The Consumer Decision Process CHAPTER 3 Roger D. Blackwell, Paul W. Miniard, and James F. Engel, Consumer Behavior, Ninth Edition Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Consumer Decision Process Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Consumer Decision Process How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

The Consumer Decision Process P&G used consumer information regarding various decision process stages to create and market Dryel Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Stages Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Divestment Pre-purchase Evaluation of Alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model Need Recognition Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Need Recognition Need: the difference between what a person perceives to be the ideal versus the actual state of affairs Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Need Recognition Need: the difference between what a person perceives to be the ideal versus the actual state of affairs Consumers recognize needs and seek to fulfill them, or sometimes seek to solve their problems Knowing consumers’ needs, helps firms develop products and marketing programs to reach them more effectively (itch and scratch) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Need Recognition Communicating a need and raising consumer awareness of need or problem Special needs of baby teeth Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Need Recognition Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Individual Differences -Consumer Resources -Motivation -Knowledge -Attitudes -Personality, Values, and Lifestyle Environmental Influences -Culture -Social Class -Personal Influence -Family -Situation MEMORYMEMORY Need Recognition

Consumer Decision Process Model Need Recognition Search for Information Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Compre- hension Acceptance Retention Exposure CDP Model

Search For Information Internal search: retrieving know- ledge from memory External search: collecting informa- tion from peers, family, and the marketplace Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Search For Information Internal search: retrieving know- ledge from memory External search: collecting informa- tion from peers, family, and the marketplace Search may be passive as consumers become more receptive to information around them, or consumers can engage in active search behavior Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Search For Information Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Need Recognition Search External Search Internal Search MEMORYMEMORY Individual Differences Environmental Influences

Search: Sources of Information Marketer Dominated Non-Marketer Dominated Stimuli Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Information Processing Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. MEMORYMEMORY Attention Comprehension Acceptance Retention Exposure Stimuli: -Marketer Dominated -Nonmarketer Dominated

-Family and peers -Publications -Television ads -Internet or website -In-store displays or salespersons -Shopping Search: Sources of Information Marketer Dominated Non-Marketer Dominated Stimuli Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Search: Information Processing Exposure Attention Comprehension Acceptance Retention Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Compre- hension Acceptance Retention Exposure CDP Model Stimuli

Pre-purchase Evaluation of Alternatives The process of evaluating alter- natives identified from search, which leads to product or brand most likely to satisfy the consumer Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives The process of evaluating alter- natives identified from search, which leads to product or brand most likely to satisfy the consumer Can use new or preexisting evalu- ations stored in memory Evaluative criteria: standards and specifications used to compare different products and brands Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Aunt Jemima maple syrup focuses on the evaluative criteria of thickness in this advertisement

Consumer Decision Process Model Purchase Need Recognition Search for Information Pre-purchase Evaluation of Alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Purchase Need Recognition Attention Compre- hension Acceptance Retention Exposure CDP Model Stimuli

Purchase Purchase decisions involve choosing a form of retailing, a specific retailer, and a particular product and brand Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

bebe, a retailer of up- scale clothing uses advertising to influence consumers to buy from its stores and purchase its brand Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Purchase Purchase decisions involve choosing a form of retailing, a specific retailer, and a particular product and brand Purchase intention can change during the purchase stage--it can be influenced by factors such as in- store promotions, discounts, or stock-outs Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Prepurchase Evaluation of Alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Purchase Consumption Need Recognition Attention Compre- hension Acceptance Retention Exposure CDP Model Stimuli

Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed Consumers may use products as intended or as they choose, especially when instructions are not included or not read How consumers use a product affects satisfaction with product Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumption Appealing to consumers with easy-to- use positioning Consumption- oriented product design and benefit Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Pre-purchase Evaluation of Alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives Search Stimuli Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Purchase Consumption Post-consumption Evaluation Need Recognition External Search Attention Compre- hension Acceptance Retention Exposure SatisfactionDissatisfaction CDP Model

Post-consumption Evaluation Satisfaction: when expectations are met or exceeded by perceived performance Dissatisfaction: when performance falls short of expectations Consumption is an important determinant of satisfaction Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Post-consumption Evaluation Satisfaction: when expectations are met or exceeded by perceived performance Dissatisfaction: when performance falls short of expectations Consumption is an important determinant of satisfaction Cognitive dissonance: questioning decision (post-purchase regret) Emotion affects evaluation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Divestment Pre-purchase Evaluation of Alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Divestment How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling Consumers’ environmental concerns about divestment may affect product choice Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Divestment Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Mentadent sells toothpaste in a dual- chambered pump, which can be filled with refills and reused rather than thrown away each time

Divestment How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling Consumers’ environmental concerns about divestment may affect product choice Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Pre-purchase Evaluation of Alternatives Search Stimuli Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Purchase Consumption Post-consumption Evaluation Divestment Need Recognition External Search Attention Compre- hension Acceptance Retention Exposure SatisfactionDissatisfaction CDP Model

Variables Shaping the Decision Process Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Variables Shaping the Decision Process Individual Differences: Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Variables Shaping the Decision Process Environmental Differences: Culture: values, ideas, artifacts, and symbols that help individuals interpret, communicate, and evaluate as members of society Social Class Family Personal Influence Situation Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Variables Shaping the Decision Process Psychological Processes Influencing Consumer Behavior Information processing Learning Attitude and behavior change Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Consumer Decision Process Continuum Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Midrange Problem Solving Limited Problem Solving (LPS) Extended Problem Solving (EPS) High Low Degree of Complexity

Consumer Decision Process Continuum: Repeat Purchases Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Midrange Problem Solving Habitual Problem Solving Extended Problem Solving High Low Degree of Complexity Limited Problem Solving

Types of Decision Processes Initial Purchase Extended Problem Solving (EPS): Often occurs with expensive items or can be fueled by doubts and fears Importance in making the “right decision” All seven consumer decision making stages are often activated Dissatisfaction is often vocal Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes Initial Purchase Limited Problem Solving (LPS): Consumers don’t have motivation, time, or resources to engage in EPS Little search and evaluation before purchase More common among low involvement or lower price items Often accompanied by a feeling of indifference toward choice Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes Repeat Purchase Repeated Problem Solving Habitual Decision Making Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes Repeat Purchase Impulse Buying Unplanned, spur-of-the-moment action triggered by in-store display or promotion (least complex form of LPS) Repeated Problem Solving Habitual Decision Making Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Types of Decision Processes Repeat Purchase Impulse Buying Unplanned, spur-of-the-moment action triggered by in-store display or promotion (least complex form of LPS) Variety Seeking Brand shifts Can be triggered because bored with current brand or because of special offer Repeated Problem Solving Habitual Decision Making Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Nestle appeals to consumers’ variety seeking behavior by promoting a variety of desserts for each day of the week (variety without brand switch) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent Degree of Involvement (High-Low) Personal Factors (self-image, health, beauty or physical condition) Product Factors (is there perceived risk in purchasing a particular brand or product?) Situational Factors (is the product purchased for personal use or as a gift?) Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent Degree of Involvement (High-Low) Perceptions of differences among alternatives Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made? Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Factors Influencing Problem Solving Extent Time Availability How much time is available to devote to solving the problem? How quickly does the decision need to be made? Consumers’ Mood State How people feel at a particular moment of time Mood can reduce or increase length and complexity of decision process Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.

Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc Sea Harbor Drive Orlando, Florida Copyright© 2001 by Harcourt, Inc. All rights reserved.