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. Publishing as Prentice Hall 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. Publishing as Prentice Hall Chapter Fifteen Slide 3

What Would a Pet Owner Need to Know in Order to Make a Decision About Buying Pet Insurance? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 4

Do I Need It? How Do I Get More Information? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 5

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. Publishing as Prentice Hall Chapter Fifteen Slide 6

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. Publishing as Prentice Hall Chapter Fifteen Slide 7

Models of Consumers: An Economic View • The economic view portrays consumers as making rational decisions. • Clearly, this model is not characteristic of most consumption situations because consumers are rarely aware and knowledgeable of all the product alternatives in any given situation, and of all the features and benefits of the product offerings they can choose from. • Thus, they are often unable to make rational decisions. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 8

Models of Consumers: A Passive View • The passive view depicts the consumer as basically submissive to the self-serving interests and promotional efforts of marketers. • Consumers are perceived as impulsive and irrational purchasers, ready to yield to the arms and aims of marketers. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 9

Models of Consumers: A Cognitive View • The cognitive view depicts consumers as problem solvers where they cognitively process information, seek out products and services that fulfill their needs, form preferences, make choices, and engage in postpurchase evaluations of their selections. • Such decision making is characteristic of consumption situations where consumers are highly involved with purchases and experience high levels of perceived risk. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 10

Models of Consumers: An Emotional View • The emotional view states that consumers often have deep emotions or feelings regarding many purchases. • This is typical of consumption situations where consumers place more emphasis on their current moods and feelings and less emphasis on prepurchase information. • In such cases, a product is bought on an impulse — on a whim—or because the buyer is emotionally driven. • Emotional advertising appeals include stressing nostalgia, fantasy, and being “seduced” by the product. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 11

Discussion Questions • How are the four models of consumer decision making similar? • How do they differ? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 12

Consumer Decision Making Figure 15. 3 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 13

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. Publishing as Prentice Hall Chapter Fifteen Slide 14

Process - Need Recognition • Usually occurs when consumer has a “problem” • Need recognition styles – Actual state – Desired state Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 15

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. Publishing as Prentice Hall Chapter Fifteen Slide 16

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. Publishing as Prentice Hall Chapter Fifteen Slide 17

The Evoked Set Figure 15 -5 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall 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. Publishing as Prentice Hall Chapter Fifteen Slide 19

Consumer Decision Rules • Compensatory – evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score. • Noncompensatory – positive evaluation of a brand attribute does not compensate for a negative evaluation of the same brand on some other attribute – Conjunctive, disjunctive, or lexicographic Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 20

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. Publishing as Prentice Hall Chapter Fifteen Slide 21

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. Publishing as Prentice Hall Chapter Fifteen Slide 22

The Decision Process for Functionally Illiterate Consumers - Figure 15. 6 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 23

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. Publishing as Prentice Hall Chapter Fifteen Slide 24

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. Publishing as Prentice Hall Chapter Fifteen Slide 25

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. Publishing as Prentice Hall Chapter Fifteen Slide 26

Output of Consumer Decision Making • Purchase behavior – Trial purchases – Repeat purchases – Long-term commitment • Postpurchase evaluation Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 27

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. Publishing as Prentice Hall Chapter Fifteen Slide 28

Marketing strategies to reduce postpurchase dissonance • ads which reassure buyers that they made the right choice; • reassuring messages and text within the instruction manuals; • extensive warranties, guarantees, and service; • a mechanism to obtain further information about the product; • postpurchase contacts with buyers by mail or phone

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. Publishing as Prentice Hall Chapter Fifteen Slide 30

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. Publishing as Prentice Hall Chapter Fifteen Slide 31

Reported Circumstances and Motivations for Self-Gift Behavior Table 15. 13 CIRCUMSTANCES MOTIVATIONS 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 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 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 32

Gifting Relationships - Table 15. 14 GIFTING RELATIONSHIP DEFINITION EXAMPLE Intergroup A group giving a gift to another group A Christmas gift from one family to another family Intercategory An individual giving a gift to a group or a group giving a gift to an individual A group of friends chips in to buy a new mother a baby gift Intragroup A group giving a gift to itself or its members A family buys a VCR for itself as a Christmas gift Interpersonal An individual giving a gift to another individual Valentine’s Day chocolates presented from a boyfriend to a girlfriend Intrapersonal Self-gift A woman buys herself jewelry to cheer herself up Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 33

Consuming and Possessing • Consumers find pleasure in possessing, collecting, or consuming • Products have special meanings and memories Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 34

A Model of Consumption Figure 15. 11 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 35

Relationship 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. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 36

Relationship Marketing Success Figure 15. 12 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 37

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