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Final PPT DM

The document discusses the consumer decision-making process. It begins by introducing consumer behavior and how marketers want to understand consumer decisions to predict behavior and influence the process. It then outlines the 5 stages of the consumer decision-making process: [1] problem recognition, where a consumer realizes a need or problem; [2] information search, where a consumer searches internally and externally for information; [3] evaluation of alternatives, where a consumer identifies options and criteria to evaluate them; [4] purchase decision; and [5] post-purchase evaluation, where a consumer assesses the purchase. The document then focuses on the first two stages - problem recognition, including how it is measured; and information search

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anitayewle
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34 views16 pages

Final PPT DM

The document discusses the consumer decision-making process. It begins by introducing consumer behavior and how marketers want to understand consumer decisions to predict behavior and influence the process. It then outlines the 5 stages of the consumer decision-making process: [1] problem recognition, where a consumer realizes a need or problem; [2] information search, where a consumer searches internally and externally for information; [3] evaluation of alternatives, where a consumer identifies options and criteria to evaluate them; [4] purchase decision; and [5] post-purchase evaluation, where a consumer assesses the purchase. The document then focuses on the first two stages - problem recognition, including how it is measured; and information search

Uploaded by

anitayewle
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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DECISION MAKING

Decision making can be regarded as an outcome of


mental processes (cognitive process) leading to the
selection of a course of action among several
alternatives. Every decision making process produces
a final choice. The output can be an action or an
opinion of choice.
We are going to study
Consumer
“Decision Making
Process”
Introduction
Consumer behaviour: The process through which the
individuals or groups go through to select, purchase, and use goods,
services, ideas or experiences to satisfy their needs and desires.
• Why do we (marketers) care?
• We want to understand why consumers Understand
make the decisions that they do, so that
we will be able to predict what they will
do in a given situation, so that
ultimately, we will be able to influence Predict
that process.
• Why do people buy?
• It relates to value, but that is getting
ahead of ourselves. Influence

6-4
The Consumer Decision-Making Process
Problem Recognition Om realizes that
he is fed up with
His current colour TV

Information Search Om talks to a


few of his friends
about a new LCD

Evaluation of Alternatives Om goes shopping


to compare LCDs
of different brands

Product Choice Om chooses one


model/brand for its
features and price

Post-purchase Evaluation Om takes the LCD


home and becomes
a couch potato
We are going to Discuss:
The Consumer Decision-Making Process

PROBLEM RECOGNITION

EVALUATION OF
ALTERNATIVES
Problem Recognition
• Occurs when the consumer sees a significant
difference between his or her actual and ideal
state.
• Where do we get our notion of what is ideal?
personal expectations
personal aspirations
culture
reference group
marketing
The problem recognition
process

3-8
How can you measure problem recognition?
 
Activity analysis: This method focuses on a particular activity such as
preparing dinner, maintaining a lawn, or lighting a fireplace fire. This method
attempts to determine what problems the consumer encounters in performing
a particular activity.
 
Product analysis: This method focuses on the purchase and/or use of a
particular product or brand in an attempt to determine what problems a
consumer may encounter in purchasing or using this product.
 
Problem analysis: This method takes an opposite approach in that it starts
with a list of problems and asks consumers to indicate activities, products,
or brands that are associated with these problems.
 
Human factors research: This approach looks at the capabilities of
humans, and attempts to design products in light of these capabilities.
 
Emotion research: Focus groups and projective techniques are beginning
to be used to help us understand the role of emotion in problem recognition.
Approaches to Search for
Problem Solutions

INTERNAL
Memory
Thinking

EXTERNAL
Word of mouth, media, CATALOG
store visits, trial
Internal Search
• Recalling information, experiences, and feelings concerning
products and brands.
• How much do we engage in internal search?
• What kind of information is recalled?
1. Brands
*evoked set
*brand familiarity and retrieval cues increase
chances of being in the evoked set
2. Attributes
3. Evaluations
4. Experiences
• Is internal search always accurate?
Confirmation bias
External Search
• Consumers acquire information from outside
sources.
• Engage in pre-purchase and ongoing search
• External Sources
1. Retailer search
2. Media search
3. Interpersonal search
4. Independent search
5. Internet source
effects of information overload
• Is external search always accurate?
Evaluation of Alternatives
Identifying Alternatives:
Evoked set and consideration set.

Identifying Evaluative Criteria:


Information search suggests criteria and identifies
brands.
Evaluative criteria include those criteria that are
important to the consumer when rating product
alternatives.
Firms try to identify evaluative criteria through market
research.
The information search clarifies the problem for the
consumer by:
Suggesting criteria to use for the purchase.
Yielding brand names that might meet the criteria.
Developing consumer value perception.

A consumer's evaluative criteria represent both:


The objective attributes of a brand.
The subjective factors (such as prestige).

These criteria establish a consumer's evoked set:


The group of brands that a consumer would consider
acceptable from among all the brands in the product class
of which he or she is aware
Consumer Decission Making Process have further steps:

 Purchase Decision &


 Post Purchase Evaluation

Which will be explained by our other friends.


THANK YOU

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