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Consumer Decision Making and Beyond CHAPTER FIFTEEN.

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Presentation on theme: "Consumer Decision Making and Beyond CHAPTER FIFTEEN."— Presentation transcript:

1 Consumer Decision Making and Beyond CHAPTER FIFTEEN

2 Learning Objectives 1.To Understand What a Consumer Decision Is. 2.To Understand the Three Levels of Consumer Decision Making. 3.To Understand Four Different Views or Models of Consumer Decision Making. 4.To Understand in Detail the Model of Consumer Decision Making Originally Introduced in Chapter 1. Copyright 2010 Pearson Education, Inc.2 Chapter Fifteen Slide

3 Learning Objectives (continued) 5.To Understand the Nature and Scope of Consumer Gift Giving. 6.To Understand the Significance of Consuming and Possessing. 7.To Understand the Need for Relationship Marketing. Copyright 2010 Pearson Education, Inc.3 Chapter Fifteen Slide

4 Levels of Consumer Decision Making Extensive Problem Solving – A lot of information needed – Must establish a set of criteria for evaluation Limited Problem Solving – Criteria for evaluation established – Fine tuning with additional information Routinized Response Behavior – Usually review what they already know 4Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

5 Models of Consumers: Four Views of Consumer Decision Making An Economic View A Passive View A Cognitive View An Emotional View 5Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

6 Discussion Questions How are the four models of consumer decision making similar? How do they differ? 6Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

7 Consumer Decision Making Figure Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

8 Discussion Question What types of sociocultural inputs would influence the purchase of a: – Plasma TV – Hybrid vehicle – Sugar-free ice cream 8Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

9 Process - Need Recognition Usually occurs when consumer has a “problem” Need recognition styles – Actual state – Desired state Copyright 2010 Pearson Education, Inc.9 Chapter Fifteen Slide

10 Prepurchase Search Begins with internal search and then moves to external search The impact of the Internet There are many factors that increase search – Product factor – Situational factors – Social acceptability – Consumer factors 10Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

11 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 11Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

12 The Evoked Set Figure Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

13 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 13Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

14 Hypothetical Use of Decision Rules Table 15.7 Decision RuleMental Statement Compensatory ruleI selected the netbook that came out best when I balanced the good ratings against the bad ratings Conjunctive ruleI selected the netbook that had no bad features Disjunctive ruleI picked the netbook that excelled in at least one attribute Lexicographic ruleI looked at the feature that was most important to me and chose the netbook that ranked highest on that attribute Affect referral ruleI bought the brand with the highest overall rating 14 Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

15 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 15Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

16 The Decision Process for Functionally Illiterate Consumers - Figure 15.6 Copyright 2010 Pearson Education, Inc.16 Chapter Fifteen Slide

17 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 17Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

18 Coping with Missing Information Delay decision until missing information is obtained Ignore missing information and use available information Change the decision strategy to one that better accommodates for the missing information Infer the missing information 18Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

19 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 19Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

20 Output of Consumer Decision Making Purchase behavior – Trial purchases – Repeat purchases – Long-term commitment Postpurchase evaluation 20Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

21 Postpurchase Evaluation Actual Performance Matches Expectations – Neutral Feeling Actual Performance Exceeds Expectations – Positive Disconfirmation of Expectations Performance Is Below Expectations – Negative Disconfirmation of Expectations 21Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

22 Discussion Questions What are four ways that consumers reduce postpurchase dissonance? How can marketers work to help consumers reduce the dissonance? 22Copyright 2010 Pearson Education, Inc Chapter Fifteen Slide

23 Gifting Behavior Gifting is an act of symbolic communication, with explicit and implicit meanings ranging from congratulations and love, to regret, obligation, and dominance. 23Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

24 Consuming and Possessing Consumers find pleasure in possessing, collecting, or consuming Products have special meanings and memories 24 Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

25 A Model of Consumption Figure Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

26 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. 26Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

27 Relationship Marketing Success Figure Copyright 2010 Pearson Education, Inc. Chapter Fifteen Slide

28 Important Questions 1.Draw consumer decision making process and label it. 2.What are the levels of consumer’s decision making process? Explain briefly. 3.Define post-purchase evaluation? What are the three possible outcomes of this evaluation? 4.How do consumers reduce post-purchase cognitive dissonance 28

29 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. 29Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fifteen Slide


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