Consumer Decision Making

Levels of Consumer Decision Making

Extensive Problem Solving

Limited Problem Solving

Routine Response Behavior

Models of Consumers: Four Views of Consumer Decision Making

An Economic View A Passive View A Cognitive View An Emotional View

Goal Setting and Pursuit

Goal Setting

Formationof Goal

Intention

Action Planning

Action Initiation/Control

GoalAttainment/

Failure

Feedback

A Simple Model of Consumer Decision Making

Firm’s Marketing Efforts1. Product2. Promotion3. Price4. Channels of distribution

Sociocultural Environment1. Family2. Informal sources3. Other noncommercial sources4. Social class5. Subculture and culture

Need Recognition

Pre purchase Search

Evaluation of Alternatives

Psychological Field1. Motivation2. Perception3. Learning4. Personality5. Attitudes

Experience

Purchase1. Trial2. Repeat purchase

Postpurchase EvaluationOutput

Process

Input

External Influences

Consumer Decision Making

Postdecision Behavior

Three Stages of Consumer Decision Making

Need Recognition Pre purchase Search Evaluation of Alternatives

Factors that are Likely to Increase Pre purchase Search

Product FactorsLong inter purchase time (a long-lasting or infrequently used product)Frequent changes in product stylingVolume purchasing (large number of units)High priceMany alternative brandsMuch variation in features

continuedExperience

First-time purchaseNo past experience because the product is newUnsatisfactory past experience within the product category

Social AcceptabilityThe purchase is for a giftThe product is socially visible

Value-Related ConsiderationsPurchase is discretionary rather than necessaryAll alternatives have both desirable and undesirable consequencesFamily members disagree on product requirements or evaluation of alternativesProduct usage deviates from important reference groupThe purchase involves ecological considerationsMany sources of conflicting information

continued

Product FactorsDemographic Characteristics of Consumer

Well-educatedHigh-incomeWhite-collar occupationUnder 35 years of age

PersonalityLow dogmaticLow-risk perceiver (broad categorizer)Other personal factors, such as high product involvement and enjoyment of shopping and search

Issues in Alternative Evaluation

Evoked Set, inept set, inert set Criteria Used for Evaluating Brands Consumer Decision Rules Lifestyles as a Consumer Decision

Strategy Incomplete Information and Non

comparable Alternatives Series of Decisions Decision Rules and Marketing Strategy Consumption Vision

The Evoked Set as a Subset of All Brands in a Product Class

All Brands

Known Brands

Unknown Brands

Overlooked Brands

Indifferent Brands

Unacceptable Brands

Acceptable Brands

Not Purchased Brands

Purchased Brands

Evoked Set Inept Set Inert Set

(1)

(2) (3) (4)

(5)

Inept SetInept SetBrands that a consumer excludes from purchase

consideration.

Inert SetInert Set

Brands that a consumer is indifferent toward

because they are perceived as having no particular advantage.

Consumer Decision Rules Compensatory Non compensatory

Conjunctive Decision Rule Disjunctive Decision Rule Lexicographic Rule

Compensatory Compensatory Decision RulesDecision Rules

A type of decision rule in which a

consumer evaluates each brand in terms

of each relevant attribute and then selects the brand with the highest weighted score.

Non-Non-compensatory compensatory

Decision Decision RulesRules

A type of consumer decision rule by which positive

evaluation of a brand attribute does not compensate for a

negative evaluation of the same brand on

some other attribute.

Conjunctive Conjunctive Decision Decision

RuleRule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each attribute evaluated.

Brands that fall below the cutoff point on any

one attribute are eliminated from further

consideration.

Disjunctive Disjunctive RuleRule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each

relevant product attribute.

Lexicographic Lexicographic RuleRule

A noncompensatory decision rule -

consumers first rank product attributes in

terms of importance, then compare brands

in terms of the attribute considered

most important.

Affect Affect Referral Referral Decision Decision

RuleRule

A simplified decision rule by which consumers

make a product choice on the basis of their

previously established overall ratings of the

brands considered, rather than on specific

attributes.

Outcomes of Postpurchase Evaluation Actual Performance Matches

Expectations Neutral Feeling

Actual Performance Exceeds Expectations Positive Disconfirmation of Expectations

Performance is Below Expectations Negative Disconfirmation of

Expectations

Gifting Behavior

Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance.

A Simple Model of Consumption

Choice or Purchase DecisionChoice or Purchase Decision

Consumption SetAdded to one’s assortment or portfolio

Consuming StyleHow the individual fulfills his or her

consumption requirements

Using, Possessing, Collecting, Disposing

Consuming and Possessing Things and ExperiencesConsuming and Possessing Things and Experiences

Altered consumer satisfaction, change in lifestyle and/or quality of life, learning and knowledge, expressing and

entertaining oneself

Feelings, Moods, Attitudes, BehaviorFeelings, Moods, Attitudes, Behavior

Input

Process ofConsuming

andPossessing

Output