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Consumer decision making process consists of 5 stages which a consumer passesthrough when making choices about which products or services to buy.

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Rational perspective: Traditionally, consumer researchers have approached decision-making from a rational perspective. In this view, people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weighing the pluses and minuses of eachalternative, and arriving at a satisfactory decision. This traditional decision-making perspective incorporates the economics of information approach to the search process; it assumes that consumers will gather as much data as they need in order to make an informed decision. This process implies that steps in decision-making should be carefully studied by marketing managers in order to understand how consumers obtain information, how consumers form beliefs, and what criteria consumers use to make product or service choices. Companies can then develop products or services that emphasize the appropriate attributes, and marketers can tailor promotional strategies to deliver the types of information consumers are most likely to desire, via the best channels, and in the most effective formats.

Behavioral influence perspective: Some decisions are made under conditions of low involvement (=dahil olma, ilgili olma). In many of these situations, our decision is a learned response to environmental cues (=işaretler, uyaranlar), as when we decide to buy something on impulse that is being promoted as a special offer in a shop. A

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concentration on these types of decisions can be described as the behaviouralinfluence perspective. Under these circumstances, managers must concentrate onassessing the characteristics of the environment that influence members of a target market, such as the design of a retail outlet or whether a package is enticing.

Experiential (=deneyimsel) perspective: In this case, consumers are highly involved in a decision, but still we cannot explain their selections entirely rationally. For example, the traditional approach is hard pressed to explain a person’s choice of art, music or even a partner. In these cases, no single quality may be the determining factor. Marketers in these areas focus on measuring consumers’ affective responses to products or services and developing offerings that elicit appropriate subjectivereactions.

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Since some purchase decisions are more important than others, the amount of effort we put into each one differs. Sometimes the decision-making process is done almost automatically; we seem to make snap judgements based on very little information. At other times, reaching a purchase decision begins to resemble a full-time job. A person may literally spend days or weeks thinking about an important purchase such as a new home, even to the point of obsession. This intensive decision-making process becomes even more complicated in today’s environment where we have so many options from which to choose. Ironically, for many modern consumers one of the biggest problems they face is not having too few choices but having too many.Routine (habitual) decision-making: These are choices that we make with little or no conscious effort. Many purchase decisions are so routinized that wemay not realize we have made them until we look in our shopping trolleys. The development of habitual, repetitive behaviour allows consumers to minimize the time and energy spent on mundane purchase decisions. On the other hand, habitual decision-making poses a problem when a marketer tries to introducea new way of doing an old task. In this case consumers must be convinced to ‘unfreeze’ their former habit and replace it with a new one – perhaps by using digital banking rather than the local branch of the bank; or using an ATM machine instead of a live bank teller; or switching to self-service petrol pumps instead of being served by

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an attendant.Limited decision-making: In this case we are not nearly as motivated to search for information or to evaluate each alternative rigorously (=titizlikle). Instead, we are likely to use simple decision rules to choose among alternatives. These cognitive short cuts enable consumers to fall back on general guidelines, instead of having to start from scratch every time we need to make a decision.Extended decision-making: Decisions involving extended problem-solving correspond most closely to the traditional decision-making perspective. We usually initiate this careful process when the decision we have to make is important and we feel that the outcome may be risky in some way. In that case we try to collect as much informationas possible and evaluate each product alternative carefully.

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Actual state; is the way an individual perceives his or her feelings and situation to be at the present time. Desired / ideal state; is the way an individual wants to feel or be at the present time.

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Need recognition can occur in several ways. A person’s actual state can decrease if they run out of a product, or if they buy a product that doesn’t adequately satisfy their needs, or if they realize that they have a new need or desire (e.g. buying a house can set off an avalanche of other choices, because many new things will be needed to furnish the house – assuming that there’s any money left over). In contrast, opportunity recognition often occurs when we’re exposed to different or better-quality products. This happens because our circumstances havesomehow changed, as when an individual goes to university or gets a new job. As our frame of reference shifts, we make purchases to adapt to the new environment.

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While problem recognition can and does occur naturally, this process is often spurred by marketing efforts. In some cases, marketers attempt to create primary demand , where consumers are encouraged to use a product or service regardless of the brand they choose. Such needs are often encouraged in the early stages of a product’s lifecycle, as, for example, when microwave ovens were first introduced. Secondary demand , where consumers are prompted to prefer a specific brand instead of others, can occur only if primary demand already exists. At this point, marketers must convince consumers that a problem can be best solved by choosing their brand over others in the same category.In general, marketers use two major techniques to try to stimulate problemrecognition. First, they can attempt to create a new ideal state. Thirty years ago, few people gave much thought to the performance or style of their athletic shoes. Today we are bombarded with marketing messages featuring athletic shoes that will make us run faster, jump higher, and look more fashionable—a new ideal state. Second, marketers can try to encourage our dissatisfaction with the actual state, as Saks Fifth Avenue did by fostering shoppers’ dissatisfaction with ordinary shopping bags. When Saks created boldly stylish, eco-friendly, reusablebags to hold purchases, it encouraged consumers to view free bags as personal statements about fashion and environmental consciousness.

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A consumer may recognize a need and then search the marketplace for specific information (a process called pre-purchase search ). On the other hand, many consumers, especially veteran shoppers, enjoy browsing just for the fun of it, or because they like to stay up-to-date onwhat’s happening in the marketplace. Those shopaholics are engaging in ongoing search .

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Information sources can be roughly broken down into two kinds: internal and external. As a result of prior experience and simply living in a consumer culture, each of us often has some degree of knowledge about many products already in our memory. When confronted with a purchase decision, we may engage in internal search by scanning our own memory bank to assemble information about differentproduct alternatives. Usually, though, even the most market-aware of us needs to supplement this knowledge with external search, by which we obtain the information from advertisements, friends, or just plain peoplewatching.What kind of information is retrieved from internal search?(1) brands, (2) attributes, (3) evaluations, and (4) experiences.What kind of information is retrieved from external search?(1) brand name, (2) price, (3) other attributes.Where can we search for external information?(1) retailer search, (2) media search, (3) interpersonal search, (4) independent search, (5) experiential search.

Deliberate vs ‘accidental’ search: Our existing knowledge of a product may be the result of directed learning: on a previous occasion we might already have searched for relevant information or experienced some of the alternatives. A parent who

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bought a birthday cake for one child last month, for example,probably has a good idea of the best kind to buy for another child this month.Alternatively, we may acquire information in a more passive manner. Even though a product may not be of direct interest to us right now, exposure to advertising, packaging, sales promotion and viral marketing activities may result in incidental learning. Mere exposure over time to conditioned stimuli and observations of others results in the learning of much material that may not be needed for some time, if ever. For marketers, this is one of the benefits of steady, ‘low-dose’ advertising, as they establish and maintain product associations until the time we need them.

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A recent study of information search in high technology markets suggested that use of information channels can be segmented by age and education, with older consumers accessing information channels with less complex information compared with more highly educated consumers who tend to search all information channels. In addition, ‘during each segment of the search consumers tend to use multiplesources of information’.

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As a rule, purchase decisions that involve extensive search also entail some kind of perceived risk, or the belief that the product has potentially negative consequences from using or not using the product or service. Perceived risk may be present if the product is expensive or is complex and difficult to understand, or if the brand is unfamiliar. Mood effects on consumers’ attitudes and perceptions about risk are stronger when brands are unfamiliar. Perceived risk can also be a factor when a product choice is visible to others and we run the risk of embarrassment if we make the wrong choice.

For example, a highly self confident person might worry less about the social risk inherent in a product, whereas a more vulnerable, insecure consumer might be reluctant to take a chance with a product or brand that might not be seen as cool and thus not be accepted by peers.

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Awareness set: The alternatives that a consumer can think of.Unawareness set: The alternatives that a consumer does not know about.Evoked set (consideration set): The alternatives a consumer actually considers andwill evaluate for solving the problem. This set includes products already in memory (the retrieval set), plus those prominent in the retail environment.Inert set: The alternatives that are not under consideration. Consumers will generally accept favorable information about brands in the inert set, although they do not seek out such information. Brands in this set are generally acceptable when preferred brands are not available.Inept set: The alternatives that a consumer would not consider buying. These are thealternatives that are actively disliked or avoided by the consumer.

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Consumers evaluate a product stimulus in terms of what they already know about a product or other similar ones. A person evaluating a particular digital camera will most likely compare it with other digital cameras rather than to a 35mm camera, and would be unlikely to compare it with a DVD player or iPod. Since the category in which a product is placed determines the other products it will be compared with, categorization is a crucial determinant of how a product is evaluated. These classifications derive from different product attributes, including appearance (e.g. we assume that chocolates in silver or gold wrappings are more upscale), price (we view items with price endings in .99 as cheaper than those that end in .00), or previouslylearned connections (if it has the name Porsche on it, it must be expensive).When faced with a new product, consumers refer to their already existing knowledge in familiar product categories to form new knowledge. We tend to placethe new product into an existing category rather than create a new category. It is important to understand how consumers cognitively represent this information in aknowledge structure, a set of beliefs and the way we organize these beliefs in our minds.Not only do people group things into categories, but these groupings occur at different levels of specificity. Typically, we represent a product in a cognitive structure at one of three levels. (1) Superordinate, (2) Basic, (3) Subordinate

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The way we categorize products has many strategic implications. This process affects which products consumers will compare with our product and also the criteria they will use to decide if they like us or our competitors.Product positioning: The success of a positioning strategy often hinges on the marketer’s ability to convince the consumer that their product should be considered within a given category. For example, the orange juice industry tried to reposition orange juice as a drink that could be enjoyed all day long (‘It’s not just for breakfast anymore’).Identifying competitors: At the abstract, superordinate level, many different product forms compete for membership. The category ‘entertainment’ might comprise both bowling and the ballet, but not many people would consider the substitution of one of these activities for the other. Products and services that on the surface are quite different, however, actually compete with each other at a broad level for consumers’ discretionary cash. While bowling or ballet may not be a likely trade-off for many people, it is feasible, for example, that a symphony orchestra might try to lure away season ticket-holders to the ballet by positioning itself as an equivalent member ofthe category ‘cultural event’.Exemplar products: If a product is a really good example of a category, it is more familiar to consumers and they more easily recognize and recall it. The characteristics

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of category exemplars tend to exert disproportionate influence on how people think of the category in general. 93 In a sense, brands that are strongly associated with a category ‘call the shots’ by defining the evaluative criteria that should be used to evaluate all category members.Locating products: Product categorization also can affect consumers’ expectations regarding the places where they can locate a desired product. If products do not clearly fi t into categories (is a carpet furniture?), this may diminish our ability to find them or work out what they are meant to do, once we have found them. For instance, a frozen dog food that had to be thawed and cooked failed in the market, partly because people could not adapt to the idea of buying dogfood in the ‘frozen foods for people’ section of their supermarkets.

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Once we assemble and evaluate the relevant options in a category, we have to choose one.

Evaluative criteria are the dimensions we use to judge the competing alternatives.Another important point is that criteria on which products differ from one another carry more weight in the decision process than do those where the alternatives are similar. brands being considered rate equally well on one attribute (e.g. if all TVs come with remote control), consumers will have to find other reasons to choose one over another. Determinant attributes are the features we actually use to differentiate among our choices.

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NON-COMPENSATORY DECISION RULES, when we feel that a product with a low standing on one attribute cannot compensate for this flaw by doing better on another attribute. In other words we simply eliminate all options that do not meet some basic standards.Lexicographic rule: In this case, the consumer selects the brand that is the best on the most important attribute selected. If two or more brands are equallygood on that attribute, the consumer then compares them on the second most important attribute.Elimination-by-aspects rule: In this case, the consumer imposes spesific cut-offs andaccording to the most important attribute, the customer eliminates the brands thatdoes not meet the cut-off criterion.Conjunctive rule: In this case, the consumer decides not according to attributes but according to brands. If a brand meets all of the cut-offs for every attribute, it is selected.

COMPENSATORY DECISION RULES, give a product a chance to make up for its shortcomings. Consumers who employ these rules tend to be more involved in the purchase and so they are willing to exert the effort to consider the entire picture in a more exacting way.

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Simple additive rule: In this case, the consumer merely chooses the alternative that has the largest number of positive attributes. This choice is most likely to occur when their ability or motivation to process information is limited. One drawback to this approach for the consumer is that some of these attributes may not be very meaningful or important.Weighted additive rule: In this case, the consumer also takes into account the relative importance of positively rated attributes, essentially multiplyingbrand ratings by importance weights.

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Some purchases are followed by a phenomenon called postpurchase dissonance. This occurs when a consumer doubts the wisdom of a purchase he or she hasmade. Other purchases are followed by nonuse. The consumer keeps or returns the product without using it. Most purchases are followed by product use, even if postpurchase dissonance is present. Product use often requires the disposition of the product package or the product itself. During and after use, the purchase process and the product are evaluated by the consumer. Unsatisfactory evaluations may produce complaints by those consumers. Appropriate responses by the firm may reverse the initial dissatisfaction among those who complained. The result of all these processes is a final level of satisfaction, which in turn can result in a loyal, committed customer, one who is willing to repurchase, or in a customer who switches brands or discontinues using the product category.

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Decisions that involve giving up some or all of a desirable feature to obtain a slightlymore desirable feature often generate negative emotions while the decision is beingmade. These negative emotions may be sufficient to cause the consumer to avoid or delay the decision (I’ll just keep this car a while longer). This suggests that firms marketing products such as automobiles, vacation homes, expensive vacation packages, and similar products train their salespeople to help minimize these negative emotions. Advertising that emphasizes the fun and positive emotions of the decision outcome and incentive programs that encourage consumers to continue with the purchase process could also be effective.

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Product Use and Marketing Implications: Marketers need to understand how consumers use their products for a variety of reasons. Understanding both the functional and symbolic ways in which a product is used can lead to more effective product designs. For example, Nike uses observation of basketball players at inner-city courts to gain insights into desired functional and style features. One insight gained through these observations is that the process of putting on and tying/buckling basketball shoes before a game is full of meaning and symbolism. In many ways, it is the equivalent of a knight putting on armor before a combat. Nikehas used this insight in several aspects of its shoe designs.Product Nonuse and Marketing Implications: In some cases, the consumer has wasted money and the marketer is unlikely to get repeat sales or positive referrals. Many such purchases are difficult for the marketer to correct after the purchase. In other cases, consumers would have used the product if reminded ormotivated at the proper time. The division between the initial purchase decision and the decision to consume is particularly strong with catalog and online purchases. In effect, two decisions are involved in these purchases—the initial decision to order the product, and a second decision to keep or return the item when it is received.

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Disposition and marketing strategy: There are five major ways in which dispositiondecisions can affect a firm’s marketing strategy.1. For most durable goods, consumers are reluctant to purchase a new item until

they have “gotten their money’s worth” from the old one. These consumers mentally depreciate the value of a durable item over time.

2. Disposition sometimes must occur before acquisition of a replacement because of space or financial limitations. For example, because of a lack of storage space, a family living in an apartment may find it necessary to dispose of an existing bedroom set before acquiring a new one. Thus, it is to the manufacturer’s and retailer’s advantage to assist the consumer in the disposition process.

3. Frequent decisions by consumers to sell, trade, or give away used products mayresult in a large used-product market that can reduce the market for new products.

4. In some cultures such as in USA, consumers are very concerned with waste and how their purchase decisions affect waste. Such individuals might be willing topurchase, for example, a new vacuum cleaner if they were confident that the old one would be rebuilt and resold. However, they might be reluctant to throw their old vacuums away or to go to the effort of reselling the machines themselves. Thus, manufacturers and retailers could take steps to ensure that products are

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reused.5. Environmentally sound disposition decisions benefit society as a whole and thus

the firms that are part of that society. Firms’ owners and employees live and work in the same society and environment as many of their consumers. Their environment and lives are affected by the disposition decisions of consumers.Therefore, it is in their best interest to develop products, packages, and programs that encourage proper disposition decisions.

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While and after using the product, the consumer will perceive some level of performance. This perceived performance level could be noticeably above theexpected level, noticeably below the expected level, or at the expected level.• Product performance that exceeds expected performance will generally result in

satisfaction and sometimes in commitment. Commitment, means that the consumer is enthusiastic about a particular brand and is somewhat immune to actions by competitors.

• If the performance confirms a low performance expectation then it generally will result in neither satisfaction nor dissatisfaction but rather with what can be termed nonsatisfaction. That is, the consumer is not likely to feel disappointment or engage in complaint behavior. However, this purchase will not reduce the likelihood that the consumer will search for a better alternative the next time theproblem arises.

• A brand whose perceived performance falls below expectations generally produces dissatisfaction. If the discrepancy between performance and expectation is sufficiently large, or if initial expectations were low, the consumer may restart the entire decision process.

Consumer satisfaction can result in increased use, repeat purchases, brand loyaltyand word of mouth.

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Homework: What can marketers do about dissatisfied consumers? Make suggestionsabout marketing practices for each of the response types mentioned in the figure. (Max 1 page in handwriting)

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