Consumer Decision Making and Beyond

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. 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. Chapter Fifteen Slide

4. What Would a Pet Owner Need to Know in Order to Make a Decision About Buying Pet Insurance? Chapter Fifteen Slide

5. Do I Need It? How Do I Get More Information? 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 Chapter Fifteen Slide

7. Models of Consumers: Four Views of Consumer Decision Making • An Economic View • A Passive View • A Cognitive View • An Emotional View Chapter Fifteen Slide

8. Discussion Questions • How are the four models of consumer decision making similar? • How do they differ? Chapter Fifteen Slide

9. Consumer Decision MakingFigure 15.3 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 Chapter Fifteen Slide

11. Process - Need Recognition • Usually occurs when consumer has a “problem” • Need recognition styles • Actual state • Desired state 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 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 Chapter Fifteen Slide

14. The Evoked Set Figure 15-5 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 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 Chapter Fifteen Slide

17. Hypothetical Use of Decision RulesTable 15.7 17 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 Chapter Fifteen Slide

19. The Decision Process for Functionally Illiterate Consumers - Figure 15.6 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 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 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 Chapter Fifteen Slide

23. Output of Consumer Decision Making • Purchase behavior • Trial purchases • Repeat purchases • Long-term commitment • Postpurchase evaluation 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 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? Chapter Fifteen Slide

26. Gifting Behavior Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance. Chapter Fifteen Slide

27. Reported Circumstances and Motivations for Self-Gift Behavior Table 15.13 CIRCUMSTANCES 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 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 Chapter Fifteen Slide

28. Gifting Relationships - Table 15.14 Chapter Fifteen Slide

29. Consuming and Possessing • Consumers find pleasure in possessing, collecting, or consuming • Products have special meanings and memories 29 Chapter Fifteen Slide

30. A Model of ConsumptionFigure 15.11 Chapter Fifteen Slide

31. 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. Chapter Fifteen Slide

32. Relationship Marketing SuccessFigure 15.12 32 Chapter Fifteen Slide