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Consumer Decision Making

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Three Perspectives

on Decision Making

Decision making perspective

High involvement decisions

Low involvement decisions

Experiential perspective

Behavioral influence perspective

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Decision Making Perspective

High Involvement Decisions

ProblemRecognition

ExtensiveSearch

Extended

Alternative

Evaluation

ComplexChoice

AcquisitionEvaluation

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Decision Making Perspective

Low Involvement Decisions

ProblemRecognition

LimitedSearch

Minimal

Alternative

Evaluation

Simple

Choice

Processes

AcquisitionEvaluation

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Experiential Perspective

ProblemRecognition

(affect driven)

Search forAffect-based

Solutions

Alternative

Evaluation

(comparison

of affect)

Choice

(affect-based)

Acquisition

Evaluation

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Behavioral Influence Perspective

Search(learned

Response)

Choice(behavior

results from

reinforcers)

AcquisitionEvaluation

(self-perception

process)

ProblemRecognition

(results from

discriminative

stimulus)

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Initial vs. Repeat PurchasesInitial purchases

Tend to require more extensive problem

solving

Repeat purchases

Tend to require limited problem solving,

sometimes habitual decisions

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Basic Decision Making ProcessProblem/Need Recognition

Information Search

Evaluation of Alternatives

Purchase

Post-Purchase Evaluation

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Problem/Need RecognitionConsumer recognizes a gap or discrepancy

between his/her current state and his/her

desired state.

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Information SearchDeliberate attempt to gain knowledge about

a purchase decision; goal is to reduce

uncertainty.

Internal search

Retrieve information from long term

memory

External search

Gather information from external

sources, e.g., ads, media, friends, stores

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Determinants of External Search

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Evaluation of AlternativesOccurs either separately or in conjunction

with information search.

We rely on internal processes to help usorganize the evaluation process.

Consideration (evoked set)

Decision rules (heuristics)

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Consideration Set

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Decision Rules

Strategies used by consumers to guidedecision making.

Some decision rules use product

characteristics to guide decisions.

Compensatory

Noncompensatory

Some decision rules rely on stored

information in consumers memories to

guide decisions.

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Compensatory Decision RuleSelect the best overall brand

Consumer evaluates brand options in terms of

each relevant attribute and computes a weightedor summated score for each brand. The

consumer chooses the brand with the highest

score.

A compensatory model because a positive

score on one attribute can outweigh a

negative score on another attribute.

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Noncompensatory Decision Rules

Conjunctive Decision Rule

Consumer sets a minimum standard for each

attribute and if a brand fails to pass anystandard, it is dropped from consideration.

Reduces a large consideration set to a

manageable size.Often used in conjunction with another

decision rule.

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Noncompensatory Decision Rules

Disjunctive Decision Rule

Consumer sets a minimum acceptable standard

as the cutoff point for each attribute--any brand

that exceeds the cutoff point is accepted.Reduces large consideration set to a more

manageable number of alternatives.

Consumer may settle for the firstsatisfactory brand as final choice or may use

another decision rule.

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Noncompensatory Decision Rules

Lexicographic Decision Rule

The consumer ranks the attributes according to

importance and then selects the brand that issuperior on the most important attribute.

If one brand ranks sufficiently high on just

one attribute, it will be selected regardlessof how it scores on other attributes.

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Affect-Referral RuleSynthesized decision rule

Consumers maintain overall evaluations of

brands in their long term memories. Brands onnot evaluated on individual attributes but on the

highest perceived overall rating.

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Frame of ReferenceAnother way in which consumers evaluate

information is the frame of reference from

which s/he subjectively evaluates messagesrelated to a decision problem.

Percent lean vs. Percent fat

Sale vs. Clearance

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Purchase Decision

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Post-Purchase Evaluation

Consumers evaluate purchases during

consumption process.

Three possible outcomes.

Postpurchase cognitive dissonance.

Complaining behavior.

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OutcomesActual product performance matches

prepurchase expectations

Neutral Feeling

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OutcomesActual product performance exceeds

prepurchase expectations.

Positive disconfirmation of expectations

Satisfaction

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OutcomesActual product performance is below

prepurchase expectations.

Negative disconfirmation of expectations

Dissatisfaction

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A Continuum of Satisfaction

Dissatisfaction DelightedSatisfaction

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If dissatisfied.

Alternative actions

Do nothing

Avoid seller/brand in the future

Negative WOM to friends

Seek redress of problem from seller

Complain to outside agency

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Decision to complain...Is based on:

Level of dissatisfaction

Importance of decision/purchase

Costs/benefits of actions

Personal characteristics

Attribution of blame

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Managerial Implications Related

to Consumer Decision MakingUnderstanding decision making process

enables marketers to assist consumers along

decision pathway. Offer products that meet needs/wants

Advertising

Making information available

Making product available

Follow-up sales calls, good service

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