1. GOAL [Problem/Need] ABC 121212 1 CONSUMER BEHAVIOR; MKTG. 301 [Dr. Carter] Basic “Cognitive Map” Decision TreeConsumer Decision Process Steps [Ch.8] 1.PROBLEM RECOGNITION a. Mental Budget [Attention, Time, Money] b. Roles, Location, Costs c. Internal/External Stimuli d. Table 8.1 Problem “Situation” Quadrant 2.INFORMATION SEARCH a. Search for “Criteria” & “Weights” b. Search for Alternatives “Solutions” c. “Sources, Strategies, Amount” d. “Awareness, Evoked, Consideration Sets” 3.PRE-PURCHASE ALTERNATIVE EVALUATION a. Non-Compensatory Choice Models b. Compensatory Choice Models c. Combined & Heuristic Choice Models d. Process Alternatives, Criteria, and Weights Using Choice Models) 4.PURCHASE – Implementation/Deviation 5.POST-PURCHASE -- Confirmation, Evaluation, Satisfaction/Dissatisfaction 1

2. Customer Decision-Making Process Purchases Post-purchase experience Alternative evaluation Information search Problem recognition 2

3. Customer Decision-Making Process as a Marketing Management Strategy Map Purchases Post-purchase experience Alternative evaluation Information search Problem/Need recognition MARKETING MANAGEMENT APPROACHES Product PricePlace Promotions New Tech./Service Standard/Format [DVDs, PDAs, etc.] Free Or Purchase Terms Intensive Franchise Location Awareness & Recognition Orientation Product Packaging Or Service Materials Cost & Content Pricing Terms Outlet Signage & Web Distrib. Recall Orientation With Detailed Info. [e.g., infomercial] New or Unique Features Comparison & Competitor Pricing Terms Exclusive Locale & Selective In-Store Stocking Comparative Appeals Scanner Labels & Convenient Handling Credit Availability Web/Phone Purchase Options & Self Checkout Point of Purchase Displays & Coupons/Promotions Instructions & Help Services Money Back Returns & Discounted Future Purchases In-Store Usage Training & Services Ongoing Communication [Web, 800#, etc.] 3

4. Purchases Post-purchase experience Alternative evaluation Information search Problem/Need recognition Customer Decision-Making Process as a Cognitive Digital Business Model Map *Social Nets (Facebook, Twitter) *Podcasts (Podcast.net, etc.) *Google *Yahoo *Bing *E-Tailers Priceline.com; Amazon.com *Online – Paypal *In-Store -- Mapquest *eBay *Onlinesurveys.com * ACRBO.com (remote repair & upgrades) 4

5. THE CUSTOMER DECISION PROCESS AS “GUMBALL MACHINE” [Carter’s View] Problem/Need Recognition Information Search Evaluation of Alternatives Purchase 5

6. CUSTOMER DECISION PROCESS “MAPPING” & CUSTOMER DECISION SUPPORT SYSTEM “TRACKING” [Carter’s View] Purchases Post-purchase experience Alternative evaluation Information search Problem/Need recognition CDP “MAPPING” CDSS “TRACKING” Home/Body Sensors Media Embedded QR Codes Virtual World Avatar Experience Digital Wallet Remote “Cloud” SAAS Networks 6

7. CUSTOMER DECISION SUPPORT SYSTEMS AS “Digital Ecology Spheres” [Carter’s View] Body Sensors Wearable Tech Vehicle/Transport Systems Smart Homes/Facilities Mobile Devices Sapient Environments 7

8. The MEANING of “COGNITION” Descartes Cogito (1637) – “I think therefore I am.” Brain – nervous system organ (“signals”) Mind – the brain’s thought property (“sense”) Cognition – the inner world thought process that creates outer world experiences (“choice”) Consciousness – awareness of cognition and responsibility for choices (“ethics”) 8

9. “CONSUMER COGNITION” Economic Man – Material resource choices (property, scarcity, allocate, exchange, gain) Consumer/Purchase Decision Process – Stages of rational/emotional consideration that result in economic market choices for need/want. Consumer Decision Support Systems (CDSS) – information technology devices, networks, and applications that aid market choice processes Digital Man – Information resource choices (content, abundance, combine, interact, grow) Digital Cognition – electronic presence capable of autonomous choice (“intelligent agents”) 9

10. The MODES of “COGNITION” David Hume (1700s) – Philosophy & Science ~ “Human Understanding” is a mixture of logical purpose and emotional passion (a) Logic – “Intellectualism” (b) Emotion – “Sentimentalism” 10

11. The MODES of “COGNITION” Herbert Simon (1940s - Present) – Cognitive Psychology, Economics, and Organizational Management (a) Decision Tree ~ Rational Mind “rationalizes” (semi-logic) (b) Choice Options ~ Emotional Mind “satisfices” (quasi-feeling) 11

12. The MODES of “COGNITION” Nicholas Negoponte (“Being Digital”, 1995 ) – Computer Science & Cognitive Psychology ~ “Digital Being” is created from bytes ~ “Human Being” is created from atoms (a) Cognition is a Thinking Being (b) Computer is a Thinking Machine (c) Conscious Network is a Thinking Presence -- intelligent content, artificial life, virtual world 12