Based on chapter " Analyzing consumer markets" from the book "A South Asian Perspective of Marketing Management."

1. In what ways do consumers stray from
deliberative, rational decision making.

2. Moderating effects on consumer decision making -

3. 1. Low involvement consumer decision making process
Elaboration likelihood model
Central route
Attitude formation provokes
more thought.
Rational consideration
Peripheral route
Attitude formation provokes
less thought.
Eg; celebrity endorsement,
credible source , etc.

4. 2. Variety seeking buying behavior
Focus on variety and brand switching.
Market leaders encourage habitual buying.

5. Behavioral decision theory
and Behavioral economics -

6. Decision Heuristics
1. Availability heuristic - Consumers base their prediction on quickness
with which a particular example of an outcome Comes to mind.
2. Representative heuristic – Predictions based on how representative
or similar the outcome is to other examples.
3. Anchoring and adjustment heuristic – Initial judgement is arrived at and
then adjusted based on additional information.

7. Framing –
It is the manner in which choices are presented to
and seen by the decision makers.

8. Mental Accounting –
It is the tendency to categorize funds or items of value
even though there is no logical basis

9. Prospect theory
Consumer tend
to segregate gains.
Consumer tend
to integrate gains
Consumer tend
To integrate
Smaller losses to larger gains
Consumers tend to segregate
Small gains from large gains

10. Created by Yash Shah ,
Sardar Patel College of Engineering,
During an internship with
Prof. Sameer Mathur, IIM Lucknow.
www.IIMInternship.com