Decision- Making Flashcards
What are the overall implications for marketers?
Marketers must always understand:
- consumer behaviour
- Legislation
- Where consumers access information frequently so that these sources can be implemented into the organisations strategy
- Evaluate if facilitation is ethical
- Family / household structures
What the three decision making processes?
Cognitive, habitual and affective
What is cognitive decision making? What are the steps involved?
- Careful & deliberate decision making from the perspective of info processing
Steps:
- Problem recognition
- Info search
- Evaluation of alternatives
- Product choice
- post - purchase evaluation
What is habitual decision making?
- Buying a product / service out of effort
- Requires little or no effort and is efficient
- Satisfying solution, option is usually deemed ‘good enough’
What are the categories of affective decision making?
Positive affect - feel good feeling (e.g Boots)
Negative affect - disgust has a strong effect on judgements (e.g charity ads)
Emotional rationality - emotions + feelings are informative (e.g P&G mothers day ad)
What is the criteria behind habitual decision making?
- Co-variation = product associations can influence choices
- Inerita = less effort to buy products you’re already familiar with
- Brand loyalty = conscious choice to keep purchasing a particular brand
What are the marketing implications of habitual decision making?
- If a new product tries to enter / establish itself on the market it can be difficult to reverse consumer habits
In terms of cognitive decision making, what are the different types of evaluation of alternatives?
- Evoked set = Alternative products that a consumer knows about
- Consideration set = brands that a consumer will actually consider
- Inept set = aware but wouldn’t consider buying
- Consumers will choose brands based on attributes which can include appearance, price, previous connects
In terms of cognitive decision making, what is the post-purchase evaluation?
- Decide if purchases meet, exceed or fail expectations
- Therefore it is very important to manage expectations
- Product / brand satisfaction effects profitability
What are the marketing implication of cognitive decision making?
Positioning strategy = convince consumers to consider your product / brand
Identify competitors = Overlap your product with competitors to encourage consumers to consider your product
Exemplar products = category prototype e.g Nutella for chocolate spreads
Location = place your product in relevant places e.g baby wipes next to other baby accessories
What is a family house hold?
A family household are those who are co-inhabiting, influences: segmentation, consumption and household decisions
In terms of family house hold, what is ‘consensual purchase decision’?
Group purchase decision that results in a goal being satisfied by agreeing on a product / brand
In terms of family house hold, what is ‘accomodative purchase decision’?
Group purchase decision that does not result in a goal being satisfied due to conflict factors and different preferences / priorities
In terms of accomodative purchase decision, what are the conflict factors? Why are conflict factors important?
- Interpersonal need = an individuals investment in the group
- Product involvement / utility = how much will the product cost? Will it satisfy our needs? How often will it be used?
- Responsibility = Payment, maintenance etc..
- Power = does one individual have more power than others and can sway over individuals to agree with them?
Conflict factors can effect the decision and encourage compromise, bargaining, power and can determine the decision
Identify some roles within the decision making process
Financial advisers = report on bills, spending and investment
Couples = influence each other. Although there are usually designated activities which are usually chosen naturally through experience, expertise, resources, socio-economic status etc.. For example, Kin network system (available leisure time) may be chosen by the person who has more time or the person who has more money
