1. Consumer Behavior, Ninth Edition Schiffman & Kanuk Copyright 2007 by Prentice Hall Chapter 16 Consumer Decision Making and Beyond

2. 16 - 2 Copyright 2007 by Prentice Hall Chapter Outline Levels of Consumer Decision Making Models of Consumer Decision Making Consumer Gifting Behavior Relationship Marketing

3. 16 - 3 Copyright 2007 by Prentice Hall Levels of Consumer Decision Making Extensive Problem Solving –A lot of information needed –Must establish a set of criteria for evaluation Limited Problem Solving –Criteria for evaluation established –Fine tuning with additional information Routinized Response Behavior –Usually review what they already know

4. 16 - 4 Copyright 2007 by Prentice Hall This Site Helps You Search and Establish Criteria for Choosing a Doctor weblink

5. 16 - 5 Copyright 2007 by Prentice Hall Ads often appeal to consumers who are looking for information to help them evaluate products.

6. 16 - 6 Copyright 2007 by Prentice Hall Models of Consumers: Four Views of Consumer Decision Making An Economic View A Passive View A Cognitive View An Emotional View

7. 16 - 7 Copyright 2007 by Prentice Hall Discussion Questions How are the four models of consumer decision making similar? How do they differ

8. 16 - 8 Copyright 2007 by Prentice Hall Goal Setting and Pursuit Figure 16.1

9. 16 - 9 Copyright 2007 by Prentice Hall A Simple Model of Consumer Decision Making Figure 16-2

10. 16 - 10 Copyright 2007 by Prentice Hall Discussion Question What types of sociocultural inputs would influence the purchase of a: –Plasma TV –Hybrid vehicle –Sugar-free ice cream

11. 16 - 11 Copyright 2007 by Prentice Hall The Process of Consumer Decision Making Need Recognition Prepurchase Search Evaluation of Alternatives

12. 16 - 12 Copyright 2007 by Prentice Hall Need Recognition Usually occurs when consumer has a “problem” Need recognition styles –Actual state –Desired state

13. 16 - 13 Copyright 2007 by Prentice Hall Prepurchase Search Begins with internal search and then moves to external search The impact of the Internet Search may be personal or impersonal

14. 16 - 14 Copyright 2007 by Prentice Hall 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

15. 16 - 15 Copyright 2007 by Prentice Hall The Evoked Set Figure 16-3

16. 16 - 16 Copyright 2007 by Prentice Hall 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

17. 16 - 17 Copyright 2007 by Prentice Hall Consumer Decision Rules Compensatory Noncompensatory –Conjunctive Decision Rule –Disjunctive Decision Rule –Lexicographic Rule

18. 16 - 18 Copyright 2007 by Prentice Hall Compensatory Decision Rules A type of decision rule in which a consumer evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score.

19. 16 - 19 Copyright 2007 by Prentice Hall Non- compensatory Decision Rules A type of consumer decision rule by which positive evaluation of a brand attribute does not compensate for a negative evaluation of the same brand on some other attribute.

20. 16 - 20 Copyright 2007 by Prentice Hall Conjunctive Decision Rule A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each attribute evaluated. Brands that fall below the cutoff point on any one attribute are eliminated from further consideration.

21. 16 - 21 Copyright 2007 by Prentice Hall Disjunctive Rule A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each relevant product attribute.

22. 16 - 22 Copyright 2007 by Prentice Hall Lexicographic Rule A noncompensatory decision rule - consumers first rank product attributes in terms of importance, then compare brands in terms of the attribute considered most important.

23. 16 - 23 Copyright 2007 by Prentice Hall Affect Referral Decision Rule A simplified decision rule by which consumers make a product choice on the basis of their previously established overall ratings of the brands considered, rather than on specific attributes.

24. 16 - 24 Copyright 2007 by Prentice Hall 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

25. 16 - 25 Copyright 2007 by Prentice Hall The Decision Process for Functionally Illiterate Consumers Figure 16-4

26. 16 - 26 Copyright 2007 by Prentice Hall 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

27. 16 - 27 Copyright 2007 by Prentice Hall There Are a Growing Number of Web Sites to Help Consumers Choose Products web link

28. 16 - 28 Copyright 2007 by Prentice Hall 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

29. 16 - 29 Copyright 2007 by Prentice Hall 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

30. 16 - 30 Copyright 2007 by Prentice Hall 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

31. 16 - 31 Copyright 2007 by Prentice Hall 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.

32. 16 - 32 Copyright 2007 by Prentice Hall Output of Consumer Decision Making Purchase behavior Postpurchase evaluation

33. 16 - 33 Copyright 2007 by Prentice Hall Purchase Behavior Three types of behavior –Trial purchases –Repeat purchases –Long-term commitment

34. 16 - 34 Copyright 2007 by Prentice Hall Postpurchase Evaluation Actual Performance Matches Expectations –Neutral Feeling Actual Performance Exceeds Expectations –Positive Disconfirmation of Expectations Performance Is Below Expectations –Negative Disconfirmation of Expectations

35. 16 - 35 Copyright 2007 by Prentice Hall This article in Cargo is designed to help a reader reduce their postpurchase depression.

36. 16 - 36 Copyright 2007 by Prentice Hall Discussion Question What are four ways that consumers reduce postpurchase dissonance? How can marketers work to help consumers reduce the dissonance?

37. 16 - 37 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.

38. 16 - 38 Copyright 2007 by Prentice Hall An Increasing Number of Gift Purchases Are Now Made Online weblink

39. 16 - 39 Copyright 2007 by Prentice Hall Table 16.13 Reported Circumstances and Motivations for Self-Gift Behavior CIRCUMSTANCES Personal accomplishment Feeling down Holiday Feeling stressed Have some extra money Need Had not bought for self in a while Attainment of a desired goal Others MOTIVATIONS To reward oneself To be nice to oneself To cheer up oneself To fulfill a need To celebrate To relieve stress To maintain a good feeling To provide an incentive toward a goal Others

40. 16 - 40 Copyright 2007 by Prentice Hall Table 16.14 Gifting Relationships GIFTING RELATIONSHIP Intergroup Intercategory EXAMPLEDEFINITION A Christmas gift from one family to another family A group giving a gift to another group A group of friends chips in to buy a new mother a baby gift An individual giving a gift to a group or a group giving a gift to an individual Intragroup Interpersonal A family buys a VCR for itself as a Christmas gift A group giving a gift to itself or its members Valentine’s Day chocolates presented from a boyfriend to a girlfriend An individual giving a gift to another individual IntrapersonalA woman buys herself jewelry to cheer herself up Self-gift

41. 16 - 41 Copyright 2007 by Prentice Hall A Simple Model of Consumption Figure 16-5

42. 16 - 42 Copyright 2007 by Prentice Hall Relationship Marketing Marketing aimed at creating strong, lasting relationships with a core group of customers by making them feel good about the company and by giving them some kind of personal connection with the business.

43. 16 - 43 Copyright 2007 by Prentice Hall Proctor & Gamble Builds Relationships with Their Brands

44. 16 - 44 Copyright 2007 by Prentice Hall State Farm Insurance stresses relationship marketing in their advertising.