ByRachita Jayswal,Lecturer.

A decision is a choice between two or more alternative actions or behaviors For Example: A housewife goes to purchase a mid priced range of tea, than making a selection from the various brands of tea like Taj Mahal, Tata Tea, Red label, Yellow label, etc. than she is making decision.

ConsumerDecisions
Consumer decisions are decisions consumers make in the marketplace involving:
whether topurchase what topurchase when topurchase fromwhom topurchase how topayforthepurchase

Routine Involvement Time Costs Information search Number of alternatives Low Short Low Internal only One

Limited Low to moderate Short to moderate Low to moderate Mostly internal Few

Extensive High Long High Internal and external Many

Routinized Response Behavior:

Marketer must continue to provide satisfaction to the

Limited Problem Solving:

Marketer

existing customer Marketer must attract new customer by using promotional schemes and introduced new features to the product. should design programme that will help the communication

The buyer to gather more information, Increase his brand comprehension and Gain confidence in the brand.

Extensive Problem Solving:

Marketer must educate the prospective buyers About the attributes of the product, Their relative importance and High standing of the marketers brand on brand attributes. So,

the marketer should do marketing communication which help the consumer to evaluate and feel good about his / her brand choice.

InputFactorsare:
Marketingmixactivitiesoforganization(Marketing

Inputs) Socialcultural Influences(Socialcultural Inputs)

Marketingstimuliconsistof4Ps Marketerareinterestedinknowinghow consumerwillrespondtovariousstimuli. Thesemaybeintheformof:

Productfeaturesite Packages Suitableprices Massmediaadvertising Personalselling Directmarketing Selectionofsuitabledistributionchannel

It nonmarketing influences the consumer purchase decision. Social Cultural factors includes the family, social class, culture and sub culture, informal sources and other non commercial sources. For Example: the comment of a friend, an editorial in the newspaper, usage by a family member, an article in Consumer Reports or the view of an experienced customer.

Processcomponentofthemodelis concernedwithhowconsumermake decisions. Thepsychologicalfieldrepresentinternal influencesthataffectconsumerdecision makingprocesses.

whattheyneedorwant Theirawarenessofvariousproductchoices Theirinformationgatheringactivities Theirevaluationofalternatives

Need Recognition Information Search Evaluation of Alternatives

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Consumer recognized need when they face problem. Among consumer there are varied types of need or problem recognition:

Actual

state

type

of

problem Desire state consumer

Actual State consumer: This occur when product is not performing satisfactorily. Ex.: The housewife may realize that the mixer she was using doesnt grind properly. Desired state consumer: The consumer may experience the desire for something new. Ex.: A newly married man desire to possess a motor cycle.

Simple problem recognition: Need that occur frequently and can be dealt with automatically. For Ex.: Feeling thirsty and not having Pepsi. Complex problem recognition: Need occur over a period of time and the actual and desire state gradually move apart. For Ex.: a man who was driving a scooter for many years consider selling it and going for new scooter so as to reduce the maintenance charges.

Marketinghelps consumersrecognize animbalancebetween presentstatusand preferredstate

Internal Stimuli and External Stimuli

PreferredState

Present Status

Anyunitofinputaffectingoneor moreofthefivesenses: sight smell taste touch hearing

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Consumergathersinformationrelatedtotheirattainmentofthedesired stateofaffairs Internalsearch apassiveapproachtogathering informationinwhichtheconsumersownmemory isthemainsourceofinformationaboutaproduct Externalsearch aproactiveapproachtogatheringinformationinwhich theconsumercollectsnewinformationfromsourcesoutsidethe consumersownexperience

Nonmarketingcontrolled

Marketingcontrolled

Sources of Information
MarketerControlled Advertising Salespersons Brochures Storedisplays CompanyWebsites Nonmarketer Controlled Friendsandfamily Pastexperience Publicinformation Experts Internet

Systematicsearch involvesacomprehensive searchandevaluationofalternatives

Extended problemsolving Limited problemsolving

Heuristicsearch involvestheuseofquickrules ofthumbandshortcuts

Routine problemsolving

The amount of search depends on:

Perceived risk Involvement Familiarity and expertise Time pressure Nature of the product Amount of information overload

If perceived risk is high than complex information search and when the perceived risk is low than consumer likely to use very simple and evaluation techniques.

 Experience SocialAcceptabilityoftheproduct Valuerelatedconsideration

For evaluation consumer tend to use two types of information: List of brands that they plan to make their selection (The Evoked Set) The criteria they will use to evaluate each brand

ALLBrands

KnownBrands

Unknown

Acceptable Brands

Unacceptable Brands

Indifferent Brands

Overlooked Brands

Purchased Brands

Notpurchased Brands

Unknown Brand: Consumer selective exposure in to advertising media and selective perception of advertising stimuli. Unacceptable Brands: Poor qualities or inappropriate positioning in advertising or product characteristics. Indifferent Brands: Perceived as not having special benefit. Overlooked Brands: Not clearly positioned or sharply targeted at the consumer market segment

Promotional technique should be deigned to impart favorable and relevant product image to the target consumers. Change in product features or attributes. Invite consumers in a particular target segment and try to put in their evoked ser

ConsumerDecisionRulereferredas: Heuristicevaluation choosingamongalternatives withoutformalizedstepstoarriveatadecision Suchastheuseofintuition Simplychoosingbyrelyingonagutlevelfeeling Systematicevaluation choosingamongalternatives byusingasetofformalizedstepstoarriveatadecision Multiattribute model:highestoveralljudgment Linearcompensatory:globalscore Lexicographicapproach:rankorderattributes

ConsumerDecisionrulesarebroadlyclassified intotwomajorcategory: Compensatorymodel

Noncompensatory models Conjunctivemodel Disjunctivemodel Lexicographicmodel

With the compensatory model the consumer arrives at a choice by considering all of the attributes and benefits of a product or service and mentally trading off the alternatives perceived weakness on one or more attributes for its perceived strength on other attributes

Performance Levels on Evaluative Criteria for Six Notebook Computers

Evaluative Criteria WinBook Price Weight Processor Battery life After-sale support Display quality 5 3 5 1 3 3 HP 3 4 5 3 3 3 Alternatives Compaq 3 5 5 1 4 3 Dell 4 4 2 3 3 5 IBM 2 3 5 1 5 3 Toshiba 1 4 5 5 3 3

Evaluation of Six Notebook Computers Using a Compensatory Model

Evaluative Importance Score Criteria 30 25 10 05 10 20 100 5 3 5 1 3 3 370 3 4 5 3 3 3 345 Alternatives WinBook HP Compaq Dell IBM Price Weight Processor Battery life After-sale Support Display Quality Total 3 5 5 1 4 3 370 4 4 2 3 3 5 2 3 5 1 5 3 Toshiba 1 4 5 5 3 3 295

385 300

With Noncompensatory Models a strength on one attribute cannot offset a weakness on another attribute

Evaluation of Notebook Computers Using the Conjunctive Model

Evaluative Minimum Criteria Standards Alternatives

WinBook HP Compaq Dell IBM Price Weight Processor Battery life After-sale Support Display Quality 3 4 3 1 2 3 5 3 5 1 3 3 3 4 5 3 3 3 3 5 5 1 4 3 4 4 2 3 3 5 2 3 5 1 5 3

Toshiba 1 4 5 5 3 3

Evaluation of Notebook Computers Using the Disjunctive Model

Evaluative Criteria Minimum Standards WinBook Price Weight Processor Battery life After-sale Support Display Quality 5 5 Not critical Not critical Not critical 5 5 3 5 1 3 3 HP 3 4 5 3 3 3 Alternatives Compaq 3 5 5 1 4 3 Dell 4 4 2 3 3 5 IBM 2 3 5 1 5 3 Toshiba 1 4 5 5 3 3

Evaluation of Notebook Computers Using the Lexicographic Model

Evaluative Criteria Rank Alternatives

WinBook Price Weight Processor Battery life After-sale Support Display Quality 1 2 4 6 5 3 5 3 5 1 3 3

HP 3 4 5 3 3 3

Compaq 3 5 5 1 4 3

Dell 4 4 2 3 3 5

IBM 2 3 5 1 5 3

Toshiba 1 4 5 5 3 3

Decision Outcomes
Choice Model Compensatory Conjunctive Disjunctive EBA Lexicographic Brand Choice Dell HP, Compaq Dell, Compaq, WinBook Dell WinBook

DecisionRule CompensatoryRule

MentalStatement Iselected thecomputerthatcame outbestwhenIbalancedthegood ratingsagainstthebadratings Iselectedthecomputerthathad nobadfeatures. I pickedthecomputerthatexcelled inatleastoneattribute Ilookedatthefeaturethatwas most importanttomeandchose thecomputerthatrankedhighest onthatattributes.

ConjunctiveRule Disjunctive Rule LexicographicRule

An individuals familys decisions to be committed to a particular lifestyle. For Example: Devoted follower of a particular religion.

Consumer decision process can also be influenced by Incomplete information and Non Comparable alternatives. There are strategies to cope up with missing information:

Consumer may delay decision Consumer may ignore missing information and

decide to continue with current decision Consumer may construct the missing information

Threetypesofpurchases:
Firsttimeortrialpurchase(Ex.:Detregent) Repeatpurchase Longtermcommitmentpurchases

Incaseofdurablegoodslikerefrigerators, Washingmachines,Ovens,etc.consumer directlymovetolongtermcommitment

When buying the product/service, the consumer may make choices From whom to buy: determined by sellers terms of sales, past purchase experience, return policy, etc store choice: deciding to purchase from a particular outlet nonstore choice: deciding to purchase from a catalog, the Internet, or variety of mailorder possibilities When to buy: determined by whether product is on sale, manufacturer offers a coupon/rebate, stores atmosphere, salesperson persuasiveness, etc. Purchase decision can also be influenced by Attitudes of others (e.g. friends, other customers) Unexpected situational factors (e.g. no cash or credit card for payment)

Purchasedecision

Choice identification

Purchase intent

Purchase implementation

Postpurchaseevaluation
Future response
Exit Voice Loyalty

Satisfaction/dissatisfaction Experience evaluation Decision confirmation

Neutral feeling: Actual performance matches expectation. Positive Disconfirmation of Expectation: Performance of product exceeds expectation. Negative Disconfirmation of Expectation: Performance of product falls below expectation.

Consumer may adopt the one of the following strategy in order to reduce their cognitive dissonance: Rationalize that decision is wise Look out for advertisement to support their choice an avoid competitive brand. Persuade friends or neighbors to buy same brand and confirm their own choice. Turn to other satisfied owners for their reassurance.

Postpurchaseevaluation
RoleofExpectationsinSatisfaction/Dissatisfaction

Actual Pre-purchase Actual Pre-purchase Performance Expectations Performance Expectations

Dissatisfaction

Satisfaction

If the product performs as per consumer expectation than the consumer buy it again. If product performance is disappointing of below expectation than consumers will look out for alternative products or brand in future.