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Chapter 14
Consumer Decision Making I:
The Process

Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das
Copyright © 2006
Pearson Education Canada Inc.

Levels of Consumer Decision
Making
Extensive Problem
Solving
Limited Problem
Solving

Routine Response
Behaviour
Copyright © 2006 Pearson

14-2

Factors That Affect the Type of
Decision Making Process Used
 Importance

of the decision
 Extent of previous experience
 Existence of well-established decision
criteria
 Amount of information at hand about each
alternative
 The number of alternatives available
 Model of consumption being followed

14-3


14-4

Consumer Decision Making – The
Process
 Need

Recognition
 Pre-purchase Search
 Evaluation of Alternatives


14-5

Need or Problem Recognition
 The

realization that there is a difference
between actual and desired states
– The higher the gap, the stronger the need (or
bigger the problem)


14-6

Types of Problems
 Active

Versus Inactive problems

– Active: those you are aware of
– Inactive: those that you are not yet aware of
(but exist)
 Those

that require immediate solutions and
those that do not require immediate
solutions


14-7

Problem Recognition and
Marketing Strategy







Identify existing consumer problems and find
solutions for these
Lower the actual state
Increase the desired state
Increase the importance of the gap between actual
and desired states
Convert inactive problems to active problems
Convert problems into ones requiring an
immediate solution


14-8

Pre-Purchase Search
 Types

of Information Sources
 Types of Information Sought
 Factors Affecting Extent of Information
Search


14-9

Figure 14-3: Types of
Information Sources
PERSONAL

IMPERSONAL

Friends
Neighbors
Relatives
Co-workers
Computer salespeople
Calling the electronics
store

Newspaper articles
Magazine articles
Consumer Reports
Direct-mail brochures
Information from product
advertisements
Internal web site


14-10

Types of Information Sought
 Brands

or alternatives available
 Evaluative criteria to be used
– Generally, product features
 Ratings

of brands on evaluative criteria


14-11


14-12

Factors that Increase the Level of
Pre-purchase Search
 Product

Factors: Higher search when

– It is a long-lasting or infrequently used
product
– There are frequent changes in product styling
– Large volume is purchased
– The price is high
– There are many alternative brands
– There is much variation in features
» continued


14-13

Pre-purchase Search
 Situational

Factors: Higher search when:

– Experience is lower
– Previous experience was unsatisfactory
 Social

Acceptability: Higher search when:

– Purchase is a gift
– Product is socially visible in use
» continued


14-14

Pre-purchase Search
 Value-Related

Factors: Higher search

when:
– Purchase is discretionary
– All alternatives have both positive and
negative qualities
– No agreement among users exists
– Conflicting information is available
– Other considerations exist
» continued


14-15

Pre-purchase Search
 Consumer

Factors: Higher search when:

– Consumers are well-educated, have higher
income levels and are younger
– Consumers are low in dogmatism and risk
perception
– Level of involvement is high
– Shopping is seen as an enjoyable activity
» continued


14-16

Evaluation of Alternatives – Types
of Consumer Choice Processes
 Affective

choices

– More holistic; an overall evaluation
– based on how one feels about a purchase
 Attribute-based

choices

– Have pre-determined evaluative criteria
– May require both external and internal search
– Complicated decision rules may be used

14-17

Nature of Evaluative Criteria
 Can

be tangible or intangible
 Include surrogate indicators
– Attributes that are used as indicators of another
attribute
 Are

often ranked in order of importance


14-18

Consumer Decision Rules
 Procedures

used by consumers to facilitate
brand or other consumption-related choices


14-19

Consumer Decision Rules
 Compensatory

– Brands evaluated in terms of each relevant
criteria and the best brand (or one with the
highest score) is chosen
 Non-compensatory

– Positive evaluations do not compensate for
negative evaluations


14-20

Non-Compensatory Consumer
Decision Rules
 Conjunctive Decision Rule

– Product attributes are identified
– a minimally acceptable cutoff point is
established for each attribute
– brands that fall below the cutoff point on
any one attribute are eliminated from
further consideration.
» continued

14-21

Decision Rules
 Disjunctive Decision Rule

– consumers identify product attributes
– establish a minimally acceptable cutoff
point for each attribute
– accept the brand that meets or exceeds
the cutoff for any one attribute
» continued

14-22

Decision Rules
 Lexicographic

Decision Rule

– Product attributes are identified
– Product attributes are ranked in terms of
importance
– brands are compared in terms of the attribute
considered most important
– Brand that scores highest on the first attribute is
chosen
– If there is a tie, the scores on the next attribute
are considered

14-23


14-24

Issues in Alternative Evaluation
 Lifestyles

as a Consumer Decision Strategy
 Incomplete Information
 Non-comparable Alternatives
 Series of Decisions
 Consumption Vision
– Mental picture of the consequences of using a
particular product


14-25

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

14-26

Information Search and
Marketing Strategy
 Get

products into consumers’ evoked set
 Limit information search if your brand is
the preferred brand
 Increase information search if your
alternative is not the preferred brand
 Use point-of-purchase advertising
effectively

14-27

Alternative Evaluation and
Marketing Strategy






Identify decision rule used by target market and
use suitable promotional messages
Influence the choice of evaluative criteria
Influence the rating of your product on evaluative
criteria used
Use surrogate indicators effectively
Use ‘consumption vision’


14-28

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