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How Organizations Use the CDP Model
February 2, 2010
Variables Shaping the Decision Process
Environmental Differences:
Culture
Social Class
Family
Personal Influence
Situation behaviors
Social Influences
Culture
Subcultures
Social class
Reference groups
Families and Households
Culture
Subcultures
Social class
Reference groups
Families and Households
Variables Shaping the Decision Process
Environmental Differences:
Culture: values, ideas, artifacts, and symbols that help individuals interpret, communicate, and evaluate as members of society
Variables Shaping the Decision Process
Environmental Differences:
Social Class: division within society composed of individuals sharing similar values, interests, and behaviors
Variables Shaping the Decision Process
Environmental Differences:
Family: often the primary decision making unit with a complex and varying pattern or roles and functions
Variables Shaping the Decision Process
Environmental Differences:
Personal Influence: our behaviors are often affected by those with whom we closely associate
Variables Shaping the Decision Process
Individual Differences:
Demographics, psychographics, values, and personality
Consumer resources
Motivation
Knowledge
Attitudes
Consumer Demographics
AgeAge
FamilyLife CycleFamilyLife Cycle
Education,IncomeEducation,Income
Religion Religion
Family Life Cycle Stages
Full Nest IFull Nest I
Single ParentsSingle Parents
Divorced and AloneDivorced and Alone
Middle-aged MarriedMiddle-aged Married
Full Nest IIFull Nest II
Empty NestEmpty Nest
Older SingleOlder Single
BachelorBachelor
Nine stages with different buying behavior
Nine stages with different buying behavior
Young MarriedYoung Married
Social Factors
Membership Reference (opinion leaders) Aspirational
Groups
Family
Roles & Status
Most important consumer buying organization
Role =Expected activities Status = Esteem given to role by society
Psychological Influences
Motivation
Perception
Learning
Personality
Attitude
Motivation
Perception
Learning
Personality
Attitude
Maslow’s Hierarchy of Needs
Perception
Process of receiving, organizing, and assigningmeaning to information or stimuli detected by our five senses
Process of receiving, organizing, and assigningmeaning to information or stimuli detected by our five senses
Personality
PsychoanalyticTheory
Hidden buying motivesDreams, hopes, fantasies, fears
PsychoanalyticTheory
Hidden buying motivesDreams, hopes, fantasies, fears
An individual’s pattern of traits that influencebehavioral responsesAn individual’s pattern of traits that influencebehavioral responses
Self-concept
ActualIdeal
Self-concept
ActualIdeal
Lifestyle & Psychographics
• Activities
• Interests
• Opinions
AttitudesLearned predisposition to respond to an object in a consistently favorable or unfavorable way
Learned predisposition to respond to an object in a consistently favorable or unfavorable way
What Is An Attitude?
ObjectManifested dimensionsand attributes
Cognitive ComponentBeliefs aboutthe object
Affective ComponentEmotions or feelingsabout the object
Conative ComponentBehavioral intentiontoward the object
AttitudeOverall expressiveorientation towardthe object
Variables Shaping the Decision Process
Environmental Differences:
Situation behaviors: as situations change, so does the individual’s behavior
Situational Factors
When consumers buy
Where consumers buy
Why consumers buy
Conditions under whichconsumers buy
When consumers buy
Where consumers buy
Why consumers buy
Conditions under whichconsumers buy
Situational Influences
TimeTime
SurroundingsSurroundings
Consumer Moods and Motives
Consumer Moods and Motives
TermsTerms
Types of Decision Processes
Consumer Decision Process Continuum
Midrange Problem Solving
Limited Problem Solving (LPS)
Extended Problem Solving (EPS)
High Low
Degree of Complexity
Consumer Decision Process Continuum: Repeat Purchases
Midrange Problem Solving
Habitual Problem Solving
Extended Problem Solving
High Low
Degree of Complexity
Limited Problem Solving
Types of Decision Processes
Initial Purchase
Extended Problem Solving (EPS): Problem solving of a higher degree of complexity that influences consumers actions
Types of Decision Processes
Initial Purchase
Extended Problem Solving (EPS):Often occurs with expensive items or can be fueled by doubts and fears
Importance in making the “right choice”
All seven consumer decision making stages are often activated
Dissatisfaction is often vocal
Types of Decision Processes
Initial Purchase
Limited Problem Solving (LPS): Problem solving of a lower degree of complexity that influences consumers’ actions
Types of Decision Processes
Initial Purchase
Limited Problem Solving (LPS):Consumers don’t have motivation, time, or resources to engage in EPS
Little search and evaluation before purchase
Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance
Types of Decision Processes
Initial Purchase
Midrange Problem Solving:Many decisions occur along the middle of the continuum
Decisions are made with a minimal amount of time and only moderate deliberation
Types of Decision Processes
Repeat Purchases
Repeated Problem Solving
Habitual Decision Making
Types of Decision Processes
Repeat Purchases
Impulse BuyingUnplanned, spur-of-the-moment action triggered by product display or point of sale promotion (least complex form of LPS)
Repeated Problem Solving
Habitual Decision Making
Types of Decision Processes
Impulse Buying
Variety SeekingConsumers may be satisfied with the present brand but still engage in brand switching
Can be triggered because bored with current brand or because of special offer
Factors Influencing Problem Solving Extent
Degree of Involvement (High-Low)Personal Factors (self-image, health, beauty, or physical condition)
Product Factors (is there perceived risk in purchasing and using a particular brand or product?)
Situational Factors (is the product purchased for personal use or as a gift?)
Factors Influencing Problem Solving Extent
Time Availability How much time is available to devote to solving the problem?
How quickly does the decision need to be made?
Factors Influencing Problem Solving Extent
Time Availability How much time is available to devote to solving the problem?
How quickly does the decision need to be made?
Consumers’ Mood StateHow people feel at a particular moment
Mood can reduce or increase length and complexity of decision process