6/25/2018

Brand Decision
Dr. G Ramesh

• To acquire, retain, and grow customers, companies need to know how

customers make brand decisions.

• The brand decision can be primarily cognitive or experiential

depending on the product category and situation.

• Brand decision-making is partly rational and partly emotional, so

brands must speak to both the head and the heart.

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Factors that influence Brand Decisions

Three factors influence decision-making:

• Level of involvement

• Customers versus Prospects

• Consumers versus Businesses

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Basic Brand Decision making steps

• Step 1: Problem and Opportunity Recognition

• Step 2: Information Search

• Step 3: Evaluation of Choices

• Step 4: Behavior and Action

• Step 5: Review of Buying Decision 6

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Brands that a consumer

Inept Set excludes from purchase
consideration.

Brands that a consumer

is indifferent toward
Inert Set because they are
perceived as having no
particular advantage.

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Evoked Brands that a consumer

Set consider for purchase.

Decision Rules
• Compensatory

• Non Compensatory

• Conjunctive Decision Rule

• Disjunctive Decision Rule
• Lexicographic Decision Rule
• Affect Referral Decision Rule

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Example
• I selected the Car that came out best when I balanced the good ratings
against bad ratings.
• _____________
• I selected the Car that had no bad attributes.
• _____________
• I picked the Car that excelled in at least one attribute.
• _____________
• I looked at the attributes that was most important to me and chose the Car
that ranked highest on that attribute.
• _____________
• I selected the brand with the highest overall ratings
• _____________

Example
• I selected the Car that came out best when I balanced the good ratings against bad
ratings.
• Compensatory
• I selected the Car that had no bad attributes.
• Conjunctive Decision Rule

• I picked the Car that excelled in at least one attribute.

• Disjunctive Decision Rule

• I looked at the attributes that was most important to me and chose the Car that
ranked highest on that attribute.
• Lexicographic Decision Rule

• I selected the brand with the highest overall ratings

• Affect Referral Decision Rule