group assignment group assignment what is a cognitive purchase decision process

Explain in details three categories of consumer decision-making include cognitive, habitual,and affective?- Cognitive: cognitive “effort”Cognitive decision making is the outcome of a serie

GROUP ASSIGNMENTSUBJECT: MKT201CONSUMER BEHAVIORCLASS: MKT1806 - GROUP 5

TEAM LIST

1 Bùi Thị Kiều Khanh HS1864342 Cấn Trang Linh HS1802313 Lê Vân Mai Linh HS1806914 Nguyễn Quý Linh HS1708885 Nguyễn Ti n Đ tế ạ HS170473

TABLE OF CONTENTS* * *

Chap 9:

I What is decision making? Please explain in details three categories of consumer

decision-making include cognitive, habitual, and affective? 31 What is decision making? 3

2 Explain in details three categories of consumer decision-making include cognitive, habitual, and

affective? 3II What is a cognitive purchase decision process? Please explain series of stages that results inthe selection of one product over competing options……… 4III Why marketers often need to understand types of consumers’ behavior rather than aconsumer’s behavior? Explain how decision-making process differs when people choose what tobuy on behalf of an organization rather than for personal use……… 4

1 Marketers often need to understand consumers’ behavior rather than a consumer’s

behavior……….… 4

2 The decision-making process differs when people choose what to buy on behalf of an

organization rather than for personal use……… 5IV Please differentiate personal decision making and collective decision

making? 6V How members of a family unit play different roles and have different amounts of influencewhen the family makes purchase decisions? 8Chap 10:

I What factors can influence pre-purchase, purchase, and postpurchase process of consumers?What factor at the time of purchase dramatically influence the consumer decision-makingprocess? 11

1 What factors can influence pe-purchase, purchase, and postpurchase process of

consumers? 11

2 What factors at the time of purchase dramatically influence the consumer decision-making

process? 11II How does the information a store’s layout, Website or salespeople influence a purchasedecision? What is store personality and its importance? Why can we conclude that

co-consumers as a product attribute? 12

1 How does the information a store’s layout, Website or salespeople influence a purchase

3 Why can we conclude that co-consumers as a product attribute? 14III What is a "sharing economy"? please compare "sharing economy" and "traditionaleconomy" How the growth of a "sharing economy" change consumers think about buyingrather than renting products? 15

1 What is a "sharing economy"? 152 Compare "sharing economy" and "traditional economy" 15

3.How the growth of a "sharing economy" change consumers think about buying rather than renting

products? 15***

Chap 9:

I What is decision making? Please explain in details three categories of consumerdecision-making include cognitive, habitual, and affective?

1 What is decision making?

Decision making is the process of choosing a course of action from among several alternatives basedon certain criteria and goals Decision making can be rational or irrational, intuitive or logical, andindividual or collective Decision making is an essential skill for managers, leaders, and professionalsin various fields Decision making can have significant impacts on the outcomes and consequences ofdifferent situations Therefore, decision making requires careful analysis, evaluation, and judgment ofthe available information and options.

2 Explain in details three categories of consumer decision-making include cognitive, habitual,and affective?

- Cognitive: (cognitive “effort”)

Cognitive decision making is the outcome of a series of stages that results in the selection of oneproduct over competing options This type of decision making is deliberate, rational, and sequential Itinvolves a high level of involvement and effort from the consumer, who carefully evaluates the prosand cons of different alternatives based on their goals, values, and needs Cognitive decision making isusually applied to complex or expensive products or services, such as buying a car, choosing a college,or booking a vacation.

- Habitual: (“just do what I usually do”)

Habitual decision making is the opposite of cognitive decision making It is behavioral, unconscious,and automatic It involves a low level of involvement and effort from the consumer, who makeschoices out of habit or inertia Habitual decision making is usually applied to simple or familiarproducts or services, such as buying groceries, toiletries, or fast food Habitual decision making isinfluenced by factors such as brand loyalty, variety seeking, and framing effects.

emotional, instantaneous, and subjective It involves a moderate level of involvement and effort fromthe consumer, who makes choices based on their feelings, moods, or attitudes Affective decisionmaking is usually applied to hedonic or experiential products or services, such as watching a movie,listening to music, or eating a cake Affective decision making is influenced by factors such as mood,personality, and self-image.

II What is a cognitive purchase decision process? Please explain series of stages that results inthe selection of one product over competing options.

- Cognitive purchase decision process:

A cognitive purchase decision process is the outcome of a series of stages that results in the selectionof one product over competing options It could be either rational or irrational The decision-makingprocess is a reasoning process based on assumptions of values, preferences and beliefs of thedecision-maker

- Series of stages that results in the selection of one product over competing options.●step 1: Problem recognition

When the decision maker realizes that they have a problem or an opportunity that needs to beaddressed.

●step 2: Information search

When the decision maker seeks relevant data and information to help them solve their problem orseize their opportunity They may use internal sources, such as their memory or experience, orexternal sources, such as friends, family, experts, or the internet.

(the process by which we survey the environment for appropriate data to make a reasonable decision.You might recognize a need and then search the marketplace for specific information (a process wecall prepurchase search)

●step 3: Evaluate Alternatives

When the decision maker compares and contrasts the various options that they have identified in theprevious stage They may use different criteria and methods to evaluate the alternatives, such asattributes, benefits, costs, risks, etc

●step 4: Product choice

When the decision maker selects the best alternative that meets their needs and preferences They mayalso consider other factors, such as availability, discounts, promotions, etc.

●step 5: Post Purchase evaluation.

When the decision maker assesses the outcome and consequences of their choice They mayexperience satisfaction or dissatisfaction, depending on whether the product meets their expectationsand solves their problem They may also engage in post-purchase behaviors, such as feedback, loyalty,or word-of-mouth

III Why marketers often need to understand types of consumers’ behavior rather than aconsumer’s behavior? Explain how decision-making process differs when people choose what tobuy on behalf of an organization rather than for personal use.

Marketers often focus on understanding the behavior of consumer group rather than just an individualconsumer This is because marketers aim to reach and influence a target audience or a segment ofconsumers, rather than cater to an individual’s preferences and behaviors.

- Roles In Collective Decision Making

+ Initiator: An initiator is a person or group that identifies a problem or opportunity and begins thedecision-making process They often begin discussions by presenting the problem and suggestingpotential solutions.

+ Gatekeeper: The gatekeeper controls the flow of information within the group They decide whatinformation is shared, and with whom The gatekeeper ensures that the team well informed and thatrelevant data and opinions are considered in the decision-making process.

+ Influencer: Influencers is individuals or groups that have the power to influence the opinions anddecisions of others in the group They may possess expertise, authority, or persuasive communicationskills that make them influential in the decision-making process.

+ Buyer: The buyer is individual or group responsible for making the final purchase decision orcommitment.

+ User: Users are individuals or groups who will directly interact with or be affected by the decisionand its implementation Their input is essential because they have direct experience of theconsequences of the decision.

2 The decision-making process differs when people choose what to buy on behalf of anorganization rather than for personal use.

- Organizational Decision Making

+ Organizational buyers: Institutional buyers are the representatives or groups within a companyresponsible for making purchasing decisions These buyers may include procurement professionals,department heads, C-Suite executives, and other decision makers.

+ Business-to-business (B2B) marketers: B2B marketers are businesses or individuals who provideproducts or services to other organizations They aim to meet the needs of institutional buyers byproviding solutions that address specific challenges or opportunities.

- Compared to Consumer decision making, organization decision making

+ Involves many people: Decisions within an organization typically involve various stakeholders,departments, and decision-makers, unlike consumer decisions, which are generally made byindividuals or small groups.

+ Requires precise, technical specifications: Organizational decisions often necessitate precisetechnical specifications due to the complexity of the products or services involved, as well as the needto meet specific business requirements.

+ Is based on past experience and careful weighing of alternatives: Organizational decision-makingrelies heavily on past experiences and data-driven insights, coupled with a careful assessment ofavailable alternatives, to ensure the best possible outcomes for the business.

+ May require risky decisions; In certain instances, organizational decision-making may involvetaking calculated risks, particularly when it comes to exploring new markets, adopting innovativetechnologies, or making significant investments.

+ Involves substantial dollar volume

+ Places more emphasis on personal selling: Personal selling, such as one-on-one interactions andnegotiations, often plays a significant role in organizational decision-making, especially when dealingwith high-value products or services where personal relationships and trust are crucial.

- What influences organizational buyers?

+ Level of information required: Organizational buyers are influenced by the amount and quality ofinformation available to them They rely on comprehensive data, technical specifications, markettrends, and other relevant information to make informed decisions.

+ Seriousness of decision: The gravity of the decision also significantly influences organizationalbuyers High-stakes decisions, such as large-scale investments, long-term partnerships, or strategicacquisitions, require thorough consideration and evaluation.

+ Familiarity with purchase: Familiarity with a particular product or service can impact organizationalbuying decisions Buyers are more likely to choose suppliers they are familiar with or have hadpositive experiences with in the past, as trust and reliability are crucial in business-to-businessrelationships.

+ Wisdom of crowds: refers to the idea that a diverse group of individuals is collectively better atmaking decisions, solving problems, and predicting outcomes than any single expert.

IV Please differentiate personal decision making and collective decision making?A Introduction

Certainly, individual decision making and collective decision making represent two distinct methodsof arriving at conclusions, and they stand apart in numerous significant ways These differences

encompass the process, the involvement of participants, the potential for compromise, and theimplications for final outcomes Furthermore, understanding these variations is crucial for individualsand groups seeking to make effective, well-informed decisions in various contexts.

B Personal decision making:

Definition: Is a process where only one individual participates in the decision-making stage based on

personal experience and knowledge

Personal Responsibility: In individual decision making, an individual or a small group of individuals

is responsible for making the decision The final choice is made by one person or a few people.

Efficiency: Individual decisions tend to be faster and more efficient because they involve fewer

people and require less consensus or compromise.

independence Decision makers can prioritize their own preferences, needs, and values They rely on

various mental shortcuts, such as brand names or prices, or they may simply imitate other people'schoices We can use heuristics or rules of thumb to simplify decision making In particular, wedevelop more trust in the market over time One of the most common beliefs is that we can determinequality by looking at price Other heuristics rely on well-known brand names or the product's countryof origin as signals about product quality.

Accountability: The decision maker is directly responsible for the results Success or failure often

depends on each individual's choices.

Limited perspective: Individual decisions may lack diverse perspectives and insights because they

rely solely on the knowledge, experience, and biases of the individual decision maker or a smallgroup.

C Collective decision making

Definition: Is a process where 2 or more individuals participate in the decision-making stage based on

experience, knowledge and collective agreement.

Group Participation: In collective decision making, many individuals or stakeholders participate in

the decision making process It often includes group discussions, deliberations and consensusbuilding Different group members play important roles in what can be a complicated process Theseroles include the following: Initiator—The person who brings up the idea or identifies a need.

● Gatekeeper: The person who conducts the information search and controls the flow

of information available to the group In organizational contexts, the gatekeeper identifies possiblevendors and products for the rest of the group to consider.

● Influencer: The person who tries to sway the outcome of the decision Some people

may be more motivated than others to get involved, and participants also possess different amounts ofpower to get their point across.

● Buyer: The person who actually makes the purchase The buyer may or may not

actually use the product.

team is responsible for making the final decision.

Compromise: Collective decision making may require compromise and finding common ground

among participants It aims to balance different perspectives and interests.

Time-consuming: Collective decisions can be more time-consuming due to the need to gather input,

facilitate discussions, and reach consensus It may include multiple rounds of discussion.

Diverse perspectives: Collective decision-making benefits from diverse perspectives and expertise,

which can lead to more comprehensive and informed decisions.

Broad support: Collective decisions often receive broader support and agreement from team

members because they are involved in the process and have their voices heard.

D Conclusion

In summary, individual decision making is driven by the choices of the individual or a small groupand is characterized by autonomy, efficiency, and limited perspective In contrast, collectivedecision-making involves a larger group of individuals, requires compromise and consensus, andbenefits from diverse perspectives, but it can be more time-consuming and may lack the same level ofpersonal autonomy Choosing between these approaches depends on the specific context, the nature ofthe decision, and the level of contribution and support desired from others.

V How members of a family unit play different roles and have different amounts of influencewhen the family makes purchase decisions?

A Introduction

In a family unit, each member typically plays different roles and wields varying degrees of influencewhen it comes to making purchase decisions These roles and influences are often shaped by factorssuch as age, gender, income, cultural norms, and individual preferences Here are some common rolesand influences within a family when making purchase decisions

B Two types of decisions in family

- Consensual Purchase Decisions: are those for which members agree on the desired purchase,

differing only in terms of how it will be achieved.

- Accommodative Purchase Decisions: are those for which members have different preferences or

priorities and they cannot agree on a purchase to satisfy the minimum expectations of all involved.

Example: Deciding to buy a mobile phone:

Purchasing decisions are based on consensus: The family can agree on the purchase of a new cellphone, and they only need to agree on the specific brand and model They have a common goal ofupgrading the mobile devices of everyone in the family.

Purchase decision based on reconciliation: In this case, family members have their own dreams andpreferences about mobile phones Some members may want a phone with a powerful camera, whileothers may prioritize performance and battery capacity There is no consensus on specific choices, andmaking the final decision may require family members to make trade-offs and compromises.

C Who Makes Key Decisions in the Family?

Automated Decision: In case of automated decision, a single family member has full power and

authority to choose a product or service that he or she wants to purchase without the need for consentor participation of other members These are often personal decisions and do not require agreementfrom other family members.

Examples of Automated Decisions:

A specific example of an automated decision could be when a family member decides to buy a bookonline to read according to their personal interests, without the participation or consent of anyone inthe family family They are the only ones who decide about the product and do not need to discuss itwith others.

Synchronous Decision: In the case of synchronous decision, both partners or both people in a

relationship or marriage participate in the process of making a decision to purchase a product orservice This decision often requires discussion, consultation, and agreement between both partnersto ensure that they agree with the final choice.

Example of Synchronization Decision:

An example of a synchronous decision might occur when a couple decides to buy a new car Bothpartners must discuss the type of car, color, price, and specific features they want The final decisionrequires agreement and consensus from both parties to ensure that they are both satisfied with thechoice and financial commitmen

D The role and influence of each family memberDecision-Makers:

The primary decision-maker(s) are the individuals who have the authority to make the final call onpurchases This role is often assumed by one or both parents in a traditional family structure.They have a significant influence on what products or services are ultimately chosen, and theirpreferences and priorities carry substantial weight.

Gatekeepers control the flow of information and access to the decision-makers In a family,gatekeepers may be responsible for filtering and managing the options available for consideration.Gatekeepers can be parents who decide what products or information reach the children or otherfamily members.

Age and Developmental Stage:

The age and developmental stage of family members are important factors Young children may haveless direct influence, while teenagers often have specific preferences.

As children grow into adults, their roles in decision-making may change Adult children maycontribute financially or provide caregiving support.

Individual Preferences:

Each family member may have unique preferences and priorities that influence specific purchasedecisions For example, one family member may prioritize health and wellness, while another mayprioritize technology and entertainment.

CHAP10