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16-1

Chapter 16

Consumer Behavior,Consumer Behavior,

Eighth EditionEighth Edition

SCHIFFMAN & KANUK

Consumer Decision Making

and Beyond



16-2

Levels of Consumer Decision

Making

Extensive Problem

Solving

Limited Problem

Solving

Routine Response

Behavior



16-3

Models of Consumers: Four Views

of Consumer Decision Making

� An Economic View

� A Passive View� A Cognitive View

� An Emotional View



16-4

Figure 16.1 Goal Setting and Pursuit

Goal

Setting

Formationof Goal

Intention

Action

Planning

ActionInitiation/

Control

GoalAttainment/

Failure

Feedback



16-5

Figure 16.2 A Simple Model of Consumer Decision Making

Firm¶s Marketing Efforts

1. Product2. Promotion

3. Price

4. Channels of distribution

Sociocultural Environment

1. Family2. Informal sources

3. Other noncommercial sources

4. Social class

5. Subculture and culture

Need Recognition

Prepurchase Search

Evaluation of Alternatives

Psychological Field1. Motivation

2. Perception

3. Learning

4. Personality

5. Attitudes

Experience

Purchase

1. Trial

2. Repeat purchase

Postpurchase EvaluationOutput

Process

Input

External Influences

Consumer Decision Making

Postdecision Behavior



16-6

Three Stages of Consumer

Decision Making

� Need Recognition

� Prepurchase Search� Evaluation of Alternatives



16-7

Table 16.2 Factors that are Likely to

Increase Prepurchase Search

Product Factors

Long interpurchase time (a long-lasting or

infrequently used product)Frequent changes in product styling

Volume purchasing (large number of units)

High price

Many alternative brandsMuch variation in features



16-8

Table 16.2 continued

ExperienceFirst-time purchase

No past experience because the product is new

Unsatisfactory past experience within the product category

Social Acceptability

The purchase is for a giftThe product is socially visible

Value-Related Considerations

Purchase is discretionary rather than necessary

All alternatives have both desirable and undesirable consequences

Family members disagree on product requirements or evaluation of

alternatives

Product usage deviates from important reference group

The purchase involves ecological considerations

Many sources of conflicting information



16-9

Table 16.2 continued

Product Factors

Demographic Characteristics of Consumer

Well-educated

High-income

White-collar occupation

Under 35 years of age

P ersonality

Low dogmatic

Low-risk perceiver (broad categorizer)Other personal factors, such as high product involvement and

enjoyment of shopping and search



16-10

Table 16.3 Alternative Prepurchase

Information Sources for an UltralightLaptop

PERSONALPERSONAL

Friends

Neighbors

Relatives

Co-workers

Computer salespeopleCalling the electronics store

IMPERSONALIMPERSONAL

Newspaper articles

Magazine articles

Consumer Reports

Direct-mail brochures

Information from productadvertisements

Internal web site



16-11

Issues in Alternative Evaluation� Evoked Set

� Criteria Used for Evaluating Brands

� Consumer Decision Rules� Lifestyles as a Consumer Decision Strategy

� Incomplete Information and Noncomparable Alternatives

� Series of Decisions� Decision Rules and Marketing Strategy

� Consumption Vision



16-12

Figure 16.3 The Evoked Set as a Subset

of All Brands in a Product ClassAll

Brands

KnownBrands UnknownBrands

Overlooked

Brands

Indifferent

Brands

Unacceptable

Brands

Acceptable

Brands

Not Purchased

Brands

Purchased

Brands

Evoked Set Inept Set Inert Set

(1)

(2) (3) (4)

(5)



16-13

Inept SetInept Set

Brands that a consumer

excludes from purchase

consideration.



16-14

Inert SetInert Set

Brands that a consumer

is indifferent toward

because they are

perceived as having no

particular advantage.



16-15

Figure 16.4

Ad

SuggestingCriteria for

Decision

Making



16-16

Consumer Decision Rules� Compensatory

� Noncompensatory

± Conjunctive Decision Rule

± Disjunctive Decision Rule

± Lexicographic Rule



16-17

CompensatoryCompensatoryDecision RulesDecision Rules

A type of decisionrule in which a

consumer evaluates

each brand in terms

of each relevant

attribute and then

selects the brand

with the highestweighted score.



16-18

NonNon--

compensatorycompensatoryDecisionDecision

RulesRules

A type of consumer

decision rule by which

positive evaluation of

a brand attribute doesnot compensate for a

negative evaluation of

the same brand onsome other attribute.



16-19

ConjunctiveConjunctive

DecisionDecision

RuleRule

A noncompensatory

decision rule in whichconsumers establish a

minimally acceptable

cutoff point for each

attribute evaluated.

Brands that fall below

the cutoff point on any

one attribute areeliminated from further

consideration.



16-20

DisjunctiveDisjunctiveRuleRule

A noncompensatory

decision rule in which

consumers establish a

minimally acceptable

cutoff point for each

relevant product

attribute.



16-21

LexicographicLexicographicRuleRule

A noncompensatorydecision rule -

consumers first rank

product attributes in

terms of importance,

then compare brands

in terms of the

attribute consideredmost important.



16-22

AffectAffect

ReferralReferralDecisionDecision

RuleRule

A simplified decisionrule by which consumers

make a product choice

on the basis of their

previously established

overall ratings of the

brands considered, rather

than on specificattributes.



16-23

Table 16.7 Hypothetical Use of Popular

Decision Rules in Making a Decision toPurchase an Ultralight Laptop

DECISION RULEDECISION RULE MENTALSTATEMENTMENTALSTATEMENT

Compensatory rule ³I selected the computer that came out best when I

balanced the good ratings against the bad ratings.´

Conjunctive rule ³I selected the computer that had no bad features.´

Disjunctive rule ³I picked the computer that excelled in at least one

attribute.´

Lexicographic rule ³I looked at the feature that was most important to me andchose the computer that ranked highest on that attribute.´

Affect referral rule ³I bought the brand with the highest overall rating.´



16-24

Coping with Missing Information� Delay decision until missing information is

obtained

� Ignore missing information and useavailable information

� Change the decision strategy to one that

better accommodates for the missinginformation

� Infer the missing information



16-25

Types of Purchases

Trial

Purchases

Repeat

Purchases

Long-Term

CommitmentPurchases



16-26

Outcomes of Postpurchase

Evaluation

� Actual Performance Matches Expectations

± Neutral Feeling

� Actual Performance Exceeds Expectations

± Positive Disconfirmation of Expectations

� Performance is Below Expectations

± Negative Disconfirmation of Expectations



16-27

Gifting BehaviorGifting is an act of symbolic

communication, with explicit and implicit

meanings ranging from congratulations andlove, to regret, obligation, and dominance.



16-28

Table 16.9 Five Giver-Receiver Gifting

Subdivisions

GROUPIntercategory

gifting

Intergroup

gifting

Intragroup

gifting

INDIVIDUALInterpersonal

gifting

Intercategory

gifting

Intrapersonal

gifting

GIVERS INDIVIDUAL

RECEIVES

³OTHER´

GROUP SELF*

*This ³SELF´ is either singular self (³me´) or plural (³us´).



16-29

Table 16.12 Reported Circumstances

and Motivations for Self-Gift Behavior

CIRCUMSTANCES

Personal accomplishmentFeeling down

Holiday

Feeling stressed

Have some extra money

Need

Had not bought for self in a while

Attainment of a desired goal

Others

MOTIVATIONS

To reward oneself To be nice to oneself

To cheer up oneself

To fulfill a need

To celebrate

To relieve stress

To maintain a good feeling

To provide an incentive toward a goal

Others



16-30

Gifting Subdivisions

Intergroup

Gifting

Intrapersonal

Gifting

Intragroup

Gifting

Interpersonal

Gifting

Intercategory

Gifting



16-31

Table 16.13 Gifting Relationships

GIFTINGGIFTING

RELATIONSHIPRELATIONSHIP

Intergroup

Intercategory

EXAMPLEEXAMPLEDEFINITIONDEFINITION

A Christmas gift from one

family to another family

A group giving a gift to

another group

A group of friends chips into buy a new mother a baby

gift

An individual giving a gift to agroup or a group giving a gift

to an individual

Intragroup

Interpersonal

A family buys a VCR for

itself as a Christmas gift

A group giving a gift to itself

or its members

Valentine¶s Day chocolates presented from a boyfriend

to a girlfriend

An individual giving a gift toanother individual

Intrapersonal A woman buys herself

jewelry to cheer herself up

Self-gift



16-32

Figure 16.5 A Simple Model of Consumption

Choice or Purchase DecisionChoice or Purchase Decision

Consumption Set

Added to one¶s assortment or portfolio

Consuming Style

How the individual fulfills his or her consumption requirements

Using, Possessing, Collecting, Disposing

Consuming and Possessing Things and ExperiencesConsuming and Possessing Things and Experiences

Altered consumer satisfaction, change in lifestyle and/or

quality of life, learning and knowledge, expressing and

entertaining oneself

Feelings, Moods, Attitudes, BehaviorFeelings, Moods, Attitudes, Behavior

Input

Process of

Consuming

and

Possessing

Output



16-33

RelationshipRelationshipMarketingMarketing

Marketing aimed at

creating strong,lasting relationships

with a core group of

customers by making

them feel good about

the company and by

giving them some

kind of personalconnection with the

business.



16-34

Table 16.14 A Broad-based Relationship

Program

HOTELS

Conrad Hotels

Forte HotelsForum Hotels

Hilton Hotels & Resorts

Hilton International Hotels

Holiday Inns

CAR RENTAL

Avis Rent a Car

Hertz

AIR LINES

Canadian Airlines International

Cathay Pacific Airlines

Hawaiian Airlines

Qantas Airways

Keno Air Singapore Airlines

TWA

US Airways

HOTELS continued

ITT Sheraton Hotels, Inns, Resorts &

All-Suites

Marriott Hotels, Resorts and Suites

Vista Hotels

Wyndham Hotels & Resorts

OTHER

Citibank AAdvantage Visa or Master-Card application

MCI Long-Distance

American AAdvantage Money

Market Fund



16-35

Figure 16.7 A Portrayal of the

Characteristics of RelationshipMarketing

�Products/Services

�Individualized attention

�Continuous information

�Price offers

�Customer services

�Extras and perks, etc.

�Repeat Purchase

�Increased Loyalty

�Goodwill

�Positive word-of-mouth

�Lower costs for the firm

Trust and

promises

The Firm provides The Customer provides



16-36

Consumers Are Less Loyal - Why?

� Abundance of

choice

� Availability of

information

� Entitlement

� Commoditization

� Insecurity

� Time scarcity

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