically, Do Marketers Induce Problem
    Recognition by Influencing Actual State or
    Desired State??

12
Complex Decision Making
Information Acquisition
Information Processing
Problem Recognition/Need Arousal
Comparative Evaluation/ Purchase
Post-Purchase Evaluations
13
Information Acquisition/Search
  • Different Ways of Classifying Search
  • Internal search vs. External Search what do
    they mean?
  • Which is more believable?
  • Why do external search at all?
  • Active search vs. Passive search
  • Low vs. High Involvement?

14
Information Acquisition/Search
  • Sources of Information.

15
Information Acquisition/Search
  • Sources of Information
  • Marketer-controlled
  • Examples?
  • Non-Marketer controlled
  • Examples?
  • Which is More Believable?

16
Information Acquisition/Search
  • Information Overload.

17
  • Toyota 160K
  • Honda 200K
  • Nissan 190K
  • Mazda 220K
  • Mercedes 500K

18
Limits of Information Acquisition
  • Information Overload
  • Lots of brands and attributes non-optimal
    decision
  • Cost of Information Acquisition
  • Extra info. not worth time and effort
  • Strategic Implications
  • ads should only contain important info.
  • Free product trial good way of providing
    information

19
Announcements
  • For next class
  • Comparative Evaluations (Readings handout)
  • Now Group assignment!

20
Announcement Quiz Dates
  • Q1 Feb 26
  • Q2 March 19th 6-7pm (NOTE CHANGE!)
  • Q3 April 10
  • Q4 May 29
  • Time 7-8 pm
  • Any clashes (e.g., class during the same time)?
  • Note having another quiz on the same day will
    not count as a clash
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