Post on 17-Dec-2015
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Consumer BehaviorConsumer BehaviorDecision making
Types of Purchase
Behavior and the
Consumer Decision
Making Process
Consumer BehaviorConsumer BehaviorDecision making
Outline• Types of purchase decisions• Need arousal• Information acquisition
(types of search, determinants of search, and sources of information)
• Evaluation of alternatives and choice(choice sets, choice alternatives, choice criteria, choice heuristics, context effects)
Consumer BehaviorConsumer BehaviorDecision making
The purchase cube
ExtendedExtendedpurchasepurchasedecisiondecisionmakingmaking
SymbolicSymbolicpurchasepurchasebehaviorbehavior
RepetitiveRepetitivepurchasepurchasebehaviorbehavior
HedonicHedonicpurchasepurchasebehaviorbehavior
PromotionalPromotionalpurchasepurchasebehaviorbehavior
ExploratoryExploratorypurchasepurchasebehaviorbehavior
ImpulsiveImpulsivepurchasepurchasebehaviorbehavior
CasualCasualpurchasepurchasebehaviorbehavior
Deliberate purchasesDeliberate purchases Spontaneous purchasesSpontaneous purchases
HIHI
LILI
HIHI
LILI
ThinkThink ThinkThinkFeelFeel FeelFeel
Consumer BehaviorConsumer BehaviorDecision making
Types of purchase motives
Functional motivesFunctional motives
Problem solving (problem Problem solving (problem removal or avoidance)removal or avoidance)
Quality and performanceQuality and performancePrice and valuePrice and valueFamiliarityFamiliarityConvenienceConvenienceNormal depletionNormal depletion
Psycho-social motivesPsycho-social motives
Social approvalSocial approvalSelf-expressionSelf-expressionVariety and changeVariety and changeEmotional stimulationEmotional stimulationIntellectual stimulationIntellectual stimulationSensory gratificationSensory gratification
Consumer BehaviorConsumer BehaviorDecision making
FCB grid for some common products
think feel
high involvement
low involvement
life insurance
stereo component
sports car
perfume
wine for dinner party
expensive watch
35 mm camerawasher/dryer
car battery portable TV
complexion/face soap
toothpastejeans
greeting cardfast food restaurant
regular beer
salty snacksliquidhand soap
paper towels
disposable razor
liquid bleach
salad oil
suntan lotion
dry bleach
Consumer BehaviorConsumer BehaviorDecision making
Need arousal
Current (initial)Current (initial)statestate
Desired (end)Desired (end)statestate
Discrepancy ?Discrepancy ?
• genericgeneric• selectivselectiv
ee
Need arousalNeed arousal
Consumer BehaviorConsumer BehaviorDecision making
Information acquisition• ongoing search: motivated by intrinsic enjoyment
of the search process and the desire to build an information bank;
• prepurchase search: motivated by the desire to make better purchase decisions;
– internal:
– external:
Consumer BehaviorConsumer BehaviorDecision making
Internal search
PurchasePurchasegoalgoal
Brand ABrand A
Brand BBrand B
Brand CBrand C++++
++
ExperiencesExperiences
AttributeAttributeinformationinformation
0/+0/+
Consumer BehaviorConsumer BehaviorDecision making
Determinants of external search effortEnvironmental and situational variables:
– number of alternatives +– product differences +– store distribution (distance) –– time pressure –
Product characteristics:– price +– social visibility (style and appearance) +– perceived risk +– number of crucial attributes +
Consumer characteristics:– prior knowledge and experience –– involvement +– positive attitude toward search +– education +– income –– age –
Consumer BehaviorConsumer BehaviorDecision making
Information sources
commercialsources
noncommercialsources
personal sources nonpersonal sources
Consumer BehaviorConsumer BehaviorDecision making
Alternative evaluation• the following information is particularly relevant
to making a choice:– choice alternatives (e.g., brands, stores);– choice criteria (e.g., product or store
attributes);• in order for a product or store to be chosen, it has
to be in the consumer’s consideration set and it has to be perceived favorably on the choice criteria that are important to the consumer;
Consumer BehaviorConsumer BehaviorDecision making
A choice sets model of retail selection (Spiggle and Sewall 1987)
total set
unawarenessset
awarenessset
inertset (0)
inactionset (/0)
quietset (/0)
retailer notchosen (/0)
evokedset ()
actionset ()
interactionset ()
retailerchosen ()
ineptset () reject set ()
Consumer BehaviorConsumer BehaviorDecision making
In-class exercise: Choice setsChoose a product category in which three acquaintances who are not in this class made a recent purchase (e.g., soft drinks, fast food restaurants, energy bars, etc.). Ask your respondents to list all the brands in the product category that they were aware of prior to making the purchase (awareness set), and then have them indicate which brands they considered buying (consideration set), which brands they were indifferent toward (inert set), and which brands they knew they didn’t want to buy (inept set). Of course, you should also keep track of which brand they actually purchased. Try to find out from your respondents why different brands belong to each of the different choice sets.
•
Consumer BehaviorConsumer BehaviorDecision making
Purchasing a diamond engagement ring
Awareness Evoked Action Interaction Choiceset set set set set
Fine Jewels 90 74 56 36 9(10) (12) (15) (23)
Hargrave 30 19 13 9 4(13) (21) (30) (44)
A.A. Gray 28 10 5 1 <1(2) (6) (13) (40)
Mass Mart 69 7 4 1 0(0) (0) (0) (0)
Consumer BehaviorConsumer BehaviorDecision making
Choice heuristics• if an overall evaluation for each brand is
available in memory, the decision can be made based on affect referral;
• attribute-based choice heuristics differ based on whether they are compensatory or noncompensatory and whether processing occurs by brand or by attribute;
• phased decision strategies are often used in practice;
Consumer BehaviorConsumer BehaviorDecision making
Attribute-based choice heuristics
Processingby brand
Processingby attribute
Compensatory Noncompensatory
weighted additive ruleequal weight heuristic
conjunctive heuristic
lexicographic heuristicelimination by aspects
heuristicadditive difference rule
Consumer BehaviorConsumer BehaviorDecision making
In-class exercise: Decision rulesUse the data in the table below to decide which product a consumer would choose if (s)he were to use the following decision rules or heuristics: (a) weighted additive rule (according to this rule, the overall score is the weighted sum of the subjective values, where the weights are the attribute importances); (b) equal weight heuristic (according to this rule, unit weights are used for all attributes); (c) conjunctive heuristic; (d) lexicographic heuristic; and (e) elimination by aspects heuristic (read Chapter 7 in Peter and Olson, esp. Exhibit 7.4, before doing this assignment). Note: Numbers in parentheses are subjective ratings on a scale from 1 to 10, with 10 being the maximum score. Use these ratings in your calculations. The cutoff levels refer to the minimum or maximum acceptable standard on a given attribute (e.g., >5 on image means that the rating on this attribute has to be greater than 5 in order for the car to be considered).
BrandImage
PriceWarranty
(years/miles)
J.D.Power mechanical
quality
Crash test
rating
Horse-power
EPA mileage
(city/highway)
Nissan Altima(6)
$19,800 (7)
3/36K (7)
3 (6)
Excellent (10)
175 (8)
23/29 (8)
Honda Accord(8)
$17,095 (8)
3/36K (7)
4 (8)
Excellent (10)
160 (7)
24/34 (9)
Toyota Camry(9)
$19,025 (7)
3/36K (7)
3 (6)
Excellent (10)
160 (7)
24/34 (9)
Ford Taurus(6)
$21,200 (5)
3/36K (7)
3 (6)
Good (8)
153 (5)
20/27 (7)
VW Jetta(10)
$25,045 (4)
5/50K (9)
4 (8)
Excellent (10)
180 (9)
22/29 (8)
Attribute importance
6 10 9 8 6 5 7
Cutoff level >(5) <$22,000 >2/30K >2 (6) at least good
>170 >20/27
Choosing a mid-size sedan
Consumer BehaviorConsumer BehaviorDecision making
The cost-benefit approach to consumer choice
• question of how consumers decide which choice heuristic to use in a given case;
• the cost/benefit framework suggests that rule usage depends on the costs and benefits associated with the application of a given heuristic;
• important components of costs and benefits are the cognitive effort required by a choice heuristic and the accuracy of the choice resulting from the use of a heuristic;
Consumer BehaviorConsumer BehaviorDecision making
Contextual influences on consumer decision making
• because consumers’ preferences are often not well-formed, seemingly minor variations in the way the decision is framed (either by the consumer or the marketer) can have a profound effect on choice;
• marketers can influence consumer decision making by manipulating various task and context factors;
Consumer BehaviorConsumer BehaviorDecision making
Effect of choice set composition on consumers’ purchase decisions:
The attraction effect
Cross pen
$6
Cross peninferior, lesser-known pen$6
Choice 1:
Choice 2:
Consumer BehaviorConsumer BehaviorDecision making
Effect of choice set composition on consumers’ purchase decisions:
The compromise effect
Brand B costs $350, w/ a picture quality of 85
Brand C costs $299, w/ a picture quality of 80
Same as above, except that there is also Brand A,
at a price of $503 and a picture quality of 100
Same as above, except that there is also Brand D,
at a price of $146 and a picture quality of 65
Consumer BehaviorConsumer BehaviorDecision making
Methods for studying decision making• input-output approaches: a decision process is
hypothesized and factors that affect this process are identified; if manipulations of these factors (inputs) lead to the predicted results (outputs), this is interpreted as evidence in support of the underlying process;
• process tracing approaches: ongoing decision processes are measured directly;– verbal protocols: concurrent or retrospective thought
verbalizations;
– information acquisition approaches: information display boards, eye movement recording, and computer-based information displays;
– chronometric analysis: analysis of response times;
Consumer BehaviorConsumer BehaviorDecision making
Brand personality• idea that brands have “personalities” (sets of
human characteristics) and that consumers may use brands for self-expressive purposes;
• recent research by Aaker (1997) suggests that a brand’s personality can be described in terms of five underlying dimensions;
• according to the image congruence hypothesis, consumers prefer brands that have images similar to their own self-image;
Consumer BehaviorConsumer BehaviorDecision making
A brand personality framework
Brandpersonality
Sincerity Excitement Competence Sophistication Ruggedness
• down-to-earth• honest• wholesome• cheerful
• daring• spirited• imaginative• up-to-date
• reliable• intelligent• successful
• upper class• charming
• tough• outdoorsy