Lecture 4: Decision Making Flashcards
Part 2
how do we decision make
- Realising there is a problem
- Finding out more information
o how much search? - How are alternatives evaluated?
o Careful weighing up of ‘pros’ and ‘cons’
o Use of quick heuristics
what are the stages of evaluating the alternative
o The product alternatives a person considers compromise their evoked set.
o Members of the evoked set usually share some characteristics; we categorize them similarly.
o The way a person mentally groups or categorises products influences which alternatives he or she will consider.
o Usually we associate some brands more strongly with these categories
what sets are involved in evaltating the alternative
evoked set: the alternatives a consumer knows about
Consideration set: the ones actually considered
Inept set: ones a consumer knows about but would not consider buying
Inert set: those not under consideration at all
what are the strategic implications of product grouping (evaluation of alternatives)
product positioning
identifying competitoes
exemplar products
locating products
define product positioning
o This hinges on the marketer’s ability to convince consumers that a product should be considered within a given category.
define ‘identifying competitors’
o Many different product forms codo wempete for membership of a category
define ‘exemplar products’
o Where a product is a really good example of a category, it is more familiar to consumers and is more easily recognized and recalled.
Popular familiar product generally seen as a good product
This is where might start to look at price point etc..
define ‘locating products’
o Product categorization can also affect consumers’ expectations regarding the places where they can locate products.
Category that choose to put product in
what are the 3 elements of the multi attribute models on which consumers usually take into evaluation
attributes
beliefs
importance weights
define attributes
those which consumers usually take into consideration when evaluating a particular product
define beliefs
– the extent to which a consumer thinks a brand has a particular attribute
define importance weights
the importance of each attribute for a consumer (this may vary considerably between individuals)
what does the multi attribute model elements make possible
o Spot weaknesses in the brand profile
o Capitalise on advantages which the product already has
o Strengthen key product-attribute linkages
o Create new unique selling points if required
Busier a market is the more you need a unique selling point
what did Fishbein 1983 create
created the first, and most influential, attribute model
o Model about gap between intention to buy and actually buying
o Key concepts in diagram = intention and behaviour
- Other models have been created to improve the predictability of the model
what are alternative models to improve the predictability of the multi attribute models
o The theory of reasoned action (Ajzen & Fishbein, 1977)
o The theory of planned behaviour (Ajzen, 1991)
why do - Mismatches between predictions based on multi-attribute models and questionnaires arise
There can be differences between intentions and actual behaviour
Social pressure may change our intentions or behaviour
Models concentrate on the evaluation of the product rather than evaluating what consumers feel about buying it (e.g. if the shop is far away or unpleasant)
- Eg if the shop is far away->will you go to the shop of just buy it on amazon context is key
Models also need to include what consumers feel about websites when shopping online
Attitudes can change for a variety of reasons (e.g. culture, shopping on-line, age)
-Mismatches between predictions that come up with (conscious decisions of buying) due to above
