1. The Consumer’s Decision-Making Process
Consumer Behavior, Eighth Edition SCHIFFMAN & KANUK
Chapter 15
The Consumer’s Decision-Making Process

2. Opinion Leadership
The process by which one person (the opinion leader) informally influences the consumption actions or attitudes of others who may be opinion seekers or opinion recipients.

3. What is Opinion Leadership?
Opinion Receiver
Opinion Seeker

4. Examples of Opinion Leadership
During a coffee break, a co-worker talks about the movie he saw last night and recommends seeing it.
A person shows a friend photographs of his recent Australian Outback vacation and the friend suggests that using a polarizing filter might produce better pictures.

5. Special Issues
Opinion leaders are four times more likely to be asked about political issues, three times more likely to be asked about computers or investments, and twice as likely to be asked about restaurants
Information seekers seek a “strong-tie” source when they know little about a topic, and “weak-tie” sources when they have some knowledge

6. Chat Rooms and Opinion Leadership

7. Reasons for the Effectiveness of Opinion Leadership
Credibility
Positive and Negative Product Information
Information and Advice
Opinion Leadership Is Category-Specific
Opinion Leadership Is a Two-way Street

8. Viral Marketing Buzz Marketing Wildfire Marketing Avalanche Marketing
These terms describe any strategy that
encourages individuals to pass on a
marketing message to others;
The marriage of and word-of-mouth
communication

9. Yahoo’s Buzz Index

10. Figure 15.1 Factors Leading to Negative Word-of-Mouth Behavior+
Individual Factors +
Attitudinal Factors
Negative
WOM
Likelihood of
Repurchase +
Product Involvement -
Situational Factors +

11. Figure 15.2 Word-of-Mouth in Action
respondents
that used
a referral
to make one
of these
purchases
over the
past year

12. Motivations Behind Opinion Leadership
The Needs of Opinion Leaders
The Needs of Opinion Receivers
Purchase Pals
Surrogate Buyers versus Opinion Leaders

13. The Needs of Opinion Leaders
Self involvement
Social involvement
Product involvement
Message involvement

14. The Needs of Opinion Receivers
New-product or new usage information
Reduction of perceived risk
Reduction of search time
Receiving the approval of the opinion leader

15. Table 15.3 A Comparison of Motivations
(Excerpts)
OPINION LEADERS
OPINION RECEIVERS
SELF-IMPROVEMENT MOTIVATIONS
Reduce post-purchase uncertainty or dissonance
Gain attention or status
Assert superiority and expertise
Feel like an adventurer
Reduce the risk of making a purchase commitment
Reduce search time
PRODUCT-INVOLVEMENT MOTIVATIONS
Express satisfaction or dissatisfaction with a product or service
Learn what products are new in the marketplace
Learn how to use or consume a product

16. Table 15.4 Key Differences Between Opinion Leaders and Surrogate Buyers
1. Informal relationship with end-users
2. Information exchange occurs in the context of a casual interaction
3. Homophilous (to a certain extent) to end-users
4. Does not get paid for advice
5. Usually socially more active than end-users
6. Accountability limited regarding the outcome of advice
7. As accountability limited, rigor in search and screening of alternatives low
8. Likely to have used the product personally
9. More than one can be consulted before making a final decision
10. Same person can be an opinion leader for a variety of related product categories

17. Table 15.4 Key Differences SURROGATE BUYER
1. Formal relationship; occupation-related status
2. Information exchange in the form of formal instructions/advice
3. Heterophilus to end users (that is, is the source of power)
4. Usually hired, therefore gets paid
5. Not necessarily socially more active than end-users
6. High level of accountability
7. Search and screening of alternatives more rigorous
8. May not have used the product for personal consumption
9. Second opinion taken on rare occasions
10. Usually specializes for a specific product/service category

18. Measurement of Opinion Leadership
Self-Designating Method
Sociometric Method
Key Informant Method
Objective Method

19. Table 15.5 Measuring Opinion Leadership
SELF-DESIGNATING METHOD
“Do you influence other people in their selection of products?”
Each respondent is asked a series of questions to determine the degree to which he or she perceives himself or herself to be an opinion leader.
OPINION LEADERSHIP MEASUREMENT METHOD
SAMPLE QUESTIONS ASKED
DESCRIPTION OF METHOD
SOCIOMETRIC METHOD
Members of a social system are asked to identify to whom they give advice and to whom they go for advice.
“Whom do you ask?”“Who asks you for info about that product category?”

20. SAMPLE QUESTIONS ASKED
Table continued
OPINION LEADERSHIP MEASUREMENT METHOD
SAMPLE QUESTIONS ASKED
DESCRIPTION OF METHOD
KEY INFORMANT METHOD
“Who are the most influential people in the group?”
Carefully selected key informants in a social system are asked to designate opinion leaders.
Artificially places individuals in a position to act as opinion leaders and measures results of their efforts.
“Have you tried the product?
OBJECTIVE METHOD

21. Table 15.6 Profile of Opinion Leaders
GENERALIZED ATTRIBUTES ACROSS PRODUCT CATEGORIES
CATEGORY-SPECIFIC ATTRIBUTES
Innovativeness
Willingness to talk
Self-confidence
Gregariousness
Cognitive differentiation
Interest
Knowledge
Special-interest media exposure
Same age
Same social status
Social exposure outside group

22. Market Maven
Individuals whose influence stems from a general knowledge or market expertise that leads to an early awareness of new products and services.

23. The Interpersonal Flow of Communication
Two-Step Flow
A communication model that portrays opinion leaders as direct receivers of information from mass media sources who, in turn, interpret and transmit this information.
Multistep Flow
A revision of the traditional two-step theory that shows multiple communication flows

24. Figure 15.4 Two-Step Flow of Communication Theory
Mass Media
Opinion Leaders
Opinion Receivers (the masses)

25. Figure 15.5 Multistep Flow of Communication Theory
Mass Media
Opinion Leaders
Opinion Receivers/ Seekers
Step 1a
Step 3
Step 1b
Information Receivers

26. Issues In Opinion Leadership and Marketing Strategy
Programs Designed to Stimulate Opinion Leadership
Advertisements Stimulating Opinion Leadership
Word of Mouth May Be Uncontrollable
Creation of Opinion Leaders

28. Diffusion Process
The process by which the acceptance of an innovation is spread by communication to members of social system over a period of time.

29. Adoption Process
The stages through which an individual consumer passes in arriving at a decision to try (or not to try), to continue using (or discontinue using) a new product.

30. Elements of the Diffusion Process
The Innovation
The Channels of Communication
The Social System
Time

31. Defining Innovations Firm-oriented definitions
Product-oriented definitions
Market-oriented definitions
Consumer-oriented definitions

32. Product-Oriented Definitions
Continuous Innovation
Dynamically Continuous Innovation
Discontinuous Innovation

33. Figure 15.6 Continuous Innovation

34. Figure 15.7 Telephone Innovations
Cell Phone
Fax Machine
Telephone answering machines
Call forwarding
Call waiting
Caller ID
Banking by telephone
Call-prompting systems
Hold button
Line-in-use indicator
Redial button
Auto dialing feature
Touch-tone service
800 Numbers
900 Numbers
Ability to send/receive
Incorporate PDA functions
Calendar/Phonebook
Voice-activated dialing
Switch from analog to digital
Include camera
Ringer styles
Play games
Fax modem
Mobile fax machines
Home office systems (combined fax, copier, computer printer)
Plain paper fax
Speed dial buttons
Delayed send
Copy function
Paper cutter
Discontinuous
Innovations
Dynamically Continuous
Continuous

35. Product Characteristics That Influence Diffusion
Relative Advantage
Compatibility
Complexity
Trialability
Observability

36. Figure 15.8 Ad Stressing Ease of Use and Convenience

37. Table 15.7 Characteristics That Influence Diffusion
EXAMPLES
Relative Advantage
Air travel over train travel, cordless phones over corded telephones
Compatibility
Gillette MACH3 over disposable razors, digital telephone answering machines over machines using tape
Complexity
Electric shavers, instant puddings

38. Table continued
CHARACTERISTICS
EXAMPLES
Trialability
Trial size jars and bottles of new products, free trials of software, free samples, cents-off coupons
Observability
Clothing, such as a new Tommy Hilfiger jacket, a car, wristwatches, eyeglasses

39. Time Line for Selecting a New
Time and Diffusion
Purchase Time
Adopter Categories
Rate of Adoption
See Table 15.8
Time Line for Selecting a New
Automobile

40. Adopter Categories
A sequence of categories that describes how early (or late) a consumer adopts a new product in relation to other adopters.

41. Figure 15.9 Adopter Categories
Early
Adopters
13.5%
Laggards
16%
Early
Majority
34%
Late
Majority
34%
Innovators
2.5%
Percentage of Adopters by Category Sequence

42. Innovators: Description
2.5% of population
Venturesome
Very eager to try new ideas
Acceptable if risk is daring
More cosmopolite social relationships
Communicates with other innovators

43. Early Adopters: Description
13.5% of population
Respected
More integrated into the local social system
The persons to check with before adopting a new idea
Category contains greatest number of opinion leaders
Are role models

44. Early Majority: Description
34% of population
Deliberate
Adopt new ideas just prior to the average time
Seldom hold leadership positions
Deliberate for some time before adopting

45. Late Majority: Description
34% of population
Skeptical
Adopt new ideas just after the average time
Adopting may be both an economic necessity and a reaction to peer pressures
Innovations approached cautiously

46. Laggards: Description
16% of population
Traditional
The last people to adopt an innovation
Most “localite” in outlook
Oriented to the past
Suspicious of the new

47. Table 15.11 Stages in Adoption Process
NAME OF STAGE
WHAT HAPPENS DURING THIS STAGE
EXAMPLE
Awareness
Consumer is first exposed to the product innovation.
Janet sees an ad for a new MP3 player in the magazine she is reading.
Interest
Consumer is interested in the product and searches for additional information.
Janet reads about the MP3 player on the manufacturer’s Web site and then goes to an electronics store near her apartment and has a salesperson show her a unit.
Evaluation
Consumer decides whether or not to believe that this product or service will satisfy the need--a kind of “mental trial.”
After talking to a knowledgeable friend, Janet decides that this MP3 player will allow her to easily download the MP3 files that she has on her computer. She also feels that the unit’s size is small enough to easily fit into her beltpack.

48. Table 15.11 Stages in Adoption Process
Trial
Consumer uses the product on a limited basis
Since an MP3 player cannot be “tried” like a small tube of toothpaste, Janet buys the MP3 player online from Amazon.com, which offers a 30-day full refund policy.
Adoption (Rejection)
If trial is favorable, consumer decides to use the product on a full, rather than a limited basis--if unfavorable, the consumer decides to reject it.
Janet finds that the MP3 player is easy to use and that the sound quality is excellent. She keeps the MP3 player.
NAME OF STAGE
WHAT HAPPENS DURING THIS STAGE
EXAMPLE

49. Figure 15.11 An Enhanced Adoption Process Model
Pre-existing problem or Need
Awareness
Interest
Evaluation
Trial
Adoption or Rejection
Postadoption or Postpurchase Evaluation
Discontinuation
Discontinuation or Rejection
Rejection

50. Figure The Relative Importance of Different Types of Information Sources in the Adoption Process
High
Personal and interpersonal sources
Importance
Impersonal mass-media sources
Low
Trial
Interest
Awareness
Adoption
Evaluation

51. Issues in Profiling Consumer Innovators
Defining the Consumer Innovator
Interest in the Product Category
The Innovator Is an Opinion Leader
Personality Traits
Media Habits
Social Characteristics
Demographic Characteristics
Are There Generalized Consumer Innovators?

52. Figure 15.13 Ad Appeals to Fashion Innovators