CHAPTER FIFTEEN Consumer Decision Making and Beyond Learning
CHAPTER FIFTEEN Consumer Decision Making and Beyond
Learning Objectives 1. To Understand What a Consumer Decision Is. 2. To Understand the Three Levels of Consumer Decision Making. 3. To Understand Four Different Views or Models of Consumer Decision Making. 4. To Understand in Detail the Model of Consumer Decision Making Originally Introduced in Chapter 1. Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 2
Learning Objectives (continued) 5. To Understand the Nature and Scope of Consumer Gift Giving. 6. To Understand the Significance of Consuming and Possessing. 7. To Understand the Need for Relationship Marketing. Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 3
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 2010 Pearson Education, Inc. Chapter Fifteen Slide 4
Models of Consumers: Four Views of Consumer Decision Making • • An Economic View A Passive View A Cognitive View An Emotional View Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 5
Discussion Questions • How are the four models of consumer decision making similar? • How do they differ? Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 6
Consumer Decision Making Figure 15. 3 Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 7
Discussion Question • What types of sociocultural inputs would influence the purchase of a: – Plasma TV – Hybrid vehicle – Sugar-free ice cream Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 8
Process - Need Recognition • Usually occurs when consumer has a “problem” • Need recognition styles – Actual state – Desired state Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 9
Prepurchase Search • Begins with internal search and then moves to external search • The impact of the Internet • There are many factors that increase search – Product factor – Situational factors – Social acceptability – Consumer factors Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 10
Evaluation of Alternatives • • • Evoked set Criteria used for evaluating brands Consumer decision rules Decisions by functionally illiterate population Going online for decision-making assistance Lifestyles as a consumer decision strategy Incomplete information Applying decision rules Series of decisions Decision rules and marketing strategy Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 11
The Evoked Set Figure 15 -5 Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 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 Applying Decision Rules Series of decisions Decision rules and marketing strategy Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 13
Hypothetical Use of Decision Rules Table 15. 7 Decision Rule Mental Statement Compensatory rule I selected the netbook that came out best when I balanced the good ratings against the bad ratings Conjunctive rule I selected the netbook that had no bad features Disjunctive rule I picked the netbook that excelled in at least one attribute Lexicographic rule I looked at the feature that was most important to me and chose the netbook that ranked highest on that attribute Affect referral rule I bought the brand with the highest overall rating Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 14
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 Applying Decision Rules Series of decisions Decision rules and marketing strategy Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 15
The Decision Process for Functionally Illiterate Consumers - Figure 15. 6 Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 16
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 Applying Decision Rules Series of decisions Decision rules and marketing strategy Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 17
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 2010 Pearson Education, Inc. Chapter Fifteen Slide 18
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 Applying Decision Rules Series of decisions Decision rules and marketing strategy Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 19
Output of Consumer Decision Making • Purchase behavior – Trial purchases – Repeat purchases – Long-term commitment • Postpurchase evaluation Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 20
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 2010 Pearson Education, Inc. Chapter Fifteen Slide 21
Discussion Questions • What are four ways that consumers reduce postpurchase dissonance? • How can marketers work to help consumers reduce the dissonance? Copyright 2010 Pearson Education, Inc Chapter Fifteen Slide 22
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 2010 Pearson Education, Inc. Chapter Fifteen Slide 23
Consuming and Possessing • Consumers find pleasure in possessing, collecting, or consuming • Products have special meanings and memories Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 24
A Model of Consumption Figure 15. 11 Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 25
Relationship Marketing Copyright 2010 Pearson Education, Inc. 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. Chapter Fifteen Slide 26
Relationship Marketing Success Figure 15. 12 Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide 27
Important Questions 1. 2. 3. 4. Draw consumer decision making process and label it. What are the levels of consumer’s decision making process? Explain briefly. Define post-purchase evaluation? What are three possible outcomes of this evaluation? How do consumers reduce post-purchase cognitive dissonance 28
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