4(c)-MARKETING MANAGEMENT.

SIMPLE MODEL OF
CONSUMER DECISION
MAKING-LEON G.SCHIFFMAN.

1
 Model of consumer decision making
• CDM
External influence

Socio cultural environment

Firms marketing efforts Family
Input Product Informal sources
Promotion Other non-commercial sources
Price Social class
Channel of distribution Sub culture & culture
Consumer decision making
Psychological field
process Need recognition Motivation
Pre purchase search Perception
Evaluation of alternatives Learning
Personality
Post purchase behavior attitude
Purchase
Experience
Output Trial / repeat purchase
2
Post purchase evaluation
 Input stage
• Influences the consumers recognition of a
product need & consists of 2 major sources of
information:-
1. Firm’s marketing efforts
2. External sociological influence on consumer
• The cumulative impact of each firm’s 1& 2-
societies existing code of behavior are all
INPUTS that are likely to affect:-
1. What consumers purchase
2. How they use
Eg:- Laptop 3
 Consumer decision process
• CDP
stimulus

Problem
awareness
Information
search
Evaluating
alternatives

purchase

Post purchase

4
 The process stage
• Model focuses on how consumer makes decision, the
psychological factor inherent in each individual
(motivation, perception, Learning, personality &
attitude)
AFFECT
How the external input from input stage influence the
consumer’s recognition of
• Need recognition
• Pre purchase search for information
• Evaluation of alternatives
• The Experience gained thru evaluation of alternatives
in turn AFFECT the consumer’s psychological
attributes
• Eg:- Laptop 3 different stores 5
 stimuli
• Are inputs of any of the senses (i.e. sensory
input), include products, package, brand name,
etc.
• Nature of the products, their physical &
commercial attributes
• Including (positioning of print ad, timing of
commercial & editorial environment)

6
 Need recognition
• Need Recognition: Is likely when consumer is
faced with a problem
• Eg:- grown up family, need for flat
• Two types of needs:-
1. Actual state need: when product fails to
perform
2. Desired state need: Desire for something new
can trigger the decision process
• Eg:- Person driving scooter (sell & buy new
scooter to reduce maintenance)
7
 Pre purchase search
• Begins when the person perceives need that
might be satisfied by purchase or consumption
of product
• Past experience : might provide adequate
information to make the present choice
• Greater the past experience less the external
information to reach decision
• No past Experience: May go for extensive
search
• Information available on Internet , website etc.
8
 Factors likely to increase pre purchase
search
• Product factor:
1. Long inter purchase time (infrequently used product)
2. Frequent price changes
3. Many alternative brands
4. Much variants feature etc…
• Situational factor:
1. First time purchase
2. No past experience
3. Unsatisfactory past experience within product category
• Social acceptability:
1. The purchase is for gift
2. Product is socially visible
• Value related consideration
• All alternatives have both desirable & undesirable
consequences 9
• Family members disagree on product requirement
 Evaluation of alternatives
• When evaluating potential alternatives
consumers tend to use 2 types of information:-
1. List of brands from which they plan to make
selection ( Evoked set)
2. Criteria used to evaluate each brand

10
 List of brands
• Brands
All Brands

Known brands Unknown

brands

Evoked set Inept set Inert set

Acceptable Unacceptable Indifferent Overlooked

brands brands brands brands

Purchased Non The implication for marketers is that promotional

brands Purchased Technique should be designed to impact a more
brands Favorable, perhaps more relevant product image 11
To target consumer
Criteria used for evaluating brand

• Evaluate the brands that constitute Evoked set

35 mm camera Auto focus / built in focus/ automatic
film loading/lens type

Color TV Picture quality / length of

warranty/price/size of screen
Wrist watches Watch brand / alarm features / price /
water resistance / quartz movement
Personal computer Processing speed / price/ type of
display / hard disk size / amount of
memory
Washing Powder/ Soap cake Cleaning ability, price / type of quality/
good for hands
Fountain pen Balance / price / gold nib / 12
smoothness/ ink reserve
 The output stage
• CDM model consists of 2 closely related post
decision activities:-
1. Purchase behavior
2. Post purchase evaluation
• Trial:- Is an exploratory phase of purchase behavior
in which consumer evaluates the product through
direct use.
• Trial can be through free sample / promotional
activities / coupons / sale price
• Repeat purchase: usually signifies product adoption
• Eg:-Laptop
• May become a loyal IBM Laptop Customer
• May become Loyal Customer to retailer
• He may decide his next computer will be desk top
13
 Post purchase evaluation
• Consumers use a product during a trial
purchase, they evaluate it’s performance in
light of their own expectation.
• There are 3 possible outcome of this
evaluation:-
1. Actual performance = expectation (neutral
feeling or just satisfied)
2. Performance > expectation (customer
satisfaction and sometimes Customer Delight)
3. Performance < expectation (dissatisfaction)14
 Cognitive dissonance
• Part of post purchase analysis, consumers try to
reassure themselves that the choice was a wise one.
• They attempt to reduce post purchase cognitive
dissonance:-
1. They may rationalize the decision as being wise
2. May seek advertisement that support their brand
3. May attempt to persuade friends / neighbour to buy
same brand
4. May turn to another satisfied owner for re-assurance

15