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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] 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
Customer Decision-Making Process Problem recognition Information search Alternative evaluation Post-purchase experience Purchases
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
Customer Decision-Making Process as aCognitive Digital Business Model Map Problem/Need recognition Information search Alternative evaluation Purchases Post-purchase experience
THE CUSTOMER DECISION PROCESS AS “GUMBALL MACHINE” [Carter’s View] Problem/Need Recognition Information Search Evaluation of Alternatives Purchase
CUSTOMER DECISION PROCESS “MAPPING” & CUSTOMER DECISION SUPPORT SYSTEM “TRACKING” [Carter’s View] CDSS “TRACKING” CDP “MAPPING” Problem/Need recognition Information search Home/Body Sensors Alternative evaluation Media Embedded QR Codes Virtual World Avatar Experience Purchases Digital Wallet Post-purchase experience Remote “Cloud” SAAS Networks
CUSTOMER DECISION SUPPORT SYSTEMS AS “Digital Ecology Spheres” [Carter’s View] Sapient Environments Smart Homes/Facilities Vehicle/Transport Systems Mobile Devices Wearable Tech Body Sensors
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”)
“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”)
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”
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)
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