This document discusses various models and aspects of consumer decision making. It covers four levels of consumer decision making from extensive problem solving to routine response behavior. It also discusses four views of consumer decision making: the economic view, passive view, cognitive view, and emotional view. Additionally, it examines factors that influence consumer behavior such as motivation, personality, perception, learning, and attitudes. It provides an overview of concepts like the halo effect, selective attention, perceptual defense, and more.

1. Consumer Decision Making
and Beyond

2. Levels of Consumer Decision Making
Extensive Problem Solving
Limited Problem Solving
Routine Response
Behavior

3. A search by the consumer to
establish the necessary
Extensive
product criteria to evaluate
Problem
knowledgeably the most
Solving
suitable product to fulfill a
need.

4. A limited search by a
Limited consumer for a product that
Problem will satisfy his or her basic
Solving criteria from among a
selected group of brands.

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

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. 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. Models of Consumers: Four Views of
Consumer Decision Making
• A Passive View
• A Cognitive View
• An Emotional View - mood

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. Consumer Decision Rules
• Compensatory
• Noncompensatory
– Conjunctive Decision Rule
– Disjunctive Decision Rule
– Lexicographic Rule

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

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

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

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

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

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

17. Table : Hypothetical Use of Popular Decision Rules in
Making a Decision to Purchase a 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.”

18. Consumer Motivation

19. Factors Affecting Consumer Behavior:
Psychological
Motivation
Beliefs and Psychological
Factors Perception
Attitudes
Learning

20. Maslow’s Hierarchy of Needs
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Hall

21. Personality and
Consumer Behavior

22. What Is Personality ?
The inner psychological characteristics that
both determine and reflect how a person
responds to his or her environment

23. The Nature of Personality
• Personality reflects individual
differences
• Personality is consistent and
enduring
• Personality can change
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24. Discussion Questions
• How would you describe your personality?
• How does it influence products that you
purchase?
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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 traits
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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 brand
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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 seeking
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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 beliefs
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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 others
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– less likely to be innovators

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 seeking
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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 premium
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32. Discussion Questions
• Pick three of your favorite brands.
• Describe their personality. Do they have a
gender? What personality traits do they
have?
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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. 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, stately
SILVER,byGOLD
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35. Consumer Perception

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
Sketchers
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37. Aspects of Perception
Selection
Organization
Interpretation
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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
purchases
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39. Perceptual Selection
Concepts
• Selective Exposure • Heightened awareness
• Selective Attention when stimuli meet their
• Perceptual Defense needs
• Consumers prefer
• Perceptual Blocking different messages and
medium
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40. Perceptual Selection
Concepts
• Selective Exposure • Screening out of stimuli
• Selective Attention which are threatening
• Perceptual Defense
• Perceptual Blocking
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41. Perceptual Selection
Concepts
• Selective Exposure • Consumers avoid being
• Selective Attention bombarded by:
– Tuning out
• Perceptual Defense
• Perceptual Blocking
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42. Organization
Principles
• Grouping • People group stimuli to
• Closure form a unified
impression or concept.
• Grouping helps memory
and recall.
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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 than
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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 for
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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 Effect
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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 advertising
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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 Effect
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48. The halo effect
helps Adidas
break into new
product
categories.
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