1. Consumer Decision Making
Chapter 7
Consumer Decision Making

2. Introduction Decisions Model of consumer decision making
Requires a choice between different behaviors
Marketers are interested in consumers’ purchase behaviors
Model of consumer decision making
All aspects of affect and cognition are involved

3. Introduction cont.
The integration process is the key process by which knowledge is combined to evaluate two or more alternative behaviors and select one
The outcome is a choice, represented cognitively as a behavioral intention (BI)

4. Introduction cont.

5. Decision Making as Problem Solving
Consumer decision making is a goal-directed, problem-solving process
Consumer problem solving is a continuous stream of interactions among
Environmental factors
Cognitive and affective processes
Behavioral actions

6. Decision Making as Problem Solving cont.
Generic model of consumer problem solving

7. Decision Making as Problem Solving cont.
Five basic stages or subprocesses
Problem recognition
Search for alternative solutions
Evaluation of alternatives
Purchase
Postpurchase use and reevaluation of chosen alternative

8. Decision Making as Problem Solving cont.
Generic model often provides an imperfect account of actual problem-solving processes
Actual consumer problem solving seldom proceeds in a linear sequence
Actual problem-solving processes involve multiple, continuous interactions among consumers’ cognitive processes, their behaviors, and aspects of the physical and social environment
Most problem-solving processes actually involve multiple problems and multiple decisions

9. Elements of Problem Solving
Three basic elements of problem solving
Problem representation
Serves as a decision frame
End goals
A set of subgoals organized into a goal hierarchy
Relevant product knowledge

10. Elements of Problem Solving cont.

11. Elements of Problem Solving cont.
Choice alternatives
Consideration set
Choice criteria
Only discriminant consequences can be used as choice criteria
The relevant choice criteria for a decision depends, in part, on the particular set of choice alternatives under consideration
Vary in evaluation

12. Elements of Problem Solving cont.
Integration process
Perform two essential tasks
The choice alternatives must be evaluated in terms of the choice criteria
One of the alternatives must be selected
Two types of integration procedures can account for these evaluation and choice processes
Formal integration strategies
Heuristics

13. Elements of Problem Solving cont.
Formal models of the integration process involved in evaluating and choosing among choice alternatives

14. Elements of Problem Solving cont.
Compensatory integration processes
Multiattribute model
Noncompensatory integration processes
Conjunctive
Disjunctive
Lexicographic
Elimination by aspects
Combination processes

15. Elements of Problem Solving cont.
Consumer heuristics
Search
Evaluation
Choice
Decision plans
Vary in their specificity and complexity
Concern intentions to perform particular behaviors in highly defined situation
Increase the likelihood that the intended behaviors will be performed

16. Problem-Solving Processes in Purchase Decisions
Extensive decision making
Usually involves a substantial amount of search behavior
Involves several choice decisions and substantial cognitive and behavioral effort
Likely to take rather long periods

17. Problem-Solving Processes in Purchase Decisions cont.
Limited decision making
Amount of effort ranges from low to moderate
Involves less search for information than extensive decision making
Choices typically carried out fairly quickly
Routinized choice behavior
Requires very little cognitive capacity or conscious control

18. Problem-Solving Processes in Purchase Decisions cont.
Effects of end goals
Optimize satisfaction
Prevention
Resolve conflict
Escape
Maintenance (satisfaction)

19. Problem-Solving Processes in Purchase Decisions cont.
Effects of goal hierarchies
Provides useful structure
Effects of involvement and knowledge
Low involvement, low knowledge
Low involvement, high knowledge
High involvement, high knowledge
High involvement, low knowledge

20. Problem-Solving Processes in Purchase Decisions cont.
Environmental effects
Four types of disruptive events, or interrupts
Unexpected information
Prominent environmental stimuli
Affective states
Conflicts
Goal
Approach-approach

21. Problem-Solving Processes in Purchase Decisions cont.
Avoidance-avoidance
Approach-avoidance
Interrupts
Implications for marketing strategy
Routinized choice behavior
Limited decision making
Extensive decision making

22. Summary
Examined consumers’ decision-making processes as they choose between alternative behaviors
Learned about the primary focus on purchase choices of products and brands
Discussed how to treat decision-making as a problem-solving process in which the consumers’ cognitive representation of the problem is key to understanding the process

23. Summary Considered what is involved in problem representation
Examined how consumers’ problem-solving processes vary widely
Described how consumers’ end goals, goal hierarchies, product knowledge, and involvement affect the problem-solving process

24. Summary
Discussed how various aspects of the decision environment affect the problem-solving process
Drew implications of these concepts for marketing strategy