consumer decision making

Consumer Decision Making and Beyond

Levels of Consumer Decision Making

Extensive Problem Solving

Limited Problem Solving

Routine Response Behavior

Extensive Problem Solving

A search by the consumer to establish the necessary product criteria to evaluate knowledgeably the most suitable product to fulfill a need.

Limited Problem Solving

A limited search by a consumer for a product that will satisfy his or her basic criteria from among a selected group of brands.

Models of Consumers: Four Views of Consumer Decision Making

• An Economic View• A Passive View• A Cognitive View• An Emotional View

The Economic viewRational 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 View

• An Emotional View - mood

Figure 16.2 A Simple Model of Consumer Decision Making

Firm’s Marketing Efforts1. Product2. Promotion3. Price4. Channels of distribution

Sociocultural Environment1. Family2. Informal sources3. Other noncommercial sources4. Social class5. Subculture and culture

Need Recognition

Prepurchase Search

Evaluation of Alternatives

Psychological Field1. Motivation2. Perception3. Learning4. Personality5. Attitudes

Experience

Purchase1. Trial2. Repeat purchase

Postpurchase EvaluationOutput

Process

Input

External Influences

Consumer Decision Making

Postdecision Behavior

Consumer Decision Rules

• Compensatory• Noncompensatory

– Conjunctive Decision Rule– Disjunctive Decision Rule– Lexicographic Rule

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.

Non-compensatory 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.

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.

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.

Table : Hypothetical Use of Popular Decision Rules in Making a Decision to Purchase a Laptop

DECISION RULE MENTAL STATEMENTCompensatory rule “I selected the computer that came out best when I

balanced the good ratings against the bad ratings.”

Conjunctive rule “I selected the computer that had no bad features.”

Disjunctive rule “I picked the computer that excelled in at least one attribute.”

Lexicographic rule “I looked at the feature that was most important to me and chose the computer that ranked highest on that attribute.”

Affect referral rule “I bought the brand with the highest overall rating.”

Consumer Motivation

Factors Affecting Consumer Behavior:PsychologicalFactors Affecting Consumer Behavior:Psychological

Psychological Factors

MotivationMotivation

PerceptionPerception

LearningLearning

Beliefs and Attitudes

Beliefs and Attitudes

Copyright 2007 by Prentice Hall

Maslow’s Hierarchy of Needs

Personality and Consumer Behavior

What Is Personality ?

The inner psychological characteristics that both determine and reflect how a person responds to his or her environment


The Nature of Personality

• Personality reflects individual differences

• Personality is consistent and enduring• Personality can change


Discussion Questions

• How would you describe your personality?• How does it influence products that you

purchase?


Theories of Personality

• Freudian theory– Unconscious needs or drives are at the heart of

human motivation• Neo-Freudian personality theory

– Social relationships are fundamental to the formation and development of personality

• Trait theory– Quantitative approach to personality as a set of

psychological traits


Trait Theory

• Personality theory with a focus on psychological characteristics

• Trait - any distinguishing, relatively enduring way in which one individual differs from another

• Personality is linked to how consumers make their choices or to consumption of a broad product category - not a specific brand


Trait Theory

• Innovativeness• Dogmatism• Social character• Need for uniqueness• Variety-novelty

seeking

• The degree to which consumers are receptive to new products, new services, or new practices

Consumer InnovatorsAnd Noninnovators


Trait Theory


seeking

• A personality trait that reflects the degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his or her own established beliefs



Trait Theory

• Innovativeness• Dogmatism• Social character• Need for uniqueness• Variety-novelty seeking

• Ranges on a continuum for inner-directedness to other-directedness

• Inner-directedness – rely on own values when

evaluating products– Innovators

• Other-directedness– look to others– less likely to be innovators



Trait Theory


seeking

• Consumers who avoid appearing to conform to expectations or standards of others



Brand Personality

• Personality-like traits associated with brands• Examples

– Nike and athlete– BMW is performance driven– Levi’s jeans are dependable and rugged

• Brand personality which is strong and favorable will strengthen a brand but not necessarily demand a price premium


Discussion Questions

• Pick three of your favorite brands.• Describe their personality. Do they have a

gender? What personality traits do they have?

Commands respect, authority

Caution, novelty, temporary, warmth

Secure, natural, relaxed or easy- going, living things

BLUE

YELLOW

GREEN

Table : The Personality-like Associations of Colors


Human, exciting, hot, passionate, strong

Powerful, affordable, informal

Informal and relaxed, masculine, nature

Goodness, purity, chastity, cleanliness, delicacy, refinement, formality

Sophistication, power, authority, mystery

Regal, wealthy, stately

RED

ORANGE

BROWN

WHITE

BLACK

SILVER, GOLD

Consumer Perception


Perception

• The process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world

• How we see the world around us

Sketchers


Aspects of Perception

Selection

Organization

Interpretation


Perceptual Selection

• Selective Exposure

• Selective Attention

• Perceptual Defense

• Perceptual Blocking

• Consumers seek out messages which:– Are pleasant– They can sympathize– Reassure them of

good purchases

Concepts







• Heightened awareness when stimuli meet their needs

• Consumers prefer different messages and medium

Concepts







• Screening out of stimuli which are threatening

Concepts







• Consumers avoid being bombarded by:– Tuning out

Concepts


Organization

• Grouping• Closure

• People group stimuli to form a unified impression or concept.

• Grouping helps memory and recall.

Principles


Organization

• Grouping• Closure

• People have a need for closure and organize perceptions to form a complete picture.

• Will often fill in missing pieces

• Incomplete messages remembered more than complete

Principles


Interpretation

• Physical Appearances

• First Impressions• Jumping to

Conclusions• Halo Effect

• Positive attributes of people they know to those who resemble them

• Important for model selection

• Attractive models are more persuasive for some products

Perceptual Distortion


Interpretation




• First impressions are lasting

• The perceiver is trying to determine which stimuli are relevant, important, or predictive



Interpretation




• People tend not to listen to all the information before making conclusion

• Important to put persuasive arguments first in advertising



Interpretation




• Consumers perceive and evaluate multiple objects based on just one dimension

• Used in licensing of names



The halo effect helps Adidas

break into new product

categories.

consumer decision making

Technology

consumer decision making

type of consumer decision

views of consumer decision

type of decision rule

culture consumer decision

levels of consumer decision

simplified decision

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