BUYER BEHAVIOUR

INDIVIDUAL DECISION MAKING

Chp. 9 With Duane Weaver

OUTLINE
Consumers as Problem Solvers Perspectives on Individual Decision Making Stages in Consumer Decision Making Types of Consumer Decisions Problem Recognition Marketers Role in Problem Creation Information Search Types of Perceived Risk Strategic Implications of Product Categorization Heuristics Decision Rules Video

Consumers as Problem Solvers

1. 2. 3. 4.
Purchase decisions steps: Problem Recognition Information Search Evaluate Alternatives Product/Service Selection

Perspectives on Individual Decision Making

Rational Decision Making Approach
Calmly and carefully integrate knowledge

Behavioural Influence Perspective

low involvement, learned response to environmental cues (promotions)

Experiential
High involvement, affective responses vs. rational Gestalt-totality of the product (Music,art)

Stages in Consumer Decision Making

Problem Recognition Information Search

Evaluation of Alternatives
Product Choice Consumption and Learning

Types of Consumer Decisions

Problem Recognition
Problem Recognition
occurs when the consumer realizes that their actual state is significantly different than their ideal state
NO PROBLEM Opportunity Recognition Need Recognition

Ideal State

Actual State

Marketers Role in Problem Creation

Creating Primary Demand
Focus on getting consumers to try a new product
Brand is not the focus

Secondary demand
Prompting consumers to choose a specific brand
Create a problem-scenario & show the solution
Head & Shoulders

Information Search
Internal vs. External

Amount of Search Biases

Information Search Economics

Non-Rational

Deliberate vs. Accidental

of Information

Types of Perceived Risk

Monetary
Psychological

Functional Physical

Social

Get to together in groups of three and briefly (5 minutes) discuss and define an example for each of three out of five of the above areas of perceived risk. Present these ideas to the class.

Strategic Implications of Product Categorization

Product Positioning

Identifying Competitors

Exemplar Products

Locating Products

Heuristics
Heuristics: The mental rules of thumb that lead to a
speedy decision

Product Signals

Market Beliefs

Country of Origin

Decision Rules
Compensatory Non-compensatory
Elimination by Aspects
Specific attribute cut-offs imposed

Lexicographic

Simple Additive

Weighted Additive

Best Brand for most important attribute

One attribute can compensate

Conjunctive Rule
Choose by brand based on meeting all cutoffs

Disjunctive Rule
Standard of an attribute is higher than minimal cut-off

In groups of three take 5 minutes to provide one example of a Noncompensatory decision rule

One attribute alone cannot compensate

Thank You for your time

Always be prepared for quizzes, you never know when