1. Consumer Economics Chapter 7 Decision Making and Advertising
Copyright©2009 Taylor & Francis Group, an informa business

2. Learning Objectives Discuss decision making in consumer behavior
Explain three main types of decision making
Understand advertising in relation to buying decisions and sustainable behaivor
Describe the government agencies that impact advertising
Know the pros and cons of advertising in relation to consumers
Understand the value of social marketing and public service announcements

3. Introduction Consumers make decisions every day
How consumers make decisions is important
Advertising influences consumer decision making

4. Decision Making Takes Time
Decision making is choosing between two or more alternatives
Consumers try to make good decisions; but it is hard to do
Consumer decisions involve trading time and money for goods and services
Copyright©2009 Taylor & Francis Group, an informa business

5. Three Types of Decision Making Styles
Habitual decision making
Extended decision making
Limited decision making

6. Theory and Style Preference
The role of self-concept
Rules of thumb
Self-esteem
Uniqueness theory
Style

7. What Affects Consumer Decisions?
Technological Advances
Obsolescence
Impulse buying
Consumerspace

8. Advertising and Social Influence
Paid communication
First, gain their attention
Many different types of advertising
Placement and timing is important

9. Advertising is Necessary, but Complex
Use of color
Repetition
Consistency
Memory devices
Economic pros and cons of advertising
Deceptive advertising
The subconscious and subliminal advertising
Distasteful advertising
Infomercials
Marketing to children

10. Government and Advertising
The role of the FTC
Advertising Legislation
Cease-and-desist orders
Counter Advertising

11. Social Marketing and PSAs
Uses marketing to solve social problems
Social marketing straetgies
Public service announcements

12. Chapter Summary Are consumer decisions rational?
Consumers make many complex decisions
A multitude of influences
Advertising plays role
Marketing can hurt and help consumers