Noteshells12 - Decision Making: Introduction, Stages, and...

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1 1 Decision Making: Introduction, Stages, and Consumer Judgment 2 Outline Overview of Decision Making Stages Need recognition Information search Normative theory of choice Consumer Judgment Heuristics: Availability, Representativeness, Anchoring 3 Consumer Decision Making Decision: Choice between two or more alternative actions / items/ behaviors. Many types of consumer decisions
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2 4 Basic stages of decision making Problem recognition Search for alternatives Evaluate the alternatives Select from among the alternatives Post-selection evaluation May not go through each stage, depending on: Expense Frequency of decision (habits) Involvement Cognitive resources/ ability Certain stages can co-occur (e.g., search and evaluation) 5 Problem Recognition Discrepancy between current state of affairs and ideal state of affairs. Simple as “I need a pack of gum.” Complex as “I need to make more money.” Triggers action to resolve that discrepancy. Buy gum. Enroll in school, change jobs, buy a lottery ticket, steal. Those actions require decisions. 6 How do current-ideal discrepancies arise? Perceived current state may get worse (“need recognition”): Perceived ideal state may improve (and move further from current; “opportunity recognition”):
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7 How do marketers encourage current- ideal discrepancies? (Carefully) downgrade perceptions of current state. “4 out of 5 women don’t get enough calcium” Augment the ideal state Primary demand Secondary demand 8 Problem Recognition Perceived discrepancy is one trigger. Awareness of future potential discrepancy is another. “Pre-need goods” Once the problem is recognized, consumers then try to solve it. 9 Search for Alternatives What information do we need? Available alternatives
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Noteshells12 - Decision Making: Introduction, Stages, and...

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