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Marketing Assignment

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NESS WADIA COLLEGE OF COMMERCE

CONSUMER BEHAVIOUR AND SALES MANAGEMENT


(305)

NAME- ISHITA KAMBLE

ROLL NUMBER- 43

CLASS- SY BBA-A

DATE OF SUBMISSION- 20TH November,2021


1. What do you mean by the consumer decision making process? Explain different types
of Consumer Decisions.
Consumer Decision Making refers to the process under which consumers go through in
deciding what to purchase, including problem recognition, information searching, evaluation
of alternatives, making the decision and post-purchase evaluation.

Types of Consumer Decisions


There are three major categories of consumer decisions - nominal, limited, and extended
1. Nominal Decision-Making

Nominal decisions are often made about low-cost products. They include frequent
purchases, purchases from a familiar brand or product, buying that requires low
involvement, or little search efforts.

If you’ve been using the same laundry detergent for twelve years, you’re unlikely to
spend much time researching different brands unless you notice a problem with your
existing purchase. In other words, you’ll keep picking up the same bottle without thinking
about it.

The important thing to remember about nominal decision-making, is that too much
marketing effort can have a negative impact on your customers. If someone is already
happy to buy an item on impulse, or because of brand loyalty, they don’t need constant
interaction with the brand asking them what they like about the substance, or whether
they want to change anything. Too much marketing is not only debilitating to your
budget, but it can get on your customer’s nerves – which is a dangerous thing for brands
in this highly competitive era.

When purchasing your product is a nominal decision, marketers simply need to perform
Brand maintenance. In other words:

 Make sure the product is available where your customers are shopping
 Maintain the right pricing structure and introduce new concepts when interest drops
 Create advertisements that ensure memorability for your brand.

2. Limited Decision-Making

Limited decision-making is a little more involved than nominal decision-making, but it’s
still not a process that requires in-depth research. Limited decisions are made about mid-
cost products, semi-frequent purchases, or purchases from a somewhat familiar brand.
They require a little involvement, and perhaps some searching.

When customers make limited decisions, they take a small amount of time to ponder over
their purchase, but they might not go online to look for testimonials and reviews. Instead,
they could consider their memory of their product, and make decisions based on logical
inferences.

When it comes to addressing limited decision-making, it’s important for marketers and
Brands to examine their customer data, and understand the factors that influenced
decision-
Making, such as:
 Product quality

 Product availability

 Price

 Packaging style
After carefully examining this information, brands can change their promotional activities
And product development that will accentuate the benefits of the product, and make it less
Likely that people will choose something else.

3. Extended Decision-Making

Finally, extended decisions are made about higher-cost products, and infrequent
purchases. They require a lot of involvement, often center around unfamiliar brands or
products, and need extended thought and search efforts to ensure buyer confidence.

For instance, we don’t buy a huge flat-screen television every day, so when the time
comes to make this kind of investment, we want to know for sure that we’re making the
right choice in everything from brand to picture quality.

When it comes to influencing extended decision-making, the best thing that any brand
Can do is work on building their positive online presence:
 Make sure that you have a social presence where people can share their opinions and
thoughts about your products, and ensure that you reply and respond positively to negative
comments

 Give people plenty of spaces to review your product and post testimonials so that people
can find opinions online in a hurry

 Provide extensive product details on listing pages, and make sure that your staff members
are well-equipped to answer any questions customers might have.

 Offer interactive guides and other tools that will help them through the decision-making
process
Influencing Buyer Decisions
Influencing buyer decisions as a marketer or business can be an extremely difficult process, but
it’s one that’s crucial to enhancing your bottom line. The important thing to remember is that
the more you understand about who your customers are, and what prompts them to purchase
your products, the more of an impact you can have on their buying journey, reducing the
friction between product discovery, and purchase.

2. Describe the various types of Problem Recognition. What condition results in Problem
Recognition?
Problem recognition is the process of a consumer identifying a need to buy something. It
is a basic type of consumer behavior that is relevant to marketing activities such as
advertising a new product. The following are basic types of problem recognition.

Types of Problem Recognition


There are multiple types of problem recognition. The two most important are:
1. Expected and Active Problems
These are the problems about which the customers are actively aware and plan to solve it
themselves by looking out for a potential product or a solution which resolved the
problem. These are expected like broadband plan getting expired, Need to enroll for a
college course after schooling, buying a refill for printer, buying a bus ticket to travel to
another town to meet a friend. These are examples of expected and active problems
which are to be solved by the customer while being aware of them.
The marketers normally present the product which can solve the problem without
defining the problem again to customer as he or she is already aware. The benefits and
resolution is what the customer is interested in
2. Unexpected and Inactive Problems
These are the ones where the customer does not know if they require to solve them or not.
An example can be insurance policy in which a customer has to be made aware that there
is a need which is fulfilled by buying an insurance policy and will eventually solve a
future problem if it arises. 
In B2B sales especially in technology, we see this problem recognition state. Many
customers have been working in the same way since many years but the new technology
sellers convince them that the new digital and automated solutions are much better for
them as that would help in cutting a lot of costs and increase efficiency. The customers
were not aware until explained and also were not expecting to solve them immediately.
But once a customer is convinced about solving the issue, then it becomes an active
problem.
Many times, there can be some unexpected events in life which can lead to immediate
problems that require you to buy new products or services 

Examples of Problem Recognition


The problem recognition might be due to:
1. A product being out of stock like Oil, floor, raw materials can lead to a
Problem.
2. Dissatisfaction with the current product or state
3. Related products/purchases e.g. After buying an expensive phone, people look to
buy a case immediately to protect the phone
Problem recognition is the result of a discrepancy between ones desired state and an actual
state of satisfaction. An actual state is the way an individual perceives their feelings and
situation at the present time; while desired state is the way an individual actually wants to feel.

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