Transcript Individual Decision Making Various type of Consumer Problem

Individual Decision Making
Various type of Consumer Problem Solving
By Levi Spencer
Caleb Pierce
Consumer Problem Solving
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5 Steps
Recognition
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Information Search
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The choice to be made from the available alternatives
Purchase Decision
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Process in which consumer survey’s his or her environment for important data
to make reasonable decisions
Evaluation of Alternatives
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When a consumer sees a difference between their current state of affairs and
some desired ideal state
Consumers use their evaluative criteria to judge the merits of competing
options
Consumption
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Consumption is an important part of the process because it influences future
purchase decision making
Perspectives on Decision Making
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Rational Perspective
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People calmly and carefully integrate as much as
information as possible with prior knowledge of a product.
Consumers then weigh the pluses and minuses of each
alternative to arrive at a satisfactory decision. The rational
decision making procedure could be effected by purchase
momentum
Marketing implications
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Products can be developed to emphasize a consumers
rational purchasing behaviour
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Behavioural Influence Perspective
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This decision is made under conditions of low
involvement. The consumers decision is a learned
response to environmental cues.
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Eg. When a person decides to buy on impulse
something that is promoted as a surprise special
Marketing Implications
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The producers market the characteristics of the
environment. Physical surroundings and product
placement will influence your target markets.
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Experiential Perspective
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This is a highly involved decision for the consumer. It’s an
approach expressing the Gestalt or totality of the product or
service experience, focusing on consumers effective
responses in the market place. This can be used to help
explain why a consumer chooses a particular type of art,
music, or even a spouse.
Marketing Implications
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Marketers should focus on measuring the consumers
affective response to products or services and develop
offers that elicit appropriate subject reaction
Types of Consumer Decisions
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Habitual Decision Making
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Decisions that are made with little or no conscious
effort
This is an efficient way for consumers to operate
because it minimizes time and energy spent on
mundane purchases
Low cost
Frequent/ familiar decisions
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Limited Problem Solving
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Consumers use simple decision rules to choose
among alternatives
Cognitive shortcuts enable consumers to fall back
on general guidelines when making the purchase
Occurs in situations when alternatives are similar,
choices made in store, and are based upon weakly
held beliefs
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Extended Problem Solving
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This problem solving corresponds most closely to
the traditional decision making perspective
The eventual decisions perceive to carry a fair
degree of risk
Consumer collects information both internally and
externally
Used for infrequent and unfamiliar purchases
evaluating how each brand attributes will satisfy
some set of derived characteristics