Ways by which consumers stray from a deliberative, rational decision process
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This document discusses ways that consumers can stray from rational decision making. It outlines several models of consumer decision making, including the Elaboration Likelihood Model which describes two routes of persuasion - central and peripheral. The central route requires high involvement while the peripheral route considers more extrinsic factors. Marketers can try to convert low involvement consumers to high involvement using techniques like linking products to engaging issues. The document also discusses non-compensatory decision making where choices are influenced by subtle changes in option descriptions. Marketers can take advantage of effects like variety seeking behavior and mental accounting to influence consumer choices.
Ways by which consumers stray from a deliberative, rational decision process
- 1. WAYS BY WHICH CONSUMERS STRAY FROM A DELIBERATIVE, RATIONAL DECISION PROCESS Atul Anand Sophomore Undergraduate IIT (BHU), Varanasi
- 2. LOW INVOLVEMENT CONSUMER DECISION MAKING VARIETY SEEKING BUYING BEHAVIOR MAIN FACTORS FOR STRAYING
- 4. EXPECTANCY VALUE MODEL Requires high level of consumer involvement.
- 5. ELABORATION LIKELIHOOD MODEL Richard Petty & John Cacioppo Consumer evaluation in both high and low involvements
- 6. ELABORATION LIKELIHOOD MODEL Two means of Persuasion Central Route and Peripheral Route.
- 7. CENTRAL ROUTE Must posses sufficient motivation else not pursued as detailed examination is required for purchase.
- 8. PERIPHERAL ROUTE More extrinsic factors are considered in decisions.
- 9. If low involvement to high is not converted, consumer will follow peripheral route and not the central route.
- 10. CONVERSION OF LOW TO HIGH INVOLVEMENT FOUR TECHNIQUES Link to an engaging issue. Link to a personal situation. Design ad to trigger emotion. Addition of important features.
- 11. Marketers must try to convert to persuade the consumer to follow the central route (favorable for weaker brands)
- 13. Low involvement but significant brand differences
- 14. Consumers often switch brands to evaluate the variety and not because of dissatisfaction.
- 15. Dominate the shelf with variety to encourage habitual buying behavior.
- 16. Free coupons, deals, low prices, free samples, etc.
- 17. These results in a deliberate and rational decision making.
- 19. Consumers choose an alternative after a relatively inferior option is added in to the available choice set.
- 20. Consumers are not sure about their future taste.
- 21. Consumers often overestimate future consumption, especially if there is limited availability.
- 22. Consumers choices are influenced by subtle changes in the ways alternatives are described.
- 23. These were non compensatory decision strays.
- 24. Marketers can use these findings to counter straying of there brands. STRATEGY
- 25. Customers segregate gains. Consumers are forced to consider different benefits separately by the seller. (Listing different benefits can make the sum to be seen greater as a whole) MENTAL ACCOUNTING OF CUSTOMERS
- 26. Customers integrate losses. Customers buy if the cost can be added to another larger purchase. (Additional features persuade customers to buy high end products) MENTAL ACCOUNTING OF CUSTOMERS
- 27. Customers integrate smaller losses with larger gains. Cancellation principle works here. (Smaller withholdings are absorbed by larger pay amounts) MENTAL ACCOUNTING OF CUSTOMERS
- 28. Customers segregate smaller gains with larger losses. Silver lining principle works here. (Rebates on big-ticket purchases such as cars) MENTAL ACCOUNTING OF CUSTOMERS
- 29. Consumers exhibit low involvement using many heuristics as a result of contextual influences. SUMMARY
- 30. THANK YOU