Consumer Decision Making

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Chapter 7 Consumer Decision Making
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7.1 A model of consumer decision making
Information in the environment
Interpretation Exposure, attention, and
comprehension
Memory Product knowledge and involvement
Consumer decision making
Knowledge and beliefs
Integration Attitudes and intentions
Behavior
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Problem recognition
7.2 A generic model of consumer problem solving
Search for relevant info
Evaluation of alternatives
Choice decisions
Purchase
Post-purchase use and reevaluation
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7.3 Forming a Consideration Set of a Brand of
Alternatives
All brands in a product class
Unknown brands
Known brands
Brands found through search
Brands found accidentally
Evoked set
Unrecalled brands
Consideration set of brand choice alternatives
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7.4 Compensatory Processes
Multi-attribute model

• A perceived weakness or negative evaluation on
  one criterion can be compensated for by a
  positive evaluation on another criterion.
• Separate evaluations for each choice criterion
  are combined (added or averaged) to form an
  overall evaluation of each alternative.
• The highest rated alternative is chosen.

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7.5 Non-compensatory Processes

• Accept alternative only if each criterion equals
  or exceeds the minimum cutoff level.
• A product is acceptable only if it exceeds the
  minimum level on at least one criterion
• Crank criterion from most to least important and
  choose best alternative on most important
  criterion
• Select one criterion and eliminate alternatives
  that dont exceed its established cutoff level.
  Continue eliminating until one alternative
  remains.

Conjunctive
Disjunctive
Lexicographic
Elimination by aspects
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7.6 Combination Processes

• Mix of compensatory and non-compensatory
  processes, combined or constructed on the spot
  to adapt to environmental factors

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7.7 Examples of Consumer Heuristics
Search Heuristics
If you are buying stereo equipment, always go to
Sams Hi-Fi

• Store selection
  
  
• Sources of information
• Source credibility

If you want to know which alternatives are worth
searching for, read test reports in Consumer
Reports
If a magazine accepts advertisements from the
tested products, dont believe its product tests
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7.8 Examples of Consumer Heuristics, cont..
Evaluation Heuristics
If comparing processes foods, examine sodium
content.

• Key criteria
  
  
• Negative criteria
• Significant differences

If a salient consequence is negative, give the
choice criterion extra weight in the integration
process.
If alternatives are similar on a salient
consequence, ignore that choice criterion.
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7.9 Examples of Consumer Heuristics, cont..
Choice Heuristics
If choosing among familiar products...
Chooses the product that you think works best -
that provides the best level of performance

• Works best
  
  
• Bought last
• Price-based rule

Select the alternative you used last, if it was
satisfactory
Buy the least expensive (or the most expensive,
depending on your belief about relationship
between price and product.
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7.10 Examples of Consumer Heuristics, cont..
Choice Heuristics
If choosing among unfamiliar products
Dont buy any software until someone you know has
used it for a month and recommends it.

• Wait and see
• 
  
• Expert consultant

Find an expert or more knowledgeable person, have
him or her evaluate the alternatives in terms of
your goals, then buy the alternative the expert
selects.