Four views of

consumers

Economic View of
Consumer
Consumers are rational decision makers
They are aware of all available alternatives
They are capable of ranking each alternative

in terms of its benefits and disadvantages

Are able to identify the best possible
alternative

Is it a perfect world?? Humans or Robots?

Passive View of Consumer

Consumers are impulsive and irrational

purchasers
They can be easily manipulated into taking

desired action
They are non-critically submissive to

promotional efforts

Cognitive View of
Consumer
Consumers are thinking problem solvers
They actively search for products and services

that satisfy their needs

They are information processors
However, they look for optimum
information (rather than full information)
necessary for decision making and thereby
reduce information overload
They often fall back on heuristics (short-cut
decision rules) to simplify decision making

Compensatory
Decision Rules

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.

Noncompensatory
Decision
Rules

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.

Conjunctive
Decision
Rule

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.

Disjunctive
Rule

A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
cutoff point for each
relevant product
attribute.
Accepts the brand that
meets or exceeds the
cut-off for any one
attribute

Lexicographic
Rule

A noncompensatory
decision rule - consumers
first rank product attributes
in terms of importance,
then compare brands in
terms of the attribute
considered most important.
Brand that scores highest
on the first attribute is
chosen
If there is a tie, the
scores on the next
attribute are considered

Affect
Referral
Decision
Rule

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.

Emotional View of
Consumer
Human beings have emotions
Rationality is tempered by emotions
Emotions can be highly involving
Emotional purchase is not necessarily an

irrational purchase (e.g. designer clothes)

Mood plays a role in purchase decision
making

Types of Consumer
Decision
Basic decision: buy or not.
Product decision: what to buy.
Brand decision: single out the brand

which is more suitable.

Decision of purchasing channel, time,

and who.
Decision of how to buy.

The Nature of Consumer Behavior

External Influences
Culture

Demographics and social stratification

Ethnic, religious, and regional subcultures
Families and households
Groups

The Nature of Consumer Behavior

Internal Influences
Perception

Learning
Memory
Motives
Personality
Emotions
Attitudes

A Simplified Model of Consumer

Decision Making

Complex Decision
Making

Buying Process
Need identification/ Problem

awareness
Information gathering
Evaluation of alternatives
Selection of an appropriate solution
Post- purchase evaluation

Consumer Involvement
Involvement: perceived
relevance of an object based on
ones needs, values, and
interests

High involvement
decision
In complex decision making, the
consumer evaluates brands in a more
detailed and comprehensive manner.
More information is sought and more
brands are evaluated.
Evaluation Parameter: Brand or Attribute?

High involvement
decision
Such a process is most likely for:
High priced products
Products associated with performance risks

(medical products, automobiles)

Complex products(home theatre, computers)
Specialty goods (sports equipment),and
Products associated with ones ego(clothing,

cosmetics).

Assaels Classification of types of Buying

Behavior
High Involvement Low Involvement
Significant
Difference
Between
Brands
Few
Difference
Between
Brands

Complex Buying
Behavior

Variety-Seeking
Buying
Behaviour

Dissonance
Reducing
Behaviour

Habitual
Buying
Behaviour

(Brand Loyalty)

(Inertia)

Types of Involvement
Situational
Enduring

Complex Decision Making

CONSUMER
INFORMATION
PROCESSING

NEED
AROUSAL

Feedbac
k
POSTPURCHASE
EVALUATION

PURCHASE

A Basic Model of Complex Decision Making

BRAND
EVALUATION