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1. Consumer Decision Making and Beyond CHAPTER FIFTEEN

2. Learning Objectives To Understand What a Consumer Decision Is. To Understand the Three Levels of Consumer Decision Making. To Understand Four Different Views or Models of Consumer Decision Making. To Understand in Detail the Model of Consumer Decision Making Originally Introduced in Chapter 1. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

3. Learning Objectives (continued) To Understand the Nature and Scope of Consumer Gift Giving. To Understand the Significance of Consuming and Possessing. To Understand the Need for Relationship Marketing. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

4. 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

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

6. 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

7. EPS LPS RPS Complexity of decision making High Medium Low Time taken to make decision High Low or medium Low Information gathering Yes Yes No Information Awareness Many Few Few / None Evaluative Criteria Complex Moderate Simple (if at all) Brands considered Many Few One (Repeat purchase) Post Purchase Processes Cognitive Dissonance High Rare None Consumer involvement High Medium Low Problem Recognition Actual State type to Desired state Actual state type to desired state Actual state Information Search Extensive
Internal & External sources Limited
Mostly Internal Sources Minimum
Restricted to internal sources only Evaluation Of alternatives Complex Moderate Simple Types Of Goods Speciality Goods Mixed Convenience Goods

8. 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

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

10. Discussion Question What types of sociocultural inputs would influence the purchase of a: Plasma TV Hybrid vehicle Sugar-free ice cream Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

11. Process - Need Recognition Usually occurs when consumer has a “problem” Need recognition styles Actual state Desired state Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

12. 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

13. 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

14. The Evoked Set Figure 15-5 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. 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

17. 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 17 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

18. 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

19. The Decision Process for Functionally Illiterate Consumers - Figure 15.6 Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide

20. 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

21. 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

22. 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

23. 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

24. 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

25. Discussion Questions What are four ways that consumers reduce postpurchase dissonance? How can marketers work to help consumers reduce the dissonance? Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide