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DEPARTMENT OF MANAGEMENT

COMPARATIVE STUDY OF CONSUMER DECISION MAKING


STYLE OF FOREIGN AND DOMESTIC STUDENTS IN BIGBAZAR

Submitted to Lovely Professional University


In partial fulfilment of the
Requirements for the award of Degree of
Master of Business Administration under the supervision of
Mr.VIKASH SIR
Submitted by:

Rahul Abhishek(11006646)
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
JALANDHAR, NEW DELHI, G.T ROAD,
PHAGWARA, PUNJAB

CERTIFICATE
This is to certify that the project entitled Comparative Study of Consumer Decision
Making Style of Foreign And Domestic Students In Big Bazar is being successfully carried
out by Rahul Abhishek, under my guidance and supervision as a duly registered student of
Lovely
ProfessionalUniversity, Phagwara. This project is being submitted by him in the partial fulfilment
of
requirements for the award of the Master of Business Administration from Lovely
Professional University.

Date:

Vikash Sir
Marketing manager
Future Group
(Mentor)

Declaration
I Rahul Abhishek hereby declare that this project work titled Comparative Study of Consumer

DecisionMaking Style of Foreign And Domestic Students In Big Bazar which is presented is a
genuine

project work done by us during the academic year 2011 2013 under the guidance of our faculty
guide Vikash Sir. We also declare that this project is the result of our effort and has not
been submitted to any other University or Institution for the award of any degree, personal favour
whatsoever. Any literature, data or works done by others are cited within this dissertation has been
given due acknowledgement and listed in the reference section. All the details and analysis provided
in the report hold true to the best of my knowledge.

Date:
Rahul Abhishek

TABLE OF CONTENT
S.NO.

Chapters

Page No.

01.

Introduction

02.

Review of Literature

6-11

03.

Need & Scope

12

04.

Objectives

13

05.

Research Methodology

14

06.

Work Plan

15

07.

References

16-17

INTRODUCTION
Decision making is a process by which a consumer makes his/her plans for the purchase of any
product or service. Decision making is a five step process involving following steps:
(1) Consumers identify their needs,
(2) Collect information,
(3) Evaluate alternatives,
(4)Make the purchase decision,
(5)Post purchase behaviour.
These actions aredeterminedby psychological and economical factors, and are influenced
by environmental factors such as cultural, group, and social values. An ever increasing plethora of
consumer products are being offered, many of which are new, and technologically complicated. This
is, in addition to, an overwhelmingly large and varied numbers of shopping choices being made
available to the consumers. Along with these, an increase in promotional activity and the number of
promotional and distribution channels are contributing to the making of decision-making process
more complex. .Increased number and range of products, channel proliferation with increased retail
store, department stores, shopping malls, electronic commerce and information have broadened the
choice for the consumers.
Many factors influence consumer decision making, consumers are thought to approach the market
with certain basic decision making styles (Sproles and Kendall 1986).
A consumer decision making style is defined as a mental orientation characterizing a consumers
approach to making consumers choices( Sproles and Kendall,1986). Decision making styles gets
effected by age, sex, culture, status and income etc.
This research will contribute to the body of consumer behaviour literature by investigating the
decision-making styles of youth in India. Specifically, this research will examine the
interrelationships among observed variables and subsequently, a model of interrelationships will be
created by means of exploratory factor analysis.

REVIEW OF LITERATURE
Previous studies agree that a consumer decision-making style is a patterned, mental, cognitive
orientation towards shopping and purchasing, which constantly dominates the consumers choices.
These traits are ever-present, predictable, central driving forces in decision-making (Sproles 1985).
He proposes that consumers adopt a shopping personality that is relatively enduring and predictable
in much the same way as psychologists view personality in its broadest sense. The underlying idea is
that consumers engage in shopping with certain fundamental decision-making styles including
rational, brand conscious, quality conscious, brand loyal and impulsive shopping.

Abdol Razagh Madahi (2012): The questionnaire in this study has been distributed to 350

respondents. 325 respondents have returned the completed questionnaire. Consumers between 17-32
years old were selected as young generation. All scales measured on 7-point Likert -type scales
ranging strongly disagree to strongly agree. the SPSS software has been used to analyze the effect
of external factors (demographic, geographic and group influence) on CDMS as well as relationship
between CDMS and purchase intention.
The researcher has investigated the consumer decision making styles of younger generation in
Malaysia. The researcher has used Consumer Style Inventory (CSI) originally developed by Sproles
and Kendall (1986) to analyze consumer decision making style. An eight-factor model was proposed.
Four of the eight dimensions have been confirmed with the use of data collection from mainly
students in some Malaysian universities. These four reliable factors are: Novelty, Brand
Consciousness; Perfectionist, High-Quality Consciousness; Hedonistic Consciousness; Impulsive,
Careless Consumer. As a whole, the implication is that the consumer style inventory (CSI) is a proper
device to be applied in understanding the behavior of young consumers in Malaysia. Moreover, this
study examined the role of demographic factors (age, gender and race), geographic and group on the
consumer decision making styles. Also, the researcher found that whether there is a correlation among
consumer decision making styles and personal intention. Therefore, accordingly, findings of this
research can point out that consumer decision making style can positively and significantly affect
personal intention. The result has showed that there is a positive connection among independent
variables and dependent variables. Additionally, the outcomes of this research indicated that
whenever age of consumer increases, the effect of age group on consumer decision making styles will
be reduced. Besides, being female, Malaysian urban dwellers and advertising can influence consumer
decision making styles more than other independent variables.

Bagozzi, Richard P., and Van Loo, M. Frances (2011): Explored a study on
consumers internet decision making styles and the role of perceptions of Internet and he
administered four perceptions and six decision making styles. He explored a relationship
between online consumers perceptions and consumer decision making styles regarding the
Internet. They employed a consumer style inventory to measure online consumer decision
making styles, these six styles are- Perfectionism consciousness, Brand consciousness,
Novel-fashion consciousness, Confused by over choice, Brand-loyalty, consciousness and
Impulsiveness. The questionnaire was being filled by 454 respondents.

Mokhlis and Salleh (2009): They used factorial method to analyse data. The sample size

was of 400 male and female. Questionnaire was used to collect data.
It found the confirmation of gender differences in decision-making styles among young-adult
consumers. In addition to four decision-making styles that were found common to both
genders and similar to the original CSI factors (quality consciousness, brand consciousness,

fashion consciousness and confused by over choice), the study has identified two new
common factors (satisfying and value seeking), and five exclusive factors namely brand loyal
and time-energy conserving for males and price consciousness, recreational and shopping
avoidance for females.

Wesley, Lehew and Woodside (2006): Based on exploratory data analysis including

the use of the comparative method, the article provides a theoretical model of antecedents and
consequences of consumer-decision making styles. Data for this report come from personal
face-to-face mall intercepts of shoppers (n= 527) in two super-regional (West Edmonton Mall
and Mall of America in Bloomington) and two regional (Pier 39 in San Francisco and Forum
Shops in Las Vegas) malls.
It assesses how consumers' decision-making styles relate to their shopping mall behaviour
and their global evaluations of shopping malls. The EDA results support a complex view of
the antecedents and consequences of consumer decision-making styles. They conclude with
specific suggestions for extending psychological theory of shopping behaviour and advancing
strategic mall-retailing strategies. does support. the existence of CDM styles among adult
mall shoppers in different mall contexts. Gender is a prime antecedent associating with CDM
styles. The influence of CDM styles on mall shopping consequences is subtle and indirectly
influences activities during mall visits via influencing planned expenditure levels.Consumers
very high in perfectionism are most likely to high in planned mall expenditures. CDM styles
associate substantially with visitor satisfaction with visiting shopping malls.Further work on
CDM styles needs to further address the study of antecedents and consequences and to further
clarify the variety of types of consumers by multiple style orientations. Mall and retail store
strategists may find that communicating to shoppers by certain shoppers' CDM style
orientations is likely to be effective in increasing their shoppers' planned expenditures
levelsnot by changing the expenditures planned .But by changing the clientele toward
customers planning high expenditure.

Bakewell and Mitchell (2006): Data were gathered from a survey of 346 male

respondents aged between 18-25 who completed a fashion consciousness questionnaire,


which was then factor-analysed.
They found that nine decision-making styles were common to both genders. In addition, three
new male traits (store-loyal/low-price seeking, confused time-restricted and storepromiscuity) and three new female traits (bargain seeking, imperfections and store loyal)
were also identified in their study.

Wesley,LeHew and Woodside (2005): The study has tried to ascertain the consumer
decision making styles of young adult consumers so as to provide information to marketers
interested in the decision making profile of Indian customers and thus enabling them to build
their marketing efforts accordingly. From the previous research he described the importance
of some decision making traits. The study shows some cross cultural comparison for
consumer decision making characteristics. This study identified 10 important consumer
decision making characteristics. These are Perfectionism or high-quality consciousness,
Brand consciousness, Novelty-fashion consciousness, Recreational, Dissatisfied shopping

consciousness, Price-value consciousness, Impulsiveness, Confused by over choice, brand


loyalty and store loyalty.

Kwan, Yeung and Au (2004): Questionnaire survey was employed as the tool to

collect primary information of consumers decision-making styles and clothing choice criteria
in Beijing, Shanghai and Guangzhou. Questionnaires were distributed to 180 male and female
University students in Beijing, Shanghai and Guangzhou.
They find out the relationships between styles and twenty clothing choice criteria were
investigated by using factor analysis and multiple regression. Five underlying factors, named
product and self image related criteria, style and quality related criteria, durability and easy
care, fit and sex appropriateness, and price, were identified among these 20 criteria. Product
and self image related criteria, Style and quality related criteria and Price criteria were
found to positively and/or negatively affect some of the consumer decision-making styles,
such as recreational & hedonistic shopping consciousness, brand & fashion
consciousness, habitual & brand loyalty and price & value consciousness.

Bakewell and Mitchell (2003): Data were collected from young female students aged

between 19 and 24 years using sample size of 480 students with questionnaires.
They examined the decision-making styles of adult female Generation Y consumers in the
UK. Five meaningful and distinct decision-making groups were identified in their study:
recreational quality seekers, recreational discount seekers, trend setting loyal,
shopping and fashion uninterested and confused time/money conserving. In their later
study on decision making styles of male consumers in the UK (Bakewell & Mitchell, 2004),
all of the original eight traits plus four new traits namely; store-loyal/low-price seeking, timeenergy conserving, confused time restricted and store-promiscuity were identified.

Gavan J. Fitzsimons and Baba Shiv(2001): The questionnaire was distributed

among & sample size was117 for Exp: 1 (a) & 116 for Exp: 1(b)
The goal of this article was to examine the role played by hypothetical questions in the
decision-making process. Their basic proposition was that changes in behaviour will be
greater among participants that respond to hypothetical questions than among those who do
not respond to such questions. Experiment 1(a) resulted in showing the basic effect by
showing that negative information contained in a hypothetical question about a candidate for
office led to substantially decreased rates of voting for the candidate while as experiment 1(b)
showed that not only do hypothetical questions affect voting behavior, but more interesting,
this effect is amplified rather than narrowed as consumers cognitively elaborate on the
hypothetical question. The findings of Experiment 2 were similar to the core findings of
Experiment 1 in a context where individuals chose between cake and fruit salad. First, it
demonstrated that positive information contained in a hypothetical question about cakes,
pastries, and so forth, led to substantially increased choice of the cake. Second, it
demonstrated that elaboration on the hypothetical question further amplifies the effects of
hypothetical questions on actual behaviour. Hence they identified responding to hypothetical
questions as yet another source of mental contamination. They also contribute to the work on
mental contamination by identifying and examining some important moderators of the impact
of hypothetical questions on choice.

Shiv Baba and Fedorikhin Alexander (December 1999): Annova Test was
done over the Sample of 165 respondents.
As per the researchers such as Bettman, Hoch, Holbrook, and Loewenstein, after their
research they came to the conclusion that the characterization of the consumer in previous
decision-making research as a thinking machine, driven purely by cognitions, is a poor
reflection of reality. Moreover, the work by Dickson and Sawyer (1990), finds how
consumers actually make decisions in various shopping contexts, suggests that consumers are
more often mindless rather than mindful decision makers. This article was an attempt to
integrate these two broad themes with the hope that it will infuse more life and realism into
an already exciting area of research in consumer decision making.

Foo Nin Ho, Beng Soo Ong and Lee Seonsu (1997)

The questionnaire being filled by sample size of 1,000. This study focused on comparing
Chinese, Filipino and Japanese consumers on shopping behaviour and their willingness to
purchase a specific product category (hand tools or kitchen utensils) from different sources.
Overall, these three largest Asian groups do not differ in terms of shopping behaviour except
between the Chinese and Filipinos with regard to shopping innovativeness, price
consciousness, and shopping propensity. Filipinos are more likely than the Chinese to be
more innovative, more price conscious and shopping propensity. The three groups also do not
differ much in terms of their willingness to purchase either hand tools or kitchen utensils
from different purchasing sources. The Chinese are more willing than the Japanese to
purchase from direct mail, advertisements and retail outlet. The Chinese are also more willing
than the Filipinos to purchase from direct mail and telephone solicitation. The outcomes from
this study seem to suggest that Asians are not as fragmented in terms of shopping patterns as
suggested in the current literature. They seem to exhibit similar shopping patterns except for
a few circumstances. The results of this study also have managerial implications in terms of
promotional strategies and channel management. While some researchers have pointed to
difficulties of language and country of origin in marketing to Asian consumers (Miller 1992);
however, Asians are also shown to be highly assimilated into the American culture, younger,
better educated, have higher income, and are comfortable with technology (Fost 1990). If the
language and ethnic barrier is true, marketers need to advertise to Asians using their native
tongue because most Asian do maintain their cultural heritage. Also, a more effective strategy
to reach these groups is through newspaper and less with television advertising because
ethnic newspapers allow them to keep in touch with their home country (Cuneo 1990; Fost
1990; Wold 1991). This increased interest in Asian cultures will result in more sales volume
for retailers.

Lobuts John F. and Pennewill Carol L. (Feb., 1986): Risk-free decision-making

has become so important in our society that it is completely reached the stage unconscious. It
has been incorporated in many of our government institutions as well. We are by no means
condemning these institutions, it should be noted that they have had a hand in shaping our
behaviour. They provide many social advantages, yet should not be used as an excuse for

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personal selfishness? For avoiding personal responsibility, Risk-free decision-making is a


cultural Darwinian development. It is a phenomenon that has gradually developed over time
and consequently become an acceptable mode of behaviour.

Olshavsky Richard W. and H. Granbois Donald (Sep., 1979): From this


article it can be concluded that the major proportion of purchases may not be initiated by a
decision process. They conclude that for many purchases a decision process never occurs, not
even on the first purchase. How then does purchasing occur if not as a result of some type of
decision process? This review identified a number of different ways: Purchases can occur out
of necessity; they can be derived from culturally-mandated lifestyles or from interlocked
purchases; they can reflect preferences acquired in early childhood; they can result from
simple conformity to group norms or from imitation of others; purchases can be made
exclusively on recommendation from personal or non-personal sources; they can even occur
on a random or superficial basis. It is also concluded that even when purchase behaviour is
based on choice process, it is likely to be very limited. It typically involves the evaluation of
few alternatives, little external search, few evaluative criteria, and simple evaluation process
models. There is little evidence for the fact that consumers engage in the very extended type
of search and evaluation a product testing organization like Consumers Union performs
routinely.

Moschis George P and. Moore Roy L (Sep., 1979)

Duncans Scale (SES Index) was employed over the Sample size of 734.In the article it is
said that young people have acquired mostly sophisticated decision-making cognitions and
skills as they reach early adolescence. Interpreting from the article it can be said that
adolescents depend more on personal sources for information on products of high
socioeconomic and performance risk, and on products with low risk they depend on mass
media. These findings are similar to adult consumer research. Price and brand name was
given the most importance in evaluation process. Social influence is a difficult concept to
define, explore, and measure. For example, the need for social approval in purchasing mobile
phone (buying a pair that friends like) may influence his/her purchase plans, i.e., cause
him/her to buy such a product in the presence of friends. Hence, the data are consistent with
those in a previous study of purchasing role structure. Newspaper advertising may
significantly affect formation of brand preferences, even though this media does not play a
vital role in decision making. In addition, the more frequently the adolescent interacts with
his/her peers about consumption matters, the greater the likelihood of his/her taking peer
preferences into account in evaluating products. Parents mostly strive to teach their children
how to purchase products on the basis of price, rather than to buy only that which is on sale.
Socioeconomic background and brand preference are likely to be related, suggesting that
children from higher socioeconomic backgrounds have more opportunities for consumption
and are more aware of their consumer environment, including the availability of products in
the marketplace, than children of lower socioeconomic backgrounds. The article also suggest

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that young people have developed clear sex-role perceptions by the time they reach
adolescence. The outcomes of this study seem to be encouraging enough to warrant future
research in the area using socialization perspectives.

Davis Harry L. (Mar., 1976): In-depth Interviews were conducted over sample size

100 couples in which they concluded that:


1. Research on household decision making will be judged on the extent to which it influences
thinking about other areas such as family counselling, information dissemination, and
marketing research.
2. Most of the date has taken overly restrictive view of family-member roles. Most of the
importance has been on who shops and decides within specific product categories. Studies of
family decision making have in reality been studies of husband-wife decision making. Little
is known about household roles (including children) in information gathering and storage,
product use, and post decision evaluation or about family-member roles across product
domains.
3. A third and final research priority is the need to explore how families make decisions
rather than simply who is involved. In the final analysis, a theory of house-hold decision
making will not emerge by focusing solely on decision outcomes such as who decided or who
won.

Torban Hansen (1978): The researcher used three types of fit measures to assess the

overall fit of the model. Absolute fit experiments the p-value is below indicating that the
model in both cases fails to fit in an absolute sense. In the consumer behaviour literature
several perspectives on consumer decision making have been considereby the researcher
including the value perspective the information processing perspective, the emotional
perspective, and cue utilization theory. In this research paper, a framework which
integrates several perspectives on consumer decision making and which hypothesizes
possible links between several basic constructs is developed. The framework is tested by the
researcher with use of two experimental designs. The results of this study support the
complexity of consumer decision making:
(A) Consumers do not use their cognitive and affective skills independently, rather they affect
each other.
(B) the cognitive, evaluative constructs of quality and attitude had significant direct effects on
buying intention in both experiments, whereas the affective construct of emotion had no
significant effects on buying intention in both experiments.
(C) price affected in both experiments perceived quality, which in turn affected attitude,
which in turn affected buying intention. At the same time, price had no direct effect on
buying intention.

In conclusion, prior studies provide convincing evidence that consumers


decision-making styles varies by genders, age etc. This study will concentrate on youth
decision making. Overall it will also help us to determine the key factors related to
decision making process taken into consideration by the Indian students as compared
to International students in LPU.

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NEED AND SCOPE


The Young and working population of India is the biggest positive factor for India and its
growth in coming years. In 2005, around per cent of the youth population of the world lived
in the Asian and Pacific region. India has the largest youth population in the world (UN,
2007). According to the Census of India 2001, the total population of India was 1,028.61
million. Nearly 40 per cent of the population was in the age group of 13 to 35 years. The
number of youth aged 15 to 24 years was 195.07 million, which accounted for 19.0 per cent
of the whole population. India contributes about 33 per cent of youth population in the
developing Asian countries (ADB, 2008).
Youth is more at spending and all the marketers targets mostly youth. And these marketers
and advertisers need to understand their decision making style so that they can provide them
according to their needs. This research will help marketers to analyse their target market
properly and to improve upon these factors to attract more spending from the youth.

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OBJECTIVES
1. To identify the styles of decision making by youth of India while purchasing.
2. To find out factors that effects the decision making by Indian students.
3. To explore the initial causes, which direct consumers to adopt the styles as per their choice.
4. To analyze the decision styles of Domestic students and International Peoples.
5. To analyze the various decision making styles and finalize the major styles by peoples.

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RESEARCH METHODOLOGY
Data will be collected for this study includes primary data and secondary data. For the
primary data collection, a pre-structured questionnaire has already been prepared and will
distribute this to 300 reliable customers of Big Bazar to take their opinion and test their feedback
while making their decision to purchase. Time taken to collect this data was limited as one
month. Primary data will be collected from a group of respondents through structured
questionnaires by personal interview procedure. The secondary data was collected from the
articles in newspapers, magazines, journals, and various project reports. Secondary data was
used to construct the basic framework of the study before proceeding with the primary data.
The respondents were selected through the convenience sampling technique, since it is a less
time-consuming and convenient procedure.

SAMPLE SIZE
Questionnaire will be distributed among 300 Customers of Big Bazar
Ranchi. Both male and female respondent were included in it of age group 18 to 25.

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Work Plan
We are planning to distribute 300 Questionnaire to the prospective respondents of Big Bazar. The
respondent will be selected through convenience sampling technique and most of our
question will be asked in Five point Likert Scale.

Work Plan

Timeline

Questionnaire Development

1st and 2nd week of January 2013

Data Collection

3rd week of January to 1st week of


March

Data Analysis and Report Preparation

3rd week of March to 2nd week of April

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