1. Consumer Decision Making

2. Three Perspectives on Decision Making
Decision making perspective
High involvement decisions
Low involvement decisions
Experiential perspective
Behavioral influence perspective

3. Decision Making Perspective High Involvement Decisions
Extended
Alternative
Evaluation
Problem
Recognition
Extensive
Search
Complex
Choice
Acquisition
Evaluation

4. Decision Making Perspective Low Involvement Decisions
Minimal
Alternative
Evaluation
Simple
Choice
Processes
Problem
Recognition
Limited
Search
Acquisition
Evaluation

5. Experiential Perspective
Alternative
Evaluation
(comparison
of affect)
Choice
(affect-based)
Problem
Recognition
(affect driven)
Search for
Affect-based
Solutions
Acquisition
Evaluation

6. Behavioral Influence Perspective
Choice
(behavior
results from
reinforcers)
Problem
Recognition
(results from
discriminative
stimulus)
Search
(learned
Response)
Acquisition
Evaluation
(self-perception
process)

7. Initial vs. Repeat Purchases
Initial purchases
Tend to require more extensive problem solving
Repeat purchases
Tend to require limited problem solving, sometimes habitual decisions

8. Basic Decision Making Process
Problem/Need Recognition
Information Search
Evaluation of Alternatives
Purchase
Post-Purchase Evaluation

9. Problem/Need Recognition
Consumer recognizes a gap or discrepancy between his/her current state and his/her desired state.

12. Information Search
Deliberate attempt to gain knowledge about a purchase decision; goal is to reduce uncertainty.
Internal search
Retrieve information from long term memory
External search
Gather information from external sources, e.g., ads, media, friends, stores

13. Determinants of External Search

14. Evaluation of Alternatives
Occurs either separately or in conjunction with information search.
We rely on internal processes to help us organize the evaluation process.
Consideration (evoked set)
Decision rules (heuristics)

15. Consideration Set

16. Decision Rules Strategies used by consumers to guide decision making.
Some decision rules use product characteristics to guide decisions.
Compensatory
Noncompensatory
Some decision rules rely on stored information in consumers’ memories to guide decisions.

17. Compensatory Decision Rule
Select the best overall brand
Consumer evaluates brand options in terms of each relevant attribute and computes a weighted or summated score for each brand. The consumer chooses the brand with the highest score.
A compensatory model because a positive score on one attribute can outweigh a negative score on another attribute.

18. Noncompensatory Decision Rules
Conjunctive Decision Rule
Consumer sets a minimum standard for each attribute and if a brand fails to pass any standard, it is dropped from consideration.
Reduces a large consideration set to a manageable size.
Often used in conjunction with another decision rule.

19. Noncompensatory Decision Rules
Disjunctive Decision Rule
Consumer sets a minimum acceptable standard as the cutoff point for each attribute--any brand that exceeds the cutoff point is accepted.
Reduces large consideration set to a more manageable number of alternatives.
Consumer may settle for the first satisfactory brand as final choice or may use another decision rule.

20. Noncompensatory Decision Rules
Lexicographic Decision Rule
The consumer ranks the attributes according to importance and then selects the brand that is superior on the most important attribute.
If one brand ranks sufficiently high on just one attribute, it will be selected regardless of how it scores on other attributes.

21. Affect-Referral Rule Synthesized decision rule
Consumers maintain overall evaluations of brands in their long term memories. Brands on not evaluated on individual attributes but on the highest perceived overall rating.

22. Frame of Reference
Another way in which consumers evaluate information is the frame of reference from which s/he subjectively evaluates messages related to a decision problem.
“Percent lean” vs. “Percent fat”
“Sale” vs. “Clearance”

23. Purchase Decision

24. Post-Purchase Evaluation
Consumers evaluate purchases during consumption process.
Three possible outcomes.
Postpurchase cognitive dissonance.
Complaining behavior.

25. Outcomes Actual product performance matches prepurchase expectations
Neutral Feeling

26. Outcomes Actual product performance exceeds prepurchase expectations.
Positive disconfirmation of expectations
Satisfaction

27. Outcomes Actual product performance is below prepurchase expectations.
Negative disconfirmation of expectations
Dissatisfaction

28. A Continuum of Satisfaction
Dissatisfaction
Satisfaction
Delighted

29. If dissatisfied…. Alternative actions Do nothing
Avoid seller/brand in the future
Negative WOM to friends
Seek redress of problem from seller
Complain to outside agency

30. Decision to complain... Is based on: Level of dissatisfaction
Importance of decision/purchase
Costs/benefits of actions
Personal characteristics
Attribution of blame

31. Managerial Implications Related to Consumer Decision Making
Understanding decision making process enables marketers to assist consumers along decision pathway.
Offer products that meet needs/wants
Advertising
Making information available
Making product available
Follow-up sales calls, good service