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Decision Making Process Presentation - Workshop 5
1. The process of
making
decision
Workshop 5
5th of March 2014
An analysis by:
Claude Dorliat
David José Espitia
Andres Montealegre
Jose Miguel Peaa
Carolina Pereira
2. Products
Workshop Objective
Register the decision making
process of consumers.
“ ”
Coat
as garment product
TV set
as electric appliance product
Method
In-depth interviews to three
different consumer targets.
“ ”
3. Interviewed panel
Interviewee 1
Age: 24
Job: student and teacher
Gender: male
Social status: 6
Interviewee 2
Age: 48
Job: housewife
Gender: female
Social status: 6
Interviewee 3
Age: 56
Job: lawyer
Gender: male
Social status: 6
4. Deep description of the decision process
Need recognition
Discrepancy between actual
and ideal state
Search of information
External Sources
Internal Sources
Choice
Post-purchase Evaluation
Evaluation
Decisionmakingprocess
The iterative way consumers decide how,
when and what products to buy.
Cognitive-based decisions
Affective-based decisions
Feedback and Satisfaction
Heuristics
Algorithms
6. Interviewee 1
24 year old man
Interviewee 2
48 year old woman
Fashion
Protection from weather
Interviewee 3
56 year old man
Protection from weather Being well dressed
Fill the room
Decoration
Entertainment
Information
Entertainment
Information
Need Recognition
8. Interviewee 1
24 year old man
Interviewee 2
48 year old woman
Magazines, Tunways,
Boutiques, Friends,
Experience
Interviewee 3
56 year old man
Store, Trying on clothes,
Previous experience
Store, Trying on clothes,
Previous experience
Internet First on Internet and then
with a Proffesional.
Previous experience
Friends and consumers
Internet
Precious experience
Source of Information
9. Source of Information
TV
Previous experience with brand
(Tradition, reliability, familiarity)
Internal Source
External Source Objective, High quality information
(Store, professionals, internet, family
and friends)
Coat
Internal Source
External Source
Previous experience with brand
(Tradition, reliability, familiarity)
Objective, High quality information
(Store, magazines, boutiques)
10. Source of Information
TV
Previous experience with brand
(Tradition, reliability, familiarity)
Internal Source
External Source Objective, High quality information
(Store, professionals, internet, family
and friends)
Coat
Internal Source
External Source
Previous experience with brand
(Tradition, reliability, familiarity)
Objective, High quality information
(Store, magazines, boutiques)
14. WHY?
Perceived Risk
- Financial Risk
- Performance Risk
- Risk Aversion
Degree of Expertise
Knowledge External Sources
Involvement
Involvement External Sources
Consideration Set
Consideration Set External Sources
15. Bounded Rationality
- Incomplete or imperfect information
- Cognitive Processing Capacity
Evaluation of
Alternatives
Heuristics
- Availability: basing judgments on events
that are easier to recall.
- Representativeness: making a judgment
by simply comparing a stimulus with the
mental prototype or exemplar,
- Anchoring: starting with an initial
evaluation and adjusting it with
additional information.
16. Interviewee 1
24 year old man
Interviewee 2
48 year old woman
Best look and best fit
Interviewee 3
56 year old man
Availability,
Representativeness and
Anchoring
Evaluation of Alternatives
Algorithms
Availability ,
Representativeness and
Anchoring
Availability ,
Representativeness and
AnchoringHeuristics
Best look and best fit Best look and best fit
17. Interviewee 1
24 year old man
Interviewee 2
48 year old woman
«I compare the styles and
buy the one that is more
pretty »
Interviewee 3
56 year old man
Availability
Representativeness and
Anchoring
Evaluation of Alternatives
Algorithms
Availability
(Brand Loyalty) and
Anchoring
Availability,
Representativeness and
AnchoringHeuristics
“I first search on Internet
for the product, compare
brands, go to the store,
receive help form specialist,
look at the product in real
life and buy it”
“I visits the general store,
examine all brands, go to
specialized stores I
consider best, search for
word of mouth information
and look in the Internet“
18. Choice
Cognitive Decision Models
- By brand or attribute at a given time
- Whether compensatory or non-compensatory
Compensatory Non-Compensatory
By Brand MAUT Conjunctive/Disjunctuve
By Attribute Additive Difference
Weighted Additive
Difference
Lexicographic
Elimination by aspects
Take the best
19. Choice
Cognitive Decision Models
- By brand or attribute at the same time
- Whether compensatory or non-compensatory
- Compensatory: a mental cost benefit analysis in which negative features
can be compensated by positive ones.
- Noncompensatory: a simple decision model in which negative
information leads to rejection of the option.
- Multi-attribute Model: consumer focus on brands but face tradeoffs
between conflicting attributes.
- Disjunctive: a non compensatory model that sets acceptable cutoffs to
find options that are good
20. Interviewee 1
24 year old man
Interviewee 2
48 year old woman
Interviewee 3
56 year old man
Choice
Brand and attributes
Cognitive processing
Brand
Cognitive processing
Brand
Cognitive processing
Brand and multi-attributes
Cognitive processing
Brand and multi-attributes
Cognitive processing
Brand disjunctive
Cognitive processing
21. Satisfaction
Importance of Feedback
- Determining and facilitating future decision processes
Related to Satisfaction
- Use of internal sources previous experience
- Use of external sources reduce risk
- Heuristics not necessarily lead to biases
If dissatisfied
- Return or change product
- Buy a alternative or similar brand
22. • Decision process varies according to the product and the consumer
• Individual differences (personal interests and goals) may explain
discrepancies in the process
• Commonalities:
• Needs being satisfied
• Use of primarily external sources
• Use of heuristics
• Differences:
• Cognitive choice rules
• Product attributes considered
• All consumers appeared to be processing by brand, they differed
regarding the compensatory or non-compensatory processing of
attributes.
Conclusions
23. Marketing strategies and recommendations
Coat
TV
1) Lots of information regarding
product characteristics.
1) Present information consistently
across different media.
1) Word of mouth potential target
for marketing strategies to spread
information of product
characteristics.
24. Marketing strategies and recommendations
Coat
TV
4) Emphasize the brand’s tradition,
reliability and quality.
5) Emphasize positive consumption
experiences through advertising
(availability heuristic).
6) Brand that does not dominate the
TV market present itself as similar
to the category prototype.
7) Product as the perfect tradeoff
between price and quality
25. Any
questions ?
Thank you
Workshop 5
5th of March 2014
An analysis by:
Claude Dorliat
David José Espitia
Andres Montealegre
Jose Miguel Peaa
Carolina Pereira
