Chapter 16 Consumer Decision Making and Beyond

Chapter Outline Levels of Consumer Decision Making Models of Consumer Decision Making Consumer Gifting Behavior Relationship Marketing

Levels of Consumer Decision Making

Models of Consumer Decision Making

Consumer Gifting Behavior

Relationship Marketing

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

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

This Site Helps You Search and Establish Criteria for Choosing a Doctor weblink

Ads often appeal to consumers who are looking for information to help them evaluate products.

Models of Consumers: Four Views of Consumer Decision Making An Economic View A Passive View A Cognitive View An Emotional View

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

How are the four models of consumer decision making similar?

How do they differ

Goal Setting and Pursuit Figure 16.1

A Simple Model of Consumer Decision Making Figure 16-2

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

What types of sociocultural inputs would influence the purchase of a:

Plasma TV

Hybrid vehicle

Sugar-free ice cream

The Process of Consumer Decision Making Need Recognition Prepurchase Search Evaluation of Alternatives

Need Recognition

Prepurchase Search

Evaluation of Alternatives

Need Recognition Usually occurs when consumer has a “problem” Need recognition styles Actual state Desired state

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 Search may be personal or impersonal

Begins with internal search and then moves to external search

The impact of the Internet

Search may be personal or impersonal

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 Series of decisions Decision rules and marketing strategy

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

Series of decisions

Decision rules and marketing strategy

The Evoked Set Figure 16-3

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 Series of decisions Decision rules and marketing strategy

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

Series of decisions

Decision rules and marketing strategy

Consumer Decision Rules Compensatory Noncompensatory Conjunctive Decision Rule Disjunctive Decision Rule Lexicographic Rule

Compensatory

Noncompensatory

Conjunctive Decision Rule

Disjunctive Decision Rule

Lexicographic Rule

Compensatory Decision Rules A type of decision rule in which a consumer evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score.

Non-compensatory Decision Rules A type of consumer decision rule by which positive evaluation of a brand attribute does not compensate for a negative evaluation of the same brand on some other attribute.

Conjunctive Decision Rule A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each attribute evaluated. Brands that fall below the cutoff point on any one attribute are eliminated from further consideration.

Disjunctive Rule A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each relevant product attribute.

Lexicographic Rule A noncompensatory decision rule - consumers first rank product attributes in terms of importance, then compare brands in terms of the attribute considered most important.

Affect Referral Decision Rule A simplified decision rule by which consumers make a product choice on the basis of their previously established overall ratings of the brands considered, rather than on specific attributes.

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 Series of decisions Decision rules and marketing strategy

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

Series of decisions

Decision rules and marketing strategy

The Decision Process for Functionally Illiterate Consumers Figure 16-4

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 Series of decisions Decision rules and marketing strategy

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

Series of decisions

Decision rules and marketing strategy

There Are a Growing Number of Web Sites to Help Consumers Choose Products web link

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 Series of decisions Decision rules and marketing strategy

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

Series of decisions

Decision rules and marketing strategy

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

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

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 Series of decisions Decision rules and marketing strategy

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

Series of decisions

Decision rules and marketing strategy

A Purchase Can Involve a Number of Decisions. When purchasing car, the buyer is involved in a number of decisions – the make, model, country of origin, the dealer, the financing, and different options.

When purchasing car, the buyer is

involved in a number of decisions – the

make, model, country of origin, the

dealer, the financing, and different

options.

Output of Consumer Decision Making Purchase behavior Postpurchase evaluation

Purchase behavior

Postpurchase evaluation

Purchase Behavior Three types of behavior Trial purchases Repeat purchases Long-term commitment

Three types of behavior

Trial purchases

Repeat purchases

Long-term commitment

Postpurchase Evaluation Actual Performance Matches Expectations Neutral Feeling Actual Performance Exceeds Expectations Positive Disconfirmation of Expectations Performance Is Below Expectations Negative Disconfirmation of Expectations

Actual Performance Matches Expectations

Neutral Feeling

Actual Performance Exceeds Expectations

Positive Disconfirmation of Expectations

Performance Is Below Expectations

Negative Disconfirmation of Expectations

This article in Cargo is designed to help a reader reduce their postpurchase depression.

Discussion Question What are four ways that consumers reduce postpurchase dissonance? How can marketers work to help consumers reduce the dissonance?

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.

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

An Increasing Number of Gift Purchases Are Now Made Online weblink

Table 16.13 Reported Circumstances and Motivations for Self-Gift Behavior CIRCUMSTANCES Personal accomplishment Feeling down Holiday Feeling stressed Have some extra money Need Had not bought for self in a while Attainment of a desired goal Others MOTIVATIONS To reward oneself To be nice to oneself To cheer up oneself To fulfill a need To celebrate To relieve stress To maintain a good feeling To provide an incentive toward a goal Others

Table 16.14 Gifting Relationships GIFTING RELATIONSHIP Intergroup Intercategory EXAMPLE DEFINITION A Christmas gift from one family to another family A group giving a gift to another group A group of friends chips in to buy a new mother a baby gift An individual giving a gift to a group or a group giving a gift to an individual Intragroup Interpersonal A family buys a VCR for itself as a Christmas gift A group giving a gift to itself or its members Valentine’s Day chocolates presented from a boyfriend to a girlfriend An individual giving a gift to another individual Intrapersonal A woman buys herself jewelry to cheer herself up Self-gift

A Simple Model of Consumption Figure 16-5

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.

Proctor & Gamble Builds Relationships with Their Brands

State Farm Insurance stresses relationship marketing in their advertising.