chapter 16 consumer buying decision

Copyright 2007 by Prentice Hall

Consumer Behavior,Ninth Edition

Schiffman & Kanuk

Chapter 16Consumer Decision Making

and Beyond

Copyright 2007 by Prentice Hall 16 - 2

Chapter Outline

• Levels of Consumer Decision Making• Models of Consumer Decision

Making• Consumer Gifting Behavior• Relationship Marketing


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


This Site Helps You Search and Establish Criteria for Choosing a Doctor

weblink


Ads often appeal to

consumers who are looking for information to

help them evaluate

products.


Models of Consumers: Four Views of Consumer Decision Making

• An Economic View

• A Passive View

• A Cognitive View

• An Emotional View


Discussion Questions

• How are the four models of consumer decision making similar?

• How do they differ


Goal Setting and Pursuit Figure 16.1


A Simple Model of

Consumer Decision Making

Figure 16-2


Discussion Question

• What types of sociocultural inputs would influence the purchase of a:– Plasma TV– Hybrid vehicle– Sugar-free ice cream


The Process of Consumer Decision Making

• Need Recognition

• Prepurchase Search

• Evaluation of Alternatives


Need Recognition

• Usually occurs when consumer has a “problem”

• Need recognition styles– Actual state– Desired state


Prepurchase Search

• Begins with internal search and then moves to external search

• The impact of the Internet

• Search may be personal or impersonal


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 • Series of decisions• Decision rules and marketing strategy


The Evoked Set Figure 16-3



• Evoked Set• Criteria used for evaluating brands• Consumer decision rules and their



Consumer Decision Rules

• Compensatory

• Noncompensatory– Conjunctive Decision Rule– Disjunctive Decision Rule– Lexicographic Rule


Compensatory Decision Rules

A type of decision rule in which a

consumer evaluates each brand in terms

of each relevant attribute and then selects the brand with the highest weighted score.


Non-compensatory

Decision Rules

A type of consumer decision rule by which positive

evaluation of a brand attribute does not compensate for a

negative evaluation of the same brand on

some other attribute.


Conjunctive Decision

Rule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each attribute evaluated.

Brands that fall below the cutoff point on any

one attribute are eliminated from further

consideration.


Disjunctive Rule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each

relevant product attribute.


Lexicographic Rule

A noncompensatory decision rule -

consumers first rank product attributes in

terms of importance, then compare brands

in terms of the attribute considered

most important.


Affect Referral Decision

Rule

A simplified decision rule by which consumers

make a product choice on the basis of their

previously established overall ratings of the

brands considered, rather than on specific

attributes.


The Decision Process for Functionally Illiterate Consumers

Figure 16-4


There Are a Growing Number of Web Sites to Help Consumers Choose

Products

web link


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



• 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 • Series of decisions• Decision rules and marketing strategy


A Purchase Can Involve a Number of Decisions.

When purchasing car, the buyer is

involved in a number of decisions – the

make, model, country of origin, the

dealer, the financing, and different

options.


Output of Consumer Decision Making

• Purchase behavior

• Postpurchase evaluation


Purchase Behavior

• Three types of behavior– Trial purchases– Repeat purchases– Long-term commitment


Postpurchase Evaluation

• Actual Performance Matches Expectations– Neutral Feeling

• Actual Performance Exceeds Expectations– Positive Disconfirmation of Expectations

• Performance Is Below Expectations– Negative Disconfirmation of Expectations


This article in Cargo is

designed to help a reader reduce their

postpurchase depression.


Discussion Question

• What are four ways that consumers reduce postpurchase dissonance?

• How can marketers work to help consumers reduce the dissonance?


Gifting Behavior

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


An Increasing Number of Gift Purchases Are Now Made Online

weblink


Table 16.13 Reported Circumstances and Motivations for Self-Gift Behavior

CIRCUMSTANCES

Personal accomplishmentFeeling downHolidayFeeling stressedHave some extra moneyNeedHad not bought for self in a whileAttainment of a desired goalOthers

MOTIVATIONS

To reward oneselfTo be nice to oneselfTo cheer up oneselfTo fulfill a needTo celebrateTo relieve stressTo maintain a good feelingTo provide an incentive toward a goalOthers


Table 16.14 Gifting Relationships

GIFTING GIFTING 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 in to buy a new mother a baby gift

An individual giving a gift to a group 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 to another individual

Intrapersonal A woman buys herself jewelry to cheer herself up

Self-gift


A Simple Model of ConsumptionFigure 16-5


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.


Proctor & Gamble Builds Relationships with Their Brands


State Farm Insurance stresses

relationship marketing in their

advertising.

chapter 16 consumer buying decision

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