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Consumer Decision Making Framework

Social Factors External Cultural Factors


Family Influence, Reference Culture, Sub-Culture, Social
group influences, Roles and Class
Status

Consumer
as Decision
Maker
Psychographics,Motivation,
Personality, Occupation,
Economic circumstances,
Beliefs and Attitude,
Age and family life cycle
Learning

Psychological Factors Personal Factors


Internal
Reference Groups

Reference Groups:- Individual


 Primary/ Secondary Family
Formal / Informal Friends

 Membership/ Symbolic Social Class


Various Layers of Consumer’s
Variables having Impact on Market-
Driven Approach

Market Driven Motivational Layer


Approach
Attitudinal Layer
Behavioral Layer
Demographic Layer
Kotler’s Consumer Behaviour
Model
Step I Step II Step III
Input/ External Influences Process/ Consumer Decision Output/ Consumer
Making Decisions/ Actions
Marketing Other Stimulus
Stimulus (i) (ii) Buyer Buyer Product Choice
Characteristics Decision
(i) Process (ii) Brand Choice
 Product  Economic Dealer Choice
 Price Technological Purchase Timing
Psychological
Promotion Political Purchase Amount
Personal Culture
 Channels of Social
Distribution Culture
Stages in Buyer Decision
Making (Buyer Decision Process)
Problem Recognition

Pre-Purchase Information Search

Evaluation of alternatives

Purchase Decision

Post- Purchase Decision


Kotler’s Consumer Behaviour Model
External Influences
Firm’s Marketing Efforts (Stimuli) Social/Cultural Environment
- Product - Family
Input - Promotion -Informal Sources
- Price - Social Class
- Channels of Distribution - Culture

Consumer Decision Making


Need Information
Recognition Processing Frame work
Psychological Field
Pre-Purchase Search
Motivation, ,Perception,
Evaluation of Alternatives
Process Learning, Personality,
Attitude

Experience

Post-Decision Behaviour
Purchase
Post-Purchase Evaluation
Outpu -Trial
-Repeat Purchase
t
Purchase
Satisfaction

Pre-Purchase Post-Purchase Behaviour


Search

Cognitive
Dissonance
Factors affecting Process of
Decision Making in Pre-Purchase
Search
 Involvement
 Differentiation
 Time Pressure
Factors affecting Process of
Decision Making(contd.)
Involvement
High Low
Highly Differential/ Variety Seeking
Differentiation

High Complex Buying Behaviour


Behaviour

Dissonance- Habitual Buying


Reducing Behaviour
Low Behaviour
Choice Criteria depends on 3
levels of Decision Making

Extensive Problem Solving


Limited Problem Solving
Routinized/Habitual
Response Behaviour
Purchase
Satisfaction

Pre-Purchase Post-Purchase Behaviour


Search

Cognitive
Dissonance
Purchase Satisfaction

The feeling on part of the


customer that the decision to buy
was appropriate because the
product met his expectations.
Cognitive Dissonance

The tension that results from


holding two conflicting ideas or
beliefs at the same time, in terms of
Consumer Behaviour
The negative feelings that a
consumer may experience after
making a commitment to purchase.
Consumers Response to Dissatisfaction

A dissatisfied consumer decides to:


Take no action.
Discontinue purchasing a product
Cognitive Dissonance

The tension that results from


holding two conflicting ideas or
beliefs at the same time, in terms of
Consumer Behaviour, the negative
feelings that a consumer may
experience after making a
commitment to purchase.
Different Types of Consumers
Based on Post Purchase Behavior

High
Butterflies True Friends
Profitability

Strangers Barnacles

Low

Low Loyalty High


Howard-Sheth Model of
Consumer Behaviour

Four Sets of Variables

 Inputs
 Perceptual and Learning constructs
 Outputs
 Exogenous or External Variables
Inputs
Learning
Stimulus Display
Perceptual Outputs
i. Significative constructs
a. Quality constructs
b. Price Intention
c.Distinctiveness Purchase
d. Service Overt search Confidence
e. Availability
Intention

ii. Symbolic Attitude


a, b, c, d, e,
Stimulus Attitude
Brand
Ambiguity Compre-
iii. Social Choice hension
a. Family Criteria Brand
b. Reference Motives Compre-
hension Attention
groups
c. Social class
Perceptual
Attention Bias Satisfaction
Exogenous or External Variables

Importance of Purchase
Personality Variables
Social Class
Culture
Time Pressure
Financial Status
Consumer Segmentation-
An Important Tool to Understand
Consumer Decision Making
Consumer Segmentation
 Demographics
 Behavioral
 Geographic
 Socio-Economic
 Benefit Segmentation
 Segmentation Based on-
– Psychographics
– Life Styles/AIOs
Consumer Profiling & Adv.
Analysis
 Consumer-Profile in terms of
Demographics,
Behavioral and
Psychographics
Socio-economic Classification (SEC)
SEC A
SEC B
SEC C
SEC D
Demographics Lifestyle and
Psychographics
• Demographics
Consumer
•Media Habits Purchase
Lifestyle
•Benefit Sought
Psychographics •Brand
attitudes &
Beliefs
•Purchase
Personality Behaviour, etc.
Consumer Lifestyle

Consumer Lifestyle is function of AIO’s

Activities
Interests
Opinions
Current Trends having Impact on
Consumer Decision Making Process
 Therise of Young/Children as Direct
Consumer
 Changed Family Buying Behavior
– Changed Family Structures-
Joint/Nuclear Families
– Increasing Influence of Children in
Decision Making
– Women as Consumer