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Consumer

Decision
Making and
Beyond

Learning Objectives

Levels of Consumer Decision


Making
Models of Consumer Decision
Making
Consumer Gifting Behavior
Relationship Marketing

Levels of Consumer
Decision Making
Extensive Problem Solving
It occurs when consumers is purchasing an expensive,
important, or technically complicated product or service
for the 1st time (e.g. replacing old tube TV with a new
HDTV).

Limited Problem Solving


It occurs when the consumers is purchasing a new,
updated version of something that he or she has
purchased before, such as replacing an old laptop with a
new one.

Routinized Response Behavior


It occurs when consumers may search for a small
amount of additional information; in others, they simply
review what they already know.
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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: The 2 most important reasons for
purchasing gifts online were saving time & saving
money two very rational reasons

A Passive View: Some times seeking information about


the product alternatives & selecting a product that appears to
offer the greatest satisfaction on the other hand selecting a
product which satisfies the mood or emotion of the moment

A Cognitive View: The Cognitive view focuses on the


processes by which consumers seek & evaluate information
about selected brands & retail outlets

An Emotional View: The important aspect with regard to


the emotional view of decision making is to obtain insights (joy,
fear, love, hope, sexuality & fantasy) that can be developed
into goals and articulated through advertisement
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Consumer
Decision
Making
Figure 15.3

Process - Need Recognition


Usually occurs when consumer has a
problem
Need recognition styles
Actual state:

A consumer who perceive that


they have a problem when a product fails to
perform satisfactorily

Desired state:

A consumer who desire for


something new may trigger the decision process

Prepurchase Search
Begins with (past experiences) internal search
and then moves to (marketing &
noncommercial information) external search
The impact of the Internet
There are many factors that increase search
Product factor
Situational factors
Social acceptability
Consumer factors

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

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The Evoked Set


Figure 15-5

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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
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Consumer Decision Rules


Compensatory:

It allows a positive
evaluation of a brand on one attribute to balance
out a negative evaluation on some other attribute

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

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Hypothetical Use of Decision


Rules
Table 15.7
Decision Rule

Mental Statement

Compensatory
rule

I selected the notebook that came out best


when I balanced the good ratings against
the bad ratings

Conjunctive rule

I selected the notebook that had no bad


features

Disjunctive rule

I picked the notebook that excelled in at


least one attribute

Lexicographic
rule

I looked at the feature that was most


important to me and chose the notebook
that ranked highest on that attribute
( Quality, Status or Economy Oriented)

Affect referral rule I bought the brand with the highest


perceived overall rating
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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

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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 (priority setting)
Series of decisions
Decision rules and marketing strategy

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Coping with Missing


Information
Consumer may delay decision until missing
information is obtained
Consumer may ignore missing information and use
available information & decide to continue with the
current decision rule (compensatory or
noncompensatory) using the available attribute
information
Consumers may change the decision strategy to one
that better accommodates for the missing information
Consumers may infer (construct) infer the missing
information

Chapter Fifteen

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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 (priority setting)
Series of decisions (buying an automobile, color ,
shape , origin)

Decision rules and marketing strategy (ad


saying What to look for in a new PC.
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Output of Consumer
Decision Making
Purchase
Behavior
Trial purchases
Repeat purchases
Long-term
commitment

Postpurchase
Evaluation
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Postpurchase Evaluation
Actual Performance Matches
Expectations
Neutral Feeling

Actual Performance Exceeds


Expectations
Positive Disconfirmation of Expectations

Performance Is Below Expectations


Negative Disconfirmation of Expectations
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Gifting Behavior
Gifting is an act of
symbolic
communication,
with explicit and
implicit meanings
ranging from
congratulations
and love, to regret,
obligation, and
dominance.
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Reported Circumstances and


Motivations for Self-Gift
Behavior
Table 15.13
CIRCUMSTANCES

MOTIVATIONS

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

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 22

Gifting Relationships Table 15.14

GIFTING
RELATIONS
HIP

DEFINITION

EXAMPLE

Intergroup

A group giving a gift


to another group

A Christmas gift from one family


to another family

Intercategor
y

An individual giving A group of friends chips in to buy


a gift to a group or a a new mother a baby gift
group giving a gift
to an individual

Intragroup

A group giving a gift


to itself or its
members

A family buys a VCR for itself as a


Christmas gift

Interpersona An individual giving


l
a gift to another
individual

Valentines Day chocolates


presented from a boyfriend to a
girlfriend

Intrapersona Self-gift
l

A woman buys herself jewelry to


Chapter Fifteen 23
cheer herself up

Consuming and Possessing


Consumers find pleasure in
possessing, collecting, or consuming
Products have special meanings and
memories

Chapter Fifteen 24

A Model of Consumption
Figure 15.11

Chapter Fifteen

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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.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter Fifteen

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Proctor & Gamble Builds


Relationships with Their Brands

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State Farm
Insurance
stresses
relationship
marketing in
their advertising.

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