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SMCHS Campus
In the fulfillment of the course
“Consumer Behavior”
Assignment-01
Bachelors in Business Administration
Submitted to
Dr. Amir Adam
By
Hira Raza-15972
BBA 2 Years
December (2021)
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Table of Contents
S. No PARTICULARS PAGE
ABSTRACT------------------------------------------------------------------------- 03
2.1 Heuristics---------------------------------------------------------------------------- 07
2.2 Roles in Collective Decision making-------------------------------------------- 08
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INDIVIDUAL DECISION MAKING
CHAPTER-9 (CONSUMER BEHAVIOR)
A R T I C L E I N FO ABSTRACT
Article history:
This Assignment presents a brief overview of studies on consumer
Prepared on 27th Dec 2021
Available online xxx psychological behavior and individual decision making. Decision making
From the Journals of Human
Psychology
is an important process and some are more important than others, the
Keywords:
amount of effort to take decision differs from one another. Consumer
Habitual Decision making
Hybrid products Behavior is to understand the Psyche of the consumer. It is the consumer
Implementation intentions
Inertia
Information search who make decisions with regards to purchase as well as to consume the
Juggling lifestyle
Mental Budget product and to dispose it off. Taking individual decisions are less costly
Post-purchase evaluation
Prediction market
Problem recognition than the decision taken with consultations. The consumer’s ultimate goal is
Product authenticity
Purchase momentum to identify the best possible alternatives by comparing various features of
Straight re-buy
Search Engines
Rationale Perspective the products such as the brand, quality, price etc. These decision are
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This Chapter summarizes as:
1.1 Three types (Buckets) of Decision making Processes.
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Mental Budget: The allocation of amount and time consumed to take decisions.
Self-Regulation:
Intentions to implement something.
Counteractive Construal: Exaggeration of benefits or risks of one’s own choice.
Feedback loop: Based on the situation we conceive ourselves to take a decision whether good or
bad.
Morning Morality effect: This shows that the people are more likely to cheat, lie or commit fraud
in the afternoon than in the morning.
Executive Control Centre: People have to devote more energy to a simple task.
1.3 Steps in Decision Making Process
Problem Recognition
It occurs when a consumer finds the difference between the current and the ideal state.
Need Recognition: Is when the actual/ current states decline.
Opportunity Recognition: Is when the idea state moves upwards.
Information Search
Evaluation of Alternatives
Product Choice
Choice can be influenced by information from prior experience of using a product, info
available at the time of purchase and belief in the brands.
Feature Creep: a product that has many features making it hard to operate
5|Page The objective of post purchase evaluation is to increase consumer satisfaction. With the
purchase decision made.
1.4 Product Categorization:
Categorization of product mentally is done on the basis of its comparisons, appearance, price, attributes
etc. (The factual knowledge about products and the way this knowledge is organized in people’s mind.
1.5 Level of Product Categorization:
Basic Level Category: Items have much in common but a number of alternatives exists. Most
useful in classifying products.
Superordinate Category: Broad and abstract
Subordinate Category: Individual brands
Example:
Beverages
Superordinate Level
Subordinate
Mixture Juices
Level
Energy Drinks
Dust
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1.7 Evaluative Criteria:
To select among alternative dimensions are used to judge the merits of competing options.
Determinant Attributes: These are those attributes that actually determines the buyer’s final choice.
Recommendation of new decision criteria:
Significant/ notable difference amongst the brands.
A unique decision making rule should be communicated to the consumer.
The rule conveyed should be in a way that is effective and should tell how the consumer made the
decision on different occasions.
1.8 Compensatory Rule:
Simple additive rule leads to the option with the largest number of positive attribute.
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Processing the brand
Decision-maker
-> rejection
Processing the brand
Decision-maker
-> rejection
Processing the brand
Decision-maker establishes cut offs for each specific attribute.
Choose a brand if it passes all the cut offs.
Failure to meet cut offs-rejection.
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2.0 Heuristics:
A habitual decision as rule of thumb that is mentally dealt to simplify decision-making and make speedy
decisions. These decisions ranges from general to specific i.e. from higher priced products are considered
to be higher quality product and the specific product may be some specific brand.
This also includes:
Covariation:
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Visible element act as product signal
Communicates some underlying qualities
Only incomplete information
Country of Origin
Family brand names
Higher prices
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