Consumer Decision Notes PDF

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Consumer Decision-Making Process

1Q) Decision-Making Rules

Nikhil went to a Reliance Digital store to buy a smartphone. He works in a client-facing role and needs to call clients
throughout the day. Therefore, he immediately rejected any smartphone model which did not meet the criteria of "10
hours talk time on a single charge".

What decision-making rule is Nikhil using?

Disjunctive decision rule

The disjunctive decision rule involves setting minimum cutoff points only for attributes that are important to the
consumer. Nikhil set the cutoff point for only battery life as it was important to him.

2Q) Online Decision-Making Process

Big Basket is optimizing its webpage so that search engines (such as Google, Bing) display its webpage in the top 3
results when someone searches ‘Grocery Online’. This is targeted towards which stage of a buyer’s decision-making
process?

Information Search

A consumer who is searching for groceries online has already recognised their need and is looking to gather
information for making a purchase. While searching, they will come up with the names of various websites where they
can purchase groceries. Big Basket would ideally want to be the topmost search result so that the consumer sees it at
the top of the results list and clicks on the link and then moves ahead with further processes. Hence, Big Basket’s
SEO (Search Engine Optimisation) efforts are targeted at the Information Search stage.

3Q) B2B Decision-Making Process

Suppose that you are the sales manager of a firm manufacturing industrial pumps. A government factory has come up
with a tender for a set of pumps, and multiple competitors have sent proposals. You have to work towards winning the
order. What are the factors you think your proposal should possess for this to happen?

Since it is a government factory, you will have to make sure that the overall pricing is one of the lowest among the
options. Furthermore, you will have to meet the technical specifications such as power efficiency. A combination of
optimum pricing and specifications will give you a good chance of winning the order.

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4Q) B2B Decision-Making Process

An IT firm wants to procure sanitisers in bulk for use in its office premises. As the procurement manager of the firm,
you have to get the product at the best possible price, without compromising on the quality. You have shortlisted some
well-known vendors. Which stage of decision-making will come into effect now?

Requests for Proposals (RFPs)

An RFP outlines what a firm requires from its vendors’ products with regard to quality, price, payment or financing
options, expected delivery time, after-sales service, customisation needs, return policies, and, in some cases,
information on a product’s disposal process.

5Q) Consumer Funnel

Consider the following print ad.

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At which stage of the purchase funnel can this ad be placed?

Purchase

Since the ad is communicating about the discount, it is asking the viewers to visit the website and make a purchase at
a lower price. Hence, this ad is at the Purchase stage of the funnel.

6Q) Purchase Funnel

George Wimpey is a British construction company. In the image below, you can see one of its real estate billboards
and its messaging, which serve well given the mindset of a person who is stuck in traffic.

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Which stage of the purchase funnel is this ad targeting?

Awareness

The billboard is informing potential customers that the apartments of this particular building are for sale and that they
should contact George Wimpey for further details.

7Q) Decision-Making Rules

Here is another ad from the Maruti Suzuki "Kitna deti hai" campaign. What decision-making rule is the consumer
using?

Maruti Suzuki Kitna Deti Hai Yacht

Disjunctive rule

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The disjunctive decision rule involves setting minimum cutoff points only for attributes that are important to the
consumer. Here the customer set the cutoff point for only mileage, to exemplify that Indian consumers are obsessed
with mileage.

8Q) Purchase Funnel

Imagine that you are the marketing manager at Zendesk, Inc., a leading customer relationship management software
provider. Choose the best combination of blog post or article titles that are the best for messaging at the respective
stages of the purchase funnel.

Purchase Funnel Stage Blog Post Title

a: Awareness 1: ‘How Zendesk is Revolutionizing the Online Customer Service Industry?’

b: Consideration 2: 'Zendesk is Offering the Most Affordable Package for the Next 15 Hours — Check Out the Pricing Here!'

c: Purchase 3: ‘Dear User, All the New Features You Wanted in Zendesk Are Here Now!’

d: Delight 4: ‘A Detailed Comparison of Features Provided by Top Helpdesk Software’

a-1, b-4, c-2, d-3

The first blog’s title is for creating awareness to potential customers looking for online customer service platforms such
as Zendesk.

Since the second blog post talks about the pricing plan of Zendesk, it maps to the purchase stage of the funnel.

The third blog post addresses a specific set of customers, possibly based on the feedback that was taken from them,
thereby mapping itself to the delight stage.

The fourth and last blog post offers a comparison guide; this is targeted at users who are already aware of Zendesk
and are aimed to showcase more value, and most importantly, to encourage him/her to consider the product.

9Q) Testimonial

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At what stage of the customer journey can the user be leveraged most effectively to obtain testimonials for your
product or service?

Post-purchase

At the post-purchase stage, the user has already used your product or service. If the user is impressed, he or she is
likely to act as a promoter and share positive reviews or posts which will act as an effective testimonial.

10Q) B2B Customer Decision-Making Process

Suppose that you are the regional sales manager of a B2B air-conditioning firm. The procurement head of a major
construction firm requires central air conditioning for one of its malls.

You have prepared a document with detailed product features, pricing, payment terms, and conditions such as the
mode of payment etc. along with the expected delivery dates and the terms of the warranty.

This document is in response to which stage in the decision-making process of your customer? Choose the most
appropriate option.

Request for Proposal (RFP)

An RFP outlines what the firm requires from its vendors’ product with regards to the quality, price, payment or
financing options, expected delivery time, after-sales service, customisation needs, return policies, and in some cases,
information on the product’s disposal process. A lot of these details in your document are from amongst these. Hence,
this is in response to an RFP.

11Q) Purchase Funnel

Raj is planning to buy a cruiser bike for his 25th birthday. He is already aware of all the available brands. But he doesn’t have a
clear idea about the technical differences, pricing, etc. He searches various forums and finds a brochure online.

This brochure has a side-by-side comparison of a carefully curated list of leading cruiser bikes with respect to their features.

Which of the following statements stands true given the current situation of Raj?

The brochure is helping Raj to move from the awareness to consideration stage

Raj is at the awareness stage. The brochure helped him understand the different features of different brands so that
he has more information on his hands and can consider a limited set of options before selecting and buying a bike.
The brochure is taking him from the awareness stage to the consideration stage.

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https://www.coursehero.com/file/150481347/Consumer-Decision-Notespdf/
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