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Consumer Decision Processes
Prof Rushen Chahal
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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 steadfastendeavour 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
high low
complexity
Degree of complexity
Extended
problem
solving
Habitual
decision
making
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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 buyingIt does not have the indifference that accompanies LPS. A
high sense of emotional involvement and urgency shortcircuits the reasoning process and motivates immediate
action A sudden and spontaneous desire to act accompanied by
urgency
State of psychological disequilibrium in which a personcan feel out of control
Onset of conflict and struggle that is resolved byimmediate 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
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