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CONSUMER BEHAVIOR; MKTG. 301 [Dr. Carter] Basic “Cognitive Map” Decision Tree Consumer Decision Process Steps [Ch.8] 1. GOAL [Problem/Need] 2. 3. A B C PROBLEM RECOGNITION a. Mental Budget [Attention, Time, Money] b. Roles, Location, Costs c. Internal/External Stimuli d. Table 8.1 Problem “Situation” Quadrant INFORMATION SEARCH a. Search for “Criteria” & “Weights” b. Search for Alternatives “Solutions” c. “Sources, Strategies, Amount” d. “Awareness, Evoked, Consideration Sets” PRE-PURCHASE ALTERNATIVE EVALUATION a. Non-Compensatory Choice Models b. Compensatory Choice Models c. Combined & Heuristic Choice Models d. Process Alternatives, Criteria, and Weights 1 2 1 2 1 1 2 Using Choice Models) 4. PURCHASE – Implementation/Deviation 5. POST-PURCHASE -- Confirmation, Evaluation, Satisfaction/Dissatisfaction Customer Decision-Making Process Problem recognition Post-purchase experience Information search Purchases Alternative evaluation Customer Decision-Making Process as a Marketing Management Strategy Map MARKETING MANAGEMENT APPROACHES Product Price Place Promotions New Tech./Service Standard/Format [DVDs, PDAs, etc.] Free Or Purchase Terms Intensive Franchise Location Product Packaging Or Service Materials Cost & Content Pricing Terms Outlet Signage & Web Distrib. Comparison & Competitor Pricing Terms Exclusive Locale & Selective In-Store Stocking Credit Availability Web/Phone Purchase Options & Self Checkout New or Unique Features Scanner Labels & Convenient Handling Instructions & Help Services Money Back Returns & Discounted Future Purchases In-Store Usage Training & Services Awareness & Recognition Orientation Recall Orientation With Detailed Info. [e.g., infomercial] Comparative Appeals Point of Purchase Displays & Coupons/Promotions Ongoing Communication [Web, 800#, etc.] Problem/Need recognition Information search Alternative evaluation Purchases Post-purchase experience Customer Decision-Making Process as a Cognitive Digital Business Model Map Problem/Need recognition Information search Alternative evaluation Purchases Post-purchase experience *Social Nets (MySpace & Facebook) *Podcasts (iPod; Podcast.net, etc.) *Google *Yahoo *Bing *E-Tailers Priceline.com; Amazon.com *Online – Paypal *In-Store -- Mapquest *eBay *Onlinesurveys.com THE CUSTOMER DECISION PROCESS AS “GUMBALL MACHINE” [Carter’s View] Problem/Need Recognition Information Search Evaluation of Alternatives Purchase The MEANING of “COGNITION” • Descartes Cogito (1637) – “I think therefore I am.” • Brain – nervous system organ (“signals”) • Mind – the brain’s thought property (“sense”) • Cognition – the inner world thought process that creates outer world experiences (“choice”) • Consciousness – awareness of cognition and responsibility for choices (“ethics”) “CONSUMER COGNITION” • Economic Man – Material resource choices (property, scarcity, allocate, exchange, gain) • Consumer/Purchase Decision Process – Stages of rational/emotional consideration that result in economic market choices for need/want. • Consumer Decision Support Systems (CDSS) – information technology devices, networks, and applications that aid market choice processes • Digital Man – Information resource choices (content, abundance, combine, interact, grow) • Digital Cognition – electronic presence capable of autonomous choice (“intelligent agents”) The MODES of “COGNITION” • David Hume (1700s) – Philosophy & Science ~ “Human Understanding” is a mixture of logical purpose and emotional passion (a) Logic – “Intellectualism” (b) Emotion – “Sentimentalism” The MODES of “COGNITION” • Herbert Simon (1940s - Present) – Cognitive Psychology, Economics, and Organizational Management (a) Decision Tree ~ Rational Mind “rationalizes” (semi-logic) (b) Choice Options ~ Emotional Mind “satisfices” (quasi-feeling) The MODES of “COGNITION” • Nicholas Negoponte (“Being Digital”, 1995) – Computer Science & Cognitive Psychology ~ “Digital Being” is created from bytes ~ “Human Being” is created from atoms (a) Cognition is a Thinking Being (b) Computer is a Thinking Machine (c) Conscious Network is a Thinking Presence -- intelligent content, artificial life, virtual world