Deviprasad Goenka Management college of Media Studies http://www.dgmcms.org.in/ Subject:Consumer behavior unit 10: Decision Making Faculty Name: Subhangi Ma'am

1. CONSUMER BEHAVIOR
UNIT 10:
DECISION MAKING
Mrs. Shubhangi Dharma

2. DECISION MAKING
 Selection of option
 Choice – Available
 No choice decision – Hobson’s choice
 Levels of Consumer Decision Making:
1. Not exhaustive in all situations
2. All purchases are not routine

3. DECISION MAKING
 Levels of Decision Making:
 Extensive Problem Solving
 Limited Problem Solving
 Routinised Response Behavior

4. DECISION MAKING
 Extensive Problem Solving:
 No established criteria
 Great deal of Information
 Evaluating each brand
 Limited Problem Solving:
 Established basic criteria
 Evaluating the Product Category
 Fine Tuned
 Additional information – discriminate

5. DECISION MAKING
 Routinised Problem Solving:
 Experience of Product Category
 Established set of criteria
 Small amount of additional information
 Problem Solving established criteria

6. DECISION MAKING
 Model of Consumer Decision
 Three Distinct Interlocking Stages:
1) The Input Stage
2) The Process Stage
3) The Output Stage

7. DECISION MAKING
 The Input Stage:
 Recognition of Product Need
 Two Major Sources of Information
 Marketing Efforts
 External Socio-Cultural Environment
 Marketing Efforts – IMC [Integrated
Marketing Communication]
 Socio Cultural Environment -
Information

8. DECISION MAKING
 The Process Stage:
 Focus on how the decision is made
 Psychological factors
 Affects External Input – Marketing
 Recognition of Need
 Purchase Search

9. DECISION MAKING
 The Output Stage:
 Post Decision Activity
 Purchase Behavior
 Post Purchase Evaluation
 Trial Purchase - Exploratory Phase
 Repeat Purchase - Product Adoption

10. DECISION MAKING
 Input:
 External Influence:
 Information about the product
 Influence product related values
 Attitudes & Behavior
 Chief influence – Marketing Mix

11. DECISION MAKING
 Non - Commercial Influencers:
1) Comments of Friends
2) Usage by family members
3) Article, Report
 Views of experienced consumers
 Social Class
 Culture
 Influences are internalized

12. DECISION MAKING
 Process:
 Concerned with the ‘How’
 Psychological field : Internal Influence
 Three stages:
1) Need Recognition
2) Purchase Search
3) Evaluation of Alternatives

13. DECISION MAKING
 Need Recognition
 Consumer faces problem
 Actual state consumers
 Desired state consumers

14. DECISION MAKING
 Purchase Search:
 Recollection of Past Experience
 No Prior Experience – Extensive Search
 Past Experience – Internal Source
 Combination – Past Experience +
Marketing

15. DECISION MAKING
 Difference in shopping behavior – men
& women
 Price consideration – Extent of Search
 Smart Shopping – Homework
 External Search – Different Products
 High in subjective knowledge – Rely on
self evaluation
 Internet