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or
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The Consumer Decision Process
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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OR
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A Model of Consumer Behaviour
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ARKETINGPsProductPricePlace
Promotion
ENVIRONMENTAL
EconomicTechnologicalPoliticalSocioCultural
Post-purchaseEvaluation
Product ChoiceBrand ChoiceDealer ChoicePurchase TimingPurchase Amount
Trial
PURCHASE
Buyer Decision ProcessProblem Recognition
Information Search
Evaluation Decision
Post-purchaseBehaviour
CulturalCharacteristicsPersonal
Psychological
BUYEREXPERIENCE
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The Consumer Decision Process
How do consumers makepurchase decisions?
How do firms use this informationto develop new products andmarketing programs?
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Why do I need it?---- Problem Recognition
What exactly is this product?-- InformationSearchWhat options are available? --Analysis of
AlternativesHow exactly does purchase happen? --Purchase Decision
Did I make the right choice?--Postpurchase Behaviour
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Ideal StateSimple ExpectationsFuturegoals/AspirationsMotivations/Self ImageCultureChange in PersonalCircumstances
Actual State
Physical factorsNeed ExternalStimuli
Differences
Problemrecognition
Perceived difference between an ideal stateand actual state motivates the consumer totake actions.
PROBLEM RECOGNITION
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Marketing Implications
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The Consumer Decision Process
P&G usedconsumerinformation
regardingvariousdecisionprocess stagesto create andmarket Dryel
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Influencer plays an important role in consumer decisionmaking.Influencer may not be an expert but he/she assumes a keyrole in consumer decision and his/her family dynamics.
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Post purchase Behaviour
Consumer evaluates the product during consumption to see if it
satisfies the need/expectation
Influenced by type of preceding decisionmakingprocesses.
Depends on the level of purchase involvement or thelevel of interest in a purchase
Cognitive dissonance and Experiential marketing play animportant role in shaping up these behaviours.
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Consumer Decision Process Stages
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Post-consumption Evaluation
Divestment
Pre-purchase Evaluation of Alternatives
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Consumer Decision Process Model
Need Recognition
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Need Recognition
Need: the difference between what aperson perceives to be the idealversus the actual state of affairs
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Need Recognition
Need: the difference between what aperson perceives to be the idealversus the actual state of affairs
Consumers recognize needs andseek to fulfill them, or sometimesseek to solve their problems
Knowing consumers needs, helpsfirms develop products andmarketing programs to reach them
more effectively (itch and scratch)Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Need Recognition
Communicatinga need andraisingconsumerawareness ofneed or
problemSpecial needsof baby teeth
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Need Recognition
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Individual Differences-Consumer Resources
-Motivation-Knowledge-Attitudes-Personality, Values,and Lifestyle
Environmental
Influences-Culture
-Social Class-Personal Influence-Family-Situation
ME
MOR
Y
NeedRecognition
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Consumer Decision Process Model
Need Recognition
Search for Information
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Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
SearchInternal
Search
ME
MORY
IndividualDifferences
Environ-mental
Influences
Need Recognition
Attention
Compre-hension
Acceptance
Retention
Exposure
CDP Model
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Search For Information
Internal search: retrieving know-ledge from memoryExternal search: collecting informa-tion from peers, family, and the
marketplace
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Search For Information
Internal search: retrieving know-ledge from memoryExternal search: collecting informa-tion from peers, family, and the
marketplace
Search may be passive asconsumers become more receptive
to information around them, orconsumers can engage in activesearch behavior
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Search For Information
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
NeedRecognition
Search
External
Search
InternalSearch
M
EMORY
IndividualDifferences
EnvironmentalInfluences
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Search: Sources of Information
Marketer Dominated
Non-Marketer Dominated Stimuli
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Information Processing
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
ME
MOR
Y
Attention
Comprehension
Acceptance
Retention
Exposure
Stimuli:-Marketer
Dominated-NonmarketerDominated
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-Family and peers
-Publications
-Television ads
-Internet or
website-In-store displaysor salespersons
-Shopping
Search: Sources of Information
Marketer Dominated
Non-Marketer Dominated Stimuli
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Search: Information Processing
Exposure
Attention
Comprehension
Acceptance
Retention
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Consumer Decision Process Model
Need Recognition
Search for Information
Pre-purchase Evaluation of Alternatives
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Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Pre-purchaseEvaluation ofAlternatives
SearchInternal
Search
ME
MORY
IndividualDifferences
Environ-mental
Influences
Need Recognition
Attention
Compre-hension
Acceptance
Retention
Exposure
CDP Model
Stimuli:Friendsand
relatives
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Pre-purchase Evaluation ofAlternatives
The process of evaluating alter-natives identified from search,which leads to product or brand
most likely to satisfy the consumer
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Pre-purchase Evaluation ofAlternatives
The process of evaluating alter-natives identified from search,which leads to product or brand
most likely to satisfy the consumerCan use new or preexisting evalu-ations stored in memory
Evaluative criteria: standards andspecifications used to comparedifferent products and brands
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Pre-purchase Evaluation ofAlternatives
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Aunt Jemimamaple syrupfocuses on theevaluativecriteria ofthickness in
thisadvertisement
C D i i P M d l
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Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Pre-purchase Evaluation of Alternatives
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
N d R itiCDP M d l
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Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Pre-purchaseEvaluation ofAlternatives
SearchInternal
Search
ME
MORY
IndividualDifferences
Environ-mental
Influences
Purchase
Need Recognition
Attention
Compre-hension
Acceptance
Retention
Exposure
CDP Model
Stimuli
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Purchase
Purchase decisions involvechoosing a form of retailing, aspecific retailer, and a particularproduct and brand
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Purchase
Purchase decisions involvechoosing a form of retailing, aspecific retailer, and a particularproduct and brand
Purchase intention can changeduring the purchase stage--it can be
influenced by factors such as in-store promotions, discounts, orstock-outs
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
C D i i P M d l
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Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Prepurchase Evaluation of Alternatives
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Need RecognitionCDP M d l
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Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Pre-purchaseEvaluation ofAlternatives
SearchInternal
Search
ME
MORY
IndividualDifferences
Environ-mental
Influences
Purchase
Consumption
Need Recognition
Attention
Compre-hension
Acceptance
Retention
Exposure
CDP Model
Stimuli
C i
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Consumption
The process of using the product or
service purchased
Consumption can either occurimmediately or be delayed
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
C ti
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Consumption
The process of using the product or
service purchased
Consumption can either occurimmediately or be delayed
Consumers may use products asintended or as they choose,especially when instructions are
not included or not read
How consumers use a productaffects satisfaction with product
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
C ti
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Consumption
Appealing toconsumerswith easy-to-
use positioning
Consumption-oriented
product designand benefit
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Consumer Decision Process Model
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Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Post-consumption Evaluation
Pre-purchase Evaluation of Alternatives
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Need Recognition: choosing themode of investment in which
less risk and moderate return isCDP Model
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Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
PrepurchaseEvaluation of Alternatives:lic, Idfc, hdfc, reliance tocheck the returns of past
five years
Search: website,through broker
newspaper
InternalSearch:(experienced to investin mutual fund)
MEMORY
IndividualDifferences: boom
in the market ,
expected morereturns(experience
d to invenst inreliance other
scheme)
Environ- mentalInfluences: broker,
agent
Purchase: finally made
a purchase of reliancesmall cap fund
Consumption:successfulusage of the product
Post-consumption Evaluation:successful usage of mutual fund
and it NAV is growing
less risk and moderate return is
involved
External Search:Financialmagazine
Attention: healthyreturns of reliancemutual funds
Comprehension:analysed thebenefits andfeatures of
mutual funds
Acceptance:liked the product
and accepted
Retention: risk diversification
Exposure:Awarenessabout themutual fund
products
Satisfaction:we cannot judge
CDP Model
Stimuli:By Broker
jjbyby
Divestment :
dissatisfied
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P t ti E l ti
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Post-consumption Evaluation
Satisfaction: when expectations are
met or exceeded by perceivedperformance
Dissatisfaction: when performance
falls short of expectationsConsumption is an importantdeterminant of satisfaction
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Post cons mption E al ation
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Post-consumption Evaluation
Satisfaction: when expectations are
met or exceeded by perceivedperformance
Dissatisfaction: when performance
falls short of expectationsConsumption is an importantdeterminant of satisfaction
Cognitive dissonance: questioningdecision (post-purchase regret)
Emotion affects evaluation
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Consumer Decision Process Model
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Consumer Decision Process Model
Purchase
Need Recognition
Search for Information
Consumption
Post-consumption Evaluation
Divestment
Pre-purchase Evaluation of Alternatives
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Divestment
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Divestment
How consumers dispose of the
packaging or product after use
Options include:Disposal
Remarketing or resellingRecycling
Consumers environmental
concerns about divestment mayaffect product choice
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Divestment
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Divestment
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Mentadent sells
toothpaste in adual-chamberedpump, whichcan be filledwith refills andreused rather
than thrownaway each time
Divestment
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Divestment
How consumers dispose of the
packaging or product after use
Options include:Disposal
Remarketing or resellingRecycling
Consumers environmental
concerns about divestment mayaffect product choice
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Need RecognitionCDP Model
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Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Pre-purchaseEvaluation ofAlternatives
Search
Stimuli
Internal
Search
ME
MORY
IndividualDifferences
Environ-mental
Influences
Purchase
Consumption
Post-consumption
Evaluation
Divestment
Need Recognition
ExternalSearch
Attention
Compre-
hension
Acceptance
Retention
Exposure
SatisfactionDissatisfaction
CDP Model
Variables Shaping the Decision
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Variables Shaping the DecisionProcess
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Variables Shaping the Decision
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Variables Shaping the DecisionProcess
Individual Differences:
Demographics, psychographics,values, and personality
Consumer resources
Motivation
KnowledgeAttitudes
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Variables Shaping the Decision
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Variables Shaping the DecisionProcess
Environmental Differences:Culture: values, ideas, artifacts, andsymbols that help individuals interpret,
communicate, and evaluate asmembers of society
Social Class
FamilyPersonal Influence
SituationBlackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Variables Shaping the Decision
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Variables Shaping the DecisionProcess
Psychological ProcessesInfluencing Consumer Behavior
Information processing
Learning
Attitude and behavior change
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Types of Decision Processes
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Types of Decision Processes
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Consumer Decision Process
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Consumer Decision ProcessContinuum
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
MidrangeProblemSolving
LimitedProblemSolving
(LPS)
ExtendedProblemSolving
(EPS)
High Low
Degree of Complexity
Consumer Decision Process
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Consumer Decision ProcessContinuum: Repeat Purchases
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
MidrangeProblemSolving
HabitualProblemSolving
ExtendedProblemSolving
High Low
Degree of Complexity
LimitedProblemSolving
Types of Decision Processes
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Types of Decision Processes
Initial Purchase
Extended Problem Solving (EPS):
Often occurs with expensive items orcan be fueled by doubts and fears
Importance in making the right
decision
All seven consumer decision making
stages are often activated
Dissatisfaction is often vocal
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Types of Decision Processes
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Types of Decision Processes
Repeat Purchase
Repeated Problem Solving
Habitual Decision Making
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Types of Decision Processes
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Types of Decision Processes
Repeat Purchase
Impulse BuyingUnplanned, spur-of-the-moment actiontriggered by in-store display orpromotion (least complex form of LPS)
Repeated Problem Solving
Habitual Decision Making
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Types of Decision Processes
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Types of Decision Processes
Repeat Purchase
Impulse BuyingUnplanned, spur-of-the-moment actiontriggered by in-store display orpromotion (least complex form of LPS)
Variety SeekingBrand shiftsCan be triggered because bored withcurrent brand or because of special offer
Repeated Problem Solving
Habitual Decision Making
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Nestle
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Nestleappeals toconsumers
varietyseekingbehavior bypromoting avariety ofdesserts foreach day of
the week(varietywithoutbrand switch)
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Factors Influencing Problem
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Factors Influencing ProblemSolving Extent
Factors Influencing Problem
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Factors Influencing ProblemSolving Extent
Degree of Involvement (High-Low)Personal Factors (self-image, health,beauty or physical condition)
Product Factors (is there perceived riskin purchasing a particular brand orproduct?)
Situational Factors (is the productpurchased for personal use or as a gift?)
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Factors Influencing Problem
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Factors Influencing ProblemSolving Extent
Degree of Involvement (High-Low)
Perceptions of differences among
alternatives
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Factors Influencing Problem
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Factors Influencing ProblemSolving Extent
Time AvailabilityHow much time is available to devote tosolving the problem?
How quickly does the decision need tobe made?
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
Factors Influencing Problem
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Factors Influencing ProblemSolving Extent
Time AvailabilityHow much time is available to devote tosolving the problem?
How quickly does the decision need tobe made?
Consumers Mood State
How people feel at a particular momentof time
Mood can reduce or increase length andcomplexity of decision process
Blackwell,Miniard, and Engel,Consumer Behavior, Ninth Edition, Copyright 2001 by Harcourt, Inc. All rights reserved.
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Consumer Behavior