# 3. Decision Making

## A. Introduction

• 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.

• 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

• Involvement
• Perceived risk
• Group Project Work:

• Write an interview guide

### 2. Interview Notes

Product: Airpods

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

Extrinsic factors

• Friends were using the product
• socially considered as cool;

Intrinsic factors:

• 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

• Utilitarian goods

• Purchased for their practical uses
• Primarily instrumental and functional
• Ego expressive goods

• Means of self-expression
• Helps express their identity

## C. Involvement

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:

• Interest
• Pleasure
• Sign
• Risk importance
• Risk probability

Various media are either:

• High involvement
• Print media
• Low involvement
• Estimated digital advertising spend (2021): $634.52 million 2. Disney plus • Estimated digital advertising spend (2021):$403.02 million