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CB- Iphone

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Carson Foo

on 15 October 2014

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Transcript of CB- Iphone

Consumer Decision Making Process
Need Recognition
Search for Information
Evaluation of Alternatives and Choice
Postchoice Evaluation
Social Groups
Primary Groups:

Aspirational/Dissosciative Group:

Opinion Leaders/Market Mavens:
-Frequent and direct contact
-42% Men and 60% Females list friends and family as primary sources of information
-Ideal self plays major role in the desire or aversion of joining groups
Social Pressure
Conformity/Peer Pressure:

Word of Mouth:
Situational Influences
Hedonic Utilitarian
- iPhones are a personally gratifying product and are predominantly Hedonic at Nature
Cognitive Appraisal Theory
explains how thoughts and feelings are transferred into emotional reactions
Approach to Appraisals
Approach Appraisals

- Behavioural Reactions provided by consumers
VALS Segmentation
Primary Market
- Innovator
- Thinker
- Achievers

Secondary Market
- Experiencers
- Strivers
Experiential Decision Making
Steve Jobs created a thriving culture for both opinion leaders and market mavens by building a community for Apple’s advocates
Affect Based Evaluation
- Consumers Evaluate products based on feelings evoked from each options

"I'm not even sure why I purchased this iPhone, the lady at the store was just too helpful; I couldn't walk away!"
Young ambition consumers spend most of their spare time with peers and seek social recognition in the group, leading to similar purchasing behaviour of buying the latest technology products
"Word of mouth is becoming an increasingly effective form of marketing with the digital age as communication becomes more and more accessible"
- Boalch, 2013

Apple products and smartphones are among the top 5 things people buy because of peer pressure
Schema Based Affect
- Previous emotions stored from experience, form meaning for a schema (Apple)
- Whenever a consumer encounters a story relating to Apple or an iPhone, they experience a
consequential affect or emotion
Primary Market
Secondary Market
Actual State
Contract Expires
Phone breaks
Desired State
Release of a new phone
Reference group information
Consumer novelty seeking
Cognitive thought process
Product Experience
Internal: retrieve knowledge that is stored in memory
External: gather information from other sources
Search tends to increase when a consumer possess a high level of purchase involvement
Perceived Risk
The search effort of consumer increases, as the perceived risk increases
Value of Search Effort
Monetary: cost of driving around town searching
Nonmonetary: physical exhaustion of searching
Time Availability
Consumers experience increased search activity if they have more time to spend searching
Expectancy/Disconfirmation Theory
Types of Expectations
Service Quality
Equity Theory and Consumer Satisfaction Theory
Satisfaction is positively affected as long as the outcomes to inputs for consumer A are similar to the ratio for party B
Cognitive Dissonance
Many attractive alternatives that may offer comparable value
The decision is important and involves risk
The decision is difficult to reverse
The consumer has low self-confidence
Ways to decrease Cognitive Dissonance
Return the product if possible
Complain about the experience
Seek positive information about the alternative criteria
Seek negative information about alternatuves not selected
Minimise the perceived importance of the decision
- Consumers make purchases based on the affect, or feeling and are attached to the product
Evaluation of Alternatives
Example iPhone Attributes:
- Design
- Camera Quality
- Price
- Software

Hedonic = Affect-Based Evaluation
Utilitarian = Non-Compensatory Rule
Retail and Service Atmospherics
“Atmospherics refer to the emotional nature of an environment or, more precisely, to the feelings created by the total aura of physical attributes that comprise the physical environment”
-Babins 2013
Perceptual Map
Full transcript