consumer decision making


Published on

Published in: Technology, Education

consumer decision making

  1. 1. Consumer Decision Making and Beyond
  2. 2. Levels of Consumer Decision Making Extensive Problem Solving Limited Problem Solving Routine Response Behavior
  3. 3. A search by the consumer to establish the necessaryExtensive product criteria to evaluateProblem knowledgeably the mostSolving suitable product to fulfill a need.
  4. 4. A limited search by aLimited consumer for a product thatProblem will satisfy his or her basicSolving criteria from among a selected group of brands.
  5. 5. Models of Consumers: Four Views of Consumer Decision Making• An Economic View• A Passive View• A Cognitive View• An Emotional View
  6. 6. The Economic view Rational Customers Have To …• Be aware of all available product alternatives• Be capable of correctly ranking each alternative in terms of its benefits and disadvantages
  7. 7. Why is the Classical Economic Model Considered Unrealistic?• People are limited by their existing skills, habits, and reflexes• People are limited by their existing values and goals
  8. 8. Models of Consumers: Four Views of Consumer Decision Making• A Passive View• A Cognitive View• An Emotional View - mood
  9. 9. Figure 16.2 A Simple Model of Consumer Decision Making External Influences Sociocultural Environment Firm’s Marketing Efforts 1. Family Input 1. Product 2. Informal sources 2. Promotion 3. Other noncommercial sources 3. Price 4. Social class 4. Channels of distribution 5. Subculture and culture Consumer Decision Making Psychological Field 1. Motivation Need Recognition 2. Perception 3. Learning Process Prepurchase Search 4. Personality 5. Attitudes Evaluation of Alternatives Experience Postdecision Behavior Purchase Output 1. Trial Postpurchase Evaluation 2. Repeat purchase
  10. 10. Consumer Decision Rules• Compensatory• Noncompensatory – Conjunctive Decision Rule – Disjunctive Decision Rule – Lexicographic Rule
  11. 11. A type of decision rule in which a consumer evaluates each brand in termsCompensatory of each relevantDecision Rules attribute and then selects the brand with the highest weighted score.
  12. 12. A type of consumer decision rule by which positive evaluation ofNon- a brand attributecompensatory does not compensateDecisionRules for a negative evaluation of the same brand on some other attribute.
  13. 13. A noncompensatory decision rule in which consumers establish a minimally acceptableConjunctive cutoff point for eachDecision attribute evaluated.Rule Brands that fall below the cutoff point on any one attribute are eliminated from further consideration.
  14. 14. A noncompensatory decision rule in which consumers establish aDisjunctive minimally acceptableRule cutoff point for each relevant product attribute.
  15. 15. A noncompensatory decision rule - consumers first rank product attributes inLexicographic terms of importance,Rule then compare brands in terms of the attribute considered most important.
  16. 16. A simplified decision rule by which consumers make a product choiceAffect on the basis of theirReferral previously establishedDecision overall ratings of theRule brands considered, rather than on specific attributes.
  17. 17. Table : Hypothetical Use of Popular Decision Rules inMaking a Decision to Purchase a LaptopDECISION RULE MENTAL STATEMENTCompensatory 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.”
  18. 18. Consumer Motivation
  19. 19. Factors Affecting Consumer Behavior:Psychological Motivation Beliefs and Psychological Factors Perception Attitudes Learning
  20. 20. Maslow’s Hierarchy of NeedsCopyright 2007 by PrenticeHall
  21. 21. Personality andConsumer Behavior
  22. 22. What Is Personality ?The inner psychological characteristics thatboth determine and reflect how a personresponds to his or her environment
  23. 23. The Nature of Personality• Personality reflects individual differences• Personality is consistent and enduring• Personality can changeCopyright 2007 by Prentice Hall
  24. 24. Discussion Questions• How would you describe your personality?• How does it influence products that you purchase?Copyright 2007 by Prentice Hall
  25. 25. Theories of Personality• Freudian theory – Unconscious needs or drives are at the heart of human motivation• Neo-Freudian personality theory – Social relationships are fundamental to the formation and development of personality• Trait theory – Quantitative approach to personality as a set of psychological traitsCopyright 2007 by Prentice Hall
  26. 26. Trait Theory• Personality theory with a focus on psychological characteristics• Trait - any distinguishing, relatively enduring way in which one individual differs from another• Personality is linked to how consumers make their choices or to consumption of a broad product category - not a specific brandCopyright 2007 by Prentice Hall
  27. 27. Trait Theory Consumer Innovators And Noninnovators• Innovativeness • The degree to which• Dogmatism consumers are• Social character receptive to new products, new services,• Need for uniqueness or new practices• Variety-novelty seekingCopyright 2007 by Prentice Hall
  28. 28. Trait Theory Consumer Innovators And Noninnovators• Innovativeness • A personality trait that• Dogmatism reflects the degree of• Social character rigidity a person displays toward the unfamiliar and• Need for uniqueness toward information that is• Variety-novelty seeking contrary to his or her own established beliefsCopyright 2007 by Prentice Hall
  29. 29. Trait Theory Consumer Innovators And Noninnovators• Innovativeness • Ranges on a continuum for• Dogmatism inner-directedness to other-• Social character directedness• Need for uniqueness • Inner-directedness – rely on own values when• Variety-novelty seeking evaluating products – Innovators • Other-directedness – look to othersCopyright 2007 by Prentice Hall – less likely to be innovators
  30. 30. Trait Theory Consumer Innovators And Noninnovators• Innovativeness • Consumers who avoid• Dogmatism appearing to conform to• Social character expectations or standards of others• Need for uniqueness• Variety-novelty seekingCopyright 2007 by Prentice Hall
  31. 31. Brand Personality• Personality-like traits associated with brands• Examples – Nike and athlete – BMW is performance driven – Levi’s jeans are dependable and rugged• Brand personality which is strong and favorable will strengthen a brand but not necessarily demand a price premiumCopyright 2007 by Prentice Hall
  32. 32. Discussion Questions• Pick three of your favorite brands.• Describe their personality. Do they have a gender? What personality traits do they have?Copyright 2007 by Prentice Hall
  33. 33. Table : The Personality-like Associations of Colors BLUE Commands respect, authority Caution, novelty, temporary, warmth YELLOW Secure, natural, relaxed or easy- going, living things GREEN
  34. 34. Human, exciting, hot, passionate, strong RED ORANGE Powerful, affordable, informal Informal and relaxed, masculine, nature BROWN Goodness, purity, chastity, cleanliness, delicacy, refinement, formality WHITE Sophistication, power, authority, mystery BLACK Regal, wealthy, statelySILVER,byGOLD Copyright 2007 Prentice Hall
  35. 35. Consumer Perception
  36. 36. Perception• The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world• How we see the world around us SketchersCopyright 2007 by Prentice Hall
  37. 37. Aspects of Perception Selection Organization InterpretationCopyright 2007 by Prentice Hall
  38. 38. Perceptual Selection Concepts • Selective Exposure • Consumers seek out • Selective Attention messages which: – Are pleasant • Perceptual Defense – They can sympathize • Perceptual Blocking – Reassure them of good purchasesCopyright 2007 by Prentice Hall
  39. 39. Perceptual Selection Concepts • Selective Exposure • Heightened awareness • Selective Attention when stimuli meet their • Perceptual Defense needs • Consumers prefer • Perceptual Blocking different messages and mediumCopyright 2007 by Prentice Hall
  40. 40. Perceptual Selection Concepts • Selective Exposure • Screening out of stimuli • Selective Attention which are threatening • Perceptual Defense • Perceptual BlockingCopyright 2007 by Prentice Hall
  41. 41. Perceptual Selection Concepts • Selective Exposure • Consumers avoid being • Selective Attention bombarded by: – Tuning out • Perceptual Defense • Perceptual BlockingCopyright 2007 by Prentice Hall
  42. 42. Organization Principles • Grouping • People group stimuli to • Closure form a unified impression or concept. • Grouping helps memory and recall.Copyright 2007 by Prentice Hall
  43. 43. Organization Principles • Grouping • People have a need for • Closure closure and organize perceptions to form a complete picture. • Will often fill in missing pieces • Incomplete messages remembered more thanCopyright 2007 by Prentice Hall complete
  44. 44. Interpretation Perceptual Distortion • Physical • Positive attributes of Appearances people they know to • First Impressions those who resemble • Jumping to them Conclusions • Important for model selection • Halo Effect • Attractive models are more persuasive forCopyright 2007 by Prentice Hall some products
  45. 45. Interpretation Perceptual Distortion • Physical • First impressions are Appearances lasting • First Impressions • The perceiver is trying • Jumping to to determine which Conclusions stimuli are relevant, important, or predictive • Halo EffectCopyright 2007 by Prentice Hall
  46. 46. Interpretation Perceptual Distortion • Physical • People tend not to listen Appearances to all the information • First Impressions before making • Jumping to conclusion Conclusions • Important to put persuasive arguments • Halo Effect first in advertisingCopyright 2007 by Prentice Hall
  47. 47. Interpretation Perceptual Distortion • Physical • Consumers perceive and Appearances evaluate multiple objects • First Impressions based on just one • Jumping to dimension Conclusions • Used in licensing of names • Halo EffectCopyright 2007 by Prentice Hall
  48. 48. The halo effect helps Adidas break into new product categories. Copyright 2007 by Prentice Hall