customer decision making[1]

CONSUMER DECISION MAKING

INDIVIDUAL

BUYING DECISION PROCESS

INDIVIDUAL CUSTOMER DECISION MAKING

Problem Recognition

Information Search

AlternativeEvaluation Purchase

Post PurchaseBehavior

In individual decision making unit as opposed to institutional – All the three role (buyer, user, payer) can be carried out by the same person (or each could be played by a different individual).

Traditional tendency when an individual is making the decision, is to look only at performance related or social/psychological outcomes.

But in reality he will be confronted with the Buyer/Payer outcomes which are convenience & service and economy & financing.

These outcomes will depend on individual or combination of roles that people take.

INDIVIDUAL CUSTOMER DECISION MAKING

Locational & Cost Factors Related To Decision Making Consumption can occur in three places –

1. HOME 2. WORK (ACTIVITY) PLACE 3. PUBLIC PLACE

For products/services consumed at home, decisions are made well in advance. (one will search for discount shops)

For consumption in work / organizational settings: convenience takes priority over economy.

Consumption in public place bring into prominence the social value of the user. (Rolex, Ray Ban, Jaguar cars).

CUSTOMER DECISION PROCESS

Customer decisions which individuals make as Buyers, Payers & Users.

Whether to purchase? What to? Where ---? & When --? Customers have finite amount of money & time.

They must allocate them judiciously. Alternative demands on time and alternative need

for product category for allocation of money comes in.

1. Product/Service level choice – Whether to buy?

(& What to buy?) An important customer behavior at this stage is

mental budgeting. This budget set guides for consumer’s future

behavior. Concept of mental budgeting can help in

positioning, in deciding on to which category your product should be kept

Brand Level Choice: What to purchase?

Select among the various alternatives available – product/service categories, brands, and then it moves on to

Stores/ Suppliers Choice: Where to purchase?

Timing of purchase : When to purchase? Frequency of Purchase (quantity)?

Different Types of Consumer

Purchase Decisions

Routinized Response Behaviour, Limited Problem Solving &

Extensive Problem Solving

INVOLVEMENT & TYPES OF DECISION

Problem Recognition selective

Information search Limited Internal

Purchase

Post PurchaseNo DissonanceNil evaluation

Nominal decision Making

Problem Recognition Generic

Information search Internal

Limited External

Alternative EvaluationFew attributes

Simple Decision RulesFew Alternatives

Purchase

Post PurchaseLow Dissonance

Limited evaluation

Limited Decision Making

Problem Recognition Generic

Information search InternalExternal

Alternative Evaluation Many Attributes

Complex Decision RulesMany Alternatives

Purchase

Post PurchaseDissonance

Complex Evaluation

Extended Decision making

Low Involvement Purchase Hi Involvement Purchase

NOMINAL DECISION (HABITUAL/RRB)

Problem is recognized ------ internal search (long term memory) ------ provides single preferred solution Brand.

Low involvement with purchase. An evaluation occurs only if it fails to perform as expected. Brand Loyal Purchases: At one point you would have been highly involved in selecting a brand of tooth

paste (EPS). Once decided you will continue to buy till you are challenged by a

superior product (ads etc) ------ back to EPS situation. A case of high product involvement but low purchase involvement.

Low Involvement Purchases: Belief that all Tooth pastes are the same, can lead to low product & purchase

involvement, you may continue to buy (Colgate) it as you are satisfied with it. You will continue to buy till you are challenged with a superior offer (discount)

--------- LPS situation to make the decision.

LIMITED DECISION MAKING (LPS)

Involves internal and limited external search

Few alternatives Simple decision rules on a few attributes

and little post purchase evaluation. A store situation where you find the display of Kellogg's

and decides to buy Kellogg's without seeking information beyond your memory ----

(Kellogg's has iron in it) or “I have not had Kellogg's for a long time”. You have not considered another alternative other than the “do not buy” option.

LPS also occurs in response to some environmental or emotional needs

(Decision to buy a new Mobile phone because you are bored with the existing which is otherwise satisfactory. You will evaluate the novelty factor only).

Taking a friend out for dinner - You will decide on the restaurant or order beer or wine with dinner based on who is with you for dinner.

Very little post Purchase evaluation unless there is a failure.

EXTENDED DECISION MAKING (EPS)

Involves an extensive internal and external information search followed by ----

Complex evaluation of multiple alternatives and significant post-purchase evaluation.

After the purchase, doubt about its correctness is likely and a through evaluation of the purchase take place.

Hence marketers will have to take up post purchase dissonance reducing efforts.

E.P.S. Very few consumer decisions reach this

level of complexity. Products such as Homes, Investments, Stereo, TV’s, Fridge Personal Computers etc reach this level.

There is high purchase involvement which is due to the higher risk involved.

Risk may/can be because of factors beyond cost. Decisions which are heavily emotional also lead to cognitive exercises (Baby Food, certain drugs).

Purchase Decision Stages

Problem RecognitionInformation Search

Evaluation of AlternativesPurchase planning & buying

Post Purchase Behaviour

PROBLEM RECOGNITION

The decision process starts with consumer recognizing the need for solving the problem (the office copier has run out of paper ----.)

Customer problem Is any state of deprivation, discomfort or wanting

something (physical or psychological) felt by a person.

Problem Recognition Is a realization by the customer that he/she needs

to buy something to get back to normal state.

PROBLEM RECOGNITION

Stimuli For Problem Recognition Problem recognition can occur in two

ways: Internal stimuli : perceived state of

discomfort (physical / psychological) External Stimuli : market place

information that lead the customer to realize the problem (window display, Pizza hut logo, ads.).

PROBLEM RECOGNITION

More apt terms can be Problem stimuli & Solution stimuli.

Problem Stimulus – Problem itself is the source of information. Source can be within the customer (hunger pangs) or outside (dirty laundry).

Solution Stimulus – information emanating from the solution itself. Exposure to potential solution leads to need arousal. (Strong aroma of coffee, product or service sample

Customers can expect to encounter solution stimuli in three states of mind.

1. Have already realized the problem and looking for a solution

(Heightened attention : Dandruff in hair - looking for a new shampoo).

2. Problem had been recognized in the past but it was not salient

(Seeing a friend’s exercise equipment, one forms the desire for having one - planned to buy, but never found time for visiting the dealer.)

3. You never felt the need in the past, but exposure to the solution product makes you realize that it will solve a condition ‘now’ perceived as a problem. (Power supply which was reliable has changed. To overcome frequent failures which is a problem. Your friend has purchased an inverter. This triggers the problem again).

Marketing efforts are intended to generate both primary and secondary demand.

Primary Demand – Demand for the product or service category

itself Converting non buyers of product category into

buyers (Generic Demand). Secondary Demand – in contrast is to deflect demand from one brand

to another (selective demand). This is also called as selective demand.

Does marketing create a need or it just fulfils it?

No one needed a VCR, Video camera or a Rs.2000/- Nike Shoe, until advertising started projecting them in an enticing way.

Need ought to be defined in terms of the function the product serves rather in terms of the product.

Once needs are defined in terms of functional benefits, then only products that satisfy the function are successful in the market.

VCR serves the function of time-shifted viewing – a latent need .

Life situations that cause inconvenience but have no solutions are not viewed as problems but as general life conditions.

Only when a solution appears, these turn out to be perceived as problems --Latent need.

Latent need brings in the need for Pioneering or Educational marketing.

Pioneering marketing and communications promote a new product / service by educating the consumer about the product and how it can solve their unresolved problems – generating primary demand.

PROBLEM RECOGNITION – FOUR SITUATIONS

Stock Depletion (Routine)

Concept Marketing (Planning)

Known Latent

Familiar

NovelLife-stage Change (Emergency)

New Innovation (Evolving)

•Familiar problems generally occur due to what is generally called stock depletion (feeling of thirst, squeezed out tooth paste tube)

•Novel problems arise generally due to events that move one from one life cycle stage to another (new job, marriage, regional relocation, birth of child or firms going public, change of ownership, alliances and expansions etc)

•A latent problem is not immediately obvious and needs shaping usually by an external stimuli which will trigger the need (Ads, Sales person).

Nature of Demand

Expectancy about the problem

Latent Problem Recognition Examples of latent problems are – Geographic Mapping for vehicles, Caller ID for telephones

etc. Availability of the caller ID service from the local phone co.

make the Novell-Latent need salient (recognized). The recognition of novel - latent problem is stimulated by

solution stimuli, generally in the form of new technologies and new products and services.

However the recognition of latent problems, whether familiar or new, generally requires educational/concept level marketing. In case of latent novel, concept level and product level impulses are required as product is new.

doubt

INFORMATION SEARCH

Stage II of Consumer Decision Making Process

INFORMATION SEARCH

Total Set Awareness Set(All the Brands aware of)

Brands Recalled

BrandsDropped

Consideration Set

Brands NotConsidered

•Evoked Set consists of brands/suppliers remembered at the time of decision making.

•Consideration Set consists those from the evoked set after those which are unfit are eliminated.

EvokedSet

IndifferentBrands

OverlookedBrands

IneptSet

Inert set

INFORMATION SEARCH

Total Set Awareness Set(All the Brands aware of)

Evoked set(Brands Recalled)

Inert Set(Future choice)

Choice Set

Brands NotConsidered

•Evoked Set consists of brands/suppliers remembered at the time of decision making.

•Consideration Set consists those from the evoked set after those which are unfit are eliminated.

Inept Set(Discarded)

INFORMATION SEARCH (1)

Search never is for every brand available. Instead information about the consideration set of brands.

It should be minimum objective of all marketing communications to place the brand in the consideration set and not merely awareness or evoked set.

Three elements that characterize Info-Search Phase 1. Sources of Information 2. Search Strategies 3. Amount of search

Sources of information Marketer Sources: Advertising, sales persons, product service brochures,

store displays, company Web sites. Non Marketer Sources: Personal: Friends & other acquaintances, Past

Experience Independent Sources:

Public Information (Consumer reports, News report, Business bulletins,

Govt. publications, Census / Directory of manufacturers)

Product or Service Experts Auto critic, fashion/Art critic, Consultants, pharmacist,

Internet: Bulletin Boards, Consumer websites.

INFORMATION SEARCH (2)

Systematic Search Vs. Heuristic Search: Systematic search

consists of a comprehensive search and evaluation of alternatives.

Heuristics are quick rules of thumb (hunch) Basically heuristics are simple “if …then…”

propositions that connect an event, with an appropriate action.

If you are buying a pair of jeans, then buy Levis.

Level of Information Search - Determinants Risk: (5 types of risks) Performance Risk: Not performing as well as the

alternatives. Social Risk: reference group may not like it (clothing,

membership) Psychological Risk: Product may not reflect oneself. Financial risk: Alternative may be overpriced at the point

where you checked or even being unaware of other cheaper alternatives.

Obsolescence Risk: Chances of newer substitutes will be coming in pretty soon. (fashion, software/IT products).

Financial risk is to the payer. Other risks are more pertinent to the user

Other aspects which determines the search activity 1. Involvement: Two types of involvement Purchase decision involvement (EPS / LPS): Degree of concern and care brought to the buy. High

for most high ticket items. But price and involvement do not have one to one

correlation. Enduring Involvement: Ongoing involvement in

product/ service where involvement continue well after purchase (cars, home theatre, single source supplier in B-B).

Familiarity & Expertise – Following cases its inversely related to search. Exceptions are when technology has changed

since last purchase. Aim is to build an assortment rather than

replace the older. Purchase is infrequent and long after previous

purchase. Experience with prior purchase is negative.

Time Pressure Both husband and wife working Increased work pressure / working hours Customers being employed in more than one job Many taking on to part time education to enhance

skills New interest in leisure activities. Will lead to cutting short the search process,

shifting the buy decision and also looking for more convenient outlets.

Relative Uncertainty about Brands: Which brand is best among a set of brands &

uncertainty about what each brand offers. Such uncertainty leads to information search. Information Overload: Being exposed to too much information ----

difficult to make decisions.

Evaluation of Alternatives

Stage III of Consumer Decision Making Process

Types of Models For Alternate Evaluations

1. Compensatory Model

2. Non – Compensatory Models

3. Combination Models

The Compensatory Model:

Method 1. (simple) Simply add the number of positive attributes and

subtract the number of negative attributes. Alternative with maximum positive value is selected.

Method 2 (weighted) Crucial attributes are identified & weights are fixed Customer rates each attribute for considered brands Ratings are multiplied by weights Sum for each alternative is made.

Attribute

1. Connection will be established successfully every time.

2. The connection will be established speedily

3. The connection can get disconnected in the middle of a session

4. The price (monthly fee) will be high

Evaluation Of Attributes

(Unlikely 1 2 3 4 5 Likely)

America Online

3

4

3

2

(Very Bad -3, -2 -1 0 +1 +2 +3 Very Good)

AT&T

5

3

3

3

Evaluation OF Consequences

+3

+2

A aol = 3(3) + 2(4) + -3(3) + -1(2) = 6 / A at&t = 3(5) + 2(3) + -3(3) + -1(3) = 7

-3

-1

The Compensatory Model:

Customer arrives at a choice by considering all the attributes and benefits of a product &

Mentally trading off perceived weakness on one or more attributes to the perceived strength on one/more attributes.

Compensatory because a shortfall on one attribute can be compensated by good rating on an other attribute.

Non Compensatory Models

1. Conjunctive model

2. Disjunctive model

3. Lexicographic decision model

1. The Conjunctive Model: (cut off are consider) I will but only 6 mega pic

Customer begins by setting minimum cutoffs on all salient attributes ---

Only those that meet min. criteria on all attributes is considered.

If no alternatives are selected then the cutoffs are altered.

Car priced below Rs.3.0 Lacs, gets 20 kms/litre mileage, reasonable reliability and repair record (Rs. 10,000 for 2 years) and average power and pick up (ratings can be obtained from reports).

2. The Disjunctive Model: (least expectation from many features mobile) I need least 2 mp camera

Establishes minimum level of performance for only major attributes. All brands which surpass at least one or two of such attributes are considered.

Say while purchasing of lap-top cut-off Price 5 Weight 5 Processor not critical After sales support not critical Battery life not critical Display quality 4

The Disjunctive Model: Model considers the sheer presence of attributes

and not the degree or amount in which these attributes are present. Trade off also possible. Looking for a 4 bedroom flat or a 3 bedroom with an office room.

In compensatory model the attributes traded off need not serve the same purpose but in disjunctive model they tend to

Mileage of a car can be compensated by superior rating on an unrelated attribute in compensatory model. But in disjunctive it can be traded off only for another cost saving alternative.

3. The Lexicographic Model:

The most important attribute/ criterion is selected and customers examine all alternatives against this (ranking - selecting one with highest ranking).

If more than one alternative remain, then the next most important criteria is considered. The process continues -----

Business Traveler deciding on a Hotel --- 1) Do not consider Hotels away from city center- 2) Check availability of business services (second 3) Select one with the lowest price. If there are two with same

rate then he picks up one more attribute which is at next level.

Elimination-by-Aspects Decision Rule Requires consumer to rank the evaluative

criteria in terms of their importance and to establish a cutoff point for each criterion.

Rank Cut-off Price 1 3 Weight 2 4 Display quality 3 4 Processor 4 3 A. Sales Support 5 3 Battery life 6 5

Combination Decision Models

1. Conjunctive Compensatory

2. Conjunctive – Disjunctive

3. Disjunctive - compensatory

Affect Referral Decision Rule For many purchases decisions in long term

memory, the overall evaluations of the evoked set.

This makes assessment by individual attributes unnecessary.

Consumer selects the brand with overall highest perceived rating.

Such synthesized decision rule is called AFD rule.

Woodland shoes

How and When The Models Are Used Processing By Brand or By Attribute Processing by brand – One brand or supplier at a time w. r. to all the

attributes (conjunctive model). This provides for thorough evaluation.

Processing by attribute – Lexicographic and EBA use one attribute at a time for all the brands.

When two brands are compared, one become Focal Brand and the other Referent Brand - where attention gets primarily on to focal.

Comparative Features of various Choice Models Compensatory models- treatment is each attribute at a

time. A good choice can get eliminated for being deficient marginally on first or second criteria while being superior on many other attributes.

Non Compensatory model can prevent such selection. Two stage Choice Process: Phased decision strategy Use non compensatory at first and then to further

identify the choice use compensatory.

Satisficing: Customers do not always make optimal choice & never very exhaustive and ends up with the decisions based on one key attribute as in E.B.A. or Lexicographic (Herbert Simon).

Purchase & Post-purchase Stages

Purchase Action and Post Purchase Experiences

Customer Buying Process

Problem Recognition

Information Search

AlternativeEvaluation

Purchase

Post PurchaseBehavior

Purchase Intent

Attitude Of

Others

UnanticipatedSituational

Factors

1

2 3 4

5a 5b

6

7

PURCHASE ACTION

Behavior can be broken into 3 sub steps 1. Identifying the preferred alternative Concerns of the user most salient - User (whether his wants/need

will be satisfied. And so also his psychological and social needs) Buyer (where to get it) and for Payer (is it affordable /right price).

2. To form a purchase intent; determination to buy – The payers concern becomes salient. 3. Implementing The Purchase: Entails arranging the transaction, change of title deed, making

payments etc. Buyers concerns gets prominence (convenience & service).

Delay in Implementation (more in this stage than others)

Deviation From Identified Choice

Relationship Based Buying

Relationship Based Buying

Customers who engage in the practice of relationship buying limit their choice to a single supplier and depend on this supplier to handle their needs for a product or service.

Why do customers limit themselves ……. Exercising choices can be wasteful – it costs

time, money and energy

Cost Benefit FactorsSearch CostsRisk ReductionSwitching costsValue-added benefits

Socio-CulturalEarly-socializationReciprocityNetworksFriendships

RelationshipBased BuyingTrust Commitment

Supplier LoyaltyIncreased buyingReady to pay moreGood WOMGoodwill

Antecedents

(Motivators)Relationships Outcomes

Customer Motivation for Relationship Based Buying

Cost- Benefit factors: Potential costs and benefits which include Search costs Perceived risks (Performance risk, financial

risk and social risk) Switching costs Value added benefits (supplier starts treating

you as a preferred customer; frequent buyer programs)

Socio-Cultural Factors Early Socialization – relationship buying can

be cause by customer getting socialized into it from the time they first use or buy it.

Reciprocity: supplier in turn buys from you as in B to B.

Networks Buying based on friendship

Customer Loyalty

Brand Loyalty

&

Store Loyalty

Customer(User, Buyer

Payer)

UnderstandingCustomerBehaviour

Brand LoyaltyBehavioral brand loyaltyAttitudinal brand loyaltyBrand equity

Store LoyaltyA model of store loyaltyStore choicePlanned/impulse buyingOne stop shopping

Behavioral Brand Loyalty In Behavioral terms brand loyalty is simply a

customer’s consistent repurchase of a brand. Completely consistent repurchase of the same

brand (shampoo, wine, cologne, motor oil, pizza, insurance) will show perfect behavioral loyalty.

In reality it will be Proportion Of Purchase (percentage of purchase)

Sequence of purchase (ABABABAB / AAABBAABBA)

Probability of Purchase (based on long term buy history)

Attitudinal Brand Loyalty

Behavioral brand loyalty just shows customer repurchases the same brand.

This can be because of convenience or out of habit and may be without thinking much about it.

Customers attitude towards the brand also has to be considered to be favorable or not.

Attitudinal loyalty has increasing steps or facets such as friend, Advocate, commitment, brand partner etc.

A Model Of Customer’s Brand Loyalty

Customer

Market factorsBrand ParityCompetitive activities

Customer FactorsVariety seekingLack of involvementPrice sensitivity

Negative forcesToward Brand Disloyalty

Performance Fit

Social Emotional Identification

Habit

Positive forcesToward Brand Loyalty

Customer Loyalty to Stores

Store loyalty is customer’s predominant patronage of a store based on favorable attitude.

This in turn means that the customer shops at the particular shop for a certain merchandise and has a favorable attitude towards this store than other stores which has similar merchandise.

Store Loyalty depends on two factors 1) What factor & 2) How factor

The What Factor What a customer looks for from the stores. Merchandise Quality: quality of products or

services that the store carry. Assortment: number of different items that the

store carry. Price Value: value-for-money, lower prices etc Store brands: availability of private labels /

brands

The How Factor How favorable the shopping experience is. Ease of Merchandise Selection (layout / shelf

height)

In-store Information & Assistance (easy or hassle free return or exchange of bad items).

Convenience (ease of reaching store, parking facility, billing time, quick check outs)

Problem / Complaint resolution Personalization (pleasant, courteous employee behavior

toward customer).

Store Selection and Purchase

DistanceIs the store

nearest or on regular route

Does the store offer

good prices

Use for filler &

emergency trips only

Is the extra distance negligible

Are the prices

comparable

Does store offer better price deals

Divide regular

shopping

Shop here most often

Does store offer

better discounts

yes

No

No

Yes

No

Yes

YesDoes

store offer rare

merchandise

Occasional trip for major

shopping

No

Yes

Infrequent special

shopping trips

No

Yes

Do Not shop Here

Yes

No

Customer’s store choice decision process

Evaluative criteria that consumers use

while making the purchase decision Retailer Manufacturer

Outlet first, brand second

Image Advertising Margin on shelf displays Location analysis Appropriate pricing

Distribution in key outlets POP, Shelf space & position programs to strengthen existing outlets

Brand first outlet second

Many or key brands Co-op Ads of brands Price specials on brands Directory / yellow page listing under brands

More exclusive distributn Ads on brand availability Brand image mgmt.

SimultaneousMargin training for sales personnel Multiple brand/key brands High service or low price structure

Programs targeted at retail sales personnel Distribution in key outlets Co-op advertising

Decision sequence

Attributes affecting retail outlet selection

Outlet Image

Private / Store Brands

Retail Advertising

Outlet location and size

In store influence that affect brand choices

The nature of unplanned Purchases Reminder purchases and impulse purchases

Point-of-purchase displays Price reduction and promotion deals Store atmosphere / ambience (Atmospherics) Stock outs Sales Personnel

Post Purchase Behavior

POSTPURCHASE EXPERIENCES

Experience of buying & using the product provides information that the customer will use in future decision making.

Decision Confirmation: Customer (EPS) will need to confirm the decision in terms of

wisdom. Cognitive dissonance as a result of comparing one’s out-come

with a different one if another alternative is chosen. Experience Evaluation: Knowledge about how product is actually consumed. Whether

consumers routinely use it or whether they consciously evaluate it while using.

Product in use Vs. Product in non-use (sparingly used). Products evaluated while in use (products which people are

enthusiastic about – wine, pickles, sports goods, cars).

Satisfaction / Dissatisfaction Whether or not they actively evaluate–

users do experience usage outcome. To understand why customers feel that way

Rate product on its attributes ---- total of all this provide an indication of overall level satisfaction level.

What causes satisfaction/dissatisfaction with each attribute is not explained. Here we have to consider the expected levels (absolute levels) and compare it with actual.

1994 American Customer satisfaction Index – covering 40 industries and four major sectors.

Future Response: Satisfaction response: Repeat Purchase: Continue to buy but no loyalty. Loyalty: Consistent buying of brands. (merely due to

convenience/ routinization of purchase/ genuine preference)

Dissatisfaction responses (Exit or Voice) Exit: dissatisfied customers---back to the start of

decision process Voice: dissatisfied customers who complain--- but are

ready to give one more chance

Cognitive Dissonance

Cognitive Dissonance Theory

Discomfort or dissonance occurs when a consumer holds conflicting thoughts about a belief or an attitude object.

Vindhya has made down payment for a new Chevy Aveo. She will feel cognitive dissonance when she thinks about the unique/positive qualities of Ford Fiesta, Opel Vectra or Corolla.

Cognitive Dissonance Theory 2

When cognitive dissonance occurs after a purchase, its is – Post-purchase dissonance.

The conflicting and dissonant information after a purchase leaves consumers with uneasy feeling about their prior beliefs or actions – a feeling that they would seek to resolve.

This induces customers to change their attitudes so that they will be in line with their purchase behavior.


Relevance to marketing strategies –

Premise that dissonance propels consumers to reduce unpleasant feelings created by rival thoughts.

Tactics open to consumers

Consumers can rationalize the decision as being wise; seek out advertisements and try to sell the positive features of the bike to their friends.


Consumer can rationalize the decision as being wise, seek out Ads that support the choice.

Shishir has just bought a costly engagement ring in response to the Ad – ”How can you make two months salary last forever?”

Ring costs a great deal of money; It lasts forever because the future bride will cherish it for the rest of her life.


Besides consumer induced tactics Marketer can relieve consumer dissonance by

including Ad messages aimed at reinforcing & complimenting their decisions

By providing additional warranties and guarantees, increasing effectiveness of their services.

Increase product use by providing user friendly manuals.

Attribution Theories

Group of loosely interrelated social psychological principles which attempts to explain how people assign cause (blame or credit) to events leading to their behavior.

“She persuaded me to buy that unknown brand of camera”; “I donate to CRY because it helps poor children”.

Attribution Theories 2

Self Perception Theory Attitudes develop as consumers look at and make

judgments about their own behavior. Why do Nitin pick up an ‘Outlook’ each time you

travel by train – he will conclude that its because he like Outlook.

Internal & External Attributions: Shankar does the corporate presentation well. Can attribute the success to himself or MS package or just luck.

Attribution Theories 3

Attribution Toward Others Why did you buy from a particular shop? If the sales persons motives are perceived to

be in consumers best interests, then the consumer is likely to respond favorably.

Otherwise the consumer will go elsewhere to make the purchase.

customer decision making[1]

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