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    4 (C) - Marketing Management.: Simple Model of Consumer Decision Making-Leon G.Schiffman

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    nikkhil chopra
    The document summarizes a simple model of consumer decision making proposed by Leon G. Schiffman. It involves 3 stages: 1) Input which influences consumer needs, 2) A decision process where consumers recognize needs, search for information, evaluate alternatives, and make purchases, and 3) Output involving post-purchase behavior and evaluation. Key aspects of the model are discussed including influences on consumers, the psychological factors in decision making, and how purchase experiences can affect future decisions.

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    4 (C) - Marketing Management.: Simple Model of Consumer Decision Making-Leon G.Schiffman

    Uploaded by

    nikkhil chopra
    33 views15 pages
    The document summarizes a simple model of consumer decision making proposed by Leon G. Schiffman. It involves 3 stages: 1) Input which influences consumer needs, 2) A decision process where consumers recognize needs, search for information, evaluate alternatives, and make purchases, and 3) Output involving post-purchase behavior and evaluation. Key aspects of the model are discussed including influences on consumers, the psychological factors in decision making, and how purchase experiences can affect future decisions.

    Original Description:

    marketing

    Original Title

    Marketing Management.

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    The document summarizes a simple model of consumer decision making proposed by Leon G. Schiffman. It involves 3 stages: 1) Input which influences consumer needs, 2) A decision process where consumers recognize needs, search for information, evaluate alternatives, and make purchases, and 3) Output involving post-purchase behavior and evaluation. Key aspects of the model are discussed including influences on consumers, the psychological factors in decision making, and how purchase experiences can affect future decisions.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    33 views15 pages

    4 (C) - Marketing Management.: Simple Model of Consumer Decision Making-Leon G.Schiffman

    Uploaded by

    nikkhil chopra
    The document summarizes a simple model of consumer decision making proposed by Leon G. Schiffman. It involves 3 stages: 1) Input which influences consumer needs, 2) A decision process where consumers recognize needs, search for information, evaluate alternatives, and make purchases, and 3) Output involving post-purchase behavior and evaluation. Key aspects of the model are discussed including influences on consumers, the psychological factors in decision making, and how purchase experiences can affect future decisions.

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    © All Rights Reserved
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    of 15

    4(c)-MARKETING MANAGEMENT.

    SIMPLE MODEL OF
    CONSUMER DECISION
    MAKING-LEON G.SCHIFFMAN.

    1
    Model of consumer decision making
    • CDM
    External influence

    Socio cultural environment


    Firms marketing efforts Family
    Input Product Informal sources
    Promotion Other non-commercial sources
    Price Social class
    Channel of distribution Sub culture & culture
    Consumer decision making
    Psychological field
    process Need recognition Motivation
    Pre purchase search Perception
    Evaluation of alternatives Learning
    Personality
    Post purchase behavior attitude
    Purchase
    Experience
    Output Trial / repeat purchase
    2
    Post purchase evaluation
    Input stage
    • Influences the consumers recognition of a
    product need & consists of 2 major sources of
    information:-
    1. Firm’s marketing efforts
    2. External sociological influence on consumer
    • The cumulative impact of each firm’s 1& 2-
    societies existing code of behavior are all
    INPUTS that are likely to affect:-
    1. What consumers purchase
    2. How they use
    Eg:- Laptop 3
    Consumer decision process
    • CDP
    stimulus

    Problem
    awareness
    Information
    search
    Evaluating
    alternatives

    purchase

    Post purchase

    4
    The process stage
    • Model focuses on how consumer makes decision, the
    psychological factor inherent in each individual
    (motivation, perception, Learning, personality &
    attitude)
    AFFECT
    How the external input from input stage influence the
    consumer’s recognition of
    • Need recognition
    • Pre purchase search for information
    • Evaluation of alternatives
    • The Experience gained thru evaluation of alternatives
    in turn AFFECT the consumer’s psychological
    attributes
    • Eg:- Laptop 3 different stores 5
    stimuli
    • Are inputs of any of the senses (i.e. sensory
    input), include products, package, brand name,
    etc.
    • Nature of the products, their physical &
    commercial attributes
    • Including (positioning of print ad, timing of
    commercial & editorial environment)

    6
    Need recognition
    • Need Recognition: Is likely when consumer is
    faced with a problem
    • Eg:- grown up family, need for flat
    • Two types of needs:-
    1. Actual state need: when product fails to
    perform
    2. Desired state need: Desire for something new
    can trigger the decision process
    • Eg:- Person driving scooter (sell & buy new
    scooter to reduce maintenance)
    7
    Pre purchase search
    • Begins when the person perceives need that
    might be satisfied by purchase or consumption
    of product
    • Past experience : might provide adequate
    information to make the present choice
    • Greater the past experience less the external
    information to reach decision
    • No past Experience: May go for extensive
    search
    • Information available on Internet , website etc.
    8
    Factors likely to increase pre purchase
    search
    • Product factor:
    1. Long inter purchase time (infrequently used product)
    2. Frequent price changes
    3. Many alternative brands
    4. Much variants feature etc…
    • Situational factor:
    1. First time purchase
    2. No past experience
    3. Unsatisfactory past experience within product category
    • Social acceptability:
    1. The purchase is for gift
    2. Product is socially visible
    • Value related consideration
    • All alternatives have both desirable & undesirable
    consequences 9
    • Family members disagree on product requirement
    Evaluation of alternatives
    • When evaluating potential alternatives
    consumers tend to use 2 types of information:-
    1. List of brands from which they plan to make
    selection ( Evoked set)
    2. Criteria used to evaluate each brand

    10
    List of brands
    • Brands
    All Brands

    Known brands Unknown


    brands

    Evoked set Inept set Inert set

    Acceptable Unacceptable Indifferent Overlooked


    brands brands brands brands

    Purchased Non The implication for marketers is that promotional


    brands Purchased Technique should be designed to impact a more
    brands Favorable, perhaps more relevant product image 11
    To target consumer
    Criteria used for evaluating brand

    • Evaluate the brands that constitute Evoked set


    35 mm camera Auto focus / built in focus/ automatic
    film loading/lens type

    Color TV Picture quality / length of


    warranty/price/size of screen
    Wrist watches Watch brand / alarm features / price /
    water resistance / quartz movement
    Personal computer Processing speed / price/ type of
    display / hard disk size / amount of
    memory
    Washing Powder/ Soap cake Cleaning ability, price / type of quality/
    good for hands
    Fountain pen Balance / price / gold nib / 12
    smoothness/ ink reserve
    The output stage
    • CDM model consists of 2 closely related post
    decision activities:-
    1. Purchase behavior
    2. Post purchase evaluation
    • Trial:- Is an exploratory phase of purchase behavior
    in which consumer evaluates the product through
    direct use.
    • Trial can be through free sample / promotional
    activities / coupons / sale price
    • Repeat purchase: usually signifies product adoption
    • Eg:-Laptop
    • May become a loyal IBM Laptop Customer
    • May become Loyal Customer to retailer
    • He may decide his next computer will be desk top
    13
    Post purchase evaluation
    • Consumers use a product during a trial
    purchase, they evaluate it’s performance in
    light of their own expectation.
    • There are 3 possible outcome of this
    evaluation:-
    1. Actual performance = expectation (neutral
    feeling or just satisfied)
    2. Performance > expectation (customer
    satisfaction and sometimes Customer Delight)
    3. Performance < expectation (dissatisfaction)14
    Cognitive dissonance
    • Part of post purchase analysis, consumers try to
    reassure themselves that the choice was a wise one.
    • They attempt to reduce post purchase cognitive
    dissonance:-
    1. They may rationalize the decision as being wise
    2. May seek advertisement that support their brand
    3. May attempt to persuade friends / neighbour to buy
    same brand
    4. May turn to another satisfied owner for re-assurance

    15

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