Deviprasad Goenka Management college of Media Studies
http://www.dgmcms.org.in/
Subject:Consumer behavior
unit 10: Decision Making
Faculty Name: Subhangi Ma'am
2. DECISION MAKING
Selection of option
Choice – Available
No choice decision – Hobson’s choice
Levels of Consumer Decision Making:
1. Not exhaustive in all situations
2. All purchases are not routine
3. DECISION MAKING
Levels of Decision Making:
Extensive Problem Solving
Limited Problem Solving
Routinised Response Behavior
4. DECISION MAKING
Extensive Problem Solving:
No established criteria
Great deal of Information
Evaluating each brand
Limited Problem Solving:
Established basic criteria
Evaluating the Product Category
Fine Tuned
Additional information – discriminate
5. DECISION MAKING
Routinised Problem Solving:
Experience of Product Category
Established set of criteria
Small amount of additional information
Problem Solving established criteria
6. DECISION MAKING
Model of Consumer Decision
Three Distinct Interlocking Stages:
1) The Input Stage
2) The Process Stage
3) The Output Stage
7. DECISION MAKING
The Input Stage:
Recognition of Product Need
Two Major Sources of Information
Marketing Efforts
External Socio-Cultural Environment
Marketing Efforts – IMC [Integrated
Marketing Communication]
Socio Cultural Environment -
Information
8. DECISION MAKING
The Process Stage:
Focus on how the decision is made
Psychological factors
Affects External Input – Marketing
Recognition of Need
Purchase Search
9. DECISION MAKING
The Output Stage:
Post Decision Activity
Purchase Behavior
Post Purchase Evaluation
Trial Purchase - Exploratory Phase
Repeat Purchase - Product Adoption
10. DECISION MAKING
Input:
External Influence:
Information about the product
Influence product related values
Attitudes & Behavior
Chief influence – Marketing Mix
11. DECISION MAKING
Non - Commercial Influencers:
1) Comments of Friends
2) Usage by family members
3) Article, Report
Views of experienced consumers
Social Class
Culture
Influences are internalized
12. DECISION MAKING
Process:
Concerned with the ‘How’
Psychological field : Internal Influence
Three stages:
1) Need Recognition
2) Purchase Search
3) Evaluation of Alternatives
13. DECISION MAKING
Need Recognition
Consumer faces problem
Actual state consumers
Desired state consumers
14. DECISION MAKING
Purchase Search:
Recollection of Past Experience
No Prior Experience – Extensive Search
Past Experience – Internal Source
Combination – Past Experience +
Marketing
15. DECISION MAKING
Difference in shopping behavior – men
& women
Price consideration – Extent of Search
Smart Shopping – Homework
External Search – Different Products
High in subjective knowledge – Rely on
self evaluation
Internet