Consumer Decision Processes

“You can’t assume that people know what they want” “You can’t assume that people will tell you the truth about their wants and dislikes, even if they know them. What you are likely to get are answers that will protect the informants in their steadfast endeavour to appear to the world as really sensible, intelligent rational beings”

Nature of Decision Processes Purchase options Consumption options Divestment options

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

Consumption options Whether to consume or not? When to consume? How to consume?

Divestment options Disposal Recycling Remarketing

Consumer Problem Solving Rational Hedonic In most cases it is a combination of the two

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

Variables that shape decision making Individual differences Environment influences Psychological processes

Individual differences Consumer resources Knowledge Attitudes Motivation Personality, values, lifestyle

Environmental Influences Culture Social class Personal influence Family Situation

Psychological Processes Information Processing Learning Attitude and changes in behaviour

Information Processing Exposure Attention Comprehension Acceptance Retention

Decision Process continuum complexity high low Degree of complexity Extended problem solving Habitual decision making

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

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

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

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

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