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ByRachita Jayswal,Lecturer.
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A decision is a choice between two or more
alternative actions or behaviors For Example: A housewife goes to purchase a
mid priced range of tea, than making aselection from the various brands of tea like
Taj Mahal, Tata Tea, Red label, Yellow label,etc. than she is making decision.
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ConsumerDecisions
Consumer decisions are decisionsconsumers make in the marketplace
involving:
whethertopurchase
whattopurchase
when topurchase
fromwhom topurchase
howtopayforthepurchase
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Routine Limited Extensive
Involvement Low Low to
moderate
High
Time Short Short to
moderate
Long
Costs Low Low tomoderate
High
Information
search
Internal only Mostly internal Internal and
external
Number of
alternatives
One Few Many
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Routinized Response Behavior:
Marketer must continue to provide satisfaction to theexisting customer
Marketer must attract new customer by using
promotional schemes and introduced new features tothe product. Limited Problem Solving: Marketer should design the communication
programme that will help The buyer to gather more information, Increase his brand comprehension and
Gain confidence in the brand.
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Extensive Problem Solving:
Marketer must educate the prospective buyers
About the attributes of the product,
Their relative importance and High standing of the marketers brand on brand
attributes.
So, the marketer should do marketingcommunication which help the consumer to
evaluate and feel good about his / her brand
choice.
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InputFactorsare:
Marketingmix
activities
of
organization
(Marketing
Inputs)
Socialcultural Influences
(Socialcultural Inputs)
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Marketingstimuliconsistof4Ps Marketer
are
interested
in
knowing
how
consumerwillrespondtovariousstimuli. Thesemaybeintheformof:
Productfeature
site
Packages
Suitableprices
Massmedia
advertising
Personalselling
Directmarketing
Selection
of
suitable
distribution
channel
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It nonmarketing influences the consumer
purchase decision. Social Cultural factors includes the family,
social class, culture and sub culture, informalsources and other non commercial sources.
For Example: the comment of a friend, an
editorial in the newspaper, usage by a family
member, an article in Consumer Reports or
the view of an experienced customer.
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Processcomponentofthemodelis
concernedwith
how
consumer
make
decisions. Thepsychologicalfieldrepresentinternal
influencesthat
affect
consumer
decision
makingprocesses. whattheyneedorwant
Theirawarenessofvariousproductchoices
Theirinformationgatheringactivities
Theirevaluation
of
alternatives
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Evaluation of Alternatives
Information Search
Need Recognition
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Consumer recognized
need when they faceproblem.
Among consumer thereare varied types of need
or problem recognition:
Actual state type of
problem
Desire state consumer
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Actual State consumer: This occur when
product is not performing satisfactorily. Ex.: The housewife may realize that the mixer
she was using doesnt grind properly. Desired state consumer: The consumer may
experience the desire for something new.
Ex.: A newly married man desire to possess a
motor cycle.
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Simple problem recognition: Need that occur
frequently and can be dealt with automatically. For Ex.: Feeling thirsty and not having Pepsi. Complex problem recognition: Need occur
over a period of time and the actual and desirestate gradually move apart.
For Ex.: a man who was driving a scooter formany years consider selling it and going fornew scooter so as to reduce the maintenance
charges.
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Internal Stimuliand
External Stimuli
Present Status
PreferredState
Marketinghelps
consumersrecognizeanimbalancebetweenpresentstatusandpreferredstate
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Chapter5Version6e 16
Anyunitofinputaffectingoneor
moreof
the
five
senses:
sight
smelltaste
touch
hearing
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Consumergathersinformationrelatedtotheirattainmentofthedesired
stateofaffairs
Internalsearch apassiveapproachtogathering
informationinwhichtheconsumersownmemory
isthemainsourceofinformationaboutaproduct
Externalsearch a
proactive
approach
to
gathering
information
in
which
theconsumercollectsnewinformationfromsourcesoutsidethe
consumersownexperience
MarketingcontrolledNonmarketingcontrolled
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Sources of InformationMarketerControlled
Advertising
Salespersons Brochures
Store
displays CompanyWebsites
Nonmarketer Controlled
Friendsandfamily
Pastexperience
Publicinformation
Experts
Internet
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Systematicsearch involvesacomprehensivesearch
and
evaluation
of
alternatives
Extended problemsolving
Limited problemsolving
Heuristicsearch involvestheuseofquickrulesofthumbandshortcuts Routine problemsolving
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The amount of search depends on:
Perceived risk Involvement
Familiarity and expertise
Time pressure Nature of the product
Amount of information overload
Ifperceived risk is high than complex informationsearch and when the perceived risk is low thanconsumer likely to use very simple and
evaluation techniques.
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Experience
SocialAcceptabilityoftheproduct
Value
related
consideration
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For evaluation consumer tend to use two
types of information:
List of brands that they plan to make their
selection (The Evoked Set) The criteria they will use to evaluate each
brand
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ALLBrands
UnknownKnownBrands
OverlookedBrands
IndifferentBrands
UnacceptableBrands
AcceptableBrands
NotpurchasedBrands
PurchasedBrands
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Unknown Brand: Consumer selective exposure
in to advertising media and selective perceptionof advertising stimuli.
Unacceptable Brands: Poor qualities or
inappropriate positioning in advertising orproduct characteristics.
Indifferent Brands: Perceived as not having
special benefit. Overlooked Brands: Not clearly positioned or
sharply targeted at the consumer marketsegment
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Promotional technique should be deigned to
impart favorable and relevant product imageto the target consumers.
Change in product features or attributes. Invite consumers in a particular target
segment and try to put in their evoked ser
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ConsumerDecisionRulereferredas:
Heuristicevaluation choosingamongalternatives
withoutformalized
steps
to
arrive
at
adecision
Suchastheuseofintuition
Simplychoosing
by
relying
on
agut
level
feeling
Systematicevaluation choosingamongalternatives
byusing
aset
of
formalized
steps
to
arrive
at
adecision
Multiattribute model:highestoveralljudgment
Linearcompensatory:globalscore
Lexicographicapproach:rankorderattributes
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ConsumerDecisionrulesarebroadlyclassified
intotwo
major
category:
Compensatorymodel
Noncompensatory models
Conjunctivemodel
Disjunctivemodel
Lexicographicmodel
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With the compensatory model the
consumer arrives at a choice by
considering all of the attributes and
benefits of a product or service andmentally trading off the alternatives
perceived weakness on one or moreattributes for its perceived strength on
other attributes
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Performance Levels on Evaluative
Criteria for Six Notebook ComputersEvaluative
Criteria
Alternatives
WinBook HP Compaq Dell IBM Toshiba
Price 5 3 3 4 2 1
Weight 3 4 5 4 3 4
Processor 5 5 5 2 5 5
Battery life 1 3 1 3 1 5
After-sale
support
3 3 4 3 5 3
Displayquality 3 3 3 5 3 3
E l i f Si N b k
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Evaluation of Six NotebookComputers
Using a Compensatory ModelEvaluative
Criteria
Importance
ScoreAlternatives
WinBook HP Compaq Dell IBM Toshiba
Price 30 5 3 3 4 2 1
Weight 25 3 4 5 4 3 4Processor 10 5 5 5 2 5 5
Battery life 05 1 3 1 3 1 5
After-saleSupport 10 3 3 4 3 5 3
Display
Quality
20 3 3 3 5 3 3
Total 100 370 345 370 385 300 295
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With Noncompensatory Models a
strength on one attribute cannot offset
a weakness on another attribute
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Evaluative
Criteria
Minimum
Standards
Alternatives
WinBook HP Compaq Dell IBM Toshiba
Price 3 5 3 3 4 2 1
Weight 4 3 4 5 4 3 4
Processor 3 5 5 5 2 5 5
Battery life 1 1 3 1 3 1 5After-sale
Support
2 3 3 4 3 5 3
DisplayQuality
3 3 3 3 5 3 3
Evaluation of Notebook Computers
Using the Conjunctive Model
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Evaluation of Notebook Computers
Using the Disjunctive ModelEvaluative
Criteria
Minimum
Standards
Alternatives
WinBook HP Compaq Dell IBM Toshiba
Price 5 5 3 3 4 2 1
Weight 5 3 4 5 4 3 4
Processor Not critical 5 5 5 2 5 5
Battery life Not critical 1 3 1 3 1 5
After-sale
Support
Not critical 3 3 4 3 5 3
Display
Quality
5 3 3 3 5 3 3
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Evaluation of Notebook Computers
Using the Lexicographic ModelEvaluative
Criteria
Rank Alternatives
WinBook HP Compaq Dell IBM Toshiba
Price 1 5 3 3 4 2 1
Weight 2 3 4 5 4 3 4
Processor 4 5 5 5 2 5 5
Battery life 6 1 3 1 3 1 5
After-sale
Support
5 3 3 4 3 5 3
DisplayQuality
3 3 3 3 5 3 3
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Decision Outcomes
Choice Model Brand ChoiceCompensatory Dell
Conjunctive HP, Compaq
Disjunctive Dell, Compaq,
WinBookEBA Dell
Lexicographic WinBook
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DecisionRule MentalStatement
Compensatory
Rule I
selected the
computer
that
came
outbestwhenIbalancedthegoodratingsagainstthebadratings
ConjunctiveRule I
selected
the
computer
that
had
nobadfeatures.
Disjunctive Rule I pickedthecomputerthatexcelled
inat
least
one
attribute
LexicographicRule Ilookedatthefeaturethatwasmost importanttomeandchose
thecomputer
that
ranked
highest
onthatattributes.
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An individuals familys decisions to be
committed to a particular lifestyle. For Example: Devoted follower of a particular
religion.
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Consumer decision process can also be
influenced by Incomplete information andNon Comparable alternatives.
There are strategies to cope up with missinginformation:
Consumer may delay decision
Consumer may ignore missing information and
decide to continue with current decision
Consumer may construct the missing information
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Threetypesofpurchases:
Firsttimeortrialpurchase(Ex.:Detregent)
Repeatpurchase
Longterm
commitment
purchases
Incaseofdurablegoodslikerefrigerators,
Washingmachines,Ovens,etc.consumerdirectlymovetolongtermcommitment
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When buying the product/service, the consumer may make choices
From whom to buy: determined by sellers terms of sales, past
purchase experience, return policy, etc store choice: deciding to purchase from a particular outlet
nonstore choice: deciding to purchase from a catalog, theInternet,
or variety of mailorder possibilities
When to buy: determined by whether product is on sale,manufacturer offers a coupon/rebate, stores atmosphere,
salesperson persuasiveness, etc.
Purchase decision can also be influenced by
Attitudes of others (e.g. friends, other customers) Unexpected situational factors (e.g. no cash or credit card for
payment)
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Choice
identification
Purchase
intent
Purchase
implementation
Purchasedecision
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Future responseExitVoice
Loyalty
Decision confirmation
Experience evaluation
Satisfaction/dissatisfaction
Postpurchaseevaluation
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Neutral feeling: Actual performance
matches expectation. Positive Disconfirmation of Expectation:
Performance of product exceeds expectation. Negative Disconfirmation of Expectation:
Performance of product falls below
expectation.
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Consumer may adopt the one of the
following strategy in order to reduce theircognitive dissonance:
Rationalize that decision is wise Look out for advertisement to support their
choice an avoid competitive brand.
Persuade friends or neighbors to buy samebrand and confirm their own choice. Turn to other satisfied owners for their
reassurance.
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RoleofExpectationsinSatisfaction/Dissatisfaction
ActualPerformance
Pre-purchaseExpectations
ActualPerformance
Pre-purchaseExpectations
Dissatisfaction Satisfaction
Postpurchaseevaluation
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If the product performs as per consumer
expectation than the consumer buy it again. If product performance is disappointing of
below expectation than consumers will lookout for alternative products or brand in
future.