WAYS BY WHICH

CONSUMERS STRAY FROM

A DELIBERATIVE, RATIONAL

DECISION PROCESS

Atul Anand

Sophomore Undergraduate

IIT (BHU), Varanasi

LOW INVOLVEMENT CONSUMER

DECISION MAKING

VARIETY SEEKING BUYING BEHAVIOR

MAIN FACTORS FOR STRAYING

EXPECTANCY VALUE MODEL

Requires high level of

consumer involvement.

ELABORATION LIKELIHOOD MODEL

Richard Petty & John Cacioppo

Consumer evaluation in both high and low involvements

ELABORATION LIKELIHOOD MODEL

Two means of Persuasion

Central Route and Peripheral Route.

CENTRAL ROUTE

Must posses sufficient motivation

else not pursued as detailed

examination is required for

purchase.

PERIPHERAL ROUTE

More extrinsic factors are

considered in decisions.

If low involvement to high is

not converted, consumer will

follow peripheral route and

not the central route.

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.

Marketers must try to convert

to persuade the consumer to

follow the central route

(favorable for weaker brands)

Low involvement but

significant brand

differences

Consumers often switch

brands to evaluate the

variety and not because

of dissatisfaction.

Dominate the shelf with

variety to encourage

habitual buying behavior.

Free coupons, deals, low

prices, free samples, etc.

These results in a

deliberate and

rational decision

making.

Consumers choose an

alternative after a

relatively inferior option is

added in to the available

choice set.

Consumers are not sure

about their future taste.

Consumers often

overestimate future

consumption, especially if

there is limited availability.

Consumers choices are

influenced by subtle

changes in the ways

alternatives are

described.

These were non

compensatory

decision strays.

Marketers can use

these findings to

counter straying of

there brands.

STRATEGY

Customers segregate gains.

Consumers are forced to consider different

benefits separately by the seller.

(L is t ing di f ferent benef i ts can make the sum to be seen greater as a whole)

MENTAL ACCOUNTING OF CUSTOMERS

Customers integrate losses.

Customers buy if the cost can be added to

another larger purchase.

(Addit ional features persuade customers to buy high end products)

MENTAL ACCOUNTING OF CUSTOMERS

Customers integrate smaller

losses with larger gains.

“Cancellation” principle works here.

(Smal ler wi thholdings are absorbed by larger pay amounts)

MENTAL ACCOUNTING OF CUSTOMERS

Customers segregate smaller

gains with larger losses.

“Silver lining” principle works here.

(Rebates on big-t icket purchases such as cars)

MENTAL ACCOUNTING OF CUSTOMERS

Consumers exhibit low

involvement using many

heuristics as a result of

contextual influences.

SUMMARY

THANK YOU