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


2/16

We are going to studyConsumer

Decision Making

Process


3/16


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


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


6/16

We are going to Discuss:The Consumer Decision-MakingProcess

PROBLEMRECOGNITION

EVALUATIONOFALTERNATIVES


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


8/16

The problem recognition

process

3-8


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.


10/16

Approaches to Search for

Problem Solutions

INTERNAL

EXTERNAL

Memory

Thinking

Word of mouth, media,

store visits, trialCATALOG


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


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?


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.


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


15/16

Consumer Decission Making Process have further steps:

Purchase Decision &

Post Purchase Evaluation

Whichwill be explained by our other friends.


16/16

THANKYOU

Documents

Final Ppt DM