Consumer Decision Making

Madhulika Kaushik
VC ,Usha Martin University
Learning outcomes :
After going through this course , you should be able to
Analyze the purchase decision making process used by
consumers and organizations.
 Apply your understanding of different decision types to your
marketing stratgies
describe the importance of problem recognition in the overall
framework of consumer decision making;
 Discuss the information search behaviour and its implications
for promotional decisions
Explain the various choice heuristics and their application
Analyse and apply the implications of post purchase behaviour
CB
Encompasses:
Decision process stages
Range of Decision situations
Most of buyer behaviour consists of repetitive brand
selection decisions ???

RRB

LPS

EPS
Interchange of situations?
 Characteristics
RRB LPS EPS

Involvement level Low Medium High

Problem Recognition Automatic Semi Complex

auto
Information Low Minimal extensive
Search/Evaluation

Purchase Convenience Blended Shopping

orientation
Post Purchase Very limited Limited Loyalty
processes Habit Inertia Compliant
Brand loyalty Switching
Problem recognition

Threshold Level???
Results of Problem recognition
May or may not result in moving to next stages
Dissonnace-discomfort- tension- reducution
behavioir
Threshold levels and enabling conditions
Moving forward-buying intention, information
search, alternative evaluation
Information overload- impact

What does the consumer need information for ?

Extent of information search

Product factors
-Large inter purchase time
- Frequent changes in price, product styling, features
- Value of the purchase( Volume/unit)
- Many brands with significant diffrence
- High vs low involvement
Situational factors
- First time purchase
- Low experience
- Unsatisfying previous experince in the category
- Social significance
Consumer factors
- Demographics
- Personality- risk perception/uncertainity avoidance, open to experimentation

HOW CAN MARKETERS INFLUUENCE INFORMATION SEARCH BEHVAVIOUR???

-
Sources of Information
Personal- Internal and external
Internet, Social media, Consumer groups
Marketer led Sources- integrated marketing
communication
Vicarious learning
Information processing
Attention, Retention , recall and usage
Information overload and organisation of inputs
Interpretation of marketing stimuli- concept of
selectivity and defense mechanisms
Alternative evaluation : Brand sets

Marketing efforts in influencing

Choice Heuristics- decision rules
Simplifying decision situation by reducing
consideration set
Compensatory vs non compensatory heuristics
Disjunctive rule
Conjunctive Rule
Lexicographic Rule
Sequential elimination rule
CPA vs CPB

How much evaluation

URGENCY
SIGNIFICANCE
Alternative Complexity
High vs Low involvement
Post Purchase Behaviour