Consumer Decision Consumer Decision ProcessProcess

Prof.Rajkamal VermaProf.Rajkamal Verma

Associate ProfessorAssociate Professor

Asian School Of Business ManagementAsian School Of Business Management

1.1. We purchase goods and services to satisfy our We purchase goods and services to satisfy our personal, social and environmenetal needs.Consumer personal, social and environmenetal needs.Consumer decision process is the first process of the decision process is the first process of the consumption process.consumption process.

2.2. In fact, we almost daily all of us are involved in taking In fact, we almost daily all of us are involved in taking decisions related to the various aspects of our lives. decisions related to the various aspects of our lives. Usually such decisions are taken automatically without Usually such decisions are taken automatically without the involvement of any particular decision making the involvement of any particular decision making process.Ex:Housewife-Tea(so many brands)process.Ex:Housewife-Tea(so many brands)

3.3. Our purchase is influenced by the situation of purchase Our purchase is influenced by the situation of purchase as well as internal and external as well as internal and external

4.4. Circumstances affects our decisionCircumstances affects our decision

5.5. Gift is affected by the occasionGift is affected by the occasion

6.6. Specific time and place-Executive ,sportsmenSpecific time and place-Executive ,sportsmen

Communication SituationCommunication Situation How a consumer is affected by the How a consumer is affected by the

communication? Internal or external? Or communication? Internal or external? Or commercial? Which situation has more impact commercial? Which situation has more impact on his behavior?on his behavior?

Imagine we have to buy a Imagine we have to buy a car/TV/Refrigerator/Flat. We will go through the car/TV/Refrigerator/Flat. We will go through the following process:following process:

1.1. Problem recognitionProblem recognition2.2. Information searchInformation search3.3. Evaluation of alternatives and selectionEvaluation of alternatives and selection4.4. Outlet selection and purchaseOutlet selection and purchase5.5. Post-purchase actionPost-purchase action

Three types of communicationThree types of communication::1.1. The exposure situationThe exposure situation2.2. The contextThe context3.3. The consumers' moodThe consumers' mood The communication is The communication is

carried by the advertisement or sales promotion tools, carried by the advertisement or sales promotion tools, but sometimes we see that the exposure is not same but sometimes we see that the exposure is not same as we had thought before giving advertisement. as we had thought before giving advertisement. Ex:TV,MagazinesEx:TV,Magazines

The context of communication affects the mood of The context of communication affects the mood of consumer. If there is sa re ga ma pa,Betiyan,Ghar consumer. If there is sa re ga ma pa,Betiyan,Ghar ghar ki kahani.Some companies don’t want to show ghar ki kahani.Some companies don’t want to show their ad in tragedy serial.their ad in tragedy serial.

The mood affects the processing and trying to recall The mood affects the processing and trying to recall all brand/product/category related information.all brand/product/category related information.

Purchase situationPurchase situation1.1. In-store purchase situationIn-store purchase situation

2.2. Whether or not the purchase situation relates to gift givingWhether or not the purchase situation relates to gift giving

3.3. Whether or not the purchase situation is anticipated or Whether or not the purchase situation is anticipated or unanticipatedunanticipated

In store purchase situation –Stimulants and atmosphere In store purchase situation –Stimulants and atmosphere influence mood and willingness of consumerinfluence mood and willingness of consumer

Gift giving-Attention, reaction, status of both ,return of Gift giving-Attention, reaction, status of both ,return of favors, social compulsions,ritualised situations & symbolicfavors, social compulsions,ritualised situations & symbolic

Unanticipated-Going to see movie and your car got break Unanticipated-Going to see movie and your car got break down, unexpected purchase due to situation for which down, unexpected purchase due to situation for which you were not mentally prepared.you were not mentally prepared.

Consumption SituationsConsumption Situations1.1. Occasion of consumer’s product useOccasion of consumer’s product use

2.2. DressDress

3.3. Special occasionSpecial occasion

4.4. DrinkDrink

5.5. PicnicPicnic

6.6. HolidayHoliday

7.7. TimeTime

8.8. Social surroundingsSocial surroundings

9.9. Mood enhancement:" Mood enhancement:" you deserve a break”you deserve a break”

Types of Consumer DecisionsTypes of Consumer Decisions

1.1. It depends upon the price of productIt depends upon the price of product

2.2. Utility of the productUtility of the product

3.3. Low investment vis –a-vis High investmentLow investment vis –a-vis High investment

4.4. Nominal-limited-Extended decision makingNominal-limited-Extended decision making

Continuum of Consumer Decision Continuum of Consumer Decision MakingMaking

Nominal decision makingNominal decision making::

1.1. Low-cost productsLow-cost products

2.2. Frequent purchasesFrequent purchases

3.3. Low-involvementLow-involvement

4.4. Familiar productFamiliar product

5.5. Little thought, search or time given to Little thought, search or time given to purchasepurchase

Limited Decision MakingLimited Decision Making::1.1. More straightforward and simpleMore straightforward and simple2.2. Limited external searchLimited external search3.3. It is between nominal and extendedIt is between nominal and extendedExtended Decision MakingExtended Decision Making1.1. More expensive productsMore expensive products2.2. Infrequent purchasesInfrequent purchases3.3. High involvementHigh involvement4.4. Unfamiliar productUnfamiliar product5.5. Extended thought, search and time given to purchaseExtended thought, search and time given to purchase6.6. Purchase of car,flat,laptop,handycam,freeze,TVPurchase of car,flat,laptop,handycam,freeze,TV7.7. Rigorous evaluation of several alternativesRigorous evaluation of several alternatives8.8. Lack of meaningful informationLack of meaningful information9.9. Careful consideration of attributesCareful consideration of attributes

Thank you!!!!!Thank you!!!!!