CHAPTER
FIFTEEN
Consumer
Decision Making
and Beyond
Learning Objectives
1. To Understand What a Consumer Decision Is.
2. To Understand the Three Levels of Consumer
Decision Making.
3. To Understand Four Different Views or
Models of Consumer Decision Making.
4. To Understand in Detail the Model of
Consumer Decision Making Originally
Introduced in Chapter 1.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 2
Learning Objectives (continued)
5. To Understand the Nature and Scope of
Consumer Gift Giving.
6. To Understand the Significance of Consuming
and Possessing.
7. To Understand the Need for Relationship
Marketing.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 3
What Would a Pet Owner Need to Know in Order to
Make a Decision About Buying Pet Insurance?
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Chapter Fifteen Slide 4
Do I Need It? How Do I Get More
Information?
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Chapter Fifteen Slide 5
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 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 6
Models of Consumers: Four Views of Consumer
Decision Making
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•
•
•
An Economic View
A Passive View
A Cognitive View
An Emotional View
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 7
Discussion Questions
• How are the four models of consumer
decision making similar?
• How do they differ?
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Chapter Fifteen Slide 8
Consumer
Decision Making
Figure 15.3
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 9
Discussion Question
• What types of sociocultural inputs would
influence the purchase of a:
– Plasma TV
– Hybrid vehicle
– Sugar-free ice cream
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 10
Process - Need Recognition
• Usually occurs when consumer has a
“problem”
• Need recognition styles
– Actual state
– Desired state
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Chapter Fifteen Slide 11
Prepurchase Search
• Begins with internal search and then moves to
external search
• The impact of the Internet
• There are many factors that increase search
– Product factor
– Situational factors
– Social acceptability
– Consumer factors
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 12
Evaluation of Alternatives
•
•
•
•
•
•
•
•
•
•
Evoked set
Criteria used for evaluating brands
Consumer decision rules
Decisions by functionally illiterate population
Going online for decision-making assistance
Lifestyles as a consumer decision strategy
Incomplete information
Applying decision rules
Series of decisions
Decision rules and marketing strategy
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 13
The Evoked Set
Figure 15-5
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 14
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
Applying Decision Rules
Series of decisions
Decision rules and marketing strategy
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 15
Consumer Decision Rules
• Compensatory
– evaluates each brand in terms of each relevant
attribute and then selects the brand with the highest
weighted score.
• Noncompensatory
– positive evaluation of a brand attribute does not
compensate for a negative evaluation of the same
brand on some other attribute
– Conjunctive, disjunctive, or lexicographic
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 16
Hypothetical Use of Decision Rules
Table 15.7
Decision Rule
Mental Statement
Compensatory rule
I selected the netbook that came out best when I
balanced the good ratings against the bad ratings
Conjunctive rule
I selected the netbook that had no bad features
Disjunctive rule
I picked the netbook that excelled in at least one
attribute
Lexicographic rule
I looked at the feature that was most important to
me and chose the netbook that ranked highest on
that attribute
Affect referral rule
I bought the brand with the highest overall rating
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 17
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
Applying Decision Rules
Series of decisions
Decision rules and marketing strategy
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide
18
The Decision Process for Functionally Illiterate
Consumers - Figure 15.6
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 19
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
Applying Decision Rules
Series of decisions
Decision rules and marketing strategy
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 20
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 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 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
Applying Decision Rules
Series of decisions
Decision rules and marketing strategy
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 22
Output of Consumer Decision Making
• Purchase behavior
– Trial purchases
– Repeat purchases
– Long-term commitment
• Postpurchase
evaluation
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Chapter Fifteen Slide 23
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 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 24
Discussion Questions
• What are four ways that consumers reduce
postpurchase dissonance?
• How can marketers work to help consumers
reduce the dissonance?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 25
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 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 26
Reported Circumstances and Motivations
for Self-Gift Behavior
Table 15.13
CIRCUMSTANCES
MOTIVATIONS
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
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
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 27
Gifting Relationships - Table 15.14
GIFTING
RELATIONSHIP
DEFINITION
EXAMPLE
Intergroup
A group giving a gift to
another group
A Christmas gift from one family to
another family
Intercategory
An individual giving a gift
to a group or a group
giving a gift to an
individual
A group of friends chips in to buy a new
mother a baby gift
Intragroup
A group giving a gift to
itself or its members
A family buys a VCR for itself as a
Christmas gift
Interpersonal
An individual giving a gift
to another individual
Valentine’s Day chocolates presented from
a boyfriend to a girlfriend
Intrapersonal
Self-gift
A woman buys herself jewelry to cheer
herself up
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 28
Consuming and Possessing
• Consumers find pleasure in possessing,
collecting, or consuming
• Products have special meanings and
memories
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Chapter Fifteen Slide 29
A Model of Consumption
Figure 15.11
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Chapter Fifteen Slide 30
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 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 31
Relationship Marketing Success
Figure 15.12
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 32
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Copyright © 2010 Pearson Education, Inc. Publishing as
Prentice Hall
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 33