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GOAL [Problem/Need]

GOAL [Problem/Need]. A. B. C. 1. 2. 1. 2. 1. 2. 1. CONSUMER BEHAVIOR; MKTG. 301 [Dr. Carter]. Basic “Cognitive Map” Decision Tree. Consumer Decision Process Steps [Ch.8]. PROBLEM RECOGNITION a. Mental Budget [Attention, Time, Money] b. Roles, Location, Costs

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GOAL [Problem/Need]

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  1. GOAL [Problem/Need] A B C 1 2 1 2 1 2 1 CONSUMER BEHAVIOR; MKTG. 301 [Dr. Carter] Basic “Cognitive Map” Decision Tree Consumer Decision Process Steps [Ch.8] • 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 • Using Choice Models) • PURCHASE – Implementation/Deviation • POST-PURCHASE • -- Confirmation, Evaluation, Satisfaction/Dissatisfaction

  2. Customer Decision-Making Process Problem recognition Information search Alternative evaluation Post-purchase experience Purchases

  3. Customer Decision-Making Process as aMarketing 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 Problem/Need recognition Awareness & Recognition Orientation Cost & Content Pricing Terms Outlet Signage & Web Distrib. Product Packaging Or Service Materials Recall Orientation With Detailed Info. [e.g., infomercial] Information search New or Unique Features Exclusive Locale & Selective In-Store Stocking Comparison & Competitor Pricing Terms Alternative evaluation Comparative Appeals Scanner Labels & Convenient Handling Point of Purchase Displays & Coupons/Promotions Web/Phone Purchase Options & Self Checkout Purchases Credit Availability Instructions & Help Services Money Back Returns & Discounted Future Purchases In-Store Usage Training & Services Ongoing Communication [Web, 800#, etc.] Post-purchase experience

  4. Customer Decision-Making Process as aCognitive Digital Business Model Map Problem/Need recognition Information search Alternative evaluation Purchases Post-purchase experience

  5. THE CUSTOMER DECISION PROCESS AS “GUMBALL MACHINE” [Carter’s View] Problem/Need Recognition Information Search Evaluation of Alternatives Purchase

  6. 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”)

  7. “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”)

  8. 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”

  9. 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)

  10. 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

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