Consumer Decision Processes

Consumer Decision Processes What is decision making?

Process of choosing between two or more alternatives

General Models of Consumer Decision Making Economic “Rational” Consumer Passive Consumer Cognitive Consumer

Consumer Decision Processes

General Models of Consumer Decision Making (Cont.) Emotional Consumer Random Consumer “CB” Consumer

C’s buy symbols as well as products What is “rational” is in the eye of the beholder C’s do not have, nor do they want, perfect

information C’s satisfyce, not optimize

Consumer Decision Processes Howard-Sheth Model

Extended Problem Solving (EPS) Limited Problem Solving (LPS) Habitual Decision Making

Static or continuous categorizations?

Consumer Decision Processes Habitual Decision Making

Brands Considered -- 1 Evaluative Criteria – Simple (Is it available?) Information Sources -- 1 (Self) Types

Brand Loyalty Involves repeat purchase with a high level of psychological

commitment Inertia (Spurious Loyalty)

Repeat purchase to minimize consumer effort

Consumer Decision Processes Habitual Decision Making -- Implications

May need to break consumers “habit” Sales promotion tools as incentives to switch Sales efforts to change shelf space (position)

Retention of consumers Distribution is key -- is loyalty is spurious, must have

product on the shelf Monitoring of competitive actions -- e.g., match price

reductions Reminder ads to keep brand on the “top of mind”

Consumer Decision Processes Extended Problem Solving

Brands Considered -- Many Evaluative Criteria -- Complex Information Sources -- Many

Consumer Decision Processes

EPS: Complex Decision Process

Need Recognition

Prepurchase Search

Evaluation ofAlternatives

Psychological Field1. Motivation2. Perception3. Learning4. Lifestyle5. Attitudes

Experience

Consumer Decision Processes

EPS: Complex Decision Process Pre-Purchase Activities

Need Recognition (C’s actual state desired state) Information Search

Internal External

Evaluation of Alternatives Compensatory --- lack of one attribute (taste) can be compensated by another

(it’s effective) Eliminate by Aspects (EBA) – set minimum cut-off rule for the level of each

attribute; start with most important attribute – if a brand does NOT meet the cutoff, it is out

Conjunctive Rule -- set minimum cut-off rule for the level of each attribute; look at entire set of attributes (which exceeds the minimum on the MOST attributes)

Lexicographic Rule – rank attributes; choose brand that is best on most important attribute; if a tie, go to second most important attribute, etc.

Affect Referral – choose brand you “feel” best about

Consumer Decision Processes Unplanned Decisions

Pure impulse – What the heck! Reminder/Suggested impulse – walk through

dairy aisle (ah yes, I need milk) Planned impulse – I always get yogurt

Marketers influence?????