schiff_cb_ce_14.ppt

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Copyright 2006Pearson Education Canada Inc.

Chapter 14

Consumer Decision Making I:The Process

Consumer Behaviour

Canadian EditionSchiffman/Kanuk/Das


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Copyright 2006 Pearson Education Canada Inc.

14-2

Levels of Consumer Decision

MakingExtensive Problem

Solving

Limited Problem

Solving

Routine Response

Behaviour


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14-3

Factors That Affect the Type of

Decision Making Process Used Importance of the decision

Extent of previous experience

Existence of well-established decisioncriteria

Amount of information at hand about eachalternative

The number of alternatives available Model of consumption being followed


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14-4


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14-5

Consumer Decision MakingThe

ProcessNeed Recognition

Pre-purchase Search

Evaluation of Alternatives


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14-6

Need or Problem Recognition

The realization that there is a difference

between actual and desired states

The higher the gap, the stronger the need (orbigger the problem)


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14-7

Types of Problems

Active Versus Inactive problems

Active: those you are aware of

Inactive: those that you are not yet aware of

(but exist)

Those that require immediate solutions and

those that do not require immediatesolutions


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14-8

Problem Recognition and

Marketing Strategy Identify existing consumer problems and find

solutions for these

Lower the actual state Increase the desired state

Increase the importance of the gap between actualand desired states

Convert inactive problems to active problems Convert problems into ones requiring an

immediate solution


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14-9

Pre-Purchase Search

Types of Information Sources

Types of Information Sought

Factors Affecting Extent of Information

Search


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14-10

Figure 14-3: Types of

Information SourcesPERSONAL

Friends

NeighborsRelatives

Co-workers

Computer salespeople

Calling the electronics

store

IMPERSONAL

Newspaper articles

Magazine articlesConsumer Reports

Direct-mail brochures

Information from product

advertisements

Internal web site


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14-11

Types of Information Sought

Brands or alternatives available

Evaluative criteria to be used

Generally, product features

Ratings of brands on evaluative criteria


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14-12


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14-13

Factors that Increase the Level of

Pre-purchase Search

Product Factors: Higher search when

It is a long-lasting or infrequently used

product

There are frequent changes in product styling

Large volume is purchased

The price is high

There are many alternative brands

There is much variation in features continued


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14-14


Pre-purchase Search

Situational Factors: Higher search when:

Experience is lower

Previous experience was unsatisfactory

Social Acceptability: Higher search when:

Purchase is a gift

Product is socially visible in use

continued


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14-15


Pre-purchase Search

Value-Related Factors: Higher search

when:

Purchase is discretionary

All alternatives have both positive and

negative qualities

No agreement among users exists

Conflicting information is available

Other considerations exist continued


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14-16


Pre-purchase Search

Consumer Factors: Higher search when:

Consumers are well-educated, have higher

income levels and are younger

Consumers are low in dogmatism and risk

perception

Level of involvement is high

Shopping is seen as an enjoyable activity continued


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14-17

Evaluation of AlternativesTypes

of Consumer Choice Processes

Affective choices

More holistic; an overall evaluation

based on how one feels about a purchase

Attribute-based choices

Have pre-determined evaluative criteria

May require both external and internal search

Complicated decision rules may be used


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14-18

Nature of Evaluative Criteria

Can be tangible or intangible

Include surrogate indicators

Attributes that are used as indicators of another

attribute

Are often ranked in order of importance


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14-19

Consumer Decision Rules

Procedures used by consumers to facilitate

brand or other consumption-related choices


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14-20

Consumer Decision Rules

Compensatory

Brands evaluated in terms of each relevant

criteria and the best brand (or one with thehighest score) is chosen

Non-compensatory

Positive evaluations do not compensate for

negative evaluations


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Non-Compensatory Consumer

Decision Rules Conjunctive Decision Rule

Product attributes are identified

a minimally acceptable cutoff point isestablished for each attribute

brands that fall below the cutoff point on

any one attribute are eliminated fromfurther consideration. continued


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14-22


Decision Rules Disjunctive Decision Rule

consumers identify product attributes

establish a minimally acceptable cutoffpoint for each attribute

accept the brand that meets or exceeds

the cutoff for any oneattribute

continued


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14-23


Decision Rules

Lexicographic Decision Rule

Product attributes are identified

Product attributes are ranked in terms of

importancebrands are compared in terms of the attribute

considered most important

Brand that scores highest on the first attribute is

chosenIf there is a tie, the scores on the next attribute

are considered


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14-24


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14-25

Issues in Alternative Evaluation

Lifestyles as a Consumer Decision Strategy

Incomplete Information

Non-comparable Alternatives Series of Decisions

Consumption Vision

Mental picture of the consequences of using aparticular product


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14-26

Coping with Missing Information

Delay decision until missing information isobtained

Ignore missing information and useavailable information

Change the decision strategy to one thatbetter accommodates for the missinginformation

Infer the missing information


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14-27

Information Search and

Marketing Strategy Get products into consumers evoked set

Limit information search if your brand is

the preferred brand

Increase information search if your

alternative is not the preferred brand

Use point-of-purchase advertising

effectively
http://www.lemontonic.com/


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14-28

Alternative Evaluation and

Marketing Strategy Identify decision rule used by target market and

use suitable promotional messages

Influence the choice of evaluative criteria Influence the rating of your product on evaluative

criteria used

Use surrogate indicators effectively

Use consumption vision
http://www.swisswater.com/

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