Consumer Decision making process and plc

Effective decision-making is a fundamental aspect of personal and professional success. It involves a systematic process of identifying options, evaluating alternatives, and choosing the best course of action. This process not only aids in achieving goals and solving problems but also enhances resource allocation, risk management, and overall organizational performance. By fostering a structured approach to making decisions, individuals and organizations can navigate complexities, drive innovation, and maintain a competitive edge in an ever-changing environment.

1. Consumer Decision
Processes

2. Purchase options
Whether to buy or save?
When to buy?
What to buy – both category and brand?
Where to buy?
How to pay?

3. Consumer Decision
Making Stages
Need recognition
Search for information
Pre-purchase alternative evaluation
Purchase
Consumption
Post-purchase evaluation
Divestment

4. Variables that shape
decision making
Individual differences
Environment influences
Psychological processes

5. Individual differences
Consumer resources
Knowledge
Attitudes
Motivation
Personality, values, lifestyle

6. Environmental Influences
Culture
Social class
Personal influence
Family
Situation

7. Psychological Processes
Information Processing
Learning
Attitude and changes in behaviour

8. Information Processing
Exposure
Attention
Comprehension
Acceptance
Retention

9. Extended Problem solving
Thought and evaluation precede the act of
purchase and use because of the
importance of making the right choice

10. Limited Problem solving
Need recognition leads to buying action,
because the purchase does not assume
great importance

11. 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

12. 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

13. Variety Seeking
Acivation of seeking variety as a motive
Similar alternatives
Frequent brand shifts
High purchase frequency

14. Factors That Affect the Type of
Decision Making Process Used
Importance of the decision
Extent of previous experience
Existence of well-established decision criteria
Amount of information at hand about each alternative
The number of alternatives available
Model of consumption being followed

15. Need or Problem Recognition
The realization that there is a difference between actual and
desired states: the higher the gap, the stronger the need (or
bigger the problem)
 Types of Problems
Active Versus Inactive problems
• Active: those you are aware of
• Inactive: those that you are not yet aware of
(but exist)
Those that require immediate solutions and those that do
not require immediate solutions

16. Types of Problems
Active Versus Inactive problems
Active: those you are aware of
Inactive: those that you are not yet aware of (but exist)
Those that require immediate solutions and those that do
not require immediate solutions

17. Copyright © 2006 Pearson
Education Canada Inc. 14-17

18. Consumer
Decision
Making
Figure 15.3
Copyright 2010 Pearson Education, Inc.
18 Chapter Fifteen
Slide

19. A Psychological Process: Perception
Perception is the process by which an individual
selects, organizes, and interprets information to
create a meaningful picture of the world.
We perceive our world________

20. The Selective Perception
Process
Selective Perception: organising & interpreting
______ of the information available
Selective exposure: choosing to expose ourselves to,
or to avoid stimuli
Selective attention: choosing to pay attention to, or
to ignore stimuli
Selective comprehension/distortion:
comprehending stimuli in a way that fits our pre-
conceptions
Selective retention: limiting the stimuli we retain in
our memory

21. Selective Comprehension
Selective Retention

22. What happens when
involvement is Low?
Routine buying behaviour
Very Low involvement
Problem recognition – purchase
Buy what we bought before
Little time and effort
Examples:

23. What happens when
involvement is moderate?
Limited Problem Solving
Moderate involvement
Unwilling or unable to spend more than limited time
and effort
Willing to compare a few alternatives
Use shortcuts or recommendations
Examples

24. What happens when
involvement is moderate?
Limited Problem Solving
Moderate involvement
Unwilling or unable to spend more than limited time
and effort
Willing to compare a few alternatives
Use shortcuts or recommendations
Examples:

25. Comparison of problem-
solving variations

26. THE PROMOTIONAL MIX

27. Advertising
Personal Selling
Public Relations
Publicity
Sales Promotion
Direct Marketing
THE PROMOTIONAL ELEMENTS

28. The Target Audience
The Product Life Cycle
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
INTEGRATED MARKETING COMMUNICATIONS
—DEVELOPING THE PROMOTIONAL MIX

29. Promotional tools used over the product life Promotional tools used over the product life
cycle of Purina Dog Chowcycle of Purina Dog Chow

30. Product Characteristics
Stages of the Buying Decision
Prepurchase Stage
Purchase Stage
Postpurchase Stage
INTEGRATED MARKETING COMMUNICATIONS
—DEVELOPING THE PROMOTIONAL MIX

31. The importance of promotional elements varies The importance of promotional elements varies
during the consumer’s purchase decisionduring the consumer’s purchase decision