Chapter 16 Consumer Decision Making and Beyond Consumer

Chapter Outline • Levels of Consumer Decision Making • Models of Consumer Decision Making

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 Copyright 2007 by Prentice Hall 16 - 3

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

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

Models of Consumers: Four Views of Consumer Decision Making • An Economic View Rational Decision • A Passive View irrational & impulse decision • A Cognitive View satisfactory desicion • An Emotional View fear joy Copyright 2007 by Prentice Hall 16 - 6

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

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

Need Recognition • Usually occurs when consumer has a “problem” • Need recognition styles

Prepurchase Search • Begins with internal search and then moves to external search •

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 Copyright 2007 by Prentice Hall 16 - 11

The Evoked Set Figure 16 -3 Copyright 2007 by Prentice Hall 16 - 12

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 Copyright 2007 by Prentice Hall 16 - 13

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

Compensatory Decision Rules Copyright 2007 by Prentice Hall 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. 16 - 15

Noncompensatory Decision Rules Copyright 2007 by Prentice Hall 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. 16 - 16

Conjunctive Decision Rule Copyright 2007 by Prentice Hall 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. 16 - 17

Disjunctive Rule Copyright 2007 by Prentice Hall A noncompensatory decision rule in which consumers

Lexicographic Rule Copyright 2007 by Prentice Hall A noncompensatory decision rule consumers first rank product attributes in terms of importance, then compare brands in terms of the attribute considered most important. 16 - 19

Affect Referral Decision Rule Copyright 2007 by Prentice Hall 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. 16 - 20

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 Copyright 2007 by Prentice Hall 16 - 21

Issues in Alternative Evaluation • Evoked Set • Criteria used for evaluating brands • Consumer decision rules and their application • Decisions by functionally illiterate population • Lifestyles as a consumer decision strategy • Incomplete information • Series of decisions • Decision rules and marketing strategy Copyright 2007 by Prentice Hall 16 - 22

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 Copyright 2007 by Prentice Hall 16 - 23

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 Copyright 2007 by Prentice Hall 16 - 24

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 Copyright 2007 by Prentice Hall 16 - 25

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. Copyright 2007 by Prentice Hall 16 - 26

Output of Consumer Decision Making • Purchase behavior • Postpurchase evaluation Copyright 2007 by

Purchase Behavior • Three types of behavior – Trial purchases – Repeat purchases –

Postpurchase Evaluation • Actual Performance Matches Expectations – Neutral Feeling • Actual Performance Exceeds Expectations – Positive Disconfirmation of Expectations • Performance Is Below Expectations – Negative Disconfirmation of Expectations Copyright 2007 by Prentice Hall 16 - 29

Gifting Behavior Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance. Copyright 2007 by Prentice Hall 16 - 30

Relationship Marketing Copyright 2007 by Prentice Hall 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. 16 - 31