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Consumer Decision Making

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Tend to require limited problem solving, sometimes habitual decisions ... Postpurchase cognitive dissonance. Complaining behavior. Outcomes ... – PowerPoint PPT presentation

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Title: Consumer Decision Making


1
Consumer Decision Making
2
Three Perspectives on Decision Making
  • Decision making perspective
  • High involvement decisions
  • Low involvement decisions
  • Experiential perspective
  • Behavioral influence perspective

3
Decision Making PerspectiveHigh Involvement
Decisions
Extended Alternative Evaluation
Problem Recognition
Extensive Search
Complex Choice
Acquisition Evaluation
4
Decision Making PerspectiveLow Involvement
Decisions
Minimal Alternative Evaluation
Simple Choice Processes
Problem Recognition
Limited Search
Acquisition Evaluation
5
Experiential Perspective
Alternative Evaluation (comparison of affect)
Choice (affect-based)
Problem Recognition (affect driven)
Search for Affect-based Solutions
Acquisition Evaluation
6
Behavioral Influence Perspective
Choice (behavior results from reinforcers)
Search (learned Response)
Acquisition Evaluation (self-perception
process)
Problem Recognition (results from discriminative
stimulus)
7
Initial vs. Repeat Purchases
  • Initial purchases
  • Tend to require more extensive problem solving
  • Repeat purchases
  • Tend to require limited problem solving,
    sometimes habitual decisions

8
Basic Decision Making Process
Problem/Need Recognition
Information Search
Evaluation of Alternatives
Purchase
Post-Purchase Evaluation
9
Problem/Need Recognition
  • Consumer recognizes a gap or discrepancy between
    his/her current state and his/her desired state.

10
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11
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12
Information Search
  • Deliberate attempt to gain knowledge about a
    purchase decision goal is to reduce uncertainty.
  • Internal search
  • Retrieve information from long term memory
  • External search
  • Gather information from external sources, e.g.,
    ads, media, friends, stores

13
Determinants of External Search
14
Evaluation of Alternatives
  • Occurs either separately or in conjunction with
    information search.
  • We rely on internal processes to help us organize
    the evaluation process.
  • Consideration (evoked set)
  • Decision rules (heuristics)

15
Consideration Set
16
Decision Rules
  • Strategies used by consumers to guide decision
    making.
  • Some decision rules use product characteristics
    to guide decisions.
  • Compensatory
  • Noncompensatory
  • Some decision rules rely on stored information in
    consumers memories to guide decisions.

17
Compensatory Decision Rule
  • Select the best overall brand
  • Consumer evaluates brand options in terms of each
    relevant attribute and computes a weighted or
    summated score for each brand. The consumer
    chooses the brand with the highest score.
  • A compensatory model because a positive score on
    one attribute can outweigh a negative score on
    another attribute.

18
Noncompensatory Decision Rules
  • Conjunctive Decision Rule
  • Consumer sets a minimum standard for each
    attribute and if a brand fails to pass any
    standard, it is dropped from consideration.
  • Reduces a large consideration set to a manageable
    size.
  • Often used in conjunction with another decision
    rule.

19
Noncompensatory Decision Rules
  • Disjunctive Decision Rule
  • Consumer sets a minimum acceptable standard as
    the cutoff point for each attribute--any brand
    that exceeds the cutoff point is accepted.
  • Reduces large consideration set to a more
    manageable number of alternatives.
  • Consumer may settle for the first satisfactory
    brand as final choice or may use another decision
    rule.

20
Noncompensatory Decision Rules
  • Lexicographic Decision Rule
  • The consumer ranks the attributes according to
    importance and then selects the brand that is
    superior on the most important attribute.
  • If one brand ranks sufficiently high on just one
    attribute, it will be selected regardless of how
    it scores on other attributes.

21
Affect-Referral Rule
  • Synthesized decision rule
  • Consumers maintain overall evaluations of brands
    in their long term memories. Brands on not
    evaluated on individual attributes but on the
    highest perceived overall rating.

22
Frame of Reference
  • Another way in which consumers evaluate
    information is the frame of reference from which
    s/he subjectively evaluates messages related to a
    decision problem.
  • Percent lean vs. Percent fat
  • Sale vs. Clearance

23
Purchase Decision
24
Post-Purchase Evaluation
  • Consumers evaluate purchases during consumption
    process.
  • Three possible outcomes.
  • Postpurchase cognitive dissonance.
  • Complaining behavior.

25
Outcomes
  • Actual product performance matches prepurchase
    expectations
  • Neutral Feeling

26
Outcomes
  • Actual product performance exceeds prepurchase
    expectations.
  • Positive disconfirmation of expectations
  • Satisfaction

27
Outcomes
  • Actual product performance is below prepurchase
    expectations.
  • Negative disconfirmation of expectations
  • Dissatisfaction

28
A Continuum of Satisfaction
Dissatisfaction
Satisfaction
Delighted
29
If dissatisfied.
  • Alternative actions
  • Do nothing
  • Avoid seller/brand in the future
  • Negative WOM to friends
  • Seek redress of problem from seller
  • Complain to outside agency

30
Decision to complain...
  • Is based on
  • Level of dissatisfaction
  • Importance of decision/purchase
  • Costs/benefits of actions
  • Personal characteristics
  • Attribution of blame

31
Managerial Implications Related to Consumer
Decision Making
  • Understanding decision making process enables
    marketers to assist consumers along decision
    pathway.
  • Offer products that meet needs/wants
  • Advertising
  • Making information available
  • Making product available
  • Follow-up sales calls, good service

32
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