GOAL[Problem/Need]

A B C

1 2 1 2 1 2

1

CONSUMER BEHAVIOR; MKTG. 301

[Dr. Carter]

Basic “Cognitive Map” Decision Tree Consumer 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

Customer Decision-Making Process

PurchasesPurchasesPost-purchase experience

Post-purchase experience

Alternative evaluation

Alternative evaluation

Information search

Information search

Problem recognition

Problem recognition

Customer Decision-Making Process as aMarketing Management Strategy Map

PurchasesPurchases

Post-purchase experience

Post-purchase experience

Alternative evaluation

Alternative evaluation

Information search

Information search

Problem/Need recognition

Problem/Need recognition

MARKETING MANAGEMENT APPROACHES

Product Price Place Promotions

New Tech./Service Standard/Format

[DVDs, PDAs, etc.]

FreeOr

Purchase Terms

IntensiveFranchiseLocation

Awareness &RecognitionOrientation

Product PackagingOr

Service Materials

Cost &Content

Pricing Terms

Outlet Signage&

Web Distrib.

Recall Orientation With Detailed Info.[e.g., infomercial]

New or UniqueFeatures

Comparison& CompetitorPricing Terms

Exclusive Locale& Selective

In-Store Stocking

ComparativeAppeals

Scanner Labels&

Convenient Handling

CreditAvailability

Web/Phone Purchase Options& Self Checkout

Point of PurchaseDisplays &

Coupons/Promotions

Instructions& Help Services

Money Back Returns &

Discounted FuturePurchases

In-StoreUsage Training

& Services

Ongoing Communication

[Web, 800#, etc.]

PurchasesPurchases

Post-purchase experience

Post-purchase experience

Alternative evaluation

Alternative evaluation

Information search

Information search

Problem/Need recognition

Problem/Need recognition

Customer Decision-Making Process as aCognitive Digital Business Model Map

*Social Nets (MySpace & Facebook)

*Podcasts (iPod; Podcast.net, etc.)

*Google *Yahoo *Bing

*E-Tailers Priceline.com; Amazon.com

*Online – Paypal

*In-Store -- Mapquest

*eBay

*Onlinesurveys.com

THE CUSTOMER DECISION PROCESS AS “GUMBALL MACHINE”

[Carter’s View]

Problem/Need Recognition

Information Search

Evaluation of Alternatives

Purchase

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”)

“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”)

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”

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)

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