Four views of consumers

Economic View of Consumer

Consumers are rational decision makers

They are aware of all available alternatives

They are capable of ranking each alternative in terms

of its benefits and disadvantages

Are able to identify the best possible alternative

Is it a perfect world?? Humans or Robots?

Passive View of Consumer

Consumers are impulsive and irrational purchasers

They can be easily manipulated into taking desired

action

They are non-critically submissive to promotional

efforts

Cognitive View of Consumer

Consumers are thinking problem solvers

They actively search for products and services that

satisfy their needs

They are information processors

However, they look for optimum information
(rather than full information) necessary for decision
making and thereby reduce information overload

They often fall back on heuristics (short-cut decision
rules) to simplify decision making

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.

Noncompensatory
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.

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.

Disjunctive
Rule

A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
cutoff point for each
relevant product
attribute.
Accepts the brand that
meets or exceeds the
cut-off for any one
attribute

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.
Brand that scores highest
on the first attribute is
chosen
If there is a tie, the
scores on the next
attribute are considered

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.

Emotional View of Consumer

Human beings have emotions

Rationality is tempered by emotions

Emotions can be highly involving

Emotional purchase is not necessarily an irrational

purchase (e.g. designer clothes)

Mood plays a role in purchase decision making

Types of Consumer Decision

Basic decision: buy or not.

Product decision: what to buy.

Brand decision: single out the brand which is

more suitable.

Decision of purchasing channel, time, and who.

Decision of how to buy.

The Nature of Consumer Behavior

External Influences
Culture

Demographics and social stratification

Ethnic, religious, and regional subcultures
Families and households
Groups

The Nature of Consumer Behavior

Internal Influences
Perception

Learning
Memory
Motives
Personality
Emotions
Attitudes

A Simplified Model of Consumer Decision Making

Buying Process

Need identification/ Problem awareness

Information gathering

Evaluation of alternatives

Selection of an appropriate solution

Post- purchase evaluation

Consumer Involvement

Involvement: perceived relevance
of an object based on ones needs,
values, and interests

High involvement decision

In complex decision making, the consumer
evaluates brands in a more detailed and
comprehensive manner. More information is
sought and more brands are evaluated.
Evaluation Parameter: Brand or Attribute?

High involvement decision

Such a process is most likely for:
High priced products
Products associated with performance risks
(medical products, automobiles)
Complex products(home theatre, computers)
Specialty goods (sports equipment),and
Products associated with ones ego(clothing,
cosmetics).

Assaels Classification of types of Buying Behavior

Significant
Difference
Between
Brands
Few
Difference
Between
Brands

High Involvement

Low Involvement

Complex Buying
Behavior

Variety-Seeking
Buying Behaviour

Dissonance
Reducing
Behaviour

Habitual
Buying
Behaviour

(Brand Loyalty)

(Inertia)

Types of Involvement

Situational

Enduring

Complex Decision Making

CONSUMER
INFORMATION
PROCESSING

NEED
AROUSAL

Feedback

POSTPURCHASE
EVALUATION

PURCHASE

A Basic Model of Complex Decision Making

BRAND
EVALUATION