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    Consumer Decision Making and Beyond MKT 344 Lecturer NNA: Consumer Behavior, Ninth Edition Schiffman & Kanuk

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    Abdullah Al Muhit

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    Consumer Decision Making and Beyond MKT 344 Lecturer NNA: Consumer Behavior, Ninth Edition Schiffman & Kanuk

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    Abdullah Al Muhit
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    19 views42 pages

    Consumer Decision Making and Beyond MKT 344 Lecturer NNA: Consumer Behavior, Ninth Edition Schiffman & Kanuk

    Uploaded by

    Abdullah Al Muhit

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    Consumer Behavior,

    Ninth Edition

    Schiffman & Kanuk


    Chapter 15
    Consumer Decision Making and Beyond
    MKT 344 Lecturer NNA
    Chapter Outline

     Levels of Consumer Decision Making


     Models of Consumer Decision Making
     Consumer Gifting Behavior
     Relationship Marketing
    Levels of Consumer Decision Making

     Extensive Problem Solving


     when consumers have no established criteria for
    evaluating a product category or specific brand in
    that category.
     A lot of information needed
     Must establish a set of criteria for evaluation
     E.g. replacing an old tube tv with hdtv
    Levels of Consumer Decision Making

     Limited Problem Solving


     consumers already have established the basic
    criteria for evaluating the product category and
    the various brands in the category
     Criteria for evaluation established
     Fine tuning with additional information
     E.g. replacing an old laptop with a new one
    Levels of Consumer Decision Making

     Routinized Response Behavior


     consumers have experience with the product
    category and a well-established set of criteria with
    which to evaluate the brands they are
    considering.
     Usually review what they already know
    Ads often appeal
    to consumers who
    are looking for
    information to
    help them
    evaluate
    products.

    Copyright 2007 by Prentice Hall


    Models of Consumers: Four Views of
    Consumer Decision Making

     An Economic View:
     to behave rationally in the economic sense, a
    consumer would have to
    ▪ Be aware of all available product alternatives
    ▪ Be capable of correctly ranking each alternative in
    terms of its benefits and disadvantages
    ▪ Be able to identify the one best alternative
     Follows the principle of maximum utility based on
    diminishing marginal utility
    Models of Consumers: Four Views of
    Consumer Decision Making
     Criticisms of Economic
    View:
     People are limited by their
    ▪ existing skills and habits
    ▪ existing values and goals
    ▪ the extent of their knowledge
    Models of Consumers: Four Views of
    Consumer Decision Making

     A Passive View
     Consumers are submissive to promotional efforts
     Consumers are perceived as impulsive and
    irrational purchasers
     Consumers can be manipulated by skilled sales
    people
    Models of Consumers: Four Views of
    Consumer Decision Making

     Criticisms of the Passive View


     Fails to recognize that consumers play an equal or
    dominant role in many buying situation
    ▪ Impulsive decisions can’t be taken in every buying
    situation
    ▪ Sometimes customers prefer to go through information
    search, evaluation of alternative and select the product
    which serves the greatest satisfaction (i.e. conscious
    parents while picking baby foods)
    Models of Consumers: Four Views of
    Consumer Decision Making

     A Cognitive View
     Portrays consumers as thinking problem solvers or
    information processors
    ▪ Consumers gather sufficient information instead of all
    information
    ▪ Consumers tend to make a “satisfactory” decision
    instead of making a perfect decision
    Models of Consumers: Four Views of
    Consumer Decision Making

     An Emotional View
     Also called impulsive view
     Driven by consumer emotion and mood
     Rather than carefully searching and evaluating
    alternatives before buying, consumers are just as
    likely to have made many of these purchases on
    impulse because they were emotionally driven
    Discussion Questions

     How are the four models of consumer


    decision making similar?
     How do they differ
    A Simplified Model of Consumer Decision
    Making

    Copyright 2007 by Prentice Hall


    A Simplified Model of Consumer Decision
    Making

     Input:
     Marketing inputs
     Sociocultural inputs
    The Process of Consumer Decision
    Making
     Process:
     Need Recognition
     Pre-purchase Search
     Evaluation of Alternatives
     Psychological field
    Need Recognition

     Usually occurs when consumer has a


    “problem”
     Need recognition styles
     Actual state
     Desired state
    Prepurchase Search

     Begins with internal search and then moves


    to external search
     The impact of the Internet
     Search may be personal or impersonal
    Issues in Alternative Evaluation

     Evoked set
     Criteria used for evaluating brands
     Consumer decision rules and their application
     Decisions by functionally illiterate population
     Going online for decision-making assistance
     Lifestyles as a consumer decision strategy
     Incomplete information
     Series of decisions
     Decision rules and marketing strategy
    Issues in Alternative Evaluation

    All brands

    Evoked set Inept set Inert set


    Issues in Alternative Evaluation

     Evoked set/ consideration set


     Refers to the specific brands or models a consumer
    considers in making a purchase within a particular product
    category
     Inept set
     Consists of brands or models the consumer excludes from
    purchase consideration because they are felt to be
    unacceptable or they are seen as inferior
     Inert set
     Which consists of brands or models the consumer is
    indifferent toward because they are perceived as not
    having any particular advantages
    Issues in Alternative Evaluation

     Consumer decision rules


     Compensatory
     Noncompensatory
    ▪ Conjunctive Decision Rule
    ▪ Disjunctive Decision Rule
    ▪ Lexicographic Rule
    A type of decision
    rule in which a
    consumer evaluates
    each brand in terms
    Compensatory
    of each relevant
    Decision Rules
    attribute and then
    selects the brand with
    the highest weighted
    score.
    A type of consumer
    decision rule by which
    positive evaluation of a
    Non-compensatory
    brand attribute does
    Decision
    Rules
    not compensate for a
    negative evaluation of
    the same brand on
    some other attribute.
    A non-compensatory
    decision rule in which
    consumers establish a
    minimally acceptable
    cutoff point for each
    Conjunctive
    attribute evaluated.
    Decision Rule
    Brands that fall below
    the cutoff point on any
    one attribute are
    eliminated from further
    consideration.
    A noncompensatory
    decision rule in which
    consumers establish a
    minimally acceptable
    cutoff point for each
    Disjunctive Rule relevant product
    attribute. Brands that fall
    over the cutoff point on
    any one attribute are
    accepted from further
    consideration.
    A non-compensatory
    decision rule -
    consumers first rank
    product attributes in
    Lexicographic Rule terms of importance,
    then compare brands
    in terms of the attribute
    considered most
    important.
    A simplified decision rule
    by which consumers make
    a product choice on the
    Affect Referral basis of their previously
    Decision Rule established overall ratings
    of the brands considered,
    rather than on specific
    attributes.
    Issues in Alternative Evaluation

     Decisions by functionally illiterate population


    Issues in Alternative Evaluation

     Going online for decision-making assistance


    Issues in Alternative Evaluation

     Lifestyles as a consumer decision strategy


     Incomplete 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
    A Purchase Can Involve a Number of
    Decisions.

    When purchasing car, the buyer is


    involved in a number of decisions – the
    make, model, country of origin, the
    dealer, the financing, and different
    options.
    Output of Consumer Decision Making

     Purchase behavior
     Three types of behavior
    ▪ Trial purchases
    ▪ Repeat purchases
    ▪ Long-term commitment
    Postpurchase Evaluation

     Post-purchase evaluation
     Actual Performance Matches Expectations
    ▪ Neutral Feeling
     Actual Performance Exceeds Expectations
    ▪ Positive Disconfirmation of Expectations
     Performance Is Below Expectations
    ▪ Negative Disconfirmation of Expectations
    This article in
    Cargo is
    designed to
    help a reader
    reduce their
    postpurchase
    depression.

    Copyright 2007 by Prentice Hall


    Gifting Behavior

    Gifting is an act of symbolic communication,


    with explicit and implicit meanings ranging
    from congratulations and love, to regret,
    obligation, and dominance.
    An Increasing Number of Gift
    Purchases Are Now Made Online

    weblink
    A Simple Model of Consumption
    Figure 16-5
    Marketing aimed at
    creating strong, lasting
    relationships with a core
    group of customers by
    Relationship making them feel good
    Marketing about the company and
    by giving them some
    kind of personal
    connection with the
    business.
    Proctor & Gamble Builds Relationships
    with Their Brands
    State Farm
    Insurance stresses
    relationship
    marketing in their
    advertising.

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