consumer behavior

consumer decision process

factors influencing the decision process
consumer behavior

consumer decision process

consumer behavior

Is the dynamic interaction of affect and cognition,

behavior, and the environment in which human beings
conduct the exchange aspects (product and service
purchases) of their lives

Describes how consumers make purchase decisions

and how they use and dispose of the purchased
goods and services. It includes factors that influence
purchase decisions
consumer behavior

“People don’t buy Need to find out WHAT

products…they buy problems people have
solutions to today…and then best
problems” solve them

- Ted Levitt
consumer decision process

evaluation post-
need information
of purchase purchase
recognition search
alternatives evaluation
step 1: need recognition
Need
Recognition a buyer becomes
a buyer realizes
aware of a
that something
difference between
must be done to
Information a preferred state
achieve the
Search and the present
desired state
condition

Evaluate
Alternatives
Present State = Actual State

Purchase Preferred State = Ideal State

Decision
Can marketers create a different ideal state?

Postpurchase
Evaluation
step 2: information search
Need Depends on:
Recognition
How much information you have

Information
Ease of obtaining information
Search

Value you place on information

Evaluate
Alternatives

Purchase
Decision

Postpurchase
Evaluation
step 3: evaluate alternatives
Need awareness set
Recognition

evoked set
Information
Search

Consideration
Evaluate set
Alternatives

Purchase
Decision

Postpurchase
Evaluation
evoked set model
All Brands

Known Unknown
Brands Brands

Unacceptable Acceptable Overlooked

Purchased Rejected
Brand Brands
evoked set model
Awareness Set All Brands

Known Unknown
Brands Brands

Unacceptable Acceptable Overlooked

Purchased Rejected
Brand Brands
evoked set model
Evoked Set All Brands

Known Unknown
Brands Brands

Unacceptable Acceptable Overlooked

Purchased Rejected
Brand Brands
evoked set model
All Brands

Consideration Set
Known Unknown
Brands Brands

Unacceptable Acceptable Overlooked

_ + 0

Purchased Rejected
Brand Brands
consumer behavior

consumer decision process:

evaluate alternatives
purchase and post-purchase
step 3: evaluate alternatives

 Consumers use criteria to evaluate alternatives

 Criteria are based on internal and external
information search and might not be equally
weighted

-3 -2 -1 0 1 2 3
step 3: evaluate alternatives

 Consumer Decision Strategies

 Compensatory Models
 Cost-benefit analysis
 Which one does the positives most outweigh the negatives?
 Multi-Attribute
 Non-compensatory Models
 Immediate rejection based on some factor
 Conjunctive
 Lexicographic
step 3: evaluate alternatives

1. Multi-attribute
 List outcomes, rate each outcome on
importance
 How strong is belief that each alternative
can meet outcome
 Weighted total derived by multiplying
importance rating by your evaluation
step 3: evaluate alternatives

2. Conjunctive Rule
 Set minimum standards for one or more
attributes
 Reject any brands that do not meet ALL minimum
thresholds
 "And" rule: must meet standards for this attribute
and the second attribute and the third attribute…
step 3: evaluate alternatives

3. Lexicographic Rule
 Rank the attributes in order of importance
 Find the brand(s) that is best on the most important attribute
 If there is a tie, then find the brand(s) among the survivors
of the first round that is best on the second most important
attribute
 Continue until you have one winner
 “Best on most important attribute”
decision making models: four vacation choices
Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +3
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
1. Multi-attribute
Determine weighted total for each option by multiplying the importance
rating by attribute evaluation and summing

Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +3
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
1. Multi-attribute
 Determine weighted total for each option
by multiplying the importance rating by
attribute evaluation and summing

 For Bali: (5x3) + (10x3) +(4x-3) +(3x-1)

+(7x2) +(1x2) = 46
 Hawaii = 49 Europe = 26
 Alaska = 22

CHOICE: Hawaii
2. Conjunctive Rule
Set minimum standards/cutoffs for one or more attributes; reject any
brands that do not meet ALL minimum thresholds ("And" rule)

Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +3
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
2. Conjunctive Rule
 Set minimum standards/cutoffs for one
or more attributes; reject any brands
that do not meet ALL minimum
thresholds ("And" rule)

CHOICE: Europe as it is the only option that

meets/exceeds all six MINIMUM CUTOFFS
Bali is not inexpensive enough and fails in
accommodations
Hawaii is not inexpensive enough
Alaska fails on three of the six attributes
2. Conjunctive Rule
Set minimum standards/cutoffs for one or more attributes; reject any brands
that do not meet ALL minimum thresholds ("And" rule)

Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +3
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
3. Lexicographic Rule
Best on most important attribute

Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +3
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
3. Lexicographic Rule
 Best on most important attribute:
Tie between all four on most important attribute
(“neat things to do”)
 Alaska is best on second most important
attribute (“wife wants to go”)

CHOICE: Alaska
3. Lexicographic Rule
Best on most important attribute

Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +3
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
3. Lexicographic Rule
Best on most important attribute

Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +2
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
3. Lexicographic Rule
Best on most important attribute

Impor- Minimum
Attribute tance Cutoff Bali Hawaii Europe Alaska
Hot 5 -2 +3 +2 -2 -3
Neat things
10 +3 +3 +3 +3 +2
to do
Inexpensive 4 -2 -3 -3 -1 -2

Accommodations 3 +1 -1 +2 +1 -1

Wife wants to go 7 +1 +2 +2 +1 +3

Great nightlife 1 -2 +2 +1 0 -3
step 4: purchase decision
Need
Recognition  Factors that may affect the sale:
Brand to purchase is selected
Information
Search
price delivery

Evaluate
Alternatives warranties

Purchase terms choice of seller

Decision

Postpurchase
Evaluation
step 5: post-purchase evaluation
Need
Recognition

Information Cognitive Dissonance:

Search A buyer’s doubts shortly after a purchase
about whether the decision was the
right one
Evaluate
Alternatives
Buyers are more likely to seek
reassurance after the purchase of an
Purchase expensive, high-involvement product
Decision

Postpurchase
Evaluation
 step 5: post-purchase evaluation
High Product
Purchased A

Preference
No A
Cognitive
Dissonance B
B

Low
Prepurchase Purchase Post-Purchase
Phase Point Phase
 step 5: post-purchase evaluation
High Product
Purchased B
A

Preference
Cognitive
Dissonance Buyer’s
Unresolved Regret
B A

Low
Prepurchase Purchase Post-Purchase
Phase Point Phase
 step 5: post-purchase evaluation
High Product A
Purchased
A

Preference
Successful
Cognitive Dissonance
Resolution
Dissonance
Resolved
B Buyer’s B
Regret
Low
Purchase Post-Purchase
Point Phase
consumer behavior

situational and
social influences
influences on decision process

social

psychological

situational
influences on decision process

social

psychological

situational
situational influences

physical time
surroundings perspective

social reason for

surroundings purchase

buyer’s
momentary
mood and
condition
influences on decision process

social

psychological

situational
social influences: role
Role:
Actions and activities that a person in a particular position is supposed to perform based on
expectations of the individual and surrounding persons

student sibling employee

friend citizen

son/ club
classmate
daughter president
social influences: reference groups

direct
primary secondary
membership

indirect
aspirational disassociative
membership
social influences: opinion leaders
Opinion Leader:
A knowledgeable, accessible individual who provides information about a specific sphere of
interests to followers

movie buff
family doctor experts
friend

club
gym trainer
president

religious work techie

leaders supervisor acquaintance
social influences: social class

education values occupation

attitudes goals resources

language spending
lifestyle
patterns habits
social influences: culture

Culture Sub-Culture

The accumulated Groups of individuals

values, knowledge, whose characteristic
beliefs, customs, objects, values and behavior are
and concepts of a society similar, but also differ,
from those of the
surrounding culture
consumer behavior

psychological influences
influences on decision process

social

psychological

situational
psychological influences: perception
Attempts by marketers to influence consumer choices fail because of:

selective selective selective

exposure distortion retention

Remembering
An individual’s
The process of information inputs
changing or twisting
selecting inputs to that support
of information when
be exposed to our personal feelings
it is inconsistent
awareness while and beliefs and
with personal
ignoring others forgetting inputs
feelings or beliefs
that do not
psychological influences: needs

Maslow’s Hierarchy of Needs

self-
actualization

esteem

social

safety

physiological
psychological influences: learning

Consumers learn by…

experiencing
the product
personally

gaining
additional indirect
knowledge information from
through seller- other
provided purchasers/users
information
psychological influences: personality and self-concept

Personality: the consistent patterns of behavior that

people show with regard to social situations
(e.g. cognitive style)

Personality refers to our internal characteristics;

lifestyle refers to the external characteristics
of how one lives
psychological influences: personality and self-concept

How do our personality and internal traits

influence the way we buy?

How do the products we buy shape our

self-concept?

Image congruence hypothesis states that the

consumer selects products and stores that
correspond to their self-concept
psychological influences: lifestyles

Lifestyle:
An individual’s
pattern of living
expressed through
activities, interests,
and opinions
psychological influences: beliefs

Represent the knowledge a consumer

has about objects, their attributes, and
their benefits provided

Objective/subjective
psychological influences: attitudes

attitude = cognitions + affects + behavior

knowledge and feelings and

actions
information emotions
psychological influences: motivation

A motive is a need
(biogenic or psychogenic)
that is sufficiently pressing to
drive a person to act
psychological influences: attitude formation

If highly motivated/involved, people

likely use central-route processing

If not highly motivated,

peripheral-route processing is used
central-route processing: theory of reasoned action

Attitudes based on:

• beliefs/schema
Can I predict your
behavior based on
associations
your beliefs and
• evaluation of these
normative influences?
beliefs (e.g. we believe it
to be of good quality and
Also called the
this is important to us;
Behavioral Intentions
resulting in a positive
Model
attitude)
central-route processing: theory of reasoned action

Behavior (B) results from

the formation of specific
intentions to behave (BI)

Predicts BI, not B; based

on one’s attitude toward
the act (Aact) and the
influence of others’
opinions (called
subjective norms (SN))
central-route processing: theory of reasoned action

 B = get a tattoo
 BI = intention to get a tattoo
 Aact = your attitude toward
getting one
 SN = what influence others
have on you
central-route processing: theory of reasoned action

(Aact) + (SN) = BI = B

(Aact) = (belief about (SN) = (belief of

consequences (bi)) x important people (NBj))
(evaluation of x (motivation to comply
consequences (ei)) (MCj))

Take the sum of all Take the sum of all

these (bi) x (ei) to get these (NBj) x (MCj) to
(Aact) get (SN)
central-route processing: theory of reasoned action

theory of reasoned action scales

 bi = The likelihood that this outcome will
occur is (-3) very low to (+3) very high
 ei = If this outcome occurs, it will be (-3) very
bad to (+3) very good
 NBj = This person thinks I should (-3) not do
it to (+3) do it
 MCj = How much do I care what this person
thinks? (-3) strongly don’t care at all to (+3)
very much
central-route processing: theory of reasoned action

 Aact = Getting a tattoo

 Aact = sum of bi x ei
 all scales range from -3 to +3

bi ei b i x ei
will hurt +3 -3 -9
will be cool +1 +2 +2 Aact = -2
expensive +2 -2 -4
self-expression +3 +3 +9
central-route processing: theory of reasoned action

 SN = Influence of others
 SN = sum of NBj x MCj
 all scales range from -3 to +3 SN = +6

NBj MCj NBj x MCj BI = (Aact) + (SN)

Parents -3 -1 +3 BI = -2 + 6
S.O. -1 +3 -3
Best friend +3 +2 +6 BI = +4
Marketing Prof +3 0 0
central-route processing: theory of reasoned action

 Using the theory of reasoned action, we can see how

we might affect attitudes
 Marketers can focus on changing existing beliefs,
evaluations of beliefs, normative beliefs
 Or, add new beliefs, normative beliefs (introduce peer
pressure?)
central-route processing: theory of reasoned action

When do attitudes predict behavior?

• Involvement/effort is high
• Knowledge is high
• Confidence is high
• Peer pressure is high