Consumer Decision Making Chapter 7 Consumer Decision Making

Introduction Decisions Model of consumer decision making Requires a choice between different behaviors Marketers are interested in consumers’ purchase behaviors Model of consumer decision making All aspects of affect and cognition are involved

Introduction cont. The integration process is the key process by which knowledge is combined to evaluate two or more alternative behaviors and select one The outcome is a choice, represented cognitively as a behavioral intention (BI)

Introduction cont.

Decision Making as Problem Solving Consumer decision making is a goal-directed, problem-solving process Consumer problem solving is a continuous stream of interactions among Environmental factors Cognitive and affective processes Behavioral actions

Decision Making as Problem Solving cont. Generic model of consumer problem solving

Decision Making as Problem Solving cont. Five basic stages or subprocesses Problem recognition Search for alternative solutions Evaluation of alternatives Purchase Postpurchase use and reevaluation of chosen alternative

Decision Making as Problem Solving cont. Generic model often provides an imperfect account of actual problem-solving processes Actual consumer problem solving seldom proceeds in a linear sequence Actual problem-solving processes involve multiple, continuous interactions among consumers’ cognitive processes, their behaviors, and aspects of the physical and social environment Most problem-solving processes actually involve multiple problems and multiple decisions

Elements of Problem Solving Three basic elements of problem solving Problem representation Serves as a decision frame End goals A set of subgoals organized into a goal hierarchy Relevant product knowledge

Elements of Problem Solving cont.

Elements of Problem Solving cont. Choice alternatives Consideration set Choice criteria Only discriminant consequences can be used as choice criteria The relevant choice criteria for a decision depends, in part, on the particular set of choice alternatives under consideration Vary in evaluation

Elements of Problem Solving cont. Integration process Perform two essential tasks The choice alternatives must be evaluated in terms of the choice criteria One of the alternatives must be selected Two types of integration procedures can account for these evaluation and choice processes Formal integration strategies Heuristics

Elements of Problem Solving cont. Formal models of the integration process involved in evaluating and choosing among choice alternatives

Elements of Problem Solving cont. Compensatory integration processes Multiattribute model Noncompensatory integration processes Conjunctive Disjunctive Lexicographic Elimination by aspects Combination processes

Elements of Problem Solving cont. Consumer heuristics Search Evaluation Choice Decision plans Vary in their specificity and complexity Concern intentions to perform particular behaviors in highly defined situation Increase the likelihood that the intended behaviors will be performed

Problem-Solving Processes in Purchase Decisions Extensive decision making Usually involves a substantial amount of search behavior Involves several choice decisions and substantial cognitive and behavioral effort Likely to take rather long periods

Problem-Solving Processes in Purchase Decisions cont. Limited decision making Amount of effort ranges from low to moderate Involves less search for information than extensive decision making Choices typically carried out fairly quickly Routinized choice behavior Requires very little cognitive capacity or conscious control

Problem-Solving Processes in Purchase Decisions cont. Effects of end goals Optimize satisfaction Prevention Resolve conflict Escape Maintenance (satisfaction)

Problem-Solving Processes in Purchase Decisions cont. Effects of goal hierarchies Provides useful structure Effects of involvement and knowledge Low involvement, low knowledge Low involvement, high knowledge High involvement, high knowledge High involvement, low knowledge

Problem-Solving Processes in Purchase Decisions cont. Environmental effects Four types of disruptive events, or interrupts Unexpected information Prominent environmental stimuli Affective states Conflicts Goal Approach-approach

Problem-Solving Processes in Purchase Decisions cont. Avoidance-avoidance Approach-avoidance Interrupts Implications for marketing strategy Routinized choice behavior Limited decision making Extensive decision making

Summary Examined consumers’ decision-making processes as they choose between alternative behaviors Learned about the primary focus on purchase choices of products and brands Discussed how to treat decision-making as a problem-solving process in which the consumers’ cognitive representation of the problem is key to understanding the process

Summary Considered what is involved in problem representation Examined how consumers’ problem-solving processes vary widely Described how consumers’ end goals, goal hierarchies, product knowledge, and involvement affect the problem-solving process

Summary Discussed how various aspects of the decision environment affect the problem-solving process Drew implications of these concepts for marketing strategy