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Consumer Behavior,

Eighth Edition

SCHIFFMAN & KANUK

Chapter 16

Consumer Decision Making


and Beyond

16-1
Levels of Consumer Decision
Making
Extensive Problem
Solving

Limited Problem
Solving

Routine Response
Behavior

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

16-3
A limited search by a
Limited consumer for a product that
Problem will satisfy his or her basic
Solving criteria from among a
selected group of brands.

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Routinized
Response
Behavior

16-5
Models of Consumers: Four Views
of Consumer Decision Making
• An Economic View
• A Passive View
• A Cognitive View
• An Emotional View

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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

16-7
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

16-8
Models of Consumers: Four
Views of Consumer Decision
Making
• A Passive View

• A Cognitive View

• An Emotional View - mood

16-9
A Model of Consumer Decision
Making
INPUT

PROCESS

OUTPUT

16-10
Figure 16.2 A Simple Model of Consumer Decision Making
External Influences
Sociocultural Environment
Firm’s Marketing Efforts
1. Family
Input 1. Product
2. Informal sources
2. Promotion
3. Other noncommercial sources
3. Price
4. Social class
4. Channels of distribution
5. Subculture and culture
Consumer Decision Making
Psychological Field
1. Motivation
Need Recognition 2. Perception
3. Learning
Process Prepurchase Search 4. Personality
5. Attitudes
Evaluation of Alternatives
Experience

Postdecision Behavior

Output Purchase
1. Trial Postpurchase Evaluation
2. Repeat purchase
16-11
Three Stages of Consumer
Decision Making
• Need Recognition
• Prepurchase Search
• Evaluation of Alternatives

16-12
The realization by the
Need consumer that there is a
Recognition difference between “what is”
and “what should be.”

16-13
A stage in the consumer
decision-making process in
which the consumer
Prepurchase perceives a need and
Search actively seeks out
information concerning
products that will help
satisfy that need.

16-14
A stage in the consumer
decision-making process in
which the consumer
appraises the benefits to be
derived from each of the
product alternatives being
considered.

16-15
Table 16.2 Factors that are Likely to
Increase Prepurchase Search

Product Factors
Long interpurchase time (a long-lasting or
infrequently used product)
Frequent changes in product styling
Volume purchasing

Many alternative brands

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Table 16.2 continued

Product Factors
Demographic Characteristics of Consumer
Well-educated
High-income
White-collar occupation
Under 35 years of age
Personality
Low dogmatic
Low-risk perceiver (broad categorizer)
Other personal factors, such as high product involvement and
enjoyment of shopping and search

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Issues in Alternative Evaluation
• Evoked Set
• Criteria Used for Evaluating Brands
• Consumer Decision Rules
• Lifestyles as a Consumer Decision Strategy
• Incomplete Information and Noncomparable
Alternatives
• Series of Decisions
• Decision Rules and Marketing Strategy
• Consumption Vision

16-18
Figure 16.3 The Evoked Set as a Subset
of All Brands in a Product Class
All
Brands

Known Unknown
Brands Brands
(1)
Evoked Set Inept Set Inert Set
Acceptable Unacceptable Indifferent Overlooked
Brands Brands Brands Brands
(2) (3) (4)

Purchased Not Purchased


Brands Brands
16-19 (5)
Brands that a consumer
excludes from purchase
consideration.

16-20
Brands that a consumer
is indifferent toward
because they are
perceived as having no
particular advantage.

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Issues in Alternative Evaluation
• Evoked Set
• Criteria Used for Evaluating Brands
• Consumer Decision Rules
• Lifestyles as a Consumer Decision Strategy
• Incomplete Information and Noncomparable
Alternatives
• Series of Decisions
• Decision Rules and Marketing Strategy
• Consumption Vision

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Consumer Decision Rules
• Compensatory
• Noncompensatory
– Conjunctive Decision Rule
– Disjunctive Decision Rule
– Lexicographic Rule

16-23
A type of decision
rule in which a
consumer evaluates
each brand in
Compensatory terms of each
Decision Rules relevant attribute
and then selects the
brand with the
highest weighted
score.

16-24
A type of consumer
decision rule by
which positive
Non-
evaluation of a
compensatory
brand attribute does
Decision
Rules not compensate for
a negative evaluation
of the same brand on
some other attribute.

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A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
Conjunctive cutoff point for each
Decision attribute evaluated.
Rule Brands that fall below
the cutoff point on any
one attribute are
eliminated from further
consideration.
16-26
A noncompensatory
decision rule in which
consumers establish a
Disjunctive
minimally acceptable
Rule
cutoff point for each
relevant product
attribute.

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A noncompensatory
decision rule -
consumers first rank
product attributes in
Lexicographic
terms of importance,
Rule
then compare brands
in terms of the
attribute considered
most important.

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A simplified decision
rule by which consumers
make a product choice
Affect
on the basis of their
Referral
previously established
Decision
overall ratings of the
Rule
brands considered, rather
than on specific
attributes.

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Table 16.7 Hypothetical Use of Popular
Decision Rules in Making a Decision to
Purchase an Ultralight Laptop
DECISION RULE MENTAL STATEMENT
Compensatory 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.”

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Coping with Missing Information

• Change the decision strategy to one that


better accommodates for the missing
information

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Types of Purchases

Trial Repeat
Purchases Purchases

Long-Term
Commitment
Purchases

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Outcomes of Postpurchase
Evaluation
• Actual Performance Matches Expectations

• Actual Performance Exceeds Expectations


– Positive Disconfirmation of Expectations
• Performance is Below Expectations
– Negative Disconfirmation of Expectations

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Figure 16.5 A Simple Model of Consumption
Choice or Purchase Decision
Consumption Set
Input Added to one’s assortment or portfolio
Consuming Style
How the individual fulfills his or her
consumption requirements

Process of
Consuming Consuming and Possessing Things and Experiences
and Using, Possessing, Collecting, Disposing
Possessing

Feelings, Moods, Attitudes, Behavior


Output Altered consumer satisfaction, change in lifestyle and/or
quality of life, learning and knowledge, expressing and
entertaining oneself
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Marketing aimed at
creating strong,
lasting relationships
with a core group of
Relationship customers by making
Marketing them _______ about
the company and by
giving them some
kind of ___________
with the business.

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Figure 16.7 A Portrayal of the
Characteristics of Relationship
Marketing

The Firm provides The Customer provides


•Products/Services
•Repeat Purchase
•Individualized attention
•Increased Loyalty
•Continuous information Trust and
•Goodwill
•Price offers promises
•Positive word-of-mouth
•Customer services
•Lower costs for the firm
•Extras and perks, etc.

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Consumers Are Less Loyal - Why?

• Commoditization –
• Availability of
information • Insecurity
• Entitlement - • Time scarcity -

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Gifting Behavior
Gifting is an act of symbolic
communication, with explicit and implicit
meanings ranging from congratulations and
love, to regret, obligation, and dominance.

16-38
Table 16.9 Five Giver-Receiver Gifting
Subdivisions

RECEIVES
“OTHER”
GIVERS INDIVIDUAL GROUP SELF*
Interpersonal Intercategory Intrapersonal
INDIVIDUAL
gifting gifting gifting
Intercategory Intergroup Intragroup
GROUP
gifting gifting gifting

*This “SELF” is either singular self (“me”) or plural (“us”).

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Table 16.12 Reported Circumstances
and Motivations for Self-Gift Behavior

CIRCUMSTANCES MOTIVATIONS

Personal accomplishment To reward oneself


Feeling down To be nice to oneself
Holiday To cheer up oneself
Feeling stressed To fulfill a need
Have some extra money To celebrate
Need To relieve stress
Had not bought for self in a while To maintain a good feeling
Attainment of a desired goal To provide an incentive toward a goal
Others Others

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Gifting Subdivisions

Intergroup Intercategory
Gifting Gifting

Intragroup Interpersonal
Gifting Gifting

Intrapersonal
Gifting

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Table 16.13 Gifting Relationships
GIFTING
RELATIONSHIP DEFINITION EXAMPLE
Intergroup A group giving a gift to A Christmas gift from one
another group family to another family
Intercategory An individual giving a gift to a A group of friends chips in
group or a group giving a gift to buy a new mother a baby
to an individual gift
Intragroup A group giving a gift to itself A family buys a VCR for
or its members itself as a Christmas gift
Interpersonal An individual giving a gift to Valentine’s Day chocolates
another individual presented from a boyfriend
to a girlfriend
Intrapersonal Self-gift A woman buys herself
jewelry to cheer herself up

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