5-1

MARKETING MANAGEMENT

Consumer Markets

6-2

Rational Model of Decision Making

6-3

Other Models of Decision Making

Involvement• Elaboration

Likelihood Model• Low-involvement

marketing strategies• Variety-seeking

buying behaviour

Decision Heuristics• Availability• Representativeness• Anchoring and

adjustment

17-4

Elaboration Likelihood Model• Petty & Caccioppo

– Two questions:• Motivation to process?• Ability to process?

– When YES to both: HIGH elaboration• Central cues

–product

– When NO: LOW elaboration• Peripheral cues -

–source or ad

17-5

INVOLVEMENT

Decoding is ACTIVE

– That is, it requires EFFORT

– When will people to spend effort?

• 1. When they CARE about what you’re saying

–personal relevance

This is the concept of INVOLVEMENT

The personal relevance of the product

interest, price

17-6

17-7

17-8

17-9