Decision Making

Consumer journey consists of following stages: -

 Input- marketing mix of the company & social cultural influence

 Process- need recognition, information search, evaluation & decision rules
 Output- purchase, use, post-purchase evaluation, storage and disposal, trust, loyalty

Decision Making Spectrum

 Extensive Problem Solving- purchase situation that occur infrequently and no prior
criteria to evaluate the product. For ex - diamond
 Routinized response behaviour- inexpensive products brought frequently and
purchase decisions are automatic without much thought. For ex - pain relievers Advil
 Limited problem solving- updated product items that have already been bought by
the consumers and there is a set criterion to evaluate them. For ex- computers,
laptops.
 Consumer involvement- the degree of personal relevance the product holds.

Pre-Purchase Information Search

Starts with the recognition of a need. Physical search or search on Internet.

 Task complexity- number of alternatives and the info available for each alternative
 Information organisation- presentation, format and content
 Time constraint- time available for consumer to decide.

Evaluation of Purchase Alternatives

 Evoked set- specific brands or models that consumer considers when deciding which
item to purchase within a product category. It generally consists of 3 to or 5 brands.
Marketer should ensure that their product becomes a part of consumers evoked set.
 Inept set- brands and models excluded as they are unacceptable or inferior.
 Inert set- brands and models that consumer is indifferent towards as there is no
particular advantage.
Decision Rules
Procedures that consumers use to facilitate brand and consumption related choices.
Two rules: -

 Compensatory decision rules- consumers evaluate each brand in terms of each

relevant attribute, weighted by the importance of that attribute, and then selects the
brand with highest weighted score.
 Noncompensatory decision rules- a group of decision rules that do not allow a
consumer to balance positive evaluations of a brand on one attribute against
negative evaluations of other attributes.
 Affect referral
 Recognition
 Majority vote

Output
Brand loyalty- trial, repeat & purchase
Post purchase evaluation

 Positive disconfirmation of expectations- products performance > expectation

 Negative disconfirmation of expectations- products performance < expectation
 Cognitive dissonance- refers to a situation involving conflicting attitudes, beliefs or
behaviours to reduce the discomfort and restore balance. For ex- smoking
Questions
1. Are you an existing iPhone user?
Yes, no
2. Do you consider other brands before purchasing a cell phone?
Yes, no
3. Which brand or model do you consider as an alternative to Apple’s iPhone?
Samsung, One plus, Nokia
4. What encouraged you to buy an iPhone?
Relevant attributes, brand recognition, referral, popularity
5. Do update your iPhone with every new launch?
Yes, no
6. Does the brand
satisfy your expectations, exceed your expectations, fall short of your expectations
7.