Q.

3 Describe the steps in the consumer decision making process for each of the
following cases – a) A businessman considering the purchase of a new mobile
phone for communication between branches of his firm and b) A consumer
considering the purchase of a headache remedy that is advertised as stronger and
more effective. (10 marks).

Ans. CONSUMER DECISION MAKING

Consumers are faced with the need to Consumers are faced with the need to make
decisions about products all the make decisions about products all the time. Some of
these decisions are time. Some of these decisions are very important and entail great
effort important and entail great effort, while , while others are made on a virtually others
are made on a virtually
automatic basis automatic basis. . Perspectives on decision making Perspectives on
decision making range from a focus on range from a focus on habits that that people
develop over time. people develop over time.

The steps in the consumer decision making process for each of the following cases
are:-

The Process of Consumer Decision Making

• Need Recognition
- Usually occurs when consumer has a “problem”
- Need recognition styles
- Actual state
- Desired state
• Pre purchase Search
- Begins with internal search and then moves to external search
- The impact of the Internet
- Search may be personal or impersonal
• Evaluation of Alternatives

Issues in Alternative Evaluation

• Evoked set
• Criteria used for evaluating brands
• Consumer decision rules and their application
• Decisions by functionally illiterate population
• Going online for decision-making assistance
• Lifestyles as a consumer decision strategy
• Incomplete information
• Series of decisions
• Decision rules and marketing strategy
The Evoked Set

Criteria used for evaluating brands

Consumer Decision Rules

• Compensatory
- A type of decision rule in which a consumer evaluates each brand in terms
of each relevant attribute and then selects the brand with the highest weighted
score.
• Non compensatory
- A type of consumer decision rule by which positive evaluation of a brand
attribute does not compensate for a negative evaluation of the same brand on
some other attribute.
– Conjunctive Decision Rule
o A non compensatory decision rule in which consumers establish a
minimally acceptable cutoff point for each attribute evaluated. Brands
that fall below the cutoff point on any one attribute are eliminated
from further consideration.
– Disjunctive Decision Rule
 o A non compensatory decision rule in which consumers establish a
minimally acceptable cutoff point for each relevant product attribute.
– Lexicographic Rule
o A non compensatory decision rule - consumers first rank product
attributes in terms of importance, then compare brands in terms of the
attribute considered most important.
- Affect Referral Decision Rule
o A simplified decision rule by which consumers make a product choice
on the basis of their previously established overall ratings of the
brands considered, rather than on specific attributes.
Output of Consumer Decision Making
• Purchase behavior
• Post purchase evaluation
Purchase Behavior
• Three types of behavior
– Trial purchases
– Repeat purchases
– Long-term commitment
Post purchase Evaluation
• Actual Performance Matches Expectations
– Neutral Feeling
• Actual Performance Exceeds Expectations
– Positive Disconfirmation of Expectations
• Performance Is Below Expectations
– Negative Disconfirmation of Expectations
Gifting Behavior
Gifting is an act of symbolic communication, with explicit and implicit meanings
ranging from congratulations and love, to regret, obligation, and dominance.