1. UNIT – V

2. PURCHASE DECESION PROCESS HIGH &LOW INVESTMENT Investment is commonly defined as the consumers personal interest in buying (or) using an item from a given product fields. Ex: product category (car) brand (Indica ) add (Print add) medium (Tv or Net) Decision (buy or not)

3. Interest,needs & values of demand Involve affects (Information searching,processing,attention,congtive learning & satisfaction )

4. Characteristics High Involvement Low Involvement Decision MakingSequential Model (Perfect & Right) Cognitive Learning (Passive Learning) Try to Change Less evidence for both HabitsLoyalty Instrumental Condition Inertia (Change)

5. SOME CONSUMER INVESTMENT Eg: 1, Link brand with issue : High chooses from oil Low chooses from oil (saffola,sunnola,olive oil) 2,Link brand with Personal situation: Even if you have high potential. Choose low potential product. Eg: cycling

6. CREATS INVOLVEMENT Use some simple (opinion of an expert ) Demo of the product Price, quality, quantity, technology

7. PRE PURCHASE BEHAVIOUR  Product brand Product quality social class family culture environment discount offer

8. POST PURCHASE BEHAVIOUR PURCHASE Product expectation conformation Product performance

9. DIFFUSION OF INNOVATION The acceptance of new product & services. The framework for exploring consumer acceptance of new products is drawn from the area of research known as diffusion of innovation.

10. DIFFUSION PROCESS Diffusion process - macro process Spread of a new product Adoption process Micro process – focus individual consumer accept or reject

11. DIFFUSION PROCESS How innovation spread New product, service, idea,practice spread by communication ( mass media, salespeople) To member (target market ).

12. FOUR BASIC ELEMENTS OF DIFFUSION PROCESS i,THE INNOVATION : 1,Frim oriented def :  Product from the company  New to market place (competitors or consumers )  It has considered merit when object is examine.

13. ii.Product innovation: 1.continous innovation : It involves the introduction of a modified rather than new product. Eg: Microsoft windows Mobile phones chocolate Car 2.A dynamically continuous innovation : It may involve the creation of a new product or services change of an product..

14. Eg: Digital camera Digital video recorder MP3 players Disposable diapers 3.A discontinuous innovation: Consumers adopt to new behavior patterns Eg:Radios,Tv,fax,Internet

15. Iii. Market oriented def: Newness of a product is terms of consumers expectation. -Two market – oriented definitions of products innovation. -New product is purchased by relatively small percentage of the market (How much product in market ) -New product is purchased by short period of time(How long period in market)

16. 4.Consumer oriented def: Newness – consumer protection of the product Purchase innovativeness ( cost, quality) Use innovativeness (about product features)

17. Product Characteristics that influence Diffusion S.NoCharacteristicsDefinitionExample 1.Relative AdvantageNew product as Superior to the existing one Lcd tv, Laptop 2CompatibilityNew Product with Present needs and Values Mobile, camera, alarm clock etc 3.ComplexityNew product is Different to understand Cold coffee, soap. 4.TrialabilityTried on Limited basisFree samples, downloads etc.

18. The channels of communication  How it spread through (word of mouth communication)  Internet play a major role  Eg: Ford,GeneralMotars,other major automobiles used net to promote their products.  podcasts helps to develop their products.

19. THE SOCIAL SYSTEM A social system is a Physical, social or cultural environment to which people belong and within which they function.. Eg: Corn in super market New medicine Diet product for geriatric community

20. MODERN SOCIAL SYSTEM Positive attitude Advance technology Respect for Edu & Science Eg :In U.S – Beef consumption is high in 1970 (80% )..but now 60% -Chicken,fish consumption high(Nutrition value)

21. TIME THREE TYPES i. The amount of purchase time : -Consumers initial awareness of a new product(or) services. - They purchase (or) reject it ii. Adopters categories: when the consumer adopt new product

22. 5 STAGES i.Innovators - first to adopt new products & services. ii.Early adopters - second, socially integrated, less risk involved leader. iii.Early majority - after these two critical position (journal or magazine reader) iv.Late majority - skeptical – below in edu,social status & income. v.Laggards –tradition bound – quite long Eg; shampoo and Soap

23. RATE OF ADOPTION How long it takes a new product or services to be adopted by members of a social system.. Eg: B & w in India and color TV in U.S.

24. MANAGINING DISSONANCE  Dissonance occurs – discrepancy between consumers decision & the consumer prior evaluation. Dissonance occurs  Minimum threshold is passed  Purchase decision is irrevocable product  Selected alternative have less attractive feature.  Lack in several desirable alternatives Eg :Buy car (color,price,model)

25. HOW TO REDUCE DISSONANCE 1.Change his evaluation of alternatives. 2.Seek new information to support his choice. 3.Change his attitude.