MODELS OF CONSUMER AND

DECISION RULES

Presented by:
Yogesh Kr Mehroliya
MBA IB 3rd Sem
Roll no: 21
MODELS OF CONSUMER DECISION
MAKING

Economic Model

Passive Model

Cognitive Model

Emotional Model
ECONOMIC MODEL
 Under this model, consumer is regarded as very
rational.
 The consumer is aware of various alternatives; he
has the knowledge and ability to rank all of these
and he finally takes a rational decision.
PASSIVE MODEL
 Here, consumers are more irrational and make
impulsive decisions. They can be easily
manipulated by promotion and advertising.
 Businessmen should focus on creating that want
with exciting advertising that appeals to the
emotions of the buyer.
COGNITIVE MODEL
 These consumers are regarded as a thinking
problem-solvers, whose decisions are based on
information gathering and processing.
 These consumers will respond to promotions
based upon the consumer receiving good value for
their money.
EMOTIONAL MODEL
 According to Consumer Behavior expert Leon
Schiffman, some consumers make purchases
based on emotions like joy, love, fear or hope.
Many hope to preserve a sense of the past.
CONSUMER DECISION RULES

Compensatory Non-Compensatory

Conjunctive
Decision Rule

Disjunctive
Decision Rule

Lexicographic
Rule
COMPENSATORY
 A type of decision rule in which a consumer
evaluates each brand in terms of each relevant
attribute and then selects the brand with the
highest weighted score.
NON-COMPENSATORY
 A type of consumer decision rule by which
positive evaluation of a brand or product
attribute does not compensate for a negative
evaluation of the same brand on some other
attribute i.e. a positive attribute of a product does
not make the consumer overlook the negative
attributes of the product.
CONJUNCTIVE DECISION RULE
 A non-compensatory decision rule in which
consumers establish a minimally acceptable
cutoff point for each attribute evaluated.
 Brands that fall below the cutoff point on any one
attribute are not considered.

Result: Consumer selects a product which has no

negative attributes or bad features.
DISJUNCTIVE RULE
 A non-compensatory decision rule in which
consumers establish a minimally acceptable
cutoff point for each relevant product attribute.

Result: Consumer selects a brand or product that

excels in at least one attribute.
LEXICOGRAPHIC RULE
 A non-compensatory decision rule in which
consumers first rank product attributes in terms
of importance, then compare brands in terms of
the attribute considered most important.

Result: Consumer selects the product that excels in

the attribute that is more important to the
consumer.