Fifteen: Consumer Decision Making and Beyond

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CHAPTER

FIFTEEN
Consumer
Decision Making
and Beyond
What Would a Pet Owner Need to Know in Order to
Make a Decision About Buying Pet Insurance?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 2
Do I Need It? How Do I Get More
Information?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 3
Levels of Consumer Decision Making
Not all consumer decision-making situations are the same and marketers
generally put them into these three groups

• 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 4
Models of Consumers: Four Views of Consumer
Decision Making
There are four types of models which explain why consumers act the way
they do

• An Economic View
• A Passive View
• A Cognitive View
• An Emotional View

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 5
Consumer
Decision Making
Figure 15.3

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 6
Process - Need Recognition

• Usually occurs when consumer has a


“problem”
• Need recognition styles
– Actual state
• Consumers are hungry
– Desired state
• Consumers seek out choices in food

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 7
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 8
Evaluation of Alternatives
The specific brands that the consumer
• Evoked set considers is called the evoked or
consideration 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 9
The Evoked Set
Figure 15-5

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 10
Issues in Alternative Evaluation
Usually product attributes such as auto focus,
• Evoked Set flash, lens type, size and weight for a new digital
camera
• Criteria used for evaluating brands
• Consumer decision rules and their application
These rules
• Decisions by functionally illiterate population are also
• Going online for decision-making assistance referred to
as
• Lifestyles as a consumer decision strategy information-
• Incomplete information processing
strategies
• Applying Decision Rules
• Series of decisions
• Decision rules and marketing strategy

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 11
Brands that a consumer
Inept Set excludes from
purchase consideration.
Brands that a
consumer is indifferent
toward because they
Inert Set
are perceived as
having no particular
advantage.
Consumer Decision Rules

• Compensatory
– the consumer will evaluate each attribute and add
them up for the brand.
– The belief is that the consumer will choose the
brand with the highest rating.
• Noncompensatory
– the consumer does not balance positive attributes
against negative, but every attribute must reach a
minimum level or it will be disqualified

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
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 16
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 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 Marketers must be aware of these
• Applying Decision Rules decision rules so they can send the
right messages through the correct
• Series of decisions channels at the best time to reach the
consumer
• Decision rules and marketing strategy
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 18
Output of Consumer Decision Making
• Purchase behavior
– Trial purchases
– Repeat purchases
– Long-term commitment

• Postpurchase
evaluation

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide 19
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 20

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