Schiff ch14

Copyright © 2006 Pearson Education Canada Inc.

Chapter 14 Consumer Decision Making I:

The Process

Consumer Behaviour

Canadian Edition

Schiffman/Kanuk/Das

Copyright © 2006 Pearson Education Canada Inc.14-2

Levels of Consumer Decision Making

Extensive Problem Solving

Limited Problem Solving

Routine Response Behaviour


Factors That Affect the Type of Decision Making Process Used

Importance of the decision Extent of previous experience Existence of well-established decision

criteria Amount of information at hand about each

alternative The number of alternatives available Model of consumption being followed


Consumer Decision Making – The Process

Need Recognition Pre-purchase Search Evaluation of Alternatives


Need or Problem Recognition

The realization that there is a difference between actual and desired states– The higher the gap, the stronger the need (or

bigger the problem)


Types of Problems

Active Versus Inactive problems– Active: those you are aware of– Inactive: those that you are not yet aware of

(but exist)

Those that require immediate solutions and those that do not require immediate solutions


Problem Recognition and Marketing Strategy

Identify existing consumer problems and find solutions for these

Lower the actual state Increase the desired state Increase the importance of the gap between actual

and desired states Convert inactive problems to active problems Convert problems into ones requiring an

immediate solution


Pre-Purchase Search

Types of Information Sources Types of Information Sought Factors Affecting Extent of Information

Search


Figure 14-3: Types of Information Sources

PERSONALPERSONAL

FriendsNeighborsRelativesCo-workersComputer salespeopleCalling the electronics store

IMPERSONALIMPERSONAL

Newspaper articlesMagazine articlesConsumer ReportsDirect-mail brochuresInformation from product advertisements

Internal web site


Types of Information Sought

Brands or alternatives available Evaluative criteria to be used

– Generally, product features

Ratings of brands on evaluative criteria


Factors that Increase the Level of Pre-purchase Search

Product Factors: Higher search when– It is a long-lasting or infrequently used

product– There are frequent changes in product styling– Large volume is purchased– The price is high– There are many alternative brands– There is much variation in features

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Situational Factors: Higher search when:– Experience is lower– Previous experience was unsatisfactory

Social Acceptability: Higher search when:– Purchase is a gift– Product is socially visible in use

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Value-Related Factors: Higher search when:– Purchase is discretionary– All alternatives have both positive and

negative qualities– No agreement among users exists– Conflicting information is available– Other considerations exist

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Consumer Factors: Higher search when:– Consumers are well-educated, have higher

income levels and are younger– Consumers are low in dogmatism and risk

perception– Level of involvement is high– Shopping is seen as an enjoyable activity

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Evaluation of Alternatives – Types of Consumer Choice Processes

Affective choices– More holistic; an overall evaluation – based on how one feels about a purchase

Attribute-based choices– Have pre-determined evaluative criteria– May require both external and internal search– Complicated decision rules may be used


Nature of Evaluative Criteria

Can be tangible or intangible Include surrogate indicators

– Attributes that are used as indicators of another attribute

Are often ranked in order of importance


Consumer Decision Rules

Procedures used by consumers to facilitate brand or other consumption-related choices


Consumer Decision Rules

Compensatory– Brands evaluated in terms of each relevant

criteria and the best brand (or one with the highest score) is chosen

Non-compensatory– Positive evaluations do not compensate for

negative evaluations


Non-Compensatory Consumer Decision Rules

Conjunctive Decision RuleConjunctive Decision Rule– Product attributes are identified– a minimally acceptable cutoff point is

established for each attribute– brands that fall below the cutoff point on

any one attribute are eliminated from further consideration.

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DisjunctiveDisjunctive Decision Rule Decision Rule– consumers identify product attributes– establish a minimally acceptable cutoff

point for each attribute– accept the brand that meets or exceeds

the cutoff for any one attribute

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Lexicographic Decision Rule– Product attributes are identified– Product attributes are ranked in terms of

importance– brands are compared in terms of the attribute

considered most important– Brand that scores highest on the first attribute is

chosen– If there is a tie, the scores on the next attribute

are considered


Issues in Alternative Evaluation

Lifestyles as a Consumer Decision Strategy Incomplete Information Non-comparable Alternatives Series of Decisions Consumption Vision

– Mental picture of the consequences of using a particular product


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


Information Search and Marketing Strategy

Get products into consumers’ evoked set Limit information search if your brand is

the preferred brand Increase information search if your

alternative is not the preferred brand Use point-of-purchase advertising

effectively


Alternative Evaluation and Marketing Strategy

Identify decision rule used by target market and use suitable promotional messages

Influence the choice of evaluative criteria Influence the rating of your product on evaluative

criteria used Use surrogate indicators effectively Use ‘consumption vision’

Schiff ch14

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