Customer decision process Problem Recognition Information Search Alternative Evaluation Choice and Purchase Post-purchase Experience

Problem Recognition Problem or solution stimuli (trigger) Internal or external stimuli Need state or Want state recognized Does marketing create needs and wants?

Information Search What level of information does the customer start with? How much does s/he realize is unknown? Awareness set (A); evoked set (E); consideration set (C). A E C

More on Info Search Sources of information –Marketer sources –Nonmarketer sources Search strategies –Routine problem solving –Limited problem solving –Extended problem solving

Still More on Info Search Search strategies – systematic vs. heuristic –Heuristics – short-cuts, rules-of-thumb For instance: purchase a known brand Amount of search –Involvement: importance –Perceived risk –Familiarity and expertise –Time pressure –Functional vs. expressive product nature –Information overload

Alternative Evaluation Compensatory vs. non-compensatory models –Compensatory used in extended problem solving –Non-compensatory used in routine or limited problem solving, or as a first stage in a two stage process

Choice and Purchase Choice identification => Purchase intent => Purchase implementation Why would a consumer delay or not purchase the alternative that is chosen?

Post Purchase Experience Decision confirmation and cognitive dissonance Evaluation of experience Satisfaction or dissatisfaction -- expectations Future response

Types of Households

“Traditional” Family Life Cycle Bachelor Stage Couple Stage Full- Nest Empty- Nest Survivor

Why does role specialization occur in household decisions? Time pressures – who has time to … Household roles – decisions fit within an established division of activities Experience, expertise Preferences – “I like to do the grocery shopping.” Negotiated division of activities

Patterns of Joint Decisions Autonomous decision by wife or husband Decision dominated by wife Decision dominated by husband Syncratic decision

Factors influencing inter-spousal roles Gender role orientation Spouse employment status Stage in family life cycle Time pressure Importance of purchase Socioeconomic development of population

Influence of children Influence on decisions for child’s consumption – e.g. cereal, clothing – purchased by parent Influence on decisions for joint household consumption – e.g. TV, car, house, etc. Direct purchase, using own money, for personal consumption (or gifts)

Development of Roles Consumer Socialization Intergenerational influence –Parent to child learning –Reverse influence –Across households Relative influence affected by closeness of family relationship; authority relationship

Conflict Shared roles causes conflict Distributed roles Differences in goals (market values) or perceptions (evaluation of alternatives) Resolution strategies: Problem solving – “I need this CD for when we go on trips.” Persuasion – “You’ll like it, too.” Bargaining – “I won’t complain about homework anymore.” Politicking – “Mom said I could get it.”