Final Ppt DM

  • View
    217

  • Download
    0

Embed Size (px)

Text of Final Ppt DM

  • 8/8/2019 Final Ppt DM

    1/16

    Decision making can be regarded as an outcome of

    mental processes (cognitive process) leading to the

    selection of a course of action among several

    alternatives. Every decision making process produces

    a final choice. The output can be an action or an

    opinion of choice.

    DECISION MAKING

  • 8/8/2019 Final Ppt DM

    2/16

    We are going to studyConsumer

    Decision Making

    Process

  • 8/8/2019 Final Ppt DM

    3/16

  • 8/8/2019 Final Ppt DM

    4/16

    6-4

    Introduction

    Consumer behaviour: The process throughwhich theindividuals or groups go through to select, purchase, and use goods,services, ideas or experiences to satisfy their needs and desires.

    Why do we (marketers) care?

    We want to understand why consumers

    make the decisions that they do, so that

    we will be able to predict what they will

    do in a given situation, so that ultimately,

    we will be able to influence that process.

    Why do people buy?

    It relates to value, but that is getting

    ahead of ourselves.

    Understand

    Predict

    Influence

  • 8/8/2019 Final Ppt DM

    5/16

    The Consumer Decision-Making Process

    Problem Recognition

    Information Search

    Evaluation of Alternatives

    Product Choice

    Post-purchase Evaluation

    Om realizes that

    he is fed up with

    His current colour TV

    Om takes the LCD

    home and becomes

    a couch potato

    Om talks to a

    few of his friends

    about a new LCD

    Om goes shopping

    to compare LCDs

    of different brands

    Om chooses one

    model/brand for its

    features and price

  • 8/8/2019 Final Ppt DM

    6/16

    We are going to Discuss:The Consumer Decision-MakingProcess

    PROBLEMRECOGNITION

    EVALUATIONOFALTERNATIVES

  • 8/8/2019 Final Ppt DM

    7/16

    Problem Recognition

    Occurs when the consumer sees a significantdifference between his or her actual and idealstate.

    Where do we get our notion of what is ideal?

    personal expectations

    personal aspirations

    culture

    reference group

    marketing

  • 8/8/2019 Final Ppt DM

    8/16

    The problem recognition

    process

    3-8

  • 8/8/2019 Final Ppt DM

    9/16

    How can you measure problem recognition?

    Activity analysis: This method focuses on a particular activity such as

    preparing dinner, maintaining a lawn, or lighting a fireplace fire. This method

    attempts to determine what problems the consumer encounters in performing

    a particular activity.

    Product analysis: This method focuses on the purchase and/or use of a

    particular product or brand in an attempt to determine what problems a

    consumer may encounter in purchasing or using this product.

    Problem analysis: This method takes an opposite approach in that it starts

    with a list of problems and asks consumers to indicate activities, products,

    or brands that are associated with these problems.

    Human factors research: This approach looks at the capabilities ofhumans, and attempts to design products in light of these capabilities.

    Emotion research: Focus groups and projective techniques are beginning

    to be used to help us understand the role of emotion in problem recognition.

  • 8/8/2019 Final Ppt DM

    10/16

    Approaches to Search for

    Problem Solutions

    INTERNAL

    EXTERNAL

    Memory

    Thinking

    Word of mouth, media,

    store visits, trialCATALOG

  • 8/8/2019 Final Ppt DM

    11/16

    Internal Search

    Recalling information, experiences, and feelings concerningproducts 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 increasechances of being in the evoked set

    2. Attributes

    3. Evaluations

    4. Experiences

    Is internal search always accurate?

    Confirmation bias

  • 8/8/2019 Final Ppt DM

    12/16

    External Search

    Consumers acquire information from outsidesources.

    Engage in pre-purchase and ongoing search

    External Sources

    1. Retailer search2. Media search

    3. Interpersonal search

    4. Independent search

    5. Internet source

    effects of information overload

    Is external search always accurate?

  • 8/8/2019 Final Ppt DM

    13/16

    Evaluation of Alternativesy IdentifyingAlternatives:

    Evoked set and consideration set.

    y Identifying

    Eva

    luative Criteria:

    Information search suggests criteria and identifiesbrands.

    Evaluative criteria include those criteria that areimportant to the consumer when rating productalternatives.

    Firms try to identify evaluative criteria throughmarketresearch.

  • 8/8/2019 Final Ppt DM

    14/16

    y The information search clarifies the problem for theconsumer by:

    Suggesting criteria to use for the purchase.Yielding brand names that might meet the criteria.

    Developing consumer value perception.

    y Aconsumer's evaluative criteria represent both:The objective attributes of a brand.

    The subjective factors (such as prestige).

    y These criteria establish a consumer's evoked set:The group of brands that a consumer would consider

    acceptable from among all the brands in the product classof whichhe or she is aware

  • 8/8/2019 Final Ppt DM

    15/16

    Consumer Decission Making Process have further steps:

    Purchase Decision &

    Post Purchase Evaluation

    Whichwill be explained by our other friends.

  • 8/8/2019 Final Ppt DM

    16/16

    THANKYOU