1. Consumer Decision Making
Consumer Decision making is a central part of consumer behavior but the way we evaluate and choose products varies widely.

2. How do you choose the food that you eat?

3. Stages in CDM

4. Decision making perspectives
Rational
Carefully integrating information about the product e.g cooking oil
Behavior influence
Based upon environmental cues e.g attention grabbing packages.
Experiential
Offerings that create a positive emotional response e.g. buying the same chocolate again
Experiential: going to a good restaurant again after a good experience
Behavior influence: external stimuli.

5. A continuum of buying decision behavior
It can help us to understand the decision-making process when we think about the amount of effort that goes into a decision each time we must make it. Consumer researchers think of decision effort on a continuum. On one end we have habitual decision making and at the other, there is extended problem solving. Many decisions fall somewhere in between, which we refer to as limited problem solving. Habitual or routine response behavior is for low involvement products and these decisions are made mostly out of habit. Limited problem solving involves using decision rules to make choices. Extended problem solving is for high risk choices.

6. Characteristics of limited vs. extended problem solving
Motivation:
Low risk vs. high risk
Low involvement vs. high involvement
Information search
Little search vs. extensive search
Alternative Evaluation
Weakly held beliefs vs. strongly held beliefs
Purchase
Limited time vs. ample time
Influenced by store displays vs. communication with store personnel

7. Stage 1: Problem recognition
Problem = which carries a rather negative connotation; no one wants to have problems.
Add example: mehran and city
Mehran actual state -→ city (oppurtunity)
Mehran kharab ho gai hai --→ need based problem arises and you satisfy the need
Availability of regular raw chicken (actual state) -→ easy to cook k&n (opportunity)

8. Home cooked Chicken ( Actual State )
K & Ns - Safe and
Healthy chicken
( Opportunity)
Home cooked Chicken ( Actual State )
Chicken not available
Market closed/ Bird flu
( Need )
Sources Dissatisfaction Out of stock market induced Social Class/ Reference groups

9. OPPORTUNITY Ideal states goes up NEED Actual state goes down
NO PROBLEM
Acceptable state
OPPORTUNITY Ideal states goes up NEED Actual state goes down

10. Stage 2: information search
Deliberate Search
Directed learning
Purchase based upon previous knowledge
Accidental Search
Incidental learning
Purchase based upon mere exposure
Directed --→ service shoes for comfortable shoes
Purchase based upon previous knowledge: good experience in the past, buying again / visiting the same restaurant again
Incidental -→ harpic after marriage/ if seen at home or ads/ mosquito repellent
Ama buying cooking oil so you buy the same one Subway example

11. Do we always search or buy rationally?

12. Mental accounting
This process demonstrates that the way we pose a problem and whether it’s phrased in terms of gains or losses influences our decisions.
Add picture
After bulk shopping, if you get a voucher for free concert and it rains, you might not go since it was free (no losses)
BUT if you get the concert ticket yourself then you are more likely to risk going in the rain

13. Segerate losses Segerate gains integrate smaller losses with larger gains Segregate small gains with larger losses

14. How much do we search?
This figure shows us that there is an inverted-U relationship between knowledge and external search effort. People with very limited expertise may not feel they are competent to search extensively. Experts have a better sense of what information is relevant so they engage in selective search. Novice consumers tend to process information in terms of the big picture instead of detailed information. Who searches the most? Moderately knowledgeable consumers. Example - bottled water.

15. Stage 3: evaluation of alternatives
Purchase decision at the stage where we have to choose a product from several alternatives
E.g different types of burgers of the same brand
Different franchises of burgers
Brands of shampoo both national and international (pantene, loreal, garnier, all-clear, john frieda)
Consideration set:
for e.g, habitually buying kellogs cornflakes, or buying tea of the same brand always
a person engaging in extended in extensive problem solving may even evaluate several other brands and think about the pros and cons
Marketing plays an imp role in creation of evoked set (seen that new brands are more likely to be in evoked sets, compared to old ones, even after positive ascpets have been shown.
(biscuits, fruit juices, ice cream brands- hagen daz, omore, wall, hico, ben &  jerrys)

16. Evoked Set: Consideration Set:
Alternatives a consumer already knows about (knowledge of the shampoo brands)
Consideration Set:
Alternatives that a consumer actually considers while purchasing (based upon price range, availability, past experience)

19. Product categorization
First: Superordinate level (general category-dessert)
Second: Basic level (sugar vs. sugar free)
Third: Subordinate level
Sugar: brownies, donuts, bounty
Sugar-free: wheatables, mithai, chamam ice cream
we represent  a product in a cognitive structure at one of the three levels.
Or fattening and non-fattening dessert : ice cream, pie, cake vs. fruit, yoghurt, low fat ice cream

20. Stage 4: product choice
Once we assemble and evaluate the relative options in a category, eventually we have to choose one.
Evaluative criteria
Dimensions we use to judge the merits of competing options
Determinant attributes: Features we use to differentiate among our choices (yoghurt: texture, taste, nutritional value, price, freshness, size of packaging)
Differences in products carry more weightage in the decision process than do similarities
Going to eat food, both are fast foods, so less effort required in decision making
BUT if more options in food are present (fast food vs. Chinese), more effort required
Our decision making can range from very simple and quick strategies to complex processes requiring much attention and cognitive processes

21. Heuristics (rule of thumb):
If a salad is green, its fresh
Nutritional chart given, high quality product
Pioneer product (e.g national foods/ nestle)
What heuristic approach do you use while buying foods?
Mental shortcuts/assumptions we make
for speedy decisions we rely on rule of thumb (expensive product, better quality), buying the same cooking oil mother bought

22. Market beliefs Brand Store Price/discount/sale
The best brands are the ones purchased the most
Store
Larger stores offer more variety (Alfatah/Hyperstar)
Price/discount/sale
Sales are typically run to get rid of slow moving merchandise/ defected stuff
Advertising & sales promotion
Items tied to giveaways are not a good value (Vim + maggie noodles) or (free product is of low quality)
Product/packaging
Large size containers are cheaper compared to individual small size packing ( coke vs. coke carton)
Colgate and brush, we think the brush is of bad quality

23. Decision rules
Consumers rely on different decision rules when they evaluate competing options
Non-compensatory decision rules: When we feel that a product with a low standing of one attribute can’t compensate for this flaw even if there is another better attribute (e.g size of TV screen small, but good picture quality)
Compensatory decision rules: When a product has a chance to make up for its shortcoming (though the pizza is small but good topping)

24. Happy decision making! :D
Stage 5: outcomes
This is the final stage of decision making where you buy the product of your choice and leave the rest
Happy decision making! :D

25. Marketers approach Marketers create the opportunity, or create a need
Marketers provide info according to the response they want (if they want you to search, less info) – zn protected bottle, improves immunity _info already provided by nestle so more likely to get the product since info is there
Create alternatives (within the brand, and outside of the brand – tea), more alternatives within brand, more likely to sell
How marketers endorse determined attributes through advertising (cadbury silk), safe and healthy chicken, packaging, color scheme
Eventually, marketers use these strategies to help you make a final decision
(marketers maintain our attitude towards a product by staying consistent and analyzing transitions of change in decision making process or improving their marketing strategies accordingly).