1. Consumer Decision Processes

2. “You can’t assume that people know what they want”
“You can’t assume that people will tell you the truth about their wants and dislikes, even if they know them. What you are likely to get are answers that will protect the informants in their steadfast endeavour to appear to the world as really sensible, intelligent rational beings”

3. Nature of Decision Processes
Purchase options
Consumption options
Divestment options

4. What to buy – both category and brand?
Purchase Options
Whether to buy or save?
When to buy?
What to buy – both category and brand?
Where to buy?
How to pay?

5. Consumption Options Whether to consume or not? When to consume?
How to consume?

6. Divestment Options
Disposal
Recycling
Remarketing

7. Consumer Problem Solving
Rational
Hedonic
In most cases it is a combination of the two

8. Consumer Decision Making Stages
Need recognition
Search for information
Pre-purchase alternative evaluation
Purchase
Consumption
Post-purchase evaluation
Divestment

9. Variables that shape decision making
Individual differences
Environment influences
Psychological processes

10. Decision Process Continum
Complexity
High
Low
Degree of complexity
Extended
problem
solving
Habitual
decision
making

11. Extended Problem Solving
Thought and evaluation precede the act of purchase and use because of the importance of making the right choice

12. Limited Problem Solving
Need recognition leads to buying action, because the purchase does not assume great importance

13. Factors Influencing Extent Of Problem Solving
Degree of involvement –personal factors, product factors, situations
Alternatives are differentiated – time availability, consumer mood
Sufficient time for deliberation

14. Impulse Buying It does not have the indifference that accompanies LPS.
A high sense of emotional involvement and urgency short
circuits the reasoning process and motivates immediate action.
A sudden and spontaneous desire to act accompanied by urgency
State of psychological disequilibrium in which a person can feel out of control
Onset of conflict and struggle that is resolved by immediate action
Minimal objective evaluation
Lack of regard for consequences

15. Variety Seeking Activation of seeking variety as a motive
Similar alternatives
Frequent brand shifts
High purchase frequency