1. Thaksin University Consumer decision making process
Chapter 11
Consumer decision making process
Consumer Behavior

2. What is a decision?

3. Levels of consumer decision making
Extensive problem solving
Limited problem solving
Routinized response behavior
Chapter 2 Consumer Behavior Analysis

4. Types of purchase or consumption decisions
Decision category
Alternative A
Alternative B
Basic purchase or consumption decision brand purchase pr consumption decision
To purchase or consume a product (or service)
To purchase or consume a standard quantity
Not to purchase or consumer a product (or service)
To purchase or consume more or less than a standard quantity

5. Models of consumers : four views of consumer decision making
An economic view
A passive view
A cognitive view
An emotional view

6. An economic view Economic man theory
To behave rationally in the economic sense
Be aware of all available product alternatives
Be capable of correctly ranking each alternative in terms of its benefits and disadvantages
Be able to identify the one best alternative

7. A passive view The passive model of the consumer
Quite opposite to the rational economic view of consumer

8. A cognitive view The cognitive model
Consumers are viewed as information processors.

9. An emotional view
The emotional or impulsive model of consumer decision making
Feedback
reactions
Goal setting
Formation
Of a goal
intention
Action
planning
Action
Initiation
and control
Goal
attainment/
failure

10. 6Ws 1H Who is target market? What does the market buy?
Why does the market buy?
Who participates in the buying?
When does the market buy?
Where does the market buy?
How does the market buy?
6Ws 1H
Occupant
Objects
Objectives
Organization
Occasion
Outlets
Operation
7Os

11. A Model of Consumer Decision Marking

12. Consumer Decision Making
External Influence
Firm’s Marketing Efforts
1. Product
2. Promotion
3. Price
4. Channels of distribution
Sociocultural Environment
1. Family
2. Informal sources
3. Other noncommercial sources
4. Social class
5. Subculture and culture
Input
Consumer Decision Making
Psychological Field
1. Motivation Self concept
2. Perception Life Style
3. Learning Values
4. Personality
5. Attitudes
Need
Recognition
Prepurchase
Search
Evaluation of
Alternatives
Process
Experience
Postdecision
Behavior
Purchase
1. Trial
2. Repeat purchase
A Simple Model
of Consumer
Decision Making
Output
Postpurchase Evaluation

13. Input
Marketing inputs
Sociocultural inputs

14. Evaluation of Alternatives
Process
Need Recognition
Prepurchase Search
Evaluation of Alternatives

15. Need Recognition Need Recognition Occurs By : Running Out of
Consumer’s ideal State
Need Recognition
Occurs By :
Running Out of
a Product Inadequate
Product Creating New
Needs
Consumer’s Actual State
Opportunity Recognition
Exposure to Different or
Better-Quality Products

16. Prepurchase search Types of Search Information sources
Prepurchase- an explicit search for information.
Ongoing search - browsing used by veteran shoppers for up- to-date information.
Information sources
Internal sources - memory scan to assemble information.
External sources - information obtained from advertisements, friends or people watching.

17. Prepurchase search Information searches
Deliberate search is the result of directed learning.
Accidental search is the result of incidental learning.

18. Alternative prepurchase information sources for laptop
Personal
Impersonal
Friends
Neighbors
Relatives
Coworkers
Computer salespeople
Newspaper articles
Magazine articles
Consumer reports
Direct-mail brochures
Information from product advertisements
Internal web sites

19. How much search occours?
Purchase is important
Value style and image
Need to learn
more about
purchase
Search activity
is greater when :
Information is easily
obtained
Consumers are younger,
Better-educated
Women shop
more than men

20. Experience
First-time purchase
No past experience because the product is new
Unsatisfactory past experience within the product category
Social acceptability
The purchase is for a gift
The product is socially visible

21. Evaluation of Alternatives
Pre-Purchase Evaluation of Alternatives
Product feature must match decision criteria
What are my options?
Which is best?
Compare and contrast
Evaluation attributes
Salient attributes
Determinant attributes

22. Evaluation of Alternatives
All alternatives
Evoked Set
Actively Considered
Inert Set
Not Entering
consideration
Inept Set
Aware of, but
would not buy
Selected
Rejected

23. Heuristics Common Heuristics Country of Origin Brand Loyalty Retail
Outlets
Product
Signal
Price/Quality
Relationship
Market
Beliefs
Brand Names

24. Evaluative Criteria Location Assortment breadth and depth Price
Advertising and promotion
Store personnel
Services
Customer characteristics
Store atmosphere

25. Postpurchase evaluation
Output
Purchase behavior
Postpurchase evaluation

26. Purchase behavior Consumers make three types of purchases
Trial purchases
Repeat purchases
Long-term commitment purchases

27. Postpurchase evaluation
Actual performance matches expectations
Neutral feeling
Performance exceeds expectations
Positive disconfirmation of expectations
Performances is below expectations
Negative disconfirmation of expectations

28. The importance of customer satisfaction
It influences repeat buying
It shapes word-of-mouth communication
Dissatisfaction leads to complaints
Implications for competitive strategy

29. Any Questions?