1. MKTG 407 Consumer Decision-Making Processes Chapter 7

2. Steps in Consumer Decision-Making
1. Problem Recognition
2. Information Search
All steps affected by:
Cultural
Social
Individual &
Psychological Factors
3. Evaluate Alternatives
4. Product Choice
5. Post Purchase Behavior
An Illustration with Ideas
for Nuggets/Underhill PPTs

3. Exercise Think of a recent consumer decision
Walk through five steps of consumer decision-making process
Identify at least one factor that affected your response at each stage
Discuss with person sitting next to you

4. Steps in Consumer Decision-Making
1. Problem Recognition
A difference between current and desired or ideal state
Can be driven by internal (hunger) or external (friends) factors
Can be driven by future goals/aspirations, which rest on our values
Can be influenced by recent events/life transitions (from college to the “real world”)
“Ideal states” can become distorted and detrimental (Ad1, Ad2) 4

5. Steps in Consumer Decision-Making
2. Information Search
Searching for appropriate information to make a decision
Internal sources
Memory for…
Brands
Attributes
Evaluations
Experiences 5

6. Steps in Consumer Decision-Making
2. Information Search
Brand recall enhanced when…
Brand is prototypical
Brand is familiar
Brand is linked with goals/usage situations
Brand attitude is favorable
Linked with retrieval cues
Application to Starbucks Via? 6

7. Steps in Consumer Decision-Making
2. Information Search
Attribute recall enhanced when attribute is…
Accessible (strongest associative links)
Diagnostic (allows consumer to distinguish one product from another); negative more diagnostic than positive, so marketers try hard to avoid
Salient (e.g., shape of an iPod)
Has “attribute determinance” (attribute is both diagnostic and salient)
Vivid
Linked with goals 7

8. Steps in Consumer Decision-Making
2. Information Search
Evaluation recall
While attributes can be recalled, often we forget details, but retain a general evaluation (e.g., of brand)
This is why creating favorable brand image is important beyond specific attributes
Experience recall
When product linked with an experience, easier to recall 8

9. Steps in Consumer Decision-Making
2. Information Search
External sources
Common sources for external search
Retailer
Media
Friends
Independent (neutral) sources: CNET
Experiential (trials, test drives)
Search enlarges when perceived risk & interest are high, and confidence, knowledge, experience low 9

10. Forming a Consideration Set of Brand Choice Alternatives
Golden Corral – Baby Back Ribs
Golden Corral – Comfort Food

11. Steps in Consumer Decision-Making
3. Evaluate Alternatives
4. Product Choice
Info search  “evoked (consideration) set”
Once consideration set established, a variety of factors can influence how consumers evaluate and choose among alternatives 11

12. Formal Models of Information Integration Processes

13. Role of Heuristics in Consumer Decision-Making
Simple “if . . ., then . . .” propositions (rules of thumb) that connect an event with an appropriate action
Heuristics particularly important in
Search
Evaluation
Choice

15. Steps in Consumer Decision-Making
5. Post Purchase Behavior
Post-purchase evaluation
Satisfaction based on expectations
Larger gap, less satisfaction
Reduce post-decisional regret (cog. dissonance)
Other post-purchase behaviors
Repeat purchase
Good vs. bad word of mouth 15