Consumer Decision Processes

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Consumer Decision Processes
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You cant assume that people know what they want

• You cant assume that people will tell you the
  truth about their wants and dislikes, even if
  they know them. What you are likely to get are
  answers that will protect the informants in their
  steadfast endeavour to appear to the world as
  really sensible, intelligent rational beings

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Nature of Decision Processes

• Purchase options
• Consumption options
• Divestment options

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Purchase options

• Whether to buy or save?
• When to buy?
• What to buy both category and brand?
• Where to buy?
• How to pay?

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Consumption options

• Whether to consume or not?
• When to consume?
• How to consume?

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Divestment options

• Disposal
• Recycling
• Remarketing

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Consumer Problem Solving

• Rational
• Hedonic
• In most cases it is a combination of the two

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Consumer Decision Making Stages

• Need recognition
• Search for information
• Pre-purchase alternative evaluation
• Purchase
• Consumption
• Post-purchase evaluation
• Divestment

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Variables that shape decision making

• Individual differences
• Environment influences
• Psychological processes

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Individual differences

• Consumer resources
• Knowledge
• Attitudes
• Motivation
• Personality, values, lifestyle

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Environmental Influences

• Culture
• Social class
• Personal influence
• Family
• Situation

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Psychological Processes

• Information Processing
• Learning
• Attitude and changes in behaviour

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Information Processing

• Exposure
• Attention
• Comprehension
• Acceptance
• Retention

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Decision Process continuum
complexity
high
low
Degree of complexity
Habitual decision making
Extended problem solving
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Extended Problem solving

• Thought and evaluation precede the act of
  purchase and use because of the importance of
  making the right choice

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Limited Problem solving

• Need recognition leads to buying action, because
  the purchase does not assume great importance

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Factors influencing extent of problem solving

• Degree of involvement personal factors, product
  factors, situations
• Alternatives are differentiated time
  availability, consumer mood
• Sufficient time for deliberation

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Impulse buying

• It does not have the indifference that
  accompanies LPS. A high sense of emotional
  involvement and urgency short circuits the
  reasoning process and motivates immediate action
• A sudden and spontaneous desire to act
  accompanied by urgency
• State of psychological disequilibrium in which a
  person can feel out of control
• Onset of conflict and struggle that is resolved
  by immediate action
• Minimal objective evaluation
• Lack of regard for consequences

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Variety Seeking

• Acivation of seeking variety as a motive
• Similar alternatives
• Frequent brand shifts
• High purchase frequency