BUYER BEHAVIOUR
INDIVIDUAL DECISION MAKING
Chp. 9
With Duane Weaver
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
Consumers as Problem Solvers
1.
2.
3.
4.
Purchase decisions steps:
Problem Recognition
Information Search
Evaluate Alternatives
Product/Service Selection
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)
Stages in Consumer Decision
Making
Problem Recognition
Information Search
Evaluation of Alternatives
Product Choice
Consumption and Learning
Types of Consumer Decisions
Problem Recognition
Problem Recognition
occurs when the consumer realizes that
their actual state is significantly different
than their ideal state
NO
PROBLEM
Ideal State
Actual State
Opportunity
Recognition
Need
Recognition
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
Information Search
Amount
of
Search
Internal
vs.
External
Deliberate
vs.
Accidental
Information
Search
Economics
Biases
of
Information
Non-Rational
Types of Perceived Risk
Monetary
Psychological
Social
Functional
Physical
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.
Strategic Implications of Product
Categorization
Product Positioning
Identifying Competitors
Exemplar Products
Locating Products
Heuristics
Heuristics: The mental rules of thumb that lead to a
speedy decision
Product Signals
Market Beliefs
Country of Origin
Decision Rules
Compensatory
Non-compensatory
Lexicographic
Simple
Additive
Weighted
Additive
One attribute can
compensate
In groups of three take 5 minutes
to provide one example of a Noncompensatory decision rule
Best Brand for most
important attribute
Conjunctive
Rule
Choose by brand based
on meeting all cutoffs
Elimination
by Aspects
Specific attribute
cut-offs imposed
Disjunctive
Rule
Standard of an
attribute is higher
than minimal cut-off
One attribute alone
cannot compensate
Thank You for your time
Always be prepared for quizzes, you
never know when…