Introduction to Consumer Behaviour; Consumer Behaviour and Marketing Strategy; Consumer Involvement – Levels of involvement, and Decision Making. Consumer Decision Process – Stages in Decision Process, Information Search Process; Evaluative Criteria and Decision Rules, Consumer Motivation – Types of Consumer Needs, Ways of Motivating Consumers. Information Processing and Consumer Perception. Consumer Attitudes and Attitude Change; Influence of Personality and Self Concept on Buying Behaviour, Psychographics and Lifestyles, Impuse Buying. Diffusion of Innovation and Opinion Leadership, Family Decision Making, Influence of Reference Group Industrial Buying Behaviour– Process and factors, Models of Consumer Behaviour – Harward Seth, Nicosia, E& D, Economic Model; Introduction to Consumer Behaviour Audit; Consumer Behaviour Studies in India.

1. CONSUMER DECISION
MAKING PROCESS

2. Learning Objectives
Understand the three problem solving
variations and when consumers use
them.
Thoroughly understand each stage of
the consumer decision making process.
Be familiar with low effort decision
making tactics.
Understand how situational influences
affect the decision making process.

3. Problem Solving Variations
Extended Problem Solving
 High perceived risk
 Typically expensive, infrequently purchased products
Routine Problem Solving
 Low perceived risk
 Purchases made out of habit or brand loyalty
 Typically inexpensive, frequently purchased product
Limited Problem Solving
 Moderate perceived risk
 Consumer has limited time or energy

4. Stages in the Consumer Decision
Making Process
Problem recognition
Information search
Alternative evaluation
Decision
Post decision evaluation

5. 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

6. 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

7. 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?

8. How Much do We Engage in
External Search?
Motivation to Process Information
Ability to Process Information
Opportunity to Process Information

9. Evaluation of Alternatives
 Identifying Alternatives
 evoked set and consideration set
 Identifying Evaluative Criteria
 information search suggests criteria and identifies
brands
 Evaluative criteria includes those criteria that are
important to the consumer when rating product
alternatives
 Firms try to identify evaluative criteria through
market research.

10. Decision
Consumers select and purchase the
product alternative that best meets his or
her evaluative criteria.
Noncompensatory decision rules
Compensatory decision rules

11. Post Decision Evaluation
Process where consumer reevaluates
the product as he uses it.
Product performance is compared with
consumer expectations.
Satisfied customers
Dissatisfied customers
Cognitive dissonance

12. Low Effort Decision Making
Heuristics
Market Beliefs
Brand Loyalty
Habit
Impulse Purchases
Variety Seeking

13. Situational Influences
Consumer behavior is influenced by the
circumstances surrounding the purchase
of a product.
Social surroundings
Physical surroundings
Temporal effects
Purchase task