CONSUMER DECISION MAKING

CONSUMER DECISION MAKING

1. Consumer behavior

   • how consumers make purchase decisions

2. Value

   • worth obtained from making a purchase
   • Perceived Value
     • what you expect to get
   • Utilitarianvalue
     • product or service
   • Hedonic value
     • feelings

3. CDM Process

   • Need recongition
     • want
       • economizing, sustaining, treating, rewarding
   • Info Search
     • internal
     • external
   • Evaluation of alternatives
     • cutoffs
       • eliminate things by attributes
   • Purchase
     • whether when what where
       • to buy
     • how
       • to pay
   • Postpurchase behavior
     • cognitive dissonance

4. Routine Limited Extensive

   • involvement
     • time and effort buyers invest
     • routine response behavior
       • low involvement products
     • experience interest persived risk social visibility
   • limited DM
     • low involvement
   • extensive DM
     • high involvement

5. Factors that affect the CDM

   • Psycological
     • perception motivation learning
   • Social
     • reference group
       • direct
         • primary
         • secondary
       • indirect
         • aspirational
         • nonaspirational
     • opinion leader
   • Cultural
     • values norms attitudes symbols that shape human behavior
     • transmitted from one generation to the next
   • Individual
     • gender age personality life cycle self-concept lifesyle