Consumer Decision Making Model Class XII WEEK

8/2/2019 Consumer Decision Making Model Class XII WEEK

1/33

16-1

Consumer Behavior,

SCHIFFMAN & KANUK

Consumer Decision Making

and Beyond


2/33

16-2

Levels of Consumer Decision

MakingExtensive Problem

Solving

Limited Problem

Solving

Routine Response

Behavior


3/33

16-3

Models of Consumers: Four Views

of Consumer Decision Making

An Economic View

A Passive View A Cognitive View

An Emotional View


4/33

16-4

Figure: Goal Setting and Pursuit

GoalSetting

Formationof Goal

Intention

ActionPlanning

ActionInitiation/

Control

Goal

Attainment/

Failure

Feedback


5/33

16-5

Figure : A Simple Model of Consumer Decision Making

Firms Marketing Efforts

1. Product

2. Promotion

3. Price

4. Channels of distribution

Sociocultural Environment

1. Family

2. Informal sources3. Other noncommercial sources

4. Social class

5. Subculture and culture

Need Recognition

Prepurchase Search

Evaluation of Alternatives

Psychological Field

1. Motivation

2. Perception

3. Learning

4. Personality

5. Attitudes

Experience

Purchase

1. Trial

2. Repeat purchase

Postpurchase EvaluationOutput

Process

Input

External Influences

Consumer Decision Making

Postdecision Behavior


6/33

16-6

Three Stages of Consumer

Decision Making

Need Recognition

Pre purchase Search Evaluation of Alternatives


7/33

16-7

Table : Factors that are Likely to

Increase Pre-purchase SearchProduct Factors

Long inter-purchase time (a long-lasting or

infrequently used product)Frequent changes in product styling

Volume purchasing (large number of units)

High price

Many alternative brandsMuch variation in features


8/33

16-8

Table :continued

ExperienceFirst-time purchase

No past experience because the product is new

Unsatisfactory past experience within the product category

Social Acceptability

The purchase is for a giftThe product is socially visible

Value-Related Considerations

Purchase is discretionary rather than necessary

All alternatives have both desirable and undesirable consequences

Family members disagree on product requirements or evaluation of

alternatives

Product usage deviates from important reference group

The purchase involves ecological considerations

Many sources of conflicting information


9/33

16-9

Table : continued

Product Factors

Demographic Characteristics of Consumer

Well-educated

High-income

White-collar occupationUnder 35 years of age

Personality

Low dogmatic

Low-risk perceiver (broad categorizer)Other personal factors, such as high product involvement and

enjoyment of shopping and search


10/33

16-10

Table : Alternative Pre-purchase

Information Sources for an Ultra lightLaptop

PERSONAL

Friends

Neighbors

Relatives

Co-workers

Computer salespeopleCalling the electronics store

IMPERSONAL

Newspaper articles

Magazine articles

Consumer Reports

Direct-mail brochures

Information from productadvertisements

Internal web site


11/33

16-11

Issues in Alternative Evaluation

Evoked 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
http://www.activebuyersguide.com/


12/33

16-12

Figure : The Evoked Set as a Subset ofAll 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)


13/33

16-13

Inept Set

Brands that a consumer

excludes from purchase

consideration.


14/33

16-14

Inert Set

Brands that a consumer

is indifferent toward

because they are

perceived as having no

particular advantage.


15/33

16-15

Figure : Ad

Suggesting

Criteria forDecision

Making


16/33

16-16

Consumer Decision Rules

Compensatory

Non-compensatory

Conjunctive Decision RuleDisjunctive Decision Rule

Lexicographic Rule


17/33

16-17

CompensatoryDecision Rules

A type of decisionrule in which a

consumer evaluates

each brand in terms

of each relevant

attribute and then

selects the brand

with the highestweighted score.


18/33

16-18

Non-

compensatoryDecision

Rules

A type of consumerdecision rule by which

positive evaluation of

a brand attribute doesnot compensate for a

negative evaluation of

the same brand on

some other attribute.


19/33

16-19

Conjunctive

Decision

Rule

A non-compensatory

decision rule in whichconsumers establish a

minimally acceptable

cutoff point for each

attribute evaluated.

Brands that fall below

the cutoff point on any

one attribute areeliminated from further

consideration.


20/33

16-20

DisjunctiveRule

A non-compensatory

decision rule in which

consumers establish a

minimally acceptable

cutoff point for each

relevant product

attribute.


21/33

16-21

LexicographicRule

A non-compensatory

decision rule -

consumers first rank

product attributes in

terms of importance,

then compare brands

in terms of the

attribute consideredmost important.


22/33

16-22

Affect

ReferralDecision

Rule

A simplified decision

rule by which consumers

make a product choice

on the basis of their

previously establishedoverall ratings of the

brands considered, rather

than on specificattributes.


23/33

16-23

Table : Hypothetical Use of Popular DecisionRules in Making a Decision to Purchase an

Ultra light LaptopDECISION RULE MENTAL STATEMENT

Compensatory rule I selected the computer that came out best when I

balanced the good ratings against the bad ratings.

Conjunctive rule I selected the computer that had no bad features.

Disjunctive rule I picked the computer that excelled in at least one

attribute.

Lexicographic rule I looked at the feature that was most important to me and

chose the computer that ranked highest on that attribute.

Affect referral rule I bought the brand with the highest overall rating.


24/33

16-24

Coping with Missing Information

Delay decision until missing information is

obtained

Ignore missing information and useavailable information

Change the decision strategy to one that

better accommodates for the missinginformation

Infer the missing information


25/33

16-25

Types of Purchases

Trial

Purchases

Repeat

Purchases

Long-Term

CommitmentPurchases


26/33

16-26

Outcomes of Post -purchase

Evaluation Actual Performance Matches Expectations

Neutral Feeling

Actual Performance Exceeds Expectations

Positive Disconfirmation of Expectations

Performance is Below Expectations

Negative Disconfirmation of Expectations


27/33

16-27

Gifting Behavior

Gifting is an act of symbolic

communication, with explicit and implicit

meanings ranging from congratulations andlove, to regret, obligation, and dominance.
http://www.gifttree.com/


28/33

16-28

Gifting Subdivisions

Inter group

Gifting

Intrapersonal

Gifting

Intra group

Gifting

Interpersonal

Gifting

Inter category

Gifting


29/33

16-29

Table 16.13 Gifting Relationships

GIFTING

RELATIONSHIP

Inter group

Inter category

EXAMPLEDEFINITION

A Christmas gift from one

family to another family

A group giving a gift to

another group

A group of friends chips into buy a new mother a baby

gift

An individual giving a gift to agroup or a group giving a gift

to an individual

Intra group

Interpersonal

A family buys a VCR for

itself as a Christmas gift

A group giving a gift to itself

or its members

Valentines Day chocolatespresented from a boyfriend

to a girlfriend

An individual giving a gift toanother individual

Intrapersonal A woman buys herself

jewelry to cheer herself up

Self-gift


30/33

16-30

Figure : A Simple Model of Consumption

Choice or Purchase Decision

Consumption Set

Added to ones assortment or portfolio

Consuming Style

How the individual fulfills his or her

consumption requirements

Using, Possessing, Collecting, Disposing

Consuming 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, Behavior

Input

Process of

Consuming

and

Possessing

Output


31/33

16-31

RelationshipMarketing

Marketing aimed at

creating strong,

lasting relationships

with a core group of

customers by making

them feel good aboutthe company and by

giving them some

kind of personalconnection with the

business.


32/33

16-32

Figure : A Portrayal of theCharacteristics of Relationship

Marketing

Products/ServicesIndividualized attention

Continuous information

Price offers

Customer services

Extras and perks, etc.

Repeat Purchase

Increased Loyalty

Goodwill

Positive word-of-mouth

Lower costs for the firm

Trust and

promises

The Firm provides The Customer provides


33/33

16-33

Consumers Are Less Loyal - Why?

Abundance of

choice

Availability ofinformation

Entitlement

Commoditization

Insecurity

Time scarcity

Consumer Decision Making Model Class XII WEEK

Documents

Transcript of Consumer Decision Making Model Class XII WEEK