Consumer Decision Processes (PowerPoint) by RushenChahal


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									Consumer Decision Processes

      Prof Rushen Chahal
“You can’t assume that people
   know what they want”
   “You can’t 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”
  Nature of Decision Processes
• Purchase options
• Consumption options
• Divestment options
             Purchase options
•   Whether to buy or save?
•   When to buy?
•   What to buy – both category and brand?
•   Where to buy?
•   How to pay?
       Consumption options
• Whether to consume or not?
• When to consume?
• How to consume?
        Divestment options
• Disposal
• Recycling
• Remarketing
    Consumer Problem Solving
• Rational
• Hedonic
In most cases it is a combination of the two
     Consumer Decision Making
•   Need recognition
•   Search for information
•   Pre-purchase alternative evaluation
•   Purchase
•   Consumption
•   Post-purchase evaluation
•   Divestment
   Variables that shape decision
• Individual differences
• Environment influences
• Psychological processes
          Individual differences
•   Consumer resources
•   Knowledge
•   Attitudes
•   Motivation
•   Personality, values, lifestyle
       Environmental Influences
•   Culture
•   Social class
•   Personal influence
•   Family
•   Situation
      Psychological Processes
• Information Processing
• Learning
• Attitude and changes in behaviour
        Information Processing
•   Exposure
•   Attention
•   Comprehension
•   Acceptance
•   Retention
        Decision Process continuum


high                                          low

                  Degree of complexity

       Extended                          Habitual
       problem                           decision
       solving                           making
Extended Problem solving

Thought and evaluation precede the
act of purchase and use because of
the importance of making the right
 Limited Problem solving

  Need recognition leads to buying
action, because the purchase does not
      assume great importance
     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
                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
• A sudden and spontaneous desire to act accompanied by
• 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
             Variety Seeking

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

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