Prepared by Ezgi Merdin

What brand to buy?

What store to buy? (channel decision)

How to pay? (payment decision)

Which service to use? (consumption decision)

“Decision is the selection of an option from two or more

alternative choices.”

Which criteria consumers are using?

Consumers are exposed to huge information but they have limited cognitive capacity.

2AD643 - Consumer Behavior - Ezgi Merdin

3AD643 - Consumer Behavior - Ezgi Merdin

According to Consumer Involvement (Assael, 1992):

Extensive Decision Making

Complex Decision Making

High cost, complex products

Entailing significant risks, can be performance risks

Long decision time

Goods of interest or emotion or ego-related

4AD643 - Consumer Behavior - Ezgi Merdin

According to Consumer Involvement:

EPS Model

5AD643 - Consumer Behavior - Ezgi Merdin

Source: Fill, 2002

According to Consumer Involvement:

Perner’s Model

6AD643 - Consumer Behavior - Ezgi Merdin

According to Consumer Involvement:

Routine Response BehaviorSubsequent Purchase ActivityRoutinized Problem SolvingConditioning and LearningBrand Loyal ConsumerFrequently Purchased Low Cost GoodsQuick DecisionLittle information processing

It reduces risks of product failure and financial loss.

It facilitates decision – making, through use of few information sources

7AD643 - Consumer Behavior - Ezgi Merdin

According to Consumer Involvement:

Limited Decision MakingLimited Problem SolvingGoods of low-moderate costFew alternativesSimple decision rules on a few attributesPassive consumer

8AD643 - Consumer Behavior - Ezgi Merdin

According to Consumer Involvement:

Fill’s LPS Model:

Source: Fill, 2002

9AD643 - Consumer Behavior - Ezgi Merdin

According to Consumer Involvement:

Source: Loudon & Della Bita, 1993

10AD643 - Consumer Behavior - Ezgi Merdin

According to Time-Line (Blackwell et al., 2006):

11AD643 - Consumer Behavior - Ezgi Merdin

According to Time-Line (Blackwell et al., 2006):

12AD643 - Consumer Behavior - Ezgi Merdin

Compensatory Decision Rules (all attributes considered)•Simple additive•Weighted additive

Non-compensatory Decision Rules•Conjunctive rule (minimal acceptables)•Disjunctive rule (higher cut-offs)•Lexicographic rule (acc. to most imp. Attribute)•Elimination by aspects

According to Time-Line (Blackwell et al., 2006):

13AD643 - Consumer Behavior - Ezgi Merdin

According to Time-Line (Blackwell et al., 2006):

14AD643 - Consumer Behavior - Ezgi Merdin

15AD643 - Consumer Behavior - Ezgi Merdin

16AD643 - Consumer Behavior - Ezgi Merdin

17AD643 - Consumer Behavior - Ezgi Merdin

•Assael, H. (1992) Consumer Behavior and Marketing. 4th ed. PWS Kent.•Blackwell, R.D. , P.W. Miniard & J.F. Engel . (2001) Consumer behavior 9th ed. Harcourt College Publishers, Fort Worth, TX.•-- (2006) Consumer behavior 10th ed. Singapore,:Thomson Southwestern.•Fill, C. (2002), Marketing Communications 3e, Pearson Education•Foxall, G.R. (1980) Consumer behavior : A Practical Guide. Routeledge, London.•Loudon, D. L., & Della Bitta, A. J. (1993). Consumer Behavior. Concepts and Applications. New York: McGrow Hill, Inc.•Nicosia, F.M. (1966), Consumer Decision Processes. Marketing and Advertising Implications, Prentice-Hall, Englewood Cliffs, NJ.•Perner, L. PhD website www.consumerpsychologist.com

Rau, P. &Samiee, S. 1981. Models of consumer behavior: The state of the art. Journal of the Academy of Marketing Science 9 (Summer): 300-15.

18AD643 - Consumer Behavior - Ezgi Merdin