marketing management -consumer descision making
DESCRIPTION
TRANSCRIPT
Consumer Decision Making
Three Perspectives on Decision Making
Decision making perspective
• High involvement decisions
• Low involvement decisions Experiential perspective Behavioral influence perspective
Decision Making PerspectiveHigh Involvement Decisions
ProblemRecognition
Extensive Search
ExtendedAlternative Evaluation
Complex Choice
AcquisitionEvaluation
Decision Making PerspectiveLow Involvement Decisions
ProblemRecognition
Limited Search
MinimalAlternative Evaluation
Simple ChoiceProcesses
AcquisitionEvaluation
Experiential Perspective
Problem Recognition(affect driven)
Search forAffect-based Solutions
Alternative Evaluation(comparison of affect)
Choice(affect-based)
Acquisition Evaluation
Behavioral Influence Perspective
Search (learned Response)
Choice (behaviorresults fromreinforcers)
Acquisition Evaluation(self-perception process)
ProblemRecognition(results fromdiscriminativestimulus)
Initial vs. Repeat Purchases Initial purchases
• Tend to require more extensive problem solving
Repeat purchases
• Tend to require limited problem solving, sometimes habitual decisions
Basic Decision Making ProcessProblem/Need Recognition
Information Search
Evaluation of Alternatives
Purchase
Post-Purchase Evaluation
Problem/Need Recognition Consumer recognizes a gap or discrepancy
between his/her current state and his/her desired state.
Information Search Deliberate attempt to gain knowledge about a
purchase decision; goal is to reduce uncertainty. Internal search
• Retrieve information from long term memory External search
• Gather information from external sources, e.g., ads, media, friends, stores
Determinants of External Search
Evaluation of Alternatives Occurs either separately or in conjunction
with information search. We rely on internal processes to help us
organize the evaluation process.
• Consideration (evoked set)
• Decision rules (heuristics)
Consideration Set
Decision Rules Strategies used by consumers to guide decision
making. Some decision rules use product characteristics
to guide decisions.
• Compensatory
• Noncompensatory Some decision rules rely on stored information
in consumers’ memories to guide decisions.
Compensatory Decision Rule Select the best overall brand
• Consumer evaluates brand options in terms of each relevant attribute and computes a weighted or summated score for each brand. The consumer chooses the brand with the highest score.
A compensatory model because a positive score on one attribute can outweigh a negative score on another attribute.
Noncompensatory Decision Rules
Conjunctive Decision Rule• Consumer sets a minimum standard for each
attribute and if a brand fails to pass any standard, it is dropped from consideration.
Reduces a large consideration set to a manageable size.
Often used in conjunction with another decision rule.
Noncompensatory Decision Rules Disjunctive Decision Rule
• Consumer sets a minimum acceptable standard as the cutoff point for each attribute--any brand that exceeds the cutoff point is accepted.
Reduces large consideration set to a more manageable number of alternatives.
Consumer may settle for the first satisfactory brand as final choice or may use another decision rule.
Noncompensatory Decision Rules
Lexicographic Decision Rule• The consumer ranks the attributes according to
importance and then selects the brand that is superior on the most important attribute.
If one brand ranks sufficiently high on just one attribute, it will be selected regardless of how it scores on other attributes.
Affect-Referral Rule Synthesized decision rule
• Consumers maintain overall evaluations of brands in their long term memories. Brands on not evaluated on individual attributes but on the highest perceived overall rating.
Frame of Reference Another way in which consumers evaluate
information is the frame of reference from which s/he subjectively evaluates messages related to a decision problem.
• “Percent lean” vs. “Percent fat”
• “Sale” vs. “Clearance”
Purchase Decision
Post-Purchase Evaluation Consumers evaluate purchases during
consumption process.
Three possible outcomes.
Postpurchase cognitive dissonance.
Complaining behavior.
Outcomes Actual product performance matches
prepurchase expectations
• Neutral Feeling
Outcomes Actual product performance exceeds
prepurchase expectations.
• Positive disconfirmation of expectations
• Satisfaction
Outcomes Actual product performance is below
prepurchase expectations.
• Negative disconfirmation of expectations
• Dissatisfaction
A Continuum of Satisfaction
Dissatisfaction DelightedSatisfaction
If dissatisfied…. Alternative actions
• Do nothing
• Avoid seller/brand in the future
• Negative WOM to friends
• Seek redress of problem from seller
• Complain to outside agency
Decision to complain... Is based on:
• Level of dissatisfaction
• Importance of decision/purchase
• Costs/benefits of actions
• Personal characteristics
• Attribution of blame
Managerial Implications Related to Consumer Decision Making
Understanding decision making process enables marketers to assist consumers along decision pathway.• Offer products that meet needs/wants• Advertising• Making information available• Making product available• Follow-up sales calls, good service