Chapter 14 Consumer Decision Making I: The Process

Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das

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Levels of Consumer Decision Making

Extensive Problem Solving

Limited Problem Solving

Routine Response Behaviour

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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
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Consumer Decision Making The Process

Need Recognition Pre-purchase Search Evaluation of Alternatives

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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)

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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
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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
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Pre-Purchase Search

Types of Information Sources Types of Information Sought Factors Affecting Extent of Information Search

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Figure 14-3: Types of Information Sources

PERSONAL
Friends Neighbors Relatives Co-workers Computer salespeople Calling the electronics store

IMPERSONAL
Newspaper articles Magazine articles Consumer Reports Direct-mail brochures Information from product advertisements Internal web site

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Types of Information Sought

Brands or alternatives available Evaluative criteria to be used

Generally, product features

Ratings of brands on evaluative criteria

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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
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Factors that Increase the Level of 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
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Factors that Increase the Level of 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
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Factors that Increase the Level of 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

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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
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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

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Consumer Decision Rules

Procedures used by consumers to facilitate brand or other consumption-related choices

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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

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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
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Non-Compensatory Consumer 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
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Non-Compensatory Consumer 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
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Issues in Alternative Evaluation

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

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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
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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

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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

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