Consumer Decision Making
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
The Give and Get of Marketing
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Wordof- Mouth
Stages in Consumer Decision
Process
Awareness
Advertising
Interest
Channel
Decision
Product /
Service
Action
Price
Satisfaction
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
The New View of Marketing
Four principles guide marketing:
2014
retention: keeping them coming back
referrals: encourage them to recommend us
relationships: build an emotional connection
recovery: solve problems as they arise
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Consumer Problem-Solving Categories
Levels of Consumer Decision Making
Extensive Problem
Solving
Limited Problem
Solving
Routinized
Response Behavior
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Consumer Mind?????
STIMULUS
FIRM
CONTROLLED
PRODUCT
PRICE
ADVERTISING
SALES PERSON
DISPLAY
DISTRIBUTION
BUY
MIND
RESPONSE
NO BUY
SOCIAL
WORD OF MOUTH
REFERENCE GROUP
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Schiffman Model Of Consumer Decision
Making
EXTERNAL INFLUENCES
SOCIO CULTURAL
FIRM
INPUTS
P
R
O
C
E
S
S
oFamily
oInformal Sources
oOther non-commercial sources
oSocial Class
oSubculture& culture
oProduct
oPrice
oPromotion
oDistribution
CONSUMER DECISION MAKING
Psychological Field
Need Recognition
Pre-purchase Search
Evaluation Of Alternatives
*Motivation* Perception *Learning *Personality*Attitudes
EXPERIENCES
POST-DECISION BEHAVIOR
OUTPUT
2014
PURCHASE
Trial
Re-purchase
Post Purchase Evaluation
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Factors that are Likely to Increase
Prepurchase Search
Product Factors
Long inter purchase time (a long-lasting or
infrequently used product)
Frequent changes in product styling
Volume purchasing (large number of units)
High price
Many alternative brands
Much variation in features
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Factors that are Likely to Increase
Prepurchase Search
Experience
continued
First-time purchase
No past experience because the product is new
Unsatisfactory past experience within the product category
Social Acceptability
The purchase is for a gift
The product is socially visible
Value-Related Considerations
Purchase is discretionary rather than necessary
Al alternatives have both desirable and undesirable consequences
Family members disagree on product requirements or evaluation of
alternatives
Product usage deviates from important reference group
The purchase involves ecological considerations
Many sources of conflicting information
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Factors that are Likely to Increase
Prepurchase Search
continued
Product Factors
Demographic Characteristics of Consumer
Well-educated
High-income
White-collar occupation
Under 35 years of age
Personality
Low dogmatic
Low-risk perceiver (broad categorizer)
Other personal factors, such as high product involvement and
enjoyment of shopping and search
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
10
Issues in Alternative Evaluation
Evoked Set
The number of brands that a consumer actually considers in making a purchase decision.
Criteria Used for Evaluating Brands
Features the consumer considers in making a choice among alternatives
Consumer Decision Rules
Lifestyles as a Consumer Decision Strategy
Incomplete Information and Noncomparable
Alternatives
Series of Decisions
Decision Rules and Marketing Strategy
Consumption Vision
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
11
The Evoked Set as a Subset of All
Brands in a Product Class
All
Brands
Known
Brands
Unknown
Brands
(1)
Evoked Set
Acceptable
Brands
Purchased
Brands
2014
Inept Set
Unacceptable
Brands
Inert Set
Indifferent
Brands
Overlooked
Brands
Not Purchased
Brands
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
12
Types of Purchases
Trial
Purchases
Repeat
Purchases
Long-Term
Commitment
Purchases
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
13
Marketing Strategy and Consumer Behavior
Outcomes
Individual
Firm
Society
Consumer decision process
Problem Recognition
Information Search
Alternative Evaluation
Purchase
Use
Evaluation
Marketing strategy
Product, Price, Distribution,
Promotion, Service
Marketing segmentation
Identify product-related need sets
Group Customers with similar need sets
Describe each group
Select attractive segment(s) to target
Marketing analysis
Company Competitors Conditions Consumers
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
14
What is Customer satisfaction!
1-3
Firms total
product
Competitors
total product
2014
Consumer
decision
process
Superior
value
expected
Sales
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
Perceived
value
delivered
Customer
satisfaction
15
Consumer Behavior is
ProductPersonSituation Specific
1-4
Personal
characteristics
Consumer
behavior
Product
characteristics
Marketing
strategy
Consumption
situation
2014
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
16
Hawkins Model of Consumer Behavior
1-5
EXTERNAL INFLUENCES
Culture
Subculture
Demographics
Social Status
Reference Groups
Family
Marketing Activities
INTERNAL INFLUENCES
Perception
Learning
Memory
Motives
Personality
Emotions
Attitudes
2014
Experiences and
& acquisitions
Experiences
Acquisitions
SITUATIONS
Problem
Recognition
Information
Search
SELF-CONCEPT
and
LIFESTYLE
Needs
Alternative Evaluation
and Selection
Desires
Experiences & acquisitions
Outlet Selection
and Purchases
Post purchase
Processes
SITUATIONS
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
17
A Consumption model
Choice or Purchase Decision
Input
Process of
Consuming
and
Possessing
Consumption Set
Added to ones assortment or portfolio
Consuming Style
How the individual fulfills his or her
consumption requirements
Consuming and Possessing Things and Experiences
Using, Possessing, Collecting, Disposing
Feelings, Moods, Attitudes, Behavior
Output
2014
Altered consumer satisfaction, change in lifestyle and/or
quality of life, learning and knowledge, expressing and
entertaining oneself
-CONSUMEE BEHAVIOUR -- PGDM 2014
PROF. MOHAN B.RAO
FOR RESTRICTED CIRCULATION ONLY
18
