TM 5-1 Copyright © 1999 Addison Wesley Longman, Inc. Consumer Choice  The consideration set  Stimulus-based versus memory-based choice  Attitude-based.

Slides:

Advertisements

Similar presentations

Judgment & Decision Making Based on High Consumer Effort

Advertisements

BUYER BEHAVIOUR INDIVIDUAL DECISION MAKING

Copyright © 2006 Pearson Education Canada Inc. Chapter 14 Consumer Decision Making I: The Process Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das.

Applied Marketing Strategies

Consumer Decision Making

Benjamin Allred 벤자민 알레드 Contents  Questions to Think About  Definitions  Recognition Versus Recall  Single Process Models  Generate-Recognize Models.

Marketing 334 Consumer Behavior

1. 2 Session #13 : Agenda for MM2– MARKETING STRATEGY Logistical Issues & Review Tools for Strategic ‘Shaping’ of Customer Preferences (cont.) ODI Case.

TM 3-1 Copyright © 1999 Addison Wesley Longman, Inc. Consumer Memory  Short-term memory  Long-term memory  The organization principle of long-term memory.

 Customer behavior: a broad term that covers both individual consumers who buy goods and services for their own use and organizational buyers who purchase.

Copyright  2004 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins 6–16–1 Chapter 6 Outlet Selection and Purchase.

OUTLET SELECTION AND PURCHASE

Alternative Evaluation and Choice

CHAPTER SIXTEEN Alternative Evaluation and Selection McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.

Decision making and economics. Economic theories Economic theories provide normative standards Expected value Expected utility Specialized branches like.

Review Day 1 Definition of consumer behavior Affect (dimensions of affect) Cognition Behavior The purchase cycle – Creating needs, identifying problems.

1 Ravi Vatrapu Online Consumer Decision Making-2 Mishra, S., & Olshavsky, R. (2005). Rationality Unbounded: The Internet and Its Effect.

Chapter 10 JUDGMENT AND DECISION MAKING: HIGH CONSUMER EFFORT

ALTERNATIVE EVALUATION AND SELECTION

Chapter 8 Decision Making

Marketing Management • 14e

Copyright © 1998 by Addison Wesley Longman, Inc. 1 Concepts of Programming Languages Chapter 1.

Ing. Jana Turčínková Mendel University in Brno

TM Week 8 Higher Diploma in Business Management and Marketing Lecturer Susan Simei-Cunningham.

Chapter 5 Consumer Perception

MKTG 371 DECISION MAKING Lars Perner, Instructor 1 CONSUMER DECISION MAKING  The decision process  Effects of involvement  Types of decision strategies.

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins Slides prepared by.

Values, Choices and Frames Session 10 Decision Making and Risk Sp2006.

16-1 © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

Chapter 9 Judgment & Decision Making Based on Low Consumer Effort.

Influences on the consumer purchase decision process

Alessandro Innocenti Anno Accademico Corso Marketing LECTURE 9 PREFERENCE REVERSAL Aim: To illustrate how preferences depends on framing, dual.

Promotion – 1 Integrated Marketing Communications Professor Carl Mela BA 460 Product Management Fuqua School of Business Brand Management System On Building.

Thinking. So what is ‘thinking’? In a general sense, thinking is the intentional use of cognitive capabilities for some purpose. –Recall some kind of.

Identify the 4 P’s. Learning Objectives To be able to identify and discuss the different parts of the marketing mix To be able to identify the relevance.

Market Segmentation and Product Positioning Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 15.

© Pearson Education Limited 2003 OHT 8.1 Individual decision-making.

1 Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole.

Copyright Atomic Dog Publishing, 2002 Chapter 2 Problem Recognition & Information Search.

Consumer Decision Making I: The Process. What Would a Pet Owner Need to Know in Order to Make a Decision About Buying Pet Insurance? 2 Copyright 2010.

8-1 Chapter 8 Decision Making CONSUMER BEHAVIOR, 9e Michael R. Solomon Dr. Rika Houston CSU-Los Angeles MKT 342: Consumer Behavior.

Alternative Evaluation and Selection Process

Chapter 7 Consumer Decision Making. Sample Consumption Decisions Buy or not buy? Buy car or go on a cruise? Buy sedan or coupe? Buy Toyota or Volvo? Buy.

Designing optimal promotional offers according to consumers’ preferences: a conjoint analysis study Pauline de PECHPEYROU University of Lille II (I.M.D.)

Consumer Judgment Nonevaluative Judgment Evaluative Judgment

Information Search in Consumer Decisions

COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Decision-Making II: Alternative Evaluation & Choice Chapter 12.

1 Advertising. 2 Outline n Promotional mix n Advertising –objectives, budgeting, message / media strategy n Integrated marketing communication n Global.

Problem Recognition & Search

Information Search and Alternative Evaluation and Selection Cecia Rahmadani Mira Farina K D Nungki Asri Saraswati

TM 7-1 Copyright © 1999 Addison Wesley Longman, Inc. Cognitive Approaches to Persuasion  Theories of comparative judgment –Adaptation level theory –Social.

APPLIED MARKETING STRATEGIES Lecture 16 MGT 681. Marketing Ecology Part 2.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Chapter 6 Attitudes and Intentions Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Chapter 5 Evaluating and Selecting Alternatives

Chapter 18 Consumer Behavior and Pricing Strategy

Chapter 8 Decision Making

How Framing Affects Mental Accounting and “The Compromise Effect” Shivani Patel May 2, 2007.

Task Select an organisation of your choice and identify, summarise and assess the marketing communications strategy and tactics used by this business.

Attitudes and Intentions

Consumer Decision Making

Alternative Evaluation and Selection

Judgment and Decision Making Based on High Consumer Effort

Pre-Purchase Processes: Need Recognition, Search, and Evaluation

Chp. 12 & 13 (CB) With Duane Weaver

Consumer Decision Making and Beyond

Problem Recognition and Information Search

Need Recognition, Search, Prepurchase Alternative Evaluation, Purchase

Consumer Search and Evaluation

Presentation transcript:

TM 5-1 Copyright © 1999 Addison Wesley Longman, Inc. Consumer Choice  The consideration set  Stimulus-based versus memory-based choice  Attitude-based versus attribute-based choice  Choice Heuristics  Determinants of choice strategy

TM 5-2 Copyright © 1999 Addison Wesley Longman, Inc. The Consideration Set...Consumers rarely consider more than nine brands before choosing! Brands available in the marketplaceConsideration Set Choice (>20 brands) (7 + 2 brands) (1 brand)

TM 5-3 Copyright © 1999 Addison Wesley Longman, Inc.

TM 5-4 Copyright © 1999 Addison Wesley Longman, Inc. The Consideration Set  Part-List Cuing  Attraction Effect –Williams-Sonoma Home Bread Bakery $275 Later offered a more expensive model and sales of the original model almost doubled –Cross Pen or $6 - 36% chose the Cross Pen Cross Pen or decoy pen or $ % chose the Cross Pen  Tradeoff Contrast Effect –$1,000 PC with 640K or $1,200 PC with 960K (Tradeoff of $200 for an additional 320K)  Compromise Effect

TM 5-5 Copyright © 1999 Addison Wesley Longman, Inc. Part-List Cuing Proportion of Brands Recalled Females Males 1010

TM 5-6 Copyright © 1999 Addison Wesley Longman, Inc. Exp. 1Homogeneous Brands M F Exp. 2Heterogeneous Brands M F Exp. 3Prop. of subjectsProp. of subjects recalling at least 1recalling at least 1 item from nasal item from multisymptom spray categoryformula category no cuemutisymp. cueno cuespray cue

TM 5-7 Copyright © 1999 Addison Wesley Longman, Inc. Part-List Cuing Effect - Why? 1. P(retrieving item i ) = Strength of Assoc. Between i and Category  Strength of Assoc. Between Each Item & Category 2. Sampling with Replacement Sampling an item increases strength of association between that item and the category

TM 5-8 Copyright © 1999 Addison Wesley Longman, Inc. How Choices and Comparisons Are Made  Stimulus-Based Choice  Memory-Based Choice  Mixed Choice (Alba et. al. (1993) - Consumers prefer the stimulus brand over a memory brand, even when the memory brand is better. However, memory brand is preferred more over time when positive features are made more memorable by frequency (many positives) or by puffery.)  Attitude-Based vs. Attribute-Based Choice - Accessibility-Diagnosticity Model

TM 5-9 Copyright © 1999 Addison Wesley Longman, Inc.

TM 5-10 Copyright © 1999 Addison Wesley Longman, Inc. Sanyo attribute recall Group 1: Low Interference plus choice task Group 2: High Interference plus choice task Group 3: Low Interference plus recall attributes Group 4: Low Interference plus recall evaluation Group 5: Low Control Group

TM 5-11 Copyright © 1999 Addison Wesley Longman, Inc. Sanyo evaluation recall Group 1: Low Interference plus choice task Group 2: High Interference plus choice task Group 3: Low Interference plus recall attributes Group 4: Low Interference plus recall evaluation Group 5: Low Control Group

TM 5-12 Copyright © 1999 Addison Wesley Longman, Inc.

TM 5-13 Copyright © 1999 Addison Wesley Longman, Inc.

TM 5-14 Copyright © 1999 Addison Wesley Longman, Inc. Evaluation recall Choice Recall Control ConsistentInconsistent

TM 5-15 Copyright © 1999 Addison Wesley Longman, Inc. Choice Heuristics  Attitude-Based Strategies –The Theory of Reasoned Action –Information Integration Theory –Attitude Heuristic –Frequency of Good and Bad Features Heuristic

TM 5-16 Copyright © 1999 Addison Wesley Longman, Inc. Frequency of good/bad features is one way to choose...

TM 5-17 Copyright © 1999 Addison Wesley Longman, Inc. Choice Heuristics  Attribute-Based Strategies –Between Alternative Processing  Lexicographic Heuristic  Lexicographic Semiorder Heuristic Mr. Coffee Accel PR12A$2790 Mr. Coffee Accel PR16$2585 Mr Coffee BL110$2280  Elimination-By-Aspects Heuristic  Additive-Difference Heuristic  Majority of Confirming Dimensions Heuristic –Within Alternative Processing  Conjunctive Heuristic  Disjunctive Heuristic –Phased Strategies

TM 5-18 Copyright © 1999 Addison Wesley Longman, Inc. The lexiographic heuristic involves choosing the best brand on the basis of its most important attribute.

TM 5-19 Copyright © 1999 Addison Wesley Longman, Inc. Determinants of Choice Strategy  Processing Goals (Involvement, Accountability, Perceived Risk)  Processing Load - Decision Difficulty (# of brands, # of attributes, time pressure)  Context - Brand-based vs. Attribute-based format - Framing Effect (75% lean/ 25% fat ground beef) - Unwanted Premium Effect (Pillsbury Brownie Cake Mix or Pillsbury Brownie Cake Mix Plus) (Collector’s Plate Offer - reduced price with POF)

TM 5-20 Copyright © 1999 Addison Wesley Longman, Inc. Processing goals are influenced by importance of a decision, accountability, and perceived risk...