Scribd
Upload
28 views8 pages

7, Notes

The document discusses consumer decision making processes. It describes how too many choices can paradoxically decrease satisfaction and purchases. It outlines three types of decision making - cognitive, habitual, and affective. Cognitive decisions involve problem recognition, information search, alternative evaluation, purchase, and post-purchase evaluation. Habitual decisions rely on heuristics and rules of thumb. Online information searching has changed decision making by enabling more extensive research but also potential for overload. Moments of truth in the consumer journey are also evolving with digital and mobile influences.

Uploaded by

denise borisade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
28 views8 pages

7, Notes

The document discusses consumer decision making processes. It describes how too many choices can paradoxically decrease satisfaction and purchases. It outlines three types of decision making - cognitive, habitual, and affective. Cognitive decisions involve problem recognition, information search, alternative evaluation, purchase, and post-purchase evaluation. Habitual decisions rely on heuristics and rules of thumb. Online information searching has changed decision making by enabling more extensive research but also potential for overload. Moments of truth in the consumer journey are also evolving with digital and mobile influences.

Uploaded by

denise borisade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 8

CONSUMER BEHAVIOUR

LECTURE 7
DECISION MAKING PROCESS

HYPERCHOICE
Information Overload (Mick et al, 2004), Choice Overload (Scheibehenne et al, 2010),
Overchoice Effect (Gourville and Soman, 2005), Too-Much-Choice Effect (Scheibehenne
et al, 2009)

The paradox of choice

• Too much choice can be demotivating (paralysing effect) and can decrease the likelihood of
purchase (Lyengar & Lepper, 2000).

↑ Analysis Paralysis
↑ Expectations of freedom ↑ Opportunity cost
↑ Regret
↓ Satisfaction

CONSUMER GROUPS

THREE BUCKETS OF DECISION – MAKING

 The three buckets are NOT mutually exclusive and impacted by self- regulation
 Promotion Motivation –focuses on hopes and aspirations (approach)
 Prevention Motivation – focuses on responsibilities & duties (avoidance)
 Feedback Loops help self-regulate actions
Marketers are trying to understand feedback loops that help regulate our actions

Consumer decision making…

*green boxes, 5 stages w/in consumer decision


making

COGNITIVE
DECISION-MAKING PROCESS, a maximising solution

 Consumers do not always proceed through the activities in


sequential fashion
 They do not always complete the process
 Consumer decision making always involves choices linked to
value
 It does not always focus on the purchase of a tangible product

STEP 1, Problem Recognition,

 Occurs when a consumer sees


difference between current and ideal
state
 Problems arise in 2 ways: need recognition (actual state decline) & opportunity
recognition (ideal state moves forward)

social comparisons promote problem recognition:

A study in Finland showed that


when one of a person’s 10
nearest neighbours bought a car,
the odds that the person would
buy a car of the same make
during the next week and a half
jumped 86% (Leonhardt, 2005)

STEP 2, Information Search

The process by which we survey the


environment for appropriate data to
make a reasonable decision.

factors that influence information


search effort:

 Personal factors
 Involvement
 Perceived risk
 Value of search effort
 Time availability
 Attitudes toward shopping
 Situational influencers
 Previous product experience
 Price and quality are intrinsically linked

STEP 3, Evaluate Alternative

STEP 4 & 5, Product Choice

-purchase evaluation has become more important


HABITUAL DECISION MAKING, A Satisficing Solution

Some of our buying behaviours


simply don’t seem “rational”
because they don’t serve a
logical purpose

We often rely on rules-of-thumb to make routine decisions


Habit or truly loyal?
• Inertia
• Brand loyalty

Heuristics,

 Covariation, Judgements we make about a


characteristic of an object that has nothing to do
with the product
 CofO, Russia & Vodka; France & Wine
 Price and quality are intrinsically linked

Biases In DMP

 Mental accounting: framing a problem in terms of gains/losses influences our


decisions

 Loss aversion tendency - we emphasize losses more than gains


 Sunk-cost fallacy - we are reluctant to waste something we have paid for

 Priming refers to environmental cues that influence us


 Default bias refers to a tendency for people to comply with a requirement rather than
to make the effort not to comply

Products Categories

 Consumers must make sense of information and place it in the context of a familiar
category

 Consumers cognitively represent product information in a knowledge structure, a set


of beliefs we organise in our minds.
• Knowledge about the existing category is then transferred to the item to guide
expectations and attitudes toward the new product
We represent a product in a cognitive structure at one of three levels:
Superordinate category — abstract concepts
 Abstract in nature
 Represents the highest level of categorisation

Basic level category — typically most useful; items have a lot in common (points of parity)
but broad range of alternatives can be considered

Subordinate level — more specific


 Detailed in nature
 Consumers examine the knowledge that they have stored about various options
 Evaluations are more relevant and meaningful at this level
Marketing implications of Product Categorisation

 Position a Product — position the product to appeal to target consumer

 Identify Competitors — which different products act as substitutes?

 Create an Exemplar Product—a category exemplar exerts disproportionate


influence on how people think of a product category.

 Location within Store —Consumers often expect to find certain products within
certain places within a store environment.

CHANGES TO DECISION MAKING

ONLINE INFO SEARCH

 The older we get, we get a reduced ability to deal with online information search
activities
 Over 50s conduct less online searching and online reading compared to younger
adults (e.g. Cole & Balasubramanian, 1993; Lin & Lee, 2004).

 Older adults exhibit a diminished working memory capacity and therefore have
difficulty in storing information.

Schlosser (2003) found that products bought online induce more extensive
information processing than the same products in printed adverts.

 Consumers also requested more information when online


 The research suggests that the mere presence of a computer primes people to think
more thinking about the product (i.e. evidence of conditioning).
 Online grocery shopping supports weight loss efforts (diets) by reducing the risk of
impulsive purchases (Gorin et al. 2007)

 The web has a strong search attribute advantage - ease of gathering information
 Cross-channel synergy - searching for information online can enhance the purchase
experience in store

 Shops have a strong purchase attribute advantage - speed of obtaining a product

 The web often lacks channel lock-in - ability to retain customers across different
stages of the decision making process

MOMENTS OF TRUTH

 Moments of truth (MoT) – the points in a journey


that define the overall customer experience
 The moments that present an opportunity to delight the customer.
 The things the customer expects and does not notice unless they are absent

 However the model has changed since the rise of digital – Zero Moment of Truth is
a new addition to the classic three-step process
 What was a message is now a conversation
 No MoT is too big or too small
 As mobile devices grow – zero, first and second MOTs are converging

- Brought
up by
google
LECTURE RECAP

The three categories of consumer decision-making are cognitive, habitual, and


affective
 A cognitive purchase decision is the outcome of a series of stages that result in the
selection of one product over competing options
 The way information about a product choice is framed can prime a decision (even
when the consumer is unaware of this influence)
 We often fall back on well-learned “rules-of-thumb” to make decisions, although this
is transforming in an online environment

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy