Consumer Decision Making Process

Chapter 14
Consumer Decision Making I:

The Process
Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das
Copyright 2006
Pearson Education Canada Inc.
Levels of Consumer Decision

Making
Extensive Problem
Solving
Limited Problem
Solving
Routine Response
Behaviour
Copyright 2006 Pearson Education Canada Inc.
14-2
Factors That Affect the Type of

Decision Making Process Used
Importance
of the decision
Extent of previous experience
Existence of well-established decision
criteria
Amount of information at hand about each
alternative
The number of alternatives available
Model of consumption being followed
14-3
14-4
Models of Consumers: Four Views

of Consumer Decision Making
An
Economic View
A Passive View
A Cognitive View
An Emotional View
The Economic view

Rational Customers Have To
Be
aware of all available

product alternatives
Be capable of correctly
ranking each alternative in
terms of its benefits and
disadvantages
Why is the Classical Economic

Model Considered Unrealistic?
People
are limited by
their existing skills,
habits, and reflexes
People are limited by
their existing values and
goals
Models of Consumers: Four

Views of Consumer Decision
Making
A Passive
View
A Cognitive
An
View
Emotional View - mood
A Model of Consumer Decision

Making
INPUT
PROCESS
OUTPUT
Figure 16.2 A Simple Model of Consumer Decision Making

External Influences
Input
Firms Marketing Efforts

1. Product
2. Promotion
3. Price
4. Channels of distribution
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial sources
4. Social class
5. Subculture and culture
Consumer Decision Making

Need Recognition
Process
Prepurchase Search
Evaluation of Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Personality
5. Attitudes
Experience
Postdecision Behavior
Output
Purchase
1. Trial
2. Repeat purchase
Postpurchase Evaluation
Three Stages of Consumer

Decision Making
Need
Recognition
Prepurchase Search
Evaluation of Alternatives
Need or Problem Recognition

The
realization that there is a difference

between actual and desired states
The higher the gap, the stronger the need (or
bigger the problem)
14-12
Types of Problems
Active
Versus Inactive problems
Active: those you are aware of

Inactive: those that you are not yet aware of
(but exist)
Those
that require immediate solutions and

those that do not require immediate
solutions
14-13
Problem Recognition and

Marketing Strategy
Identify existing consumer problems and find

solutions for these
Lower the actual state
Increase the desired state
Increase the importance of the gap between actual
and desired states
Convert inactive problems to active problems
Convert problems into ones requiring an
immediate solution
14-14
Pre-Purchase Search
Types
of Information Sources
Types of Information Sought
Factors Affecting Extent of Information
Search
14-15
Figure 14-3: Types of

Information Sources
PERSONAL
IMPERSONAL
Friends
Neighbors
Relatives
Co-workers
Computer salespeople
Calling the electronics
store
Newspaper articles
Magazine articles
Consumer Reports
Direct-mail brochures
Information from product
advertisements
Internal web site
14-16
Types of Information Sought

Brands
or alternatives available
Evaluative criteria to be used
Generally, product features
Ratings
of brands on evaluative criteria
14-17
14-18
Factors that Increase the Level of

Pre-purchase Search
Product
Factors: Higher search when
It is a long-lasting or infrequently used

product
There are frequent changes in product styling
Large volume is purchased
The price is high
There are many alternative brands
There is much variation in features
continued
14-19

Pre-purchase Search
Situational
Factors: Higher search when:
Experience is lower
Previous experience was unsatisfactory
Social Acceptability:
Higher search when:
Purchase is a gift
Product is socially visible in use
continued
14-20

Pre-purchase Search
Value-Related
Factors: Higher search
when:
Purchase is discretionary
All alternatives have both positive and
negative qualities
No agreement among users exists
Conflicting information is available
Other considerations exist
continued
14-21

Pre-purchase Search
Consumer Factors:
Higher search when:
Consumers are well-educated, have higher

income levels and are younger
Consumers are low in dogmatism and risk
perception
Level of involvement is high
Shopping is seen as an enjoyable activity
continued
14-22
Evaluation of Alternatives Types

of Consumer Choice Processes
Affective
choices
More holistic; an overall evaluation

based on how one feels about a purchase
Attribute-based
choices
Have pre-determined evaluative criteria

May require both external and internal search
Complicated decision rules may be used
14-23
Nature of Evaluative Criteria

Can
be tangible or intangible
Include surrogate indicators
Attributes that are used as indicators of another
attribute
Are
often ranked in order of importance
14-24
Consumer Decision Rules

Procedures
used by consumers to facilitate

brand or other consumption-related choices
14-25
Consumer Decision Rules

Compensatory
Brands evaluated in terms of each relevant

criteria and the best brand (or one with the
highest score) is chosen
Non-compensatory
Positive evaluations do not compensate for

negative evaluations
14-26
Non-Compensatory Consumer
Decision Rules
Conjunctive
Decision Rule
Product attributes are identified
a minimally acceptable cutoff point is
established for each attribute
brands that fall below the cutoff point on
any one attribute are eliminated from
further consideration.
continued
14-27
Decision Rules
Disjunctive
Decision Rule
consumers identify product attributes
establish a minimally acceptable cutoff
point for each attribute
accept the brand that meets or exceeds
the cutoff for any one attribute
continued
14-28
Decision Rules
Lexicographic
Decision Rule
Product attributes are identified

Product attributes are ranked in terms of
importance
brands are compared 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
14-29
14-30
Issues in Alternative Evaluation

Lifestyles as a Consumer Decision
Incomplete Information
Non-comparable Alternatives
Series of Decisions
Consumption Vision
Strategy
Mental picture of the consequences of using a

particular product
14-31
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
14-32
Information Search and

Marketing Strategy
Get
products into consumers evoked set

Limit information search if your brand is
the preferred brand
Increase information search if your
alternative is not the preferred brand
Use point-of-purchase advertising
effectively
14-33
Alternative Evaluation and

Marketing Strategy
Identify decision rule used by target market and

use suitable promotional messages
Influence the choice of evaluative criteria
Influence the rating of your product on evaluative
criteria used
Use surrogate indicators effectively
Use consumption vision
14-34

Consumer Decision Making Process

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Chapter 14

Consumer Decision Making I:

Levels of Consumer Decision

Factors That Affect the Type of

Copyright 2006 Pearson Education Canada Inc.

Models of Consumers: Four Views

The Economic view

aware of all available

Why is the Classical Economic

Models of Consumers: Four

Emotional View - mood

A Model of Consumer Decision

Figure 16.2 A Simple Model of Consumer Decision Making

Firms Marketing Efforts