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Chapter 16 Consumer Decision Making and Beyond Consumer Behavior, Eighth Edition SCHIFFMAN  & KANUK
Levels of Consumer Decision Making Extensive Problem Solving Limited Problem Solving Routine Response Behavior
Extensive Problem Solving A search by the consumer to establish the necessary product criteria to evaluate knowledgeably t...
Limited Problem Solving A limited search by a consumer for a product that will satisfy his or her basic criteria from amon...
Routinized Response Behavior
Models of Consumers: Four Views of Consumer Decision Making <ul><li>An Economic View </li></ul><ul><li>A Passive View </li...
The Economic view Rational Customers Have To … <ul><li>Be aware of all available product alternatives </li></ul><ul><li>Be...
Why is the Classical Economic Model Considered Unrealistic? <ul><li>People are limited by their existing skills, habits, a...
Models of Consumers: Four Views of Consumer Decision Making <ul><li>A Passive View </li></ul><ul><li>A Cognitive View </li...
A Model of Consumer Decision Making INPUT PROCESS OUTPUT
Figure 16.2  A Simple Model of Consumer Decision Making Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Chann...
Three Stages of Consumer Decision Making <ul><li>Need Recognition </li></ul><ul><li>Prepurchase Search </li></ul><ul><li>E...
Need Recognition The realization by the consumer that there is a difference between “what is” and “what should be.”
Prepurchase Search A stage in the consumer decision-making process in which the consumer perceives a need and actively see...
A stage in the consumer  decision-making process  in which the consumer appraises the benefits to be derived from each of ...
Table 16.2 Factors that are Likely to Increase Prepurchase Search Product Factors Long interpurchase time (a long-lasting ...
Table 16.2 continued Product Factors Demographic Characteristics of Consumer Well-educated High-income White-collar occupa...
Issues in Alternative Evaluation <ul><li>Evoked Set </li></ul><ul><li>Criteria Used for Evaluating Brands </li></ul><ul><l...
Figure 16.3  The Evoked Set as a Subset of All Brands in a Product Class All Brands Known Brands Unknown Brands Overlooked...
Brands that a consumer excludes from purchase consideration.
Brands that a consumer is indifferent toward because they are perceived as having no particular advantage.
Issues in Alternative Evaluation <ul><li>Evoked Set </li></ul><ul><li>Criteria Used for Evaluating Brands </li></ul><ul><l...
Consumer Decision Rules <ul><li>Compensatory </li></ul><ul><li>Noncompensatory </li></ul><ul><ul><li>Conjunctive Decision ...
Compensatory Decision Rules A type of decision rule in which a consumer  evaluates each brand in terms of each relevant at...
Non-compensatory Decision  Rules A type of consumer decision rule by which  positive evaluation of a brand attribute does ...
Conjunctive Decision Rule A noncompensatory decision rule in which consumers establish a  minimally acceptable cutoff poin...
Disjunctive Rule A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each...
Lexicographic Rule A noncompensatory decision rule - consumers first rank product attributes in terms of  importance, then...
Affect Referral Decision Rule A simplified decision rule by which consumers make a product choice on the basis of their pr...
Table 16.7  Hypothetical Use of Popular Decision Rules in Making a Decision to Purchase an Ultralight Laptop DECISION RULE...
Coping with Missing Information <ul><li>Change the decision strategy to one that better accommodates for the missing infor...
Types of Purchases Trial Purchases Repeat  Purchases Long-Term Commitment Purchases
Outcomes of Postpurchase Evaluation <ul><li>Actual Performance Matches Expectations </li></ul><ul><li>Actual Performance E...
Figure 16.5  A Simple Model of Consumption Choice or Purchase Decision Consumption Set Added to one’s assortment or portfo...
Relationship Marketing Marketing aimed at creating strong, lasting relationships with a core group of customers by making ...
Figure 16.7  A Portrayal of the Characteristics of Relationship Marketing <ul><li>Products/Services </li></ul><ul><li>Indi...
Consumers Are Less Loyal - Why? <ul><li>Availability of information </li></ul><ul><li>Entitlement - </li></ul><ul><li>Comm...
Gifting Behavior <ul><li>Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from con...
Table 16.9  Five Giver-Receiver Gifting Subdivisions *This “SELF” is either singular self (“me”) or plural (“us”). GROUP I...
Table 16.12  Reported Circumstances and Motivations for Self-Gift Behavior CIRCUMSTANCES Personal accomplishment Feeling d...
Gifting Subdivisions Intergroup  Gifting Intrapersonal  Gifting Intragroup  Gifting Interpersonal Gifting Intercategory Gi...
Table 16.13  Gifting Relationships GIFTING RELATIONSHIP Intergroup Intercategory EXAMPLE DEFINITION A Christmas gift from ...
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Schiffman16.ppt best ppt,decision making1

  1. 1. Chapter 16 Consumer Decision Making and Beyond Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK
  2. 2. Levels of Consumer Decision Making Extensive Problem Solving Limited Problem Solving Routine Response Behavior
  3. 3. Extensive Problem Solving A search by the consumer to establish the necessary product criteria to evaluate knowledgeably the most suitable product to fulfill a need.
  4. 4. Limited Problem Solving A limited search by a consumer for a product that will satisfy his or her basic criteria from among a selected group of brands.
  5. 5. Routinized Response Behavior
  6. 6. Models of Consumers: Four Views of Consumer Decision Making <ul><li>An Economic View </li></ul><ul><li>A Passive View </li></ul><ul><li>A Cognitive View </li></ul><ul><li>An Emotional View </li></ul>
  7. 7. The Economic view Rational Customers Have To … <ul><li>Be aware of all available product alternatives </li></ul><ul><li>Be capable of correctly ranking each alternative in terms of its benefits and disadvantages </li></ul>
  8. 8. Why is the Classical Economic Model Considered Unrealistic? <ul><li>People are limited by their existing skills, habits, and reflexes </li></ul><ul><li>People are limited by their existing values and goals </li></ul>
  9. 9. Models of Consumers: Four Views of Consumer Decision Making <ul><li>A Passive View </li></ul><ul><li>A Cognitive View </li></ul><ul><li>An Emotional View - mood </li></ul>
  10. 10. A Model of Consumer Decision Making INPUT PROCESS OUTPUT
  11. 11. Figure 16.2 A Simple Model of Consumer Decision Making Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Experience Purchase 1. Trial 2. Repeat purchase Postpurchase Evaluation Output Process Input External Influences Consumer Decision Making Postdecision Behavior
  12. 12. Three Stages of Consumer Decision Making <ul><li>Need Recognition </li></ul><ul><li>Prepurchase Search </li></ul><ul><li>Evaluation of Alternatives </li></ul>
  13. 13. Need Recognition The realization by the consumer that there is a difference between “what is” and “what should be.”
  14. 14. Prepurchase Search A stage in the consumer decision-making process in which the consumer perceives a need and actively seeks out information concerning products that will help satisfy that need.
  15. 15. A stage in the consumer decision-making process in which the consumer appraises the benefits to be derived from each of the product alternatives being considered.
  16. 16. Table 16.2 Factors that are Likely to Increase Prepurchase Search Product Factors Long interpurchase time (a long-lasting or infrequently used product) Frequent changes in product styling Volume purchasing Many alternative brands
  17. 17. Table 16.2 continued Product Factors Demographic Characteristics of Consumer Well-educated High-income White-collar occupation Under 35 years of age Personality Low dogmatic Low-risk perceiver (broad categorizer) Other personal factors, such as high product involvement and enjoyment of shopping and search
  18. 18. Issues in Alternative Evaluation <ul><li>Evoked Set </li></ul><ul><li>Criteria Used for Evaluating Brands </li></ul><ul><li>Consumer Decision Rules </li></ul><ul><li>Lifestyles as a Consumer Decision Strategy </li></ul><ul><li>Incomplete Information and Noncomparable Alternatives </li></ul><ul><li>Series of Decisions </li></ul><ul><li>Decision Rules and Marketing Strategy </li></ul><ul><li>Consumption Vision </li></ul>
  19. 19. Figure 16.3 The Evoked Set as a Subset of All Brands in a Product Class All Brands Known Brands Unknown Brands Overlooked Brands Indifferent Brands Unacceptable Brands Acceptable Brands Not Purchased Brands Purchased Brands Evoked Set Inept Set Inert Set (1) (2) (3) (4) (5)
  20. 20. Brands that a consumer excludes from purchase consideration.
  21. 21. Brands that a consumer is indifferent toward because they are perceived as having no particular advantage.
  22. 22. Issues in Alternative Evaluation <ul><li>Evoked Set </li></ul><ul><li>Criteria Used for Evaluating Brands </li></ul><ul><li>Consumer Decision Rules </li></ul><ul><li>Lifestyles as a Consumer Decision Strategy </li></ul><ul><li>Incomplete Information and Noncomparable Alternatives </li></ul><ul><li>Series of Decisions </li></ul><ul><li>Decision Rules and Marketing Strategy </li></ul><ul><li>Consumption Vision </li></ul>
  23. 23. Consumer Decision Rules <ul><li>Compensatory </li></ul><ul><li>Noncompensatory </li></ul><ul><ul><li>Conjunctive Decision Rule </li></ul></ul><ul><ul><li>Disjunctive Decision Rule </li></ul></ul><ul><ul><li>Lexicographic Rule </li></ul></ul>
  24. 24. 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 .
  25. 25. 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.
  26. 26. 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.
  27. 27. Disjunctive Rule A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each relevant product attribute.
  28. 28. 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 .
  29. 29. 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.
  30. 30. Table 16.7 Hypothetical Use of Popular Decision Rules in Making a Decision to Purchase an Ultralight Laptop DECISION RULE MENTAL STATEMENT Compensatory 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.”
  31. 31. Coping with Missing Information <ul><li>Change the decision strategy to one that better accommodates for the missing information </li></ul>
  32. 32. Types of Purchases Trial Purchases Repeat Purchases Long-Term Commitment Purchases
  33. 33. Outcomes of Postpurchase Evaluation <ul><li>Actual Performance Matches Expectations </li></ul><ul><li>Actual Performance Exceeds Expectations </li></ul><ul><ul><li>Positive Disconfirmation of Expectations </li></ul></ul><ul><li>Performance is Below Expectations </li></ul><ul><ul><li>Negative Disconfirmation of Expectations </li></ul></ul>
  34. 34. Figure 16.5 A Simple Model of Consumption Choice or Purchase Decision Consumption Set Added to one’s assortment or portfolio Consuming Style How the individual fulfills his or her consumption requirements Using, Possessing, Collecting, Disposing Consuming and Possessing Things and Experiences Altered consumer satisfaction, change in lifestyle and/or quality of life, learning and knowledge, expressing and entertaining oneself Feelings, Moods, Attitudes, Behavior Input Process of Consuming and Possessing Output
  35. 35. Relationship Marketing Marketing aimed at creating strong, lasting relationships with a core group of customers by making them _______ about the company and by giving them some kind of ___________ with the business.
  36. 36. Figure 16.7 A Portrayal of the Characteristics of Relationship Marketing <ul><li>Products/Services </li></ul><ul><li>Individualized attention </li></ul><ul><li>Continuous information </li></ul><ul><li>Price offers </li></ul><ul><li>Customer services </li></ul><ul><li>Extras and perks, etc. </li></ul><ul><li>Repeat Purchase </li></ul><ul><li>Increased Loyalty </li></ul><ul><li>Goodwill </li></ul><ul><li>Positive word-of-mouth </li></ul><ul><li>Lower costs for the firm </li></ul>Trust and promises The Firm provides The Customer provides
  37. 37. Consumers Are Less Loyal - Why? <ul><li>Availability of information </li></ul><ul><li>Entitlement - </li></ul><ul><li>Commoditization – </li></ul><ul><li>Insecurity </li></ul><ul><li>Time scarcity - </li></ul>
  38. 38. Gifting Behavior <ul><li>Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance. </li></ul>
  39. 39. Table 16.9 Five Giver-Receiver Gifting Subdivisions *This “SELF” is either singular self (“me”) or plural (“us”). GROUP Intercategory gifting Intergroup gifting Intragroup gifting INDIVIDUAL Interpersonal gifting Intercategory gifting Intrapersonal gifting GIVERS INDIVIDUAL RECEIVES “OTHER” GROUP SELF*
  40. 40. Table 16.12 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
  41. 41. Gifting Subdivisions Intergroup Gifting Intrapersonal Gifting Intragroup Gifting Interpersonal Gifting Intercategory Gifting
  42. 42. Table 16.13 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

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