Consumer Decision Making Summary
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Transcript of Consumer Decision Making Summary
Prepared by Ezgi Merdin
What brand to buy?
What store to buy? (channel decision)
How to pay? (payment decision)
Which service to use? (consumption decision)
“Decision is the selection of an option from two or more
alternative choices.”
Which criteria consumers are using?
Consumers are exposed to huge information but they have limited cognitive capacity.
2AD643 - Consumer Behavior - Ezgi Merdin
3AD643 - Consumer Behavior - Ezgi Merdin
According to Consumer Involvement (Assael, 1992):
Extensive Decision Making
Complex Decision Making
High cost, complex products
Entailing significant risks, can be performance risks
Long decision time
Goods of interest or emotion or ego-related
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According to Consumer Involvement:
EPS Model
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Source: Fill, 2002
According to Consumer Involvement:
Perner’s Model
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According to Consumer Involvement:
Routine Response BehaviorSubsequent Purchase ActivityRoutinized Problem SolvingConditioning and LearningBrand Loyal ConsumerFrequently Purchased Low Cost GoodsQuick DecisionLittle information processing
It reduces risks of product failure and financial loss.
It facilitates decision – making, through use of few information sources
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According to Consumer Involvement:
Limited Decision MakingLimited Problem SolvingGoods of low-moderate costFew alternativesSimple decision rules on a few attributesPassive consumer
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According to Consumer Involvement:
Fill’s LPS Model:
Source: Fill, 2002
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According to Consumer Involvement:
Source: Loudon & Della Bita, 1993
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According to Time-Line (Blackwell et al., 2006):
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According to Time-Line (Blackwell et al., 2006):
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Compensatory Decision Rules (all attributes considered)•Simple additive•Weighted additive
Non-compensatory Decision Rules•Conjunctive rule (minimal acceptables)•Disjunctive rule (higher cut-offs)•Lexicographic rule (acc. to most imp. Attribute)•Elimination by aspects
According to Time-Line (Blackwell et al., 2006):
13AD643 - Consumer Behavior - Ezgi Merdin
According to Time-Line (Blackwell et al., 2006):
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17AD643 - Consumer Behavior - Ezgi Merdin
•Assael, H. (1992) Consumer Behavior and Marketing. 4th ed. PWS Kent.•Blackwell, R.D. , P.W. Miniard & J.F. Engel . (2001) Consumer behavior 9th ed. Harcourt College Publishers, Fort Worth, TX.•-- (2006) Consumer behavior 10th ed. Singapore,:Thomson Southwestern.•Fill, C. (2002), Marketing Communications 3e, Pearson Education•Foxall, G.R. (1980) Consumer behavior : A Practical Guide. Routeledge, London.•Loudon, D. L., & Della Bitta, A. J. (1993). Consumer Behavior. Concepts and Applications. New York: McGrow Hill, Inc.•Nicosia, F.M. (1966), Consumer Decision Processes. Marketing and Advertising Implications, Prentice-Hall, Englewood Cliffs, NJ.•Perner, L. PhD website www.consumerpsychologist.com
Rau, P. &Samiee, S. 1981. Models of consumer behavior: The state of the art. Journal of the Academy of Marketing Science 9 (Summer): 300-15.
18AD643 - Consumer Behavior - Ezgi Merdin