1. How Organizations Use the CDP Model February 2, 2010

2. Variables Shaping the Decision Process Environmental Differences: Culture Social Class Family Personal Influence Situation behaviors

3. Social Influences Culture Subcultures Social class Reference groups Families and Households

4. Variables Shaping the Decision Process Environmental Differences: Culture:values, ideas, artifacts, and symbols that help individuals interpret, communicate, and evaluate as members of society

5. Variables Shaping the Decision Process Environmental Differences: Social Class: division within society composed of individuals sharing similar values, interests, and behaviors

6. Variables Shaping the Decision Process Environmental Differences: Family:often the primary decision making unit with a complex and varying pattern or roles and functions

8. Variables Shaping the Decision Process Environmental Differences: Personal Influence:our behaviors are often affected by those with whom we closely associate

9. Variables Shaping the Decision Process Individual Differences: Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes

10. Consumer Demographics Age Family Life Cycle Education, Income Religion

11. Family Life Cycle Stages Nine stages with different buying behavior Bachelor Young Married Full Nest I Single Parents Divorced and Alone Middle-aged Married Full Nest II Empty Nest Older Single

13. Reference (opinion leaders)

14. Aspirational

15. Groups

16. Most important consumer

17. buying organization

18. Family

19. Role =Expected activities

20. Status =

21. Esteem given to role by society

22. Roles &

24. Maslow’s Hierarchy of Needs

25. Perception Process of receiving, organizing, and assigning meaning to information or stimuli detected by our five senses

26. Personality An individual’s pattern of traits that influence behavioral responses Psychoanalytic Theory Hidden buying motives Dreams, hopes, fantasies, fears Self-concept Actual Ideal

27. Lifestyle & Psychographics Activities Interests Opinions

28. Attitudes Learned predisposition to respond to an object in a consistently favorable or unfavorable way

29. What Is An Attitude? Object Manifested dimensionsand attributes Cognitive Component Beliefs aboutthe object Affective Component Emotions or feelingsabout the object Conative Component Behavioral intentiontoward the object Attitude Overall expressiveorientation towardthe object

30. Variables Shaping the Decision Process Environmental Differences: Situation behaviors:as situations change, so does the individual’s behavior

31. Situational Factors When consumers buy Where consumers buy Why consumers buy Conditions under which consumers buy

32. Situational Influences Surroundings Time Consumer Moods and Motives Terms

33. Types of Decision Processes

34. Consumer Decision Process Continuum Limited Problem Solving (LPS) Midrange Problem Solving Extended Problem Solving (EPS) Low High Degree of Complexity

35. Consumer Decision Process Continuum: Repeat Purchases Midrange Problem Solving Habitual Problem Solving Extended Problem Solving Limited Problem Solving Low High Degree of Complexity

36. Types of Decision Processes Initial Purchase Extended Problem Solving (EPS): Problem solving of a higher degree of complexity that influences consumers actions

37. Types of Decision Processes Initial Purchase Extended Problem Solving (EPS): Often occurs with expensive items or can be fueled by doubts and fears Importance in making the “right choice” All seven consumer decision making stages are often activated Dissatisfaction is often vocal

38. Types of Decision Processes Initial Purchase Limited Problem Solving (LPS): Problem solving of a lower degree of complexity that influences consumers’ actions

39. Types of Decision Processes Initial Purchase Limited Problem Solving (LPS): Consumers don’t have motivation, time, or resources to engage in EPS Little search and evaluation before purchase Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance

40. Types of Decision Processes Initial Purchase Midrange Problem Solving: Many decisions occur along the middle of the continuum Decisions are made with a minimal amount of time and only moderate deliberation

41. Types of Decision Processes Repeat Purchases Repeated Problem Solving Habitual Decision Making

42. Types of Decision Processes Repeat Purchases Repeated Problem Solving Habitual Decision Making Impulse Buying Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion (least complex form of LPS)

43. Types of Decision Processes Impulse Buying Variety Seeking Consumers may be satisfied with the present brand but still engage in brand switching Can be triggered because bored with current brand or because of special offer

44. Factors Influencing Problem Solving Extent Degree of Involvement (High-Low) Personal Factors (self-image, health, beauty, or physical condition) Product Factors(is there perceived risk in purchasing and using a particular brand or product?) Situational Factors(is the product purchased for personal use or as a gift?)

45. Factors Influencing Problem Solving Extent Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made?

46. Factors Influencing Problem Solving Extent Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made? Consumers’ Mood State How people feel at a particular moment Mood can reduce or increase length and complexity of decision process

47. Thank You