mktg 371 decision making lars perner, instructor 1 consumer decision making the decision process ...
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MKTG 371 DECISION MAKING Lars Perner, Instructor 1
CONSUMER DECISION MAKING
The decision process
Effects of involvement
Types of decision strategies
MKTG 371 DECISION MAKING Lars Perner, Instructor 2
CONSUMER DECISIONS:Theory and Reality in Consumer Buying
InformationSearch
ProblemRecognition
Evaluation ofAlternatives
Purchase
PostpurchaseEvaluation/Behaviors
Theory
Complications
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Types of Decisions and Involvement
Nominal Brand loyal decisions Repeat purchases
Limited decision making Extended decision making
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Problem Types Presence
Active Inactive
Acceptance Acknowledged Unacknowledged/
denied Specificity
Generic Selective
Me? Anger controlproblem? What do you mean?
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Categories of Alternatives
Awareness set Consideration set (evoked set) Inept set Inert set
Ineptset
Inertset
Evokedset
Awarenessset
All alternatives
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Discovering Consumer Problems
Activity analysis Product analysis Problem analysis Human factors research Emotion research
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Approaches to Search for Problem Solutions
INTERNAL
EXTERNAL
MemoryThinking
Word of mouth, media,store visits, trial
CATALOG
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Issues in Decision Issues in Decision MakingMaking
Compensatory vs. non-compensatory--can an exceptionally good rating on one attribute outweigh a bad one elsewhere?
Brand vs. attribute based processing
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Some Influences on Decisions
Temporal Time pressure Situation
Task definition and expectations Mood
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Cost vs. Benefits of Search
Market Characteristics
Product Characteristics
Consumer Characteristics
Situation Characteristics
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Consumer Judgments
Heuristics Availability Representativeness Simulation
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Economic Models
Expected utility Utility functions Prospect Theory
Asymmetry for gains and losses Framing
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Other Models
Satisficing Cognitive
Compensatory vs. non-compensatory Affective Simple strategies
Brand loyalty, brand familiarity Country of origin Price related Minimizing regret
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Positioning Products as Problem Solutions
Category vs. brand promotion Activating problems
Influencing desired state Promotion of magnitude of discrepancy
Getting consumers to anticipate problems before need—e.g., Insurance Emergency supplies Unexpected events
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Marketing Strategies Based on Decision Making
Maintenance Disrupt Capture Intercept Preference Acceptance
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Variety Seeking and Variety Seeking and Impulse BuyingImpulse Buying
Variety seeking» need varies among
consumers by optimal stimulation level (OSL)
» Use innovativeness Impulse purchases
» Motivation» Consequences
“Don’t give me thatsame old cola, thatsame old cola--I want a rock’n’roller!”
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Household Decision Making
Roles/influence Information
gatherers/holders Influencers Decision makers Purchasers Users
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Household Decision Making
Roles/influence Information
gatherers/holders Influencers Decision makers Purchasers Users
Values--desired end states
Strategies of Influence Constructive
Bargaining Reasoning (sincere)
Manipulative Impression
management Authority Emotion
Borderline Information gathering