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 ASSIGNMENT

SUBJECT: MKT201

CONSUMER BEHAVIOR

CLASS: MKT1806 - GROUP 5

TEAM LIST

1 Bùi Thị Kiều Khanh HS186434

2 Cấn Trang Linh HS180231

3 Lê Vân Mai Linh HS180691

4 Nguyễn Quý Linh HS170888

5 Nguyễn Ti n Đ tế ạ HS170473

TABLE OF CONTENTS

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Chap 9:

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

decision-making include cognitive, habitual, and affective? 3

1 What is decision making? 3

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

affective? 3

II What is a cognitive purchase decision process? Please explain series of stages that results in the selection of one product over competing options……… 4 III Why marketers often need to understand types of consumers’ behavior rather than a consumer’s behavior? Explain how decision-making process differs when people choose what to buy 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……… 5

IV Please differentiate personal decision making and collective decision

making? 6

V How members of a family unit play different roles and have different amounts of influence when the family makes purchase decisions? 8 Chap 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-making process? 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? 11

II How does the information a store’s layout, Website or salespeople influence a purchase decision? 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? 14 III What is a "sharing economy"? please compare "sharing economy" and "traditional economy" How the growth of a "sharing economy" change consumers think about buying rather than renting products? 15

1 What is a "sharing economy"? 15

2 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

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Chap 9:

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

decision-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 based

on certain criteria and goals Decision making can be rational or irrational, intuitive or logical, and individual or collective Decision making is an essential skill for managers, leaders, and professionals

in various fields Decision making can have significant impacts on the outcomes and consequences of different situations Therefore, decision making requires careful analysis, evaluation, and judgment of the 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 one product over competing options This type of decision making is deliberate, rational, and sequential It involves a high level of involvement and effort from the consumer, who carefully evaluates the pros and cons of different alternatives based on their goals, values, and needs Cognitive decision making is usually 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 makes choices out of habit or inertia Habitual decision making is usually applied to simple or familiar products or services, such as buying groceries, toiletries, or fast food Habitual decision making is influenced by factors such as brand loyalty, variety seeking, and framing effects

emotional, instantaneous, and subjective It involves a moderate level of involvement and effort from the consumer, who makes choices based on their feelings, moods, or attitudes Affective decision making 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 in the 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 selection

of one product over competing options It could be either rational or irrational The decision-making process is a reasoning process based on assumptions of values, preferences and beliefs of the decision-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 be addressed

● step 2: Information search

When the decision maker seeks relevant data and information to help them solve their problem or seize their opportunity They may use internal sources, such as their memory or experience, or external 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 we call prepurchase search)

● step 3: Evaluate Alternatives

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

● step 4: Product choice

When the decision maker selects the best alternative that meets their needs and preferences They may also 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 may experience satisfaction or dissatisfaction, depending on whether the product meets their expectations and 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 a consumer’s behavior? Explain how decision-making process differs when people choose what to buy on behalf of an organization rather than for personal use.

Marketers often focus on understanding the behavior of consumer group rather than just an individual consumer This is because marketers aim to reach and influence a target audience or a segment of consumers, 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 the decision-making process They often begin discussions by presenting the problem and suggesting potential solutions

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

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

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

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

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

- Organizational Decision Making

+ Organizational buyers: Institutional buyers are the representatives or groups within a company responsible 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 provide products or services to other organizations They aim to meet the needs of institutional buyers by providing 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 by individuals or small groups

+ Requires precise, technical specifications: Organizational decisions often necessitate precise technical specifications due to the complexity of the products or services involved, as well as the need

to meet specific business requirements

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

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

+ Involves substantial dollar volume

+ Places more emphasis on personal selling: Personal selling, such as one-on-one interactions and negotiations, often plays a significant role in organizational decision-making, especially when dealing with 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 of information available to them They rely on comprehensive data, technical specifications, market trends, and other relevant information to make informed decisions

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

+ Familiarity with purchase: Familiarity with a particular product or service can impact organizational buying decisions Buyers are more likely to choose suppliers they are familiar with or have had positive experiences with in the past, as trust and reliability are crucial in business-to-business relationships

- Buying decision

+ Buyclass theory: organizational buying decisions divided into three types, ranging from most

to least complex.

- B2B e-commerce

+ Prediction market: involve the use of collective intelligence to forecast outcomes and trends + Crowdsourcing: involves outsourcing tasks or obtaining ideas from a large group of people, typically through an open call

+ Wisdom of crowds: refers to the idea that a diverse group of individuals is collectively better at making 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 methods

of 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 the implications for final outcomes Furthermore, understanding these variations is crucial for individuals and 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's choices We can use heuristics or rules of thumb to simplify decision making In particular, we develop more trust in the market over time One of the most common beliefs is that we can determine quality by looking at price Other heuristics rely on well-known brand names or the product's country

of 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 small group

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 consensus building Different group members play important roles in what can be a complicated process These roles 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 possible vendors 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 of power 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 group and is characterized by autonomy, efficiency, and limited perspective In contrast, collective decision-making involves a larger group of individuals, requires compromise and consensus, and benefits from diverse perspectives, but it can be more time-consuming and may lack the same level of personal autonomy Choosing between these approaches depends on the specific context, the nature of the 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 influence when the family makes purchase decisions?

A Introduction

In a family unit, each member typically plays different roles and wields varying degrees of influence when it comes to making purchase decisions These roles and influences are often shaped by factors such as age, gender, income, cultural norms, and individual preferences Here are some common roles and 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 cell phone, and they only need to agree on the specific brand and model They have a common goal of upgrading the mobile devices of everyone in the family

Purchase decision based on reconciliation: In this case, family members have their own dreams and preferences about mobile phones Some members may want a phone with a powerful camera, while others may prioritize performance and battery capacity There is no consensus on specific choices, and making 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 consent

or participation of other members These are often personal decisions and do not require agreement from other family members

Examples of Automated Decisions:

A specific example of an automated decision could be when a family member decides to buy a book online to read according to their personal interests, without the participation or consent of anyone in the family family They are the only ones who decide about the product and do not need to discuss it with 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 or service This decision often requires discussion, consultation, and agreement between both partners

to 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 Both partners must discuss the type of car, color, price, and specific features they want The final decision requires agreement and consensus from both parties to ensure that they are both satisfied with the choice and financial commitmen

D The role and influence of each family member

Decision-Makers:

The primary decision-maker(s) are the individuals who have the authority to make the final call on purchases 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 their preferences and priorities carry substantial weight

Influencers:

Other family members, such as children or extended family members, can be influencers They may express their preferences or needs, which impact the decision-making process

Influencers can affect the final choice by providing information, suggestions, or opinions, especially when it comes to products or services that directly concern them

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 other family members

Users:

Users are the individuals who will use or consume the purchased products or services Their preferences and needs are essential factors in the decision-making process

Their influence often depends on how directly the purchase impacts their daily lives or well-being For example, children may strongly influence decisions related to toys, clothing, or food

Financial Contributors:

Family members who contribute financially to the household have a considerable say in purchasing decisions, especially for major expenses like housing, vehicles, or vacations

The extent of their influence may be tied to their income and financial responsibility within the family

Age and Developmental Stage:

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

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

Individual Preferences:

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

Joint Decision-Making:

E Conclusion

In many families, decisions are made collectively, with input from multiple family members This collaborative approach aims to ensure that various perspectives are considered

The dynamics of these roles and influences can vary widely from one family to another Cultural and societal factors, as well as individual family values, play a significant role in shaping the specific roles and degrees of influence within a family when making purchase decisions Additionally, changes in family structures and gender roles have also influenced how these roles and influences are distributed

in modern families

CHAP10