3. Decision Making
- Objects/brands help us say something about ourselves.
- To develop your brand, you have to first understand how consumer see themselves, and how your brand/product may feature in their identity projects
B. Decision Making
Q. Why is candy usually located towards the check out of a supermarket?
Hawkins Stern published a paper titled, “The Significance of Impulse Buying Today.”; Suggestion Impulse Buying, which “is triggered when a shopper sees a product for the first time and visualizes a need for it.”
The reason candy is at the checkout line is because of a concept called decision fatigue.
- Box of candy bars at the front door, you would be more likely to resist grabbing one.
- Number of choices about what to buy and what not to buy has drained your willpower enough to make impulse buying.
Q. Is buying candy different from buying a car?
- Price of a candy is very different from the price of the car.
- The decision to buy a car is a high involvement decision, while buying candy is a low involvement decision.
1. Key Ideas
Decision-making requires a lot of cognitive resources
Differ across product categories
- Perceived risk
Group Project Work:
- Write an interview guide
2. Interview Notes
1. Have a deep understanding of the purchase decision-process
The product was purchased 3 years back.
- Interviewee mentioned about relatively low exposure to other products
- Reason for the purchase: First saw the product among friends, peers, and family
2. Surface the factors in the environment and in the custome’s psyche
- Friends were using the product
- socially considered as cool;
- the product perfectly fit the interviewee’s ear and was comfortable.
- had a better compatibility with the exisiting ecosystem. (very used to the product)
- It looked aesthetically pleasing
3. Notes from other interviews
- Identity is a social kind of construct and it is a very important factor in the decision making process.
- Private and public goods are key determinants of the decision making process.
Decision fatigue: the phenomenon in which an individual’s quality of decision deteriorates after long session of decision making
The result: ego depletion or loss of self control or willpower
2. Utlitarian vs. Ego Expressive
- Purchased for their practical uses
- Primarily instrumental and functional
Ego expressive goods
- Means of self-expression
- Helps express their identity
Involvement = f(Object, Situation, Person)
- Impacts: Sensitivity to price promotions; amount of information search
- Impact different aspects of your marketing mix inclyding distribution and communication choices
The 5 dimensions of involvement:
- Risk importance
- Risk probability
Various media are either:
- High involvement
- Print media
- Low involvement
- Broadcast media
Q. Which companies have the biggest television advertising budgets?
- Procter & Gamble
- HBO Max
- Estimated digital advertising spend (2021): $634.52 million
- Disney plus
- Estimated digital advertising spend (2021): $403.02 million
- Estimated digital advertising spend (2021): $331.35 million