1. Executive summary:
This report provides an analysis of situational decision-making (SDM) in marketing, the shopping process, how different situations affect buyers, the behavioral factors and the perceptual factors. The research draws attention to the fact that shopping process is a set of stages that customers intend to go through in order to satisfy their needs and wants. It will also determine how the SDM model is useful for the marketers when promoting their brand. The major finding shows that every time a consumer purchases a product or a service they show forms of buying behavior that are persuaded by many factors. Although earlier research in buyer behavior emphasized the individual and personality variables like motives, satisfaction, and predisposition (Howard and Sheth 1967), similarly Belk (1975) suggested that consumer behavior might be a function of the interaction between the individual and the situation. Situational decision-making model involves choosing an adequate course of action before making any decision; decision makers first identify the problems. Gather information, evaluate possible solutions and estimate the outcomes. These are the crucial steps in the decision-making process. The objective is to take a situation from its current circumstances and move it towards a final decision. Consumers differ as to their beliefs about what product benefits and attributes are more (or less) important and relevant in satisfying their needs. Based on their personal judgment on importance of benefits and attributes, consumers develop a set of attitudes (or preferences) toward the various brands. One may express his/her preferences of the brands in terms of ranking, probability of choice, and so forth. Understanding the shopping process helps businesses to align their sales and marketing strategy accordingly. The ABC model helps identify the affective, behavioral and cognitive aspect of an individual while they are involved in the shopping process it helps marketers understand how the consumers think, react, behave towards a product, ad The affective aspect deals with emotions of consumers towards any product, e.g.: launch of the new apple iPhone people line up outside stores from the day before, it shows the feeling and excitement people have towards the product. The behavioral aspect reflects intentions if they are willing to buy the product or not, e.g. when a consumer walks in a store and shows an intent to buy however is not sure completely. Then we have the cognitive aspect where the belief and attitudes of consumer towards a product, e.g. a BMW customer will always go for a BMW car and never for an Audi, because he beliefs that a BMW is his liking not an Audi. It important from a marketers stand point to understand the ABC model and implement it to customers for sales of your product, it will not only give an idea on how to increase customer base but it gives a competitive edge over others in the market. The SDM and ABC can be linked together from a consumers stand point and another from a marketers stand point. This report gives us a whole over view of the shopping process and how today consumers think, react and make decisions while they are shopping and what can a marketer do to attract a consumers mind or thinking to purchase a product.
2. Learning Objectives:
Shopping process involves SDM (situational decision making) and ABC (affective, behavioral, and cognitive) these process help identify from a consumers perspective as well as from a marketers perspective on how individuals react on different situations, attitudes, emotions, behavior, the main aim behind this is to understand how consumers react to different given situations and how they think. During our session we came to the understanding that many individuals in the room had different tastes and preferences and when in a given situation to choose from one product with another some had no issues in selecting a product but others took...
References: Hunter, G. L. (2006). The role of anticipated emotion,desire, and intention in the relationship between image and shopping center visits. International Journal of Retail & Distribution Management, 34(10), 709-710. doi:10.1108/09590550610691310
Shao, W. L. (2008). Decision, decisions, decisions. International Journal of Marketing Research, 50(6), 797-816.
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