Consumer Decision Making

and Beyond

CHAPTERFIFTEEN

Levels of Consumer Decision Making

• Extensive Problem Solving– A lot of information needed– Must establish a set of criteria for evaluation

• Limited Problem Solving– Criteria for evaluation established– Fine tuning with additional information

• Routinized Response Behavior– Usually review what they already know

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Models of Consumers: Four Views of Consumer Decision Making

• An Economic View

• A Passive View

• A Cognitive View

• An Emotional View

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Consumer Decision Making

Figure 15.3

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Process - Need Recognition

• Usually occurs when consumer has a “problem”

• Need recognition styles– Actual state– Desired state

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Prepurchase Search

• Begins with internal search and then moves to external search

• The impact of the Internet• There are many factors that increase search– Product factor– Situational factors– Social acceptability– Consumer factors

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Evaluation of Alternatives

• Evoked set• Criteria used for evaluating brands• Consumer decision rules• Decisions by functionally illiterate population• Going online for decision-making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying decision rules• Series of decisions• Decision rules and marketing strategy

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The Evoked Set Figure 15-5

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Issues in Alternative Evaluation

• Evoked Set• Criteria used for evaluating brands• Consumer decision rules and their application• Decisions by functionally illiterate population• Going online for decision-making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying Decision Rules• Series of decisions• Decision rules and marketing strategy

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Consumer Decision Rules

• Compensatory– evaluates each brand in terms of each relevant

attribute and then selects the brand with the highest weighted score.

• Noncompensatory– positive evaluation of a brand attribute does not

compensate for a negative evaluation of the same brand on some other attribute

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Issues in Alternative Evaluation

• Evoked Set• Criteria used for evaluating brands• Consumer decision rules and their application• Decisions by functionally illiterate population• Going online for decision-making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying Decision Rules• Series of decisions• Decision rules and marketing strategy

11Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

Issues in Alternative Evaluation

• Evoked Set• Criteria used for evaluating brands• Consumer decision rules and their application• Decisions by functionally illiterate population• Going online for decision-making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying Decision Rules• Series of decisions• Decision rules and marketing strategy

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Coping with Missing Information

• Delay decision until missing information is obtained

• Ignore missing information and use available information

• Change the decision strategy to one that better accommodates for the missing information

• Infer the missing information

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Issues in Alternative Evaluation

• Evoked set• Criteria used for evaluating brands• Consumer decision rules and their application• Decisions by functionally illiterate population• Going online for decision making assistance• Lifestyles as a consumer decision strategy• Incomplete information • Applying Decision Rules• Series of decisions• Decision rules and marketing strategy

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Output of Consumer Decision Making

• Purchase behavior– Trial purchases– Repeat purchases– Long-term commitment

• Postpurchase evaluation

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Postpurchase Evaluation

• Actual Performance Matches Expectations– Neutral Feeling

• Actual Performance Exceeds Expectations– Positive Disconfirmation of Expectations

• Performance Is Below Expectations– Negative Disconfirmation of Expectations

• Post-Purchase Cognitive Dissonance

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Gifting Behavior

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

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CIRCUMSTANCES

Personal accomplishmentFeeling downHolidayFeeling stressedHave some extra moneyNeedHad not bought for self in a whileAttainment of a desired goalOthers

MOTIVATIONS

To reward oneselfTo be nice to oneselfTo cheer up oneselfTo fulfill a needTo celebrateTo relieve stressTo maintain a good feelingTo provide an incentive toward a goalOthers

Reported Circumstances and Motivations for Self-Gift Behavior

Table 15.13

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Consuming and Possessing

• Consumers find pleasure in possessing, collecting, or consuming

• Products have special meanings and memories

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A Model of ConsumptionFigure 15.11

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Relationship Marketing

Marketing aimed at creating strong,

lasting relationships with a core group of customers by making them feel good about the company and by giving them some kind of personal

connection with the business.

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