Download Consumer Decision Rules - Wright State University

CHAPTER
SEVEN
Consumer Learning
Learning
• The process by which individuals acquire the
purchase and consumption knowledge and
experience that they apply to future related
behavior
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 2
Elements of Learning Theories
•
•
•
•
Motivation – Unfilled needs lead to motivation
Cues – Stimuli that direct motives
Response – Consumer reaction to a drive or cue
Reinforcement – increases the likelihood that a
response will occur in the future as a result of a
cue
Two Major Learning Theories
Behavioral Learning
Cognitive Learning
• Based on
observable
behaviors
(responses) that
occur as the result
of exposure to
stimuli
• Learning based on
mental
information
processing
• Often in response
to problem solving
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 4
Behavioral Learning
• Classical Conditioning: A stimulus is
repeatedly paired with another stimulus that
elicits a known response. After some time the
new stimulus produces the same response
when used alone.
• Instrumental (Operant) Conditioning: Based
on a trial-and-error process. Repetitions and
their positive outcomes result in the
formation of a habit.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 5
Strategic Applications of Classical Conditioning
Repetition: Increases the association between the conditioned
and unconditioned stimulus; Slows the pace of forgetting;
Advertising wearout is a problem
Stimulus generalization: Having the same response to slightly
different stimuli; Helps “me-too” products to Succeed; Useful
in: product extensions, family branding; licensing
Stimulus discrimination: Selection of a specific stimulus from
similar stimuli; Opposite of stimulus generalization. This
Discrimination is the basis of positioning which looks for
Unique ways to fill needs
A Model of Instrumental Conditioning
Figure 7.9
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide
7
Reinforcement of Behavior
• Positive reinforcement strengthens likelihood
of repeat behavior
• Negative reinforcement encourages
alternative behaviors
• Extinction: When a learned response is no
longer reinforced, the link between stimulus
and reward is broken
• Forgetting: The reinforcement is forgotten
Reinforcement of Behavior
•
•
•
•
Customer Satisfaction (Reinforcement)
Reinforcement Schedules
Shaping
Massed versus Distributed Learning
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide
9
Observational Learning
(modeling or vicarious
learning)
• A process by which individuals
learn behavior by observing the
behavior of others and the
consequences of such behavior
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 10
Information Processing and Memory
Stores - Figure 7.10
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 11
Retention
• Information is stored in long-term memory
– Episodically: by the order in which it is acquired
– Semantically: according to significant concepts
• Total package of associations is called a
schema
Associative Knowledge Network.
Double
Single
Frosty
Chicken
McNuggets
Wendy’s
Quarter
Pounder
McDonald’s
Hamburgers
Burger
King
Big
Mac
Best
Combination
Whopper
Tasty
Had it last night
Fries
Involvement and Passive
Learning Topics
•
•
•
•
Definitions and Measures of Involvement
Marketing Applications of Involvement
Central and Peripheral Routes to Persuasion
Hemispheral Lateralization and Passive
Learning
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 14
Involvement
• Degree of personal relevance that the
product or purchase holds for that
customer.
• High involvement purchases are very
important to the consumer
• Low-involvement hold little relevance,
have little perceived risk, and have
limited information processing
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 15
Marketing Applications of
Involvement
• Ads in video games
• Avatars
• Sensory appeals in ads to get more
attention
• Forging bonds and relationships with
consumers
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 16
Central and Peripheral Routes
to Persuasion
Central route to persuasion
• For high involvement purchases
• Requires cognitive processing
Peripheral route to persuasion
• Low involvement
• Consumer less motivated to think
• Learning through repetition, visual cues, and
holistic perception
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 17
Hemispheral Lateralization and
Passive Learning
• Hemispheral lateralization
– Also called split-brain theory
• Left Brain
– Rational
– Active
– Realistic
• Right Brain
–
–
–
–
Emotional
Metaphoric
Impulsive
Intuitive
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Seven Slide 18
Measures of Consumer Learning
Brand Loyalty
• Personal degree of risk aversion or variety
seeking; Reputation and availability of the brand;
Social group influences

• No loyalty
Brand Equity – the value
• Covetous loyalty
inherent in a well-known
• Inertia loyalty
brand
• Premium loyalty
CHAPTER
EIGHT
Consumer Attitude
Formation and Change
Attitude
A learned
predisposition to
behave in a
consistently
favorable or
unfavorable manner
with respect to a
given object.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 21
What Are Attitudes?
•
•
•
•
The attitude “object”
Attitudes are a learned predisposition
Attitudes have consistency
Attitudes occur within a situation
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 22
Structural Models of Attitudes
•
•
•
•
Tricomponent Attitude Model
Multiattribute Attitude Model
The Trying-to-Consume Model
Attitude-Toward-the-Ad Model
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 23
A Simple Representation of the Tricomponent
Attitude Model - Figure 8.3
Cognition
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 24
The Tricomponent Model
• Cognitive: Knowledge and perceptions acquired
by a combination of direct experience with the
attitude object and related information from
various sources
• Affective: Emotions or feelings about a
particular product or brand (attitude object)
• Conative: The likelihood or tendency that an
individual will undertake a specific action or
behave in a particular way with regard to the
attitude object
Functional Theory of Attitude
Primary functions performed by attitudes :
– Adjustive or utilitarian function
– Ego defensive
– Value expressive
– Knowledge defensive
Multiattribute
Attitude
Models
examine the
composition of
consumer attitudes
in terms of selected
product attributes or
beliefs.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 27
Multiattribute Attitude Models
• The attitude-toward-behavior model: Is
the attitude toward behaving or acting with
respect to an object, rather than the attitude
toward the object itself
• Corresponds closely to actual behavior
• Theory-of-reasoned-action model:
Includes subjective norms in addition to
attitude
The Fishbein Model
m
A   Bi Ei
i 1
where,
A=
Bi =
Ei =
I=
Attitude towards a brand
Belief that the brand possesses attribute i
Evaluation or desirability of attribute i
attribute 1, 2, … m
Example of TC/MA Model.
Theory of
Trying to
Consume
for the many cases
the action or outcome
is not certain but
instead reflects the
consumer’s attempt to
consume (or
purchase).
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 31
AttitudeToward-theAd Model
a consumer forms
various feelings (affects)
and judgments
(cognitions) as the result
of exposure to an
advertisement, which, in
turn, affect the
consumer’s attitude
toward the ad and
attitude toward the
brand.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 32
A Conception of the Relationship Among Elements in
an Attitude-Toward-the-Ad Model - Figure 8.6
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 33
Issues in Attitude Formation
• How attitudes are learned
– Conditioning and experience
– Knowledge and beliefs
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 34
Issues in Attitude Formation
• Sources of influence on attitude formation
– Personal experience
– Influence of family
– Direct marketing and mass media
• Personality factors
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 35
Attitude Change
• Altering Components of the Multiattribute
Model
– Changing relative evaluation of attributes
– Changing brand beliefs
– Adding an attribute
– Changing the overall brand rating
• Changing Beliefs about Competitors’
Brands
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 36
Elaboration
Likelihood
Model
(ELM)
Customer attitudes are
changed by two
distinctly different
routes to persuasion:
a central route or a
peripheral route.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 37
Elaboration Likelihood Model
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 38
Behavior Can Precede or Follow
Attitude Formation
Cognitive Dissonance
Theory
• Holds that discomfort
or dissonance occurs
when a consumer holds
conflicting thoughts
about a belief or an
attitude object.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Attribution Theory
• A theory concerned
with how people assign
causality to events and
form or alter their
attitudes as an outcome
of assessing their own
or other people’s
behavior.
Chapter Eight Slide 39
Attribution Theory
• Internal attribution
• External attribution
– Towards others
– Towards things
• Defensive attribution
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eight Slide 40
CHAPTER
NINE
Communication and
Consumer Behavior
Basic Communication Model
Figure 9.1
Noise
Noise
Noise
Noise
Noise
The Communications Process
• The Source/Sender (Message Initiator)
– Formal sources (marketers)
– Informal sources (friends, family, reference groups, etc.)
•
•
•
•
•
•
Encoding
The Message
The Medium
The Receiver/Target audience (Decoding)
Feedback - the Receiver’s Response
Noise
Issues with Credibility
Credibility of Informal Sources: Word of mouth or opinion
leadership (not always credible), Buzz agents, viral marketing…
Credibility of Formal Sources: role, affiliations, intentions, past
performance, reputation, appearance, etc. Neutral sources have the
greatest credibility
Spokesperson/Endorser Credibility: Synergy between
endorser and type of product, demographic characteristics of
endorser, corporate credibility
Media Credibility: Perception of magazines, TV/radio shows
Message Credibility: Topic, Appeals, Arguments, Style, etc.
Receiver variables: Involvement, motives, congruency, mood,…
Sleeper Effect: Consumer forgets the source over time
Overcoming Psychological Noise
•
•
•
•
•
•
•
Repeated exposure
Contrast
Customized promotional messages
Effective positioning
Offering unique value propositions
Using non-traditional media
Etc.
Message Structure and Presentation
Message framing: Positive/Negative framing
One-Sided versus Two-Sided Messages:
Depends on nature of the audience and
nature of competition
First or last:
Order Effects: Primacy, Recency, Order of
benefits, Brand name
Advertising Appeals
•
•
•
•
•
•
•
•
Comparative
Fear
Humor
Abrasive
Sex
Audience participation
Timely
Celebrities (Testimonial, Endorsement, Actor,
Spokesperson)
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Nine Slide 47
Feedback
Determining Effectiveness
• Exposure Effects (how many received the message)
– People meters
• Persuasion Effects (was the message received and
interpreted correctly?)
–
–
–
–
Message Attention, Interpretation, and Recall
Physiological measures
Attitudinal measures
Recall and recognition measures
• Sales Effect: Did the ads increase sales?
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Nine Slide 48
CHAPTER
TEN
The Family and Its
Social Class Standing
The Changing U.S. Family
• Types of families
– Nuclear
– Extended (including joint)
– Single-parent
• Changes in household spending patterns
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 50
Consumer
Socialization
The process by which
children acquire the
skills, knowledge, and
attitudes necessary to
function as consumers.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 51
Other Functions of the Family
• Economic well-being
• Emotional support
• Suitable family lifestyles
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 52
Family Decision Making
• Dynamics of Husband-Wife Decision Making
– Husband-Dominated
– Wife-Dominated
• Expanding Role of Children In Family Decision
Making
– Choosing restaurants and items in supermarkets
– Teen Internet mavens
– Pester power
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 53
The Family Life Cycle
• Traditional Family Life Cycle
– Stage I: Bachelorhood
– Stage II: Honeymooners
– Stage III: Parenthood
– Stage IV: Postparenthood
– Stage V: Dissolution
• Modifications - the Nontraditional FLC
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 54
Nontraditional FLC Family Stages
Alternative FLC Stage
Definition/Commentary
Childless couples
Increasingly acceptable with more careeroriented married women and delayed
marriages
Couples who marry later in life
Likely to have fewer or no children
Couples with first child in late 30’s or later
Likely to have fewer children. Want the
best and live quality lifestyle
Single parents I
High divorce rate - about 50% lead to this
Single parents II
Child out of wedlock
Single parents III
Single person who adopts
Extended family
Adult children return home. Divorced
adult returns home. Elderly move in with
children. Newlyweds live with in-laws.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 55
Social Class
The division of
members of a society
into a hierarchy of
distinct status classes,
so that members of
each class have either
higher or lower status
than members of other
classes.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 56
Social Class Measure and Distribution
Table 10.8
SOCIAL CLASSES and PERCENTAGE
Upper
4.3%
Upper-middle
13.8%
Middle
32.8%
Working
32.3%
Lower
16.8%
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 57
Social Class Measurement
• Subjective Measures
– Self-Reporting: individuals are asked to estimate their
own social-class positions
– Reputational method: individuals are asked to
estimate social-class positions of people they know
• Objective Measures
– individuals answer specific socioeconomic questions
and then are categorized according to answers
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 58
Objective Measures
Single variable indices: Occupation, Education,
Income
Composite variable indices:
1. Index of Status Characteristics: weighted index
of Occupation, Source of income, House Type
and Dwelling Area
2. Socioeconomic Status Score (Census Bureau):
Occupational status, family income,
educational attainment
Geodemographic Clusters
• A composite segmentation strategy that uses
both geographic variables (zip codes,
neighborhoods) and demographic variables
(e.g., income, occupation) to identify target
markets
The Affluent Consumer
• Growing number of households can be classified
as “mass affluent” with incomes of at least
$75,000
• Some researchers are defining affluent to include
lifestyle and psychographic factors in addition to
income
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 61
The Mass Market
Lower Middle Class (non-professional white collar)
• The “middle” 50% of household incomes - households earning
between $25,000 and $85,000
• Emerging markets middle class
• Moving up to more “near luxuries”
+
Working Class
• Households earning $40,000 or less control more than 30% of
the total income in the U.S.
• Tend to be more brand loyal than wealthier consumers.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 62
The Techno Class
• Having competency with technology
• Those without are referred to as
“technologically underclassed”
• Parents are seeking computer exposure for
their children
• Geeks now viewed as friendly and fun
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 63
Consumer Behavior and Social Class
• Clothing, Fashion, and Shopping: lower classes –
logo T-shirts, caps etc., upper classes – subtle fashions;
preference for stores where similar social classes shop.
• The Pursuit of Leisure: upper classes – concerts,
museum, college football; lower classes – fishing,
baseball, DIY; middle classes: increasing emphasis on
“experiences” that bring family together, etc.
• Saving, Spending, and Credit: convenience vs.
necessity
• Social Class and Communication: middle classes –
broader and longer point of view
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Ten Slide 64
CHAPTER
ELEVEN
Influence of Culture on
Consumer Behavior
Culture
The sum total of learned beliefs, values, and
customs that serve to regulate the consumer
behavior of members of a particular society.
The Invisible Hand of Culture: Each individual
perceives the world through his own cultural
lens
Nature of Culture
Culture Satisfies Needs:
Culture Is Learned: Enculturation; Acculturation;
Language and Symbols; Rituals
Culture in Inculcated: Passed on from one
generation to the next
Culture is Dynamic: Evolves because it fills needs;
Certain factors change culture (technology, population
shifts, economic development, wars, changing values,
influences from other countries)
The Measurement of Culture
• Content Analysis: systematically analyzing the
content of verbal and/or pictorial
communication. Is frequently used to determine
prevailing social values of a society.
• Consumer Fieldwork: Field Observation (natural
setting, subject unaware, focus on observation of
behavior); Participant Observation
• Value Measurement Instruments: Rokeach Value
Survey (RVS); List of Values (LOV); VALS
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Eleven Slide 68
Value Measurement Survey Instruments
Rokeach Value Survey
(RVS)
List of Values (LOV)
• A self-administered
inventory
consisting of
eighteen
“terminal” values
(i.e., personal
goals) and eighteen
“instrumental”
values (i.e., ways of
reaching personal
goals)
• A value
measurement
instrument that asks
consumers to
identify their two
most important
values from a ninevalue list that is
based on the
terminal values of
the Rokeach Value
Survey
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Values and Lifestyles
(VALS)
• A value
measurement based
on two categories:
self-definition and
resources
Chapter Eleven Slide 69
American Core Values
(Values must be pervasive, enduring & Customer-related)
Achievement
and success
Activity
Efficiency and
practicality
Progress
Material
comfort
Individualism
Freedom
External
conformity
Humanitarianism
Youthfulness
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Fitness and
health
Chapter Eleven Slide 70
CHAPTER
TWELVE
Subcultures and
Consumer
Behavior
Subculture
A distinct cultural group
that exists as an
identifiable segment
within a larger, more
complex society.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 72
Relationship Between Culture and
Subculture - Figure 12.2
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 73
Nationality Subculture - Hispanic
• Stronger preference for well-established
brands
• Prefer to shop at smaller stores
• Some are shifting food shopping to nonethnic American-style supermarkets
• Youths are more fashion conscious than
non-Hispanic peers
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 74
Religious Subcultures
• 200+ organized religious groups in the U.S.
• Primary organized faiths include:
–
–
–
–
Protestant denominations
Roman Catholicism
Islam
Judaism
• Consumer behavior symbolically and ritualistically
associated with the celebration of religious
holidays.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 75
Regional Subcultures
• Many regional differences exist in consumption
behavior
– Westerners have a mug of black coffee
– Easterners have a cup of coffee with milk and sugar
– White bread is preferred in the South and Midwest
– Rye and whole wheat are preferred on the East and
West coasts
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 76
Major Racial Subcultures
African American
• The African American Consumer
– 13 percent of the U.S. population
– Purchasing power estimated at $845 billion
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 77
Major Racial Subcultures
African American
• Prefer leading brands over private-label
brands
• Brand loyal
• Higher than average trips to grocery store
and higher spending
• Spend more then other segments on
telephone services
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 78
Major Racial Subcultures
Asian American
• Fastest growing racial segment
• Diverse group including 6 major ethnicities:
– Chinese, Filipino, Indian, Vietnamese, Korean,
and Japanese
• 95% live in metropolitan areas and business
ownership is high
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide
79
Region of Residence for Selected
Subcultural Groups – Figure 12.7
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide
80
Major Age Subcultures
Generation
Y
Generation
X
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Baby
Boomers
Seniors
Chapter Twelve Slide 81
Generation Y
• According to sources, born 1977-1994 OR
1982-2000
• Three groups
– Gen Y Adults – 19-28
– Gen Y Teens – 13-18
– Gen Y Tweens 8-12
• Twixters – 21-29 and live with parents
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 82
Generation X
• Born between 1965 and 1979
• Also referred to as Xers, busters, or slackers
• Do not like labels, are cynical, and do not want
to be marketed to
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 83
Baby Boomers
•
•
•
•
Born between 1946 – 1964
More than 40 percent of the adult population
Motivated consumers
Not anxious to retire and handle it as:
– Opportunity for a new start
– A continuation of preretirement life
– Unwelcome disruption
– Transition to old age
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 84
Older Consumers
• Roughly 65 years and older
• Growing segment due to better medical care,
declining birthrate and the aging of the large
baby boomer segment
• Three segments by age
– The Young-Old (65-74)
– The Old (75-84)
– The Old-Old (85 and older)
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 85
Older Consumers
• Segmentation can also be done on
motivations and quality-of-life orientation
• Cyberseniors
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 86
Issues in Understanding Gender as a
Subculture
• Sex Roles and Consumer Behavior
– Masculine vs. Feminine Traits
• Consumer Products and Sex Roles
• Women as depicted in Media
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 87
Working Women
• Segments of ALL women
– Stay-at-home
– Plan-to-work
– Just-a-job working
– Career-oriented working
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 88
Subcultural
Interaction
Marketers should strive
to understand how
multiple subcultural
memberships jointly
influence consumers
behavior
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Twelve Slide 89
CHAPTER
FIFTEEN
Consumer
Decision Making
and Beyond
Levels of Consumer Decision Making
• 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 91
Models of Consumers: Four Views of Consumer
Decision Making
•
•
•
•
An Economic View
A Passive View
A Cognitive View
An Emotional View
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 92
Consumer
Decision Making
Figure 15.3
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 93
Process - Need Recognition
• Usually occurs when consumer has a
“problem”, i.e., perceives a difference
between an Actual state and Desired state
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 94
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 95
Evaluation of Alternatives
•
•
•
•
•
•
•
•
•
•
Evoked 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 96
The Evoked Set
Figure 15-5
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 97
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 98
Consumer Decision Rules
• Compensatory
– evaluates each brand in terms of each relevant
attribute and then selects the brand with the highest
weighted score.
• Noncompensatory
– positive evaluation of a brand attribute does not
compensate for a negative evaluation of the same
brand on some other attribute
– Conjunctive, disjunctive, or lexicographic
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 99
Hypothetical Use of Decision Rules
Table 15.7
Decision Rule
Mental Statement
Compensatory rule
I selected the netbook that came out best when I
balanced the good ratings against the bad ratings
Conjunctive rule
I selected the netbook that had no bad features
Disjunctive rule
I picked the netbook that excelled in at least one
attribute
Lexicographic rule
I looked at the feature that was most important to
me and chose the netbook that ranked highest on
that attribute
Affect referral rule
I bought the brand with the highest overall rating
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 100
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 101
The Decision Process for Functionally Illiterate
Consumers - Figure 15.6
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 102
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 103
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 104
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 105
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 106
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 107
Gifting Behavior
Gifting is an act of symbolic communication,
with explicit and implicit meanings ranging
from congratulations and love, to regret,
obligation, and dominance.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 108
Reported Circumstances and Motivations
for Self-Gift Behavior
Table 15.13
CIRCUMSTANCES
MOTIVATIONS
Personal accomplishment
Feeling down
Holiday
Feeling stressed
Have some extra money
Need
Had not bought for self in a while
Attainment of a desired goal
Others
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
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide109
Gifting Relationships - Table 15.14
GIFTING
RELATIONSHIP
DEFINITION
EXAMPLE
Intergroup
A group giving a gift to
another group
A Christmas gift from one family to
another family
Intercategory
An individual giving a gift
to a group or a group
giving a gift to an
individual
A group of friends chips in to buy a new
mother a baby gift
Intragroup
A group giving a gift to
itself or its members
A family buys a VCR for itself as a
Christmas gift
Interpersonal
An individual giving a gift
to another individual
Valentine’s Day chocolates presented from
a boyfriend to a girlfriend
Intrapersonal
Self-gift
A woman buys herself jewelry to cheer
herself up
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide110
Consuming and Possessing
• Consumers find pleasure in possessing,
collecting, or consuming
• Products have special meanings and
memories
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide111
Relationship
Marketing
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 personal
connection with the
business.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
Chapter Fifteen Slide 112