Decision Making Process - Consumer Behaviour - Lecture Slides, Slides of Consumer Behaviour

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The Decision making Process

• Problem Recognition
• Information Search
• Evaluation of Alternatives
• Purchase Decision
• Post Purchase Experience

Problem Recognition- Perceiving a

need

• The actual state is how a consumer is managing oneself
• Consumer may want to achieve a desired state

where unfulfilled needs are met

• Purchase will fulfil aspiration and achieve

desired state

Information Search

• Mode of search could be Internal or External

Type of Search depends upon:

• Confidence level of consumer
• Frequency of Purchase
• Rate of product changes
• Risk
• Price

Stages of Information Processing

• Exposure: Information and persuasive communication must reach consumer
• Attention: The more relevant the message and its contents, the more likely the consumer will pay attention
• Comprehension: Comprehension should be good and proper

Evaluation of Alternatives

• The consumer evaluates choices to choose the best suited
• Anticipated performance is matched with certain evaluative criteria such as quality, price, brand name and specific features
• Consumer assigns weightage to different relevant factors and arrives at a value proposition before selection based on judgement and resource constraint

Purchase Decision

• Buying Intention does not always translate into purchase
• Heavy competitive promotion and other factors can change decision
• Compromise brands are selected when there are difficult trade-offs
• Heuristics or mental short cuts are often used to simplify decision making

Types of Buying Decision

• Routine or habitual buying
• Limited problem-solving buying: This could happen when a new brand is introduced in a familiar product class
• Extended problem-solving buying: Product is less frequently purchased, expensive, less familiar, changing technology

Factors infuencing Impulse Buying

• Packaging and placement of product in supermarket
• Advertising and promotion, specially price-off
• Visual merchandising
• Emotional attachment
• Brand
• Income and Festival season

Evaluation Strategies

• Compensatory Strategy: consumers allow a higher value of one attribute to compensate for a lesser value of another attribute
• Non-Compensatory Strategy: Each attribute of a specific product is evaluated without considering other attributes. A product may have high value on one attribute but if it fails on some other attribute it may be eliminated from consideration

Evaluation Strategies

Non-Compensatory Strategy:

• Satisficing – The first product evaluated to meet cutoff values for all attributes is chosen even if not the best
• Elimination – this strategy sets a cutoff value for the most important attribute and allows all competing products that meets that cutoff value to go to the next attribute and its cutoff value

Evaluation Strategies

Conjunctive strategy:

Majority of conforming dimensions: The first two competing products are evaluated across all attributes and the one that has higher values against more dimensions or attributes is retained. Winner is than evaluated against the next competitor and the one that has higher values is retained

Evaluation Strategies

Conjunctive strategy:

• Frequency of good and bad features: All products are simultaneously compared to the cutoff values for each of their relevant attributes and the product that has the most good features that exceed the cutoff values is selected