Consumer Decision Making and Beyond CHAPTER FIFTEEN

Consumer Decision Making

and Beyond

CHAPTERFIFTEEN

Learning Objectives

1. To Understand What a Consumer Decision Is.2. To Understand the Three Levels of Consumer

Decision Making.3. To Understand Four Different Views or

Models of Consumer Decision Making.4. To Understand in Detail the Model of

Consumer Decision Making Originally Introduced in Chapter 1.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 2 Chapter Fifteen Slide

Learning Objectives (continued)

5. To Understand the Nature and Scope of Consumer Gift Giving.

6. To Understand the Significance of Consuming and Possessing.

7. To Understand the Need for Relationship Marketing.


What Would a Pet Owner Need to Know in Order to Make a Decision About Buying Pet Insurance?

4Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

Do I Need It? How Do I Get More Information?


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


Models of Consumers: Four Views of Consumer Decision Making

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


Discussion Questions

• How are the four models of consumer decision making similar?

• How do they differ?


Consumer Decision Making

Figure 15.3


http://www.bing.com/?FORM=ZZFD4

Discussion Question

• What types of sociocultural inputs would influence the purchase of a:– Plasma TV– Hybrid vehicle– Sugar-free ice cream


Process - Need Recognition

• Usually occurs when consumer has a “problem”

• Need recognition styles– Actual state– Desired state


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


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


The Evoked Set Figure 15-5


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


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

– Conjunctive, disjunctive, or lexicographic


Hypothetical Use of Decision RulesTable 15.7

Decision Rule Mental Statement

Compensatory rule I selected the netbook that came out best when I balanced the good ratings against the bad ratings

Conjunctive rule I selected the netbook that had no bad features

Disjunctive rule I picked the netbook that excelled in at least one attribute

Lexicographic rule I looked at the feature that was most important to me and chose the netbook that ranked highest on that attribute

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





The Decision Process for Functionally Illiterate Consumers - Figure 15.6





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



• 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


Output of Consumer Decision Making

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

• Postpurchase evaluation


Postpurchase Evaluation

• Actual Performance Matches Expectations– Neutral Feeling

• Actual Performance Exceeds Expectations– Positive Disconfirmation of Expectations

• Performance Is Below Expectations– Negative Disconfirmation of Expectations


Discussion Questions

• What are four ways that consumers reduce postpurchase dissonance?

• How can marketers work to help consumers reduce the dissonance?


Gifting Behavior

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


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


Gifting Relationships - Table 15.14GIFTING RELATIONSHIP

DEFINITION EXAMPLE

Intergroup A group giving a gift to another group

A Christmas gift from one family to another family

Intercategory An individual giving a gift to a group or a group giving a gift to an individual

A group of friends chips in to buy a new mother a baby gift

Intragroup A group giving a gift to itself or its members

A family buys a VCR for itself as a Christmas gift

Interpersonal An individual giving a gift to another individual

Valentine’s Day chocolates presented from a boyfriend to a girlfriend

Intrapersonal Self-gift A woman buys herself jewelry to cheer herself up


Consuming and Possessing

• Consumers find pleasure in possessing, collecting, or consuming

• Products have special meanings and memories


A Model of ConsumptionFigure 15.11


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.


Relationship Marketing SuccessFigure 15.12


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Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall


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Consumer Decision Making and Beyond CHAPTER FIFTEEN