1. Chp. 12 & 13 (CB) With Duane Weaver
BUYER BEHAVIOUR DECISION MAKING I & II (Need Recognition and Search) & (Alternative Evaluation and Choice)
Chp. 12 & 13 (CB)
With Duane Weaver

2. OUTLINE Consumers as Problem Solvers Perspectives on Decision Making
Stages in Consumer Decision Making
Types of Consumer Decisions
Problem Recognition
Marketer’s Role in Problem Creation
Factors Influencing Amount Of Search
Involvement and Risk
Consideration Set (Exercise)
Factors Determining Evaluative Criteria
Heuristics
Strategic Implications of Product Categorization
Decision Rules (Exercise)

3. Consumers as Problem Solvers
Purchase decisions steps:
Problem Recognition
Information Search
Evaluate Alternatives
Product/Service Selection
Post Choice Evaluation (informs future decisions)

4. Perspectives on Decision Making
Rational Decision Making Approach
Calmly and carefully integrate knowledge
Behavioural Influence Perspective
low involvement, learned response to environmental cues (promotions)
Experiential
High involvement, affective responses vs. rational
Gestalt-totality of the product (Music,art)

5. Stages in Consumer Decision Making
NEED Recognition
Search for Information
Evaluation of Alternatives
Product Choice
Post Choice Evaluation (Consumption and Learning)
SEE EXHIBIT 12.2 (Babin et al., 2017)

6. Types of Consumer Decisions
Image source: (Babin et al., 2017)
Image source: (Solomon et al., 2014)

7. Opportunity Recognition
Problem Recognition
Problem Recognition
occurs when the consumer realizes that their actual state is significantly different than their ideal state
NO PROBLEM
Opportunity Recognition
Need Recognition
Ideal State
Actual State

8. Marketer’s Role in Problem Creation
Creating Primary Demand
Focus on getting consumers to try a new product
Brand is not the focus
Secondary demand
Prompting consumers to choose a specific brand
Create a problem-scenario & show the solution
Head & Shoulders

9. Factors Influencing Amount of Search
Value of search effort
Perceived risk
Involvement
Product experience
Situational influencers
Personal factors
Attitude toward shopping
Time availability

10. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

11. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 9
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

12. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 8
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

13. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 7
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

14. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 6
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

15. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 5
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

16. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 4
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

17. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 3
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discusse how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

18. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 2
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

19. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
Time Left: 1
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

20. Copyright © 2017 by Nelson Education Ltd.
Involvement and Risk
Financial
Social
Performance
Physical
Time
TIME IS UP!
Exercise One
Take 9 minutes as a team to think of ONE PRODUCT you recently purchased. Discuss how each of these potential risks impacted your choice of product? Be prepared to share an example of ONE of these risks.
Involvement is the degree of personal relevance that a consumer finds in pursuing value from a given act.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

21. Consideration Set – EXERCISE 2
In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

22. Consideration Set 10 Minutes Remaining
In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set?

23. Consideration Set 9 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

24. Consideration Set 8 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

25. Consideration Set 7 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set?

26. Consideration Set 6 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set?

27. Consideration Set 5 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

28. Consideration Set 4 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

29. Consideration Set 3 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

30. Consideration Set 2 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

31. Consideration Set 1 Minutes Remaining In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

32. Consideration Set TIMES UP! In your teams (take 10 minutes):
Individually identity an example of a product you have bought recently. Then answer the following: What was my Inept set? What was my Inert Set? What was my Consideration Set?
2. Select one person’s example and describe how are these sets (your awareness set) are different from the Universal Set? BE PREPARED TO SHARE

33. Factors Determining Evaluative Criteria Used
Situational influences
Product knowledge
Expert opinions
Social influences
Online sources
Marketing communications
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

34. Heuristics Product Signals Market Beliefs Country of Origin
Heuristics: The mental rules of thumb that lead to a speedy decision
Product Signals
Market Beliefs
Country of Origin

35. Strategic Implications of Product Categorization
Product Positioning
Identifying Competitors
Exemplar Products
Locating Products

36. Consumer Choice: Decision Rules
Compensatory rules
Decision-making rules that allow consumers to select products that may perform poorly on one criterion by compensating for the poor performance of one attribute by the good performance of another.
Non-compensatory rules
Decision-making rules in which strict guidelines are set prior to selection, and any option that does not meet the guidelines is eliminated from consideration.
Copyright © 2017 by Nelson Education Ltd.
Copyright © 2017 by Nelson Education Ltd.

37. Decision Rules Non-compensatory Compensatory
Lexicographic Best Brand for most important attribute
Elimination
by Aspects
Specific attribute cut-offs imposed
Simple
Additive
Weighted
Additive
Conjunctive
Rule Choose by brand based on meeting all cutoffs
Disjunctive
Rule Standard of an attribute is higher than minimal cut-off
One attribute can compensate
In groups of three take 8 minutes to provide one example of a Non-compensatory decision rule
One attribute alone cannot compensate 7