MKT5009 - Lecture 4 - Consumer Decision Making Insights

Learning Objectives

  • Understand consumer decision-making regarding brands using theories of attitudes, motivation, perception, and learning.

  • Examine the role of the Decision Making Unit (DMU) in purchasing and marketing communications.

  • Apply the Behaviour Sequence Model (BSM) to identify stages in consumer decision-making and communication objectives.

  • Explore cognitive biases influencing consumer decisions, such as anchoring, scarcity, social proof, loss aversion, and framing.

  • Evaluate case studies (e.g., KFC, Intel) for insights into consumer behavior and marketing strategies.

Decision Making Unit (DMU)

  • Key Roles: Gatekeeper, Initiator, Influencer, Decider, Purchaser, User.

  • Communication Objectives per Role:

    • Gatekeeper: Brand awareness, initial attitude.

    • Influencer: Brand attitude.

    • Decider: Brand attitude & purchase intention.

Behaviour Sequence Model (BSM)

  • Stages of Decision-Making: Need Arousal, Brand Consideration, Purchase, Usage, Post-Purchase Evaluation.

  • Identifying roles, timing, and context of each stage is essential for communication strategies.

Cognitive Biases Influencing Decision-Making

  • Anchoring: First piece of information impacts valuation.

  • Scarcity: Limited availability increases perceived value.

  • Social Proof: Others' behaviors influence individual choices.

  • Loss Aversion: Preference to avoid losses over acquiring gains.

  • Framing: Presentation of information affects consumer choices.

Case Studies Insights

  • Intel: Faced competition from Apple, shifted perception of PCs to emphasize their strengths.

  • KFC: Revamped brand from negative perceptions to a modern identity by focusing on quality and taste, leading to increased market share and improved perceptions.