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Schiff ch14
1.
Chapter 14 Consumer
Decision Making I: The Process Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das Copyright © 2006 Pearson Education Canada Inc.
2.
Levels of Consumer
Decision Copyright © 2006 Pearson Education Canada Inc. 14-2 Making Extensive Problem Solving Limited Problem Solving Routine Response Behaviour
3.
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 Copyright © 2006 Pearson Education Canada Inc. 14-3
4.
Copyright © 2006
Pearson Education Canada Inc. 14-4
5.
Consumer Decision Making
– The Copyright © 2006 Pearson Education Canada Inc. 14-5 Process Need Recognition Pre-purchase Search Evaluation of Alternatives
6.
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 Copyright © 2006 Pearson Education Canada Inc. 14-6 bigger the problem)
7.
Types of Problems
Active Versus Inactive problems – Active: those you are aware of – Inactive: those that you are not yet aware of Copyright © 2006 Pearson Education Canada Inc. 14-7 (but exist) Those that require immediate solutions and those that do not require immediate solutions
8.
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 Copyright © 2006 Pearson Education Canada Inc. 14-8
9.
Pre-Purchase Search
Types of Information Sources Types of Information Sought Factors Affecting Extent of Information Search Copyright © 2006 Pearson Education Canada Inc. 14-9
10.
Figure 14-3: Types
of Information Sources Copyright © 2006 Pearson Education Canada Inc. 14-10 PPEERRSSOONNAALL Friends Neighbors Relatives Co-workers Computer salespeople Calling the electronics store IIMMPPEERRSSOONNAALL Newspaper articles Magazine articles Consumer Reports Direct-mail brochures Information from product advertisements Internal web site
11.
Types of Information
Sought Brands or alternatives available Evaluative criteria to be used – Generally, product features Ratings of brands on evaluative criteria Copyright © 2006 Pearson Education Canada Inc. 14-11
12.
Copyright © 2006
Pearson Education Canada Inc. 14-12
13.
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 Copyright © 2006 Pearson Education Canada Inc. 14-13 » continued
14.
Factors that Increase
the Level of 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 Copyright © 2006 Pearson Education Canada Inc. 14-14 » continued
15.
Factors that Increase
the Level of 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 Copyright © 2006 Pearson Education Canada Inc. 14-15 » continued
16.
Factors that Increase
the Level of 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 Copyright © 2006 Pearson Education Canada Inc. 14-16 » continued
17.
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 Copyright © 2006 Pearson Education Canada Inc. 14-17
18.
Nature of Evaluative
Criteria Can be tangible or intangible Include surrogate indicators – Attributes that are used as indicators of another Copyright © 2006 Pearson Education Canada Inc. 14-18 attribute Are often ranked in order of importance
19.
Consumer Decision Rules
Procedures used by consumers to facilitate brand or other consumption-related choices Copyright © 2006 Pearson Education Canada Inc. 14-19
20.
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 Copyright © 2006 Pearson Education Canada Inc. 14-20 negative evaluations
21.
Non-Compensatory Consumer Decision
Rules CCoonnjjuunnccttiivvee DDeecciissiioonn RRuullee – 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. Copyright © 2006 Pearson Education Canada Inc. 14-21 » continued
22.
Non-Compensatory Consumer Decision
Rules DDiissjjuunnccttiivvee DDeecciissiioonn RRuullee – 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 Copyright © 2006 Pearson Education Canada Inc. 14-22 » continued
23.
Non-Compensatory Consumer Copyright
© 2006 Pearson Education Canada Inc. 14-23 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
24.
Copyright © 2006
Pearson Education Canada Inc. 14-24
25.
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 Copyright © 2006 Pearson Education Canada Inc. 14-25 particular product
26.
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 Copyright © 2006 Pearson Education Canada Inc. 14-26
27.
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 Copyright © 2006 Pearson Education Canada Inc. 14-27
28.
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’ Copyright © 2006 Pearson Education Canada Inc. 14-28
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