1. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

2. 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, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. CHAPTER 3 The Consumer Decision Process

4. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process

5. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process How do consumers make purchase decisions? How do firms use this information to develop new products and marketing programs?

6. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process The CDP represents a road map of consumers’ minds that marketers and managers can use to help guide product mix, communications, and sales strategies

7. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. The Consumer Decision Process P&G used consumer information regarding various decision process stages to create and market Dryel By permission of Drexel.

8. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Stages

9. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Divestment Pre-purchase Evaluation of Alternatives

10. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Need Recognition

11. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition An individual senses a difference between what he or she perceives to be the ideal versus the actual state of affairs

12. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition Consumers recognize needs and seek to fulfill them, or seek a product to solve their problems Knowing consumers’ needs helps firms develop products and marketing programs to reach them more effectively

13. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Need Recognition Individual Differences - Consumer Resources - Motivation - Knowledge - Attitudes - Personality, Values, and Lifestyle Environmental Influences - Culture - Social Class - Personal Influence - Family - Situation MEMORYMEMORY Need Recognition

14. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Need Recognition Search for Information

15. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli

16. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search for Information Internal search: retrieving know- ledge from memory or genetic tendencies External search: collecting informa- tion from peers, family, and the marketplace

17. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search for Information Search may be passive as consumers become more receptive to information around them, or active if they engage in search behavior Search refers to a receptivity of information that solves problems or needs rather than a search for specific products

18. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search for Information Need Recognition Search External Search Internal Search MEMORYMEMORY Individual Differences Environmental Influences

19. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search: Sources of Information Marketer Dominated Non-Marketer Dominated Stimuli

20. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. - Advertising - Salespeople - Infomercials - Websites - Point-of-sales materials Search: Sources of Information Marketer Dominated

21. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. - Friends - Family - Opinion leaders - Media Search: Sources of Information Non-Marketer Dominated Stimuli

22. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Information Processing As a consumer is exposed to information from external search, they begin to process the stimuli

23. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Information Processing MEMORYMEMORY Attention Comprehension Acceptance Retention Exposure Stimuli: - Marketer Dominated - Nonmarketer Dominated

24. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Search: Information Processing Exposure Attention Comprehension Acceptance Retention

25. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Ads That Create a Brand Image

26. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

27. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli

28. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives The process of evaluating alternatives identified from search, which leads to a product or brand selection most likely to satisfy the consumer

29. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Can use new or preexisting evaluations stored in memory Evaluative criteria: standards and specifications used to compare different products and brands Alternative can be considered on attributes that are salient or determinant

30. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Salient attributes such as price and reliability are important to the consumer Determinant attributes such as a car’s style and finish usually determine which brand or store consumers choose

31. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Pre-purchase Evaluation of Alternatives

32. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase

33. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices

34. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Purchase Acquisition of the product that involves choosing a specific retailer, and in-store choices Purchase intention can change during the purchase stage—it can be influenced by factors such as in-store promotions, discounts, salespeople, failure to find the product, or lack of financial resources

35. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Pre-purchase Evaluation of Alternatives

36. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase Consumption

37. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed

38. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption The process of using the product or service purchased Consumption can either occur immediately or be delayed How consumers use a product affects satisfaction with product How carefully consumers use or maintain a product also determines how long it will last before another purchase is needed

39. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. An Emotional Appeal in Product Consumption

40. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Pre-purchase Evaluation of Alternatives

41. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase Consumption Post-consumption Evaluation External Search SatisfactionDissatisfaction

42. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-consumption Evaluation Consumption is an important determinant of satisfaction Satisfaction: when consumers’ expectations are matched by perceived performance Dissatisfaction: when experiences and performance fall short of expectations

43. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Post-Consumption Evaluation Cognitive dissonance: questioning the purchase decision (post- purchase regret) Usually, the higher the price, the higher the level of cognitive dissonance Emotion strongly affects the evaluation of a product or transaction

44. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Model Purchase Need Recognition Search for Information Consumption Post-consumption Evaluation Divestment Pre-purchase Evaluation of Alternatives

45. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Pre-purchase Evaluation of Alternatives Search Internal Search MEMORYMEMORY Individual Differences Environ- mental Influences Need Recognition Attention Comprehension Acceptance Retention Exposure CDP Model Stimuli Purchase Consumption Post-consumption Evaluation External Search SatisfactionDissatisfaction Divestment

46. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Divestment How consumers dispose of the packaging or product after use Options include: Disposal Remarketing or reselling Recycling

47. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How Organizations Use the CDP Model

48. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Identify relationships and variables that affect consumer decision making Identify topics for additional research Develop and implement marketing mix strategies

49. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Individual Differences: Demographics, psychographics, values, and personality Consumer resources Motivation Knowledge Attitudes

50. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Culture Social Class Family Personal Influence Situation behaviors

51. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Culture: values, ideas, artifacts, and symbols that help individuals interpret, communicate, and evaluate as members of society

52. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Social Class: division within society composed of individuals sharing similar values, interests, and behaviors

53. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Family: often the primary decision making unit with a complex and varying pattern or roles and functions

54. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Personal Influence: our behaviors are often affected by those with whom we closely associate

55. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Environmental Differences: Situation behaviors: as situations change, so does the individual’s behavior

56. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Variables Shaping the Decision Process Psychological Processes Influencing Consumer Behavior Information processing Learning Attitude and behavior change

57. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes

58. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Continuum Midrange Problem Solving Limited Problem Solving (LPS) Extended Problem Solving (EPS) High Low Degree of Complexity

59. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Decision Process Continuum: Repeat Purchases Midrange Problem Solving Habitual Problem Solving Extended Problem Solving High Low Degree of Complexity Limited Problem Solving

60. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Extended Problem Solving (EPS): Problem solving of a higher degree of complexity that influences consumers actions

61. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 choice” All seven consumer decision making stages are often activated Dissatisfaction is often vocal

62. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Limited Problem Solving (LPS): Problem solving of a lower degree of complexity that influences consumers’ actions

63. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Need recognition leads to buying action; extensive search and evaluation often avoided as the purchase is not of great importance

64. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Initial Purchase Midrange Problem Solving: Many decisions occur along the middle of the continuum Decisions are made with a minimal amount of time and only moderate deliberation

65. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Repeated Problem Solving Habitual Decision Making

66. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Impulse Buying Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion (least complex form of LPS) Repeated Problem Solving Habitual Decision Making

67. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Impulse Buying Unplanned, spur-of-the-moment action triggered by product display or point of sale promotion Least complex form of LPS but differs in some important ways Repeated Problem Solving Habitual Decision Making

68. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Decision Processes Repeat Purchases Impulse Buying Variety Seeking Consumers may be satisfied with the present brand but still engage in brand switching Can be triggered because bored with current brand or because of special offer Repeated Problem Solving Habitual Decision Making

69. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent

70. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent Degree of Involvement: Level of perceived personal importance and interest evoked by a stimulus in a specific situation (High-Low)

71. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 and using a particular brand or product?) Situational Factors (is the product purchased for personal use or as a gift?)

72. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Factors Influencing Problem Solving Extent Degree of Involvement (High-Low) Perceptions of differences among alternatives

73. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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?

74. COPYRIGHT © 2006 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. 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 Mood can reduce or increase length and complexity of decision process