This document discusses ways that consumers can stray from rational decision making. It outlines several models of consumer decision making, including the Elaboration Likelihood Model which describes two routes of persuasion - central and peripheral. The central route requires high involvement while the peripheral route considers more extrinsic factors. Marketers can try to convert low involvement consumers to high involvement using techniques like linking products to engaging issues. The document also discusses non-compensatory decision making where choices are influenced by subtle changes in option descriptions. Marketers can take advantage of effects like variety seeking behavior and mental accounting to influence consumer choices.

1. WAYS BY WHICH
CONSUMERS STRAY FROM
A DELIBERATIVE, RATIONAL
DECISION PROCESS
Atul Anand
Sophomore Undergraduate
IIT (BHU), Varanasi

2. LOW INVOLVEMENT
CONSUMER
DECISION MAKING
VARIETY SEEKING
BUYING BEHAVIOR
MAIN FACTORS FOR STRAYING

4. EXPECTANCY VALUE MODEL
Requires high level of
consumer involvement.

5. ELABORATION LIKELIHOOD MODEL
Richard Petty & John Cacioppo
Consumer evaluation in both high and low involvements

6. ELABORATION LIKELIHOOD MODEL
Two means of Persuasion
Central Route and Peripheral Route.

7. CENTRAL ROUTE
Must posses sufficient motivation
else not pursued as detailed
examination is required for
purchase.

8. PERIPHERAL ROUTE
More extrinsic factors are
considered in decisions.

9. If low involvement to high is
not converted, consumer will
follow peripheral route and
not the central route.

10. CONVERSION OF LOW TO HIGH INVOLVEMENT
FOUR TECHNIQUES
Link to an engaging issue.
Link to a personal situation.
Design ad to trigger emotion.
Addition of important features.

11. Marketers must try to convert
to persuade the consumer to
follow the central route
(favorable for weaker brands)

13. Low involvement but
significant brand
differences

14. Consumers often switch
brands to evaluate the
variety and not because
of dissatisfaction.

15. Dominate the shelf with
variety to encourage
habitual buying behavior.

16. Free coupons, deals, low
prices, free samples, etc.

17. These results in a
deliberate and
rational decision
making.

19. Consumers choose an
alternative after a
relatively inferior option is
added in to the available
choice set.

20. Consumers are not sure
about their future taste.

21. Consumers often
overestimate future
consumption, especially if
there is limited availability.

22. Consumers choices are
influenced by subtle
changes in the ways
alternatives are
described.

23. These were non
compensatory
decision strays.

24. Marketers can use
these findings to
counter straying of
there brands.
STRATEGY

25. Customers segregate gains.
Consumers are forced to consider different
benefits separately by the seller.
(Listing different benefits can make the sum to be seen greater as a whole)
MENTAL ACCOUNTING OF CUSTOMERS

26. Customers integrate losses.
Customers buy if the cost can be added to
another larger purchase.
(Additional features persuade customers to buy high end products)
MENTAL ACCOUNTING OF CUSTOMERS

27. Customers integrate smaller
losses with larger gains.
“Cancellation” principle works here.
(Smaller withholdings are absorbed by larger pay amounts)
MENTAL ACCOUNTING OF CUSTOMERS

28. Customers segregate smaller
gains with larger losses.
“Silver lining” principle works here.
(Rebates on big-ticket purchases such as cars)
MENTAL ACCOUNTING OF CUSTOMERS

29. Consumers exhibit low
involvement using many
heuristics as a result of
contextual influences.
SUMMARY

30. THANK YOU