Extensive decision-making process - consumer behaviour: analyse the many elements of EKB's consumer decision model in relation to consumer behaviour.

Topics: Risk, Decision theory, Decision making Pages: 24 (5447 words) Published: May 30, 2006
Table of Contents

i Executive Summary i

1 Introduction..............2

2 Analysis..........3

2.1 Need recognition...............3

2.1.1 Environmental influences.......3

2.1.2 Individual differences............4

2.1.3 Memory...........4

2.1.4 Situational influences........4

2.2 Pre-purchase search.........6

2.2.1 Internal Search.............6

2.2.2 External Search.............6

2.2.3 Exploratory Search............7

2.3 Information processing...........8

2.3.1 Exposure............8

2.3.2 Attention..............9

2.3.3 Interpretation.............9

2.3.4 Retention............9

2.4 Evaluation of alternatives...........10

2.4.1 Awareness, Evoked & Consideration Sets........10

2.4.2 Evaluative Criteria..........10

2.4.3 Decision Rules...............11

2.4.4 Perceptual Mapping...........11

2.4.5 Influences on the evaluation process.......12

2.5 Purchase............13

2.6 Post-purchase.........15

3 Conclusion and Recommendations..........17

4 References...........18

5 Appendices............19

1 Introduction

This report has been prepared to analyse the many elements of EKB's consumer decision model (as shown in Figure 1.0) in relation to consumer behaviour. The focus of the consumer decision model is to enhance the understanding of the many processes undertaken whilst undertaking a high involvement purchase, hence providing a theoretical framework of determining and justifying consumer behaviour.

The model was applied in context with our decision to purchase a holiday to Vanuatu, as this type of purchase is best suited to an extensive decision-making model (Sheth & Mittal, 2004). The various aspects of the model are explored using the knowledge gained during our research into various sources for this particular holiday. Recommendations based on our experience and researches have also been considered in this report, in order to facilitate further improvement in the overall extensive decision-making process.

Figure 1.0- EKB's model of consumer behaviour (Poulos, 2001)

2 Analysis

Whilst purchasing a complex good/service many thoughts and procedures are undertaken, and in order to analyse this choice an appropriate consumer decision model is required for it to develop and prosper. The consumer decision models provide conceptual frames of reference that logically indicate the interrelationship of variables for research purposes and also aim to give an understanding of what happens as variables and circumstances change (Erasmus et al, 2001). The utilisation of EKB's consumer decision making model has allowed us to become more perceptive when undertaking this complex purchase. The model under analysis is a schematic representation of the stages of the buying process;

2.1 Need recognition

The tension caused by the difference between actual state and desired state (Schiffman et al, 2001). Our need recognition for a holiday was triggered by psychological factors including boredom, need for change, independence, exploring different the world & expanding of our knowledge to a more global perspective.

Extended decision making

Extended decision making 'occurs when the search is extensive and deliberation prolonged' .It is also common for purchases that have high risks involved, such as costly investments (Sheth JN & Mittal B, 2004 p.285). Hence, our holiday to Vanuatu can be classified as being in this category due to its high costs and extensive search conducted for various information regarding airlines and accommodation.

Need recognition's main three aspects that our model covered were;

2.1.1 Environmental influences

These influences are made up of a buyer's social context together with situational influences (Evans et al, 1996). The elements which considerably played a role in our need recognition of a holiday were culture, social class, personal influence, family and situation. We all are university students of middle...
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