In what ways do consumers stray from a deliberative, rational decision

process?

1. Low-involvement consumer decision making

Consumers stray from a deliberative, rational decision process by

2. Varietty-seeking buying

behaviour

4. Framing

3. Decision heuristics

5. Mental Accounting

LOW INVOLVEMENT CONSUMER DECISION MAKING

Consumer does not think much before taking decisions and may take help of peripheral cues

such as celebrity endorsements

Amitabh Bachchan fans would prefer DAIRY MILK.

IT DOES NOT MATTER TO US WHAT BRAND

TOOTH BRUSH WE ARE PURCHASING.

VARIETY SEEKING BUYING BEHARIOURBrand switching occurs just for the sake of variety.

OKAY! LAST TIME IT WAS LAYS, LET’S TRY BINGO TODAY..

DECISION HEURISTICS

AVAILABILITY HEURISTIC

Consumer base their predictions on the quickness and ease

with a product comes to our mind

REPRESENTATIVENESS HEURISTIC

Consumers base their predictions on how

representative the outcome is to other examples

ANCHORING AND ADJUSTMENT

HEURISTICConsumers arrive at an initial judgement and

then adjust it based on additional information.

Availability heuristic

My hair went rough last time I used the product

Representative heuristic

Packing is similar for

different brands so that products could be seen as a representative

of the whole category

Anchoring And Adjustment

Heuristic

Later experiences of the consumers would be interpreted in a same

manner

Rs 5000 Rs 20,000

FRAMINGThe manner in which choices are presented to and seen by the

customer.

Rs 50,000

A Rs. 20,000 phone may seem expensive w.r.t. a Rs. 5,000 phone but cheap in context to Rs. 50,000 phone.

MENTAL ACCOUNTINGIt is the tendency to categorise funds though there is no logical basis for

the categorization.

Deposit 5,000 in savings account A

for home, 5,000 in B for my child’s

future and 5,000 in C for my after

retirement fund

Consumers are constructive decision makers and subject to many

contextual influences. They often exhibit low involvement in their

decisions, using many heuristics as a result.

SUMMARY:

KOTLER, P. & KELLER, K. 2011. Marketing Management 14th Edition , Upper Saddle River, NJ, Prentice Hall(With due thanks

to the owners of Photograph

CREDITS:

DISCLAIMER:Deepali jainHBTI, KANPUR

during an internship by Prof. Sameer Mathur,

IIM Lucknowwww.iiminternship.com