Decision Making Process

Need/Problem Recognition
• Simple
• Complex
• Eg:
• Actual State Changing
• Desired State Changing
 Information Search
• Product Category and Variations
• Alternatives
• Brands
• Depends on:
• Consumer: Demographic & Psychographic
• Product Category: Differentiation; Risk; Price;
Availability; Visibility; Acceptance etc.
• Situation: Time; 1st time purchase; Quantity and
availability of information
 Types of Search
• Specific
• Ongoing
• Incidental
• Information Sources:
• Internal
• External: Interpersonal; Commercial and
Public
 Evaluation of Alternatives
• Generation of Choice:
• Evoked/Consideration Set
• Choice Set
• Identification of Evaluative Criteria: Attributes and Benefits:
• Economic
• Behavioral and
• Social Influences
• Application of Decision Rules:
• Compensatory rules: Simple summated and Weighted
• Non-compensatory rules:
• Conjunctive rule
• Disjunctive rule
• Lexicographic rule
 Purchase Decision
• Trails/First Purchase
• Repeat Purchase
• Where/Whom/When
• Affected by:
• Attitudes of others
• Unexpected Situational Factors
 Post Purchase outcomes
• Stage 1:
• Cognitive Dissonance: High involvement; irrevocable; non-
refundable; desirable alternatives;
• Stage 2:
• Usage & Reaction: Experience; affects future decisions;
feedback
• 3 situations:
• P=E: Satisfied
• P>E Delight
• P<E Dissatisfied
 Buying Motives
• Primary: Basic Needs
• Secondary: Curiosity; Comfort; Security; Love;
Affection etc.
• 1. Emotional: Love, affection, curiosity, fashion,
pride, prestige, romance, fear etc.
• 2. Rational: Economy, utility, comfort,
convenience, durability, security etc.
• 3. Patronage: Service motive, quality, location,
store layout, behavior
 Models
• Economic
• Passive
• Cognitive
• Emotional
 Roles
• Initiator
• Influencer
• Decider
• Buyer
• User
 Types of Buying Decisions
• Complex
• Dissonance
• Habitual
• Variety Seeking
 Levels of Decision Making
• Extensive
• Limited
• Routinized
 Factors
• Cultural: Culture, sub-culture, social class,
• Social Factors: Reference groups, family, roles,
status
• Personal Factors: age, occupation, economic
situation, lifestyle, personality
• Psychological: motivation, perception, belief,
attitude