Distinguish between extensive decision making, limited decision making and habit
ID: 423494 • Letter: D
Question
Distinguish between extensive decision making, limited decision making and habitual decision making. What level of decision making would you expect most consumers to follow in their initial purchase of a new product or service of :
a) a budget holiday
b) a hair dye
c) a livein maid
Question 3
Explain how the term stimulus generalisation and discuss how ice cream manufacturers could use it in their marketing campaigns.
Question 4
What is the tri-component attitude model? How can a marketer use this model in developing favourable attitudes for a new range of snack food? Illustrate your answer with examples
Explanation / Answer
Extensive decision making - This happens in case of high involvement products which are expensive and occurs only few times during a person's lifetime, for example, buying a house or setting up of a factory. Mostly a large number of people are involved in such a process and the decision has a high impact .
Limited decision making - This type of scenario occurs if the product is expensive as in case of a white good or a consumer durable like a fridge, tv or a washing machine.It takes a consumer sometime to arrive at a decision but not a lot of time. The investment is nominal but not very high and the consumer has had some experience with the product or service.
Habitual decision making - This is something that the consumer encounters on a day to day basis like buying a soap, a snack or a cigarette. The outflow is relatively low and the product is generally low involvement in nature. The consumer is probably not going to change to various brands since he needs to put latest some time in making a decision which is trivial at most. There is a considerable measure of things which impact the decision making, like ads by FMCG organizations.
a) a budget holiday - Limited decision making -
b) a hair dye - Habitual decision making
c) a live-in maid - Extensive decision making
PS :- Answered the first part as per guidelines. Please comment in case answer to the other parts is also required. Upvote if you find the answer useful.