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BUYER BEHAVIOUR INDIVIDUAL DECISION MAKING Chp. 9 With Duane Weaver.

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Presentation on theme: "BUYER BEHAVIOUR INDIVIDUAL DECISION MAKING Chp. 9 With Duane Weaver."— Presentation transcript:

1 BUYER BEHAVIOUR INDIVIDUAL DECISION MAKING Chp. 9 With Duane Weaver

2 OUTLINE Consumers as Problem Solvers Perspectives on Individual Decision Making Stages in Consumer Decision Making Types of Consumer Decisions Problem Recognition Marketer’s Role in Problem Creation Information Search Types of Perceived Risk Strategic Implications of Product Categorization Heuristics Decision Rules Video

3 Consumers as Problem Solvers Purchase decisions steps: 1.Problem Recognition 2.Information Search 3.Evaluate Alternatives 4.Product/Service Selection

4 Perspectives on Individual Decision Making Rational Decision Making Approach Calmly and carefully integrate knowledge Behavioural Influence Perspective low involvement, learned response to environmental cues (promotions) Experiential High involvement, affective responses vs. rational Gestalt-totality of the product (Music,art)

5 Stages in Consumer Decision Making Problem Recognition Information Search Evaluation of Alternatives Product Choice Consumption and Learning

6 Types of Consumer Decisions

7 Problem Recognition occurs when the consumer realizes that their actual state is significantly different than their ideal state Opportunity Recognition Need Recognition NO PROBLEM Ideal State Actual State

8 Marketer’s Role in Problem Creation Creating Primary Demand Focus on getting consumers to try a new product Brand is not the focus Secondary demand Prompting consumers to choose a specific brand Create a problem-scenario & show the solution Head & Shoulders

9 Information Search Biases Deliberate vs. Accidental Amount of Search Internal vs. External Information Search Non-Rational Economics of Information

10 Psychological Social Physical Functional Monetary Types of Perceived Risk Get to together in groups of three and briefly (5 minutes) discuss and define an example for each of three out of five of the above areas of perceived risk. Present these ideas to the class.

11 Strategic Implications of Product Categorization Exemplar Products Identifying CompetitorsProduct Positioning Locating Products

12 Heuristics Heuristics: The mental rules of thumb that lead to a speedy decision Product Signals Market Beliefs Country of Origin

13 Decision Rules Non-compensatory Compensatory Weighted Additive Lexicographic Best Brand for most important attribute Elimination by Aspects Specific attribute cut-offs imposed Conjunctive Rule Choose by brand based on meeting all cutoffs Disjunctive Rule Standard of an attribute is higher than minimal cut-off Simple Additive One attribute can compensate One attribute alone cannot compensate In groups of three take 5 minutes to provide one example of a Non- compensatory decision rule

14 Thank You for your time Always be prepared for quizzes, you never know when…


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