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Chapter 16 Consumer Decision Making and Beyond

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1 Chapter 16 Consumer Decision Making and Beyond
Copyright 2007 by Prentice Hall

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

3 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 Copyright 2007 by Prentice Hall

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

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

6 Models of Consumers: Four Views of Consumer Decision Making
An Economic View Rational Decision A Passive View irrational & impulse decision A Cognitive View satisfactory desicion An Emotional View fear joy Copyright 2007 by Prentice Hall

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

8 The Process of Consumer Decision Making
Need Recognition Prepurchase Search Evaluation of Alternatives Copyright 2007 by Prentice Hall

9 Copyright 2007 by Prentice Hall
Need Recognition Usually occurs when consumer has a “problem” Need recognition styles Actual state Desired state Copyright 2007 by Prentice Hall

10 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 Copyright 2007 by Prentice Hall

11 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 Copyright 2007 by Prentice Hall

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

13 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 Copyright 2007 by Prentice Hall

14 Consumer Decision Rules
Compensatory Noncompensatory Conjunctive Decision Rule Disjunctive Decision Rule Lexicographic Rule Copyright 2007 by Prentice Hall

15 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. Copyright 2007 by Prentice Hall

16 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. Copyright 2007 by Prentice Hall

17 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. Copyright 2007 by Prentice Hall

18 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. Copyright 2007 by Prentice Hall

19 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. Copyright 2007 by Prentice Hall

20 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. Copyright 2007 by Prentice Hall

21 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 Copyright 2007 by Prentice Hall

22 Issues in Alternative Evaluation
Evoked Set Criteria used for evaluating brands Consumer decision rules and their application Decisions by functionally illiterate population Lifestyles as a consumer decision strategy Incomplete information Series of decisions Decision rules and marketing strategy Copyright 2007 by Prentice Hall

23 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 Copyright 2007 by Prentice Hall

24 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 Copyright 2007 by Prentice Hall

25 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 Copyright 2007 by Prentice Hall

26 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. Copyright 2007 by Prentice Hall

27 Output of Consumer Decision Making
Purchase behavior Postpurchase evaluation Copyright 2007 by Prentice Hall

28 Copyright 2007 by Prentice Hall
Purchase Behavior Three types of behavior Trial purchases Repeat purchases Long-term commitment Copyright 2007 by Prentice Hall

29 Postpurchase Evaluation
Actual Performance Matches Expectations Neutral Feeling Actual Performance Exceeds Expectations Positive Disconfirmation of Expectations Performance Is Below Expectations Negative Disconfirmation of Expectations Copyright 2007 by Prentice Hall

30 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. Copyright 2007 by Prentice Hall

31 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. Copyright 2007 by Prentice Hall

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