Consumer Decision Making & Diffusion of Innovations

Consumer Decision Making: Consumer Decision making is a process through which the customer selects the most
appropriate product out the several alternatives. The Consumer decision making process consists of a series of steps
that a buyer goes through in order to solve a problem or satisfy a need.

The consumer decision making comprises of mainly three steps:

1. Input
2. Processes
3. Output

 The Input step of Consumer Decision making comprises of the following external forces: The marketing mix,
socio-cultural influences and communication.
 The processes step of CDM includes components like Need Recognition, information search, evaluation and
decision rules.
 The output step of CDM consists of purchase use, post purchase evaluation, storage and disposal, trust and
loyalty.

Consumer Gifting Behavior: It is the consumer behavior which involves giving and receiving of gifts. This concept
embraces both- the gifts which are given voluntarily as well as gifts which are given as an obligation. It includes both
gifts given to others as well as gifts given to oneself.

Types of Gifts:

1. Intergroup Gifting: Gifts given to one group by another group (eg. Gifts given by a family to another family).
2. Intercategory Gifting: Gifts given by an individual to a group or vice-versa.
3. Intragroup Gifting: A group giving gifts to itself or the group’s members.
4. Interpersonal Gifting: One individual giving gifts to another individual.
5. Intrapersonal Gifting: The giver and receiver of the gift are the same individual.

Diffusion and Adoption Innovations:

Diffusion of Innovation: The framework for exploring the evolution of consumers’ acceptance of new products
throughout the social system. It consists of four key elements:

1. The Innovation
2. The channels of communication
3. The Social System
4. Time

Adoption Of Innovation: It is a micro-process that focuses on stages through which an individual consumer passes
when deciding to accept or reject a project.

Types of Innovation:

1. Continuous Innovation: It has the least disruptive influence on the established behavior.
2. Dynamically Continuous Innovation: More disruptive than continuous but still does not alter established
behavior.
3. Discontinuous Innovation: It requires consumers to adopt new behavior.

Submitted by: Group 3 (Sambhav Jain (040), Puneet Kakkar (034), Pankaj Yadav (032), Himanshu Jhamnani (018),
Yash Goel (051), Anjali Ladwal (025), Jalaj Sharma (019)