CONSUMER DECISION MAKING

MKTG 371

The decision
process
Effects of
involvement
Types of decision
strategies

DECISION MAKING

Lars Perner, Instructor 1

CONSUMER DECISIONS:
Theory and Reality in Consumer Buying

Problem
Recognition

Information
Search

Evaluation of
Alternatives
Postpurchase
Evaluation/
Behaviors
MKTG 371

DECISION MAKING

Purchase
Theory
Complications
Lars Perner, Instructor 2

Types of Decisions and Involvement

Nominal
Brand

loyal decisions
Repeat purchases

MKTG 371

Limited decision making

Extended decision making

DECISION MAKING

Lars Perner, Instructor 3

Problem Types

Presence

Acceptance

Acknowledged
Unacknowledged/
denied

Specificity

MKTG 371

Active
Inactive

Me? Anger control

problem? What do
you mean?

Generic
Selective

DECISION MAKING

Lars Perner, Instructor 4

Categories of Alternatives

Awareness set
Consideration set (evoked set)
Inept set
Inert set
All

alternatives

Inept
set

Evoked
set
Inert
set

MKTG 371

DECISION MAKING

Awareness
set

Lars Perner, Instructor 5

Discovering Consumer Problems

MKTG 371

Activity analysis
Product analysis
Problem analysis
Human factors research
Emotion research

DECISION MAKING

Lars Perner, Instructor 6

Approaches to Search for Problem

Solutions
INTERNAL
Memory
Thinking

EXTERNAL
Word of mouth, media,
store visits, trial
MKTG 371

DECISION MAKING

CATALOG

Lars Perner, Instructor 7

Issues in Decision
Making

MKTG 371

Compensatory vs. noncompensatory--can an

exceptionally good rating
on one attribute outweigh
a bad one elsewhere?
Brand vs. attribute
based processing

DECISION MAKING

Lars Perner, Instructor 8

Some Influences on Decisions

Temporal
Time

pressure
Situation

MKTG 371

Task definition and expectations

Mood

DECISION MAKING

Lars Perner, Instructor 9

Cost vs. Benefits of Search

MKTG 371

Market
Characteristics
Product
Characteristics
Consumer
Characteristics
Situation
Characteristics

DECISION MAKING

Lars Perner, Instructor 10

Consumer Judgments

Heuristics
Availability
Representativeness
Simulation

MKTG 371

DECISION MAKING

Lars Perner, Instructor 11

Economic Models

Expected utility
Utility functions
Prospect Theory
Asymmetry

for gains and losses

Framing

MKTG 371

DECISION MAKING

Lars Perner, Instructor 12

Other Models

Satisficing
Cognitive

Affective
Simple strategies

MKTG 371

Compensatory vs. non-compensatory

Brand loyalty, brand familiarity

Country of origin
Price related
Minimizing regret

DECISION MAKING

Lars Perner, Instructor 13

Positioning Products as Problem

Solutions

Category vs. brand promotion

Activating problems
Influencing

desired state
Promotion of magnitude of discrepancy

Getting consumers to anticipate

problems before neede.g.,
Insurance
Emergency

supplies
Unexpected events
MKTG 371

DECISION MAKING

Lars Perner, Instructor 14

Marketing Strategies Based on

Decision Making

MKTG 371

Maintenance
Disrupt
Capture
Intercept
Preference
Acceptance

DECISION MAKING

Lars Perner, Instructor 15

Variety Seeking and

Impulse Buying

Variety seeking
need varies among
consumers by optimal
stimulation level (OSL)
Use innovativeness

Dont give me that

same old cola, that
same old cola-I want a
rocknroller!
MKTG 371

Impulse purchases
Motivation
Consequences

DECISION MAKING

Lars Perner, Instructor 16

Household Decision Making

Roles/influence

MKTG 371

Information
gatherers/holders
Influencers
Decision makers
Purchasers
Users

DECISION MAKING

Lars Perner, Instructor 17

Household Decision Making

Roles/influence

Information
gatherers/holders
Influencers
Decision makers
Purchasers
Users

Constructive

DECISION MAKING

Bargaining
Reasoning (sincere)

Manipulative

Values--desired end
states

MKTG 371

Strategies of
Influence

Impression
management
Authority
Emotion

Borderline

Information gathering

Lars Perner, Instructor 18