Page 187 - DMGT551_RETAIL_BUSINESS_ENVIRONMENT

Retail Business Environment

Notes (v) Memory: Consumer memory comprises of short term memory and long term memory. In
the short term memory the acquired information is stored for less than two minutes. The
consumer evaluates the impinging stimuli and decides whether the information is worth
transferring to long term memory or may be forgotten. If it goes to long term memory, it
is stored for ever.
Memory is the resource for the internal search for information. Only when it is found to be
insufficient the external search is carried on.

(vi) Decision Process: The ultimate decision of the brand is preceded by various sub-decisions
about various aspects using rules of thumb or other methods of decision making. These
decision processes work on the acquired and evaluated information as well as the
perceptions of the consumer. The situational factors (like time pressure, moods and
company of other individuals etc.) do also influence these decision processes.
(vii) Consumption and Learning Processes: The experience gained through the consumption of
products as well as the process of decision making are stored by the consumers. These
learnings affect not only the memory for the next cycle of decision making but also affects
the future heuristics for consumer decision making.

(viii) Scanner and Interrupt Mechanisms: These are like the information switches of the
consumers. Whenever the consumer decides that he does not have sufficient information
for decision making internally, he scans the environment for acquiring the necessary
information. On the other hand, whenever he finds that he has sufficient information or
acquiring more information is not worth the decision at stake, he shall interrupt the
information search process.
The Bettman’s consumer behaviour model focusses entirely on the information processing. The
research attempts to validate it are also focussing upon the information handling by consumers.
Consumers are encouraged to share the protocol that they mentally go through, while taking
decisions. These methods are rich in providing consumer insights but difficult to administer
practically.

Task You are planning to buy your first car though you have been using the official
vehicle for a long time. How does your search of information get affected by (a) Memory
(b) Motivation (c) Attention (d) Processing capacity.

Self Assessment

Fill in the blanks:
10. The degree of ………………. perception among consumers varies and depends upon the
person, product, situation and the culture.
11. ………………………. risk, is associated with the possibility that the product will not perform
as anticipated or may even fail.
12. Consumers lacking actual experience with the product tend to judge the quality on the
basis of extrinsic …………. such as brand image, price, or even the country of origin, etc.
13. ……………………. interpretation refers to assigning of meaning to sensations. Individuals,
in their own unique manner, interpret the stimuli.

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