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The University of Northampton

The correct answer is C. When a person perceives a difference between their current state of affairs and an ideal state, their standard of comparison has changed.

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Ankit Srivastava
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82 views23 pages

The University of Northampton

The correct answer is C. When a person perceives a difference between their current state of affairs and an ideal state, their standard of comparison has changed.

Uploaded by

Ankit Srivastava
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The University of

Northampton

MKT3007 Consumer
Behaviour
Individual decision making
Perspectives on decision
making
Rational perspective - every decision is
thought through
Behavioural influence perspective - low
involvement, impulse. Environment is
important to facilitate these decisions
Experiential perspective - high
involvement. Focus on the ‘totality’ of the
purchase
Types of consumer decisions
Extended problem solving EPS
Limited problem solving LPS
Habitual decision-making (routine
response behaviour)
Problem recognition
Difference occurs between current state
and ideal state
Link back to ‘motivation’ – ‘gap’
Need recognition
running out of the product
product does not satisfy needs adequately
by creating new needs
Opportunity recognition
circumstances change
different / better products
Marketers role
Create demand
Use of humour
– ..\Pepsi-Italian_Style.wmv
– ..\Sport drink.wmv
– ..\viera_clip.wmv
Primary demand - for a new product, early
life cycle
Secondary demand - choosing a brand,
better than competitors
Information search
Internal Vs external search
Deliberate Vs ‘accidental’ search
Economies of information
gather data for purpose

Rational search? - lower income buyers?


Bias
Mental accounting – tickets free tickets?
Sunk-cost fallacy - reluctance to waste
Loss aversion - emphasis on loss, not gain
(loosing money is worse)
Prospect theory - risk of gain or loss
1. Given £30, flip a coin to win / lose £9
2. Given £30 outright. Could win £39 or £21 (same risk)
Risk differs depending on the source (more likely
to risk someone else’s resources)
How much search occurs?
Prior expertise
Perceived risk
Moneytary (little income/high price)
Functional (practical consumers)
Physical (elderly / frail / ill)
Social (self confidence)
Psychological (self respect)
Evaluation of alternatives
Identifying alternatives
– evoked set - already in memory (retrieval)
– retail environment set (prominent brands, i.e.
Sony)
– inept set - aware but would not buy
– inert set - not under consideration
Product categorisation
Enables us to make sense of the
environment
Product positioning
Identifying competitors
Exemplar products - niche position?
(market leaders?, i.e. Hoover, Dyson)
Locating products - frozen dog food?
Evaluating

Point out significant differences


between brands
Point out the benefits / product features
Point out the benefits to the consumer
Heuristics: mental shortcuts
Cut decision time
Relying on a product signal
Attributes (shiny car?)
Market beliefs
accurate?
Brand, store, price, ad & promo, packaging
Country of origin
Italian shoes, Japanese cars
Brand loyalty?
Inertia - buying the same brand
price
time / effort
no commitment to product
Brand loyalty
repeat purchasing
conscious decision
emotional attachment

Example : Cereal shopping…


Most positively regarded brand
names
1990 1996
Coca-cola McDonalds
kellogg;’s Coca-cola
McDonalds Disney
Kodak Kodak
Marlboro Sony
IBM Gillette
American Express Mercedes Benz
Sony Levi’s
Mercedes Benz Microsoft
Nescafe Marlboro
Rank 2009 Rank 2008 Brand BV ’09 ($m) BV ’08 ($m) % chg 09 vs. 08

1 = Google 100,039 86,057 16%

2 1 Microsoft 76,249 70,887 8%

3 1 Coca-Cola 67,625 58,208 16%

4 2 IBM 66,622 55,335 20%

5 3 McDonald's 66,575 49,499 34%

6 1 Apple 63,113 55,206 14%

7 -2 China Mobile 61,283 57,225 7%

GE (General
8 -6 59,793 71,379 -16%
Electric)

9 2 Vodafone 53,727 36,962 45%

10 = Marlboro 49,460 37,324 33%

Marketing Magazine 2009


Decision rules
Non-compensatory decision rules
(eliminates those which do not meet the
basic standards)
lexicographic rule - most important attribute selected
elimination by aspects rule - as above but with cut-offs e.g.
price
conjunctive rule - process by brand
Compensatory decision rules
can make up for its shortcomings, more involved in purchase
simple additive rule - most +ve attributes
weighted additive rule - attributes + brand
Summary
Types of decision making
Risk / high, low involvement
Problem recognition
Information search
Evaluation
Rules of evaluation
Brand loyalty
When a person perceives a difference
between their current state of affairs and
an idea state, their ……. has changed.
A) standard of recognition
B) standard of decision
C) standard of comparison
D) standard of comprehension
E) standard of cognition
When a person perceives a difference
between their current state of affairs and
an idea state, their ……. has changed.
A) standard of recognition
B) standard of decision
C) standard of comparison
D) standard of comprehension
E) standard of cognition

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