Consumer Decision Making Framework

Social Factors External Cultural Factors

Family Influence, Reference Culture, Sub-Culture, Social
group influences, Roles and Class
Status

Consumer
as Decision
Maker
Psychographics,Motivation,
Personality, Occupation,
Economic circumstances,
Beliefs and Attitude,
Age and family life cycle
Learning

Psychological Factors Personal Factors

Internal
 Reference Groups

Reference Groups:- Individual

 Primary/ Secondary Family
Formal / Informal Friends

 Membership/ Symbolic Social Class

 Various Layers of Consumer’s
Variables having Impact on Market-
Driven Approach

Market Driven Motivational Layer

Approach
Attitudinal Layer
Behavioral Layer
Demographic Layer
 Kotler’s Consumer Behaviour
Model
Step I Step II Step III
Input/ External Influences Process/ Consumer Decision Output/ Consumer
Making Decisions/ Actions
Marketing Other Stimulus
Stimulus (i) (ii) Buyer Buyer Product Choice
Characteristics Decision
(i) Process (ii) Brand Choice
 Product  Economic Dealer Choice
 Price Technological Purchase Timing
Psychological
Promotion Political Purchase Amount
Personal Culture
 Channels of Social
Distribution Culture
 Stages in Buyer Decision
Making (Buyer Decision Process)
Problem Recognition

Pre-Purchase Information Search

Evaluation of alternatives

Purchase Decision

Post- Purchase Decision

 Kotler’s Consumer Behaviour Model
External Influences
Firm’s Marketing Efforts (Stimuli) Social/Cultural Environment
- Product - Family
Input - Promotion -Informal Sources
- Price - Social Class
- Channels of Distribution - Culture

Consumer Decision Making

Need Information
Recognition Processing Frame work
Psychological Field
Pre-Purchase Search
Motivation, ,Perception,
Evaluation of Alternatives
Process Learning, Personality,
Attitude

Experience

Post-Decision Behaviour
Purchase
Post-Purchase Evaluation
Outpu -Trial
-Repeat Purchase
t
 Purchase
Satisfaction

Pre-Purchase Post-Purchase Behaviour

Search

Cognitive
Dissonance
 Factors affecting Process of
Decision Making in Pre-Purchase
Search
 Involvement
 Differentiation
 Time Pressure
Factors affecting Process of
Decision Making(contd.)
Involvement
High Low
Highly Differential/ Variety Seeking
Differentiation

High Complex Buying Behaviour

Behaviour

Dissonance- Habitual Buying

Reducing Behaviour
Low Behaviour
Choice Criteria depends on 3
levels of Decision Making

Extensive Problem Solving

Limited Problem Solving
Routinized/Habitual
Response Behaviour
 Purchase
Satisfaction

Pre-Purchase Post-Purchase Behaviour

Search

Cognitive
Dissonance
 Purchase Satisfaction

The feeling on part of the

customer that the decision to buy
was appropriate because the
product met his expectations.
 Cognitive Dissonance

The tension that results from

holding two conflicting ideas or
beliefs at the same time, in terms of
Consumer Behaviour
The negative feelings that a
consumer may experience after
making a commitment to purchase.
Consumers Response to Dissatisfaction

A dissatisfied consumer decides to:

Take no action.
Discontinue purchasing a product
 Cognitive Dissonance

The tension that results from

holding two conflicting ideas or
beliefs at the same time, in terms of
Consumer Behaviour, the negative
feelings that a consumer may
experience after making a
commitment to purchase.
 Different Types of Consumers
Based on Post Purchase Behavior

High
Butterflies True Friends
Profitability

Strangers Barnacles

Low

Low Loyalty High

 Howard-Sheth Model of
Consumer Behaviour

Four Sets of Variables

 Inputs
 Perceptual and Learning constructs
 Outputs
 Exogenous or External Variables
 Inputs
Learning
Stimulus Display
Perceptual Outputs
i. Significative constructs
a. Quality constructs
b. Price Intention
c.Distinctiveness Purchase
d. Service Overt search Confidence
e. Availability
Intention

ii. Symbolic Attitude

a, b, c, d, e,
Stimulus Attitude
Brand
Ambiguity Compre-
iii. Social Choice hension
a. Family Criteria Brand
b. Reference Motives Compre-
hension Attention
groups
c. Social class
Perceptual
Attention Bias Satisfaction
Exogenous or External Variables

Importance of Purchase
Personality Variables
Social Class
Culture
Time Pressure
Financial Status
 Consumer Segmentation-
An Important Tool to Understand
Consumer Decision Making
 Consumer Segmentation
 Demographics
 Behavioral
 Geographic
 Socio-Economic
 Benefit Segmentation
 Segmentation Based on-
– Psychographics
– Life Styles/AIOs
 Consumer Profiling & Adv.
Analysis
 Consumer-Profile in terms of
Demographics,
Behavioral and
Psychographics
Socio-economic Classification (SEC)
SEC A
SEC B
SEC C
SEC D
Demographics Lifestyle and
Psychographics
• Demographics
Consumer
•Media Habits Purchase
Lifestyle
•Benefit Sought
Psychographics •Brand
attitudes &
Beliefs
•Purchase
Personality Behaviour, etc.
 Consumer Lifestyle

Consumer Lifestyle is function of AIO’s

Activities
Interests
Opinions
 Current Trends having Impact on
Consumer Decision Making Process
 Therise of Young/Children as Direct
Consumer
 Changed Family Buying Behavior
– Changed Family Structures-
Joint/Nuclear Families
– Increasing Influence of Children in
Decision Making
– Women as Consumer