schiff ch14
DESCRIPTION
schiffTRANSCRIPT
Copyright © 2006 Pearson Education Canada Inc.
Chapter 14 Consumer Decision Making I:
The Process
Consumer Behaviour
Canadian Edition
Schiffman/Kanuk/Das
Copyright © 2006 Pearson Education Canada Inc.14-2
Levels of Consumer Decision Making
Extensive Problem Solving
Limited Problem Solving
Routine Response Behaviour
Copyright © 2006 Pearson Education Canada Inc.14-3
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.14-4
Copyright © 2006 Pearson Education Canada Inc.14-5
Consumer Decision Making – The Process
Need Recognition Pre-purchase Search Evaluation of Alternatives
Copyright © 2006 Pearson Education Canada Inc.14-6
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
bigger the problem)
Copyright © 2006 Pearson Education Canada Inc.14-7
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
Copyright © 2006 Pearson Education Canada Inc.14-8
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.14-9
Pre-Purchase Search
Types of Information Sources Types of Information Sought Factors Affecting Extent of Information
Search
Copyright © 2006 Pearson Education Canada Inc.14-10
Figure 14-3: Types of Information Sources
PERSONALPERSONAL
FriendsNeighborsRelativesCo-workersComputer salespeopleCalling the electronics store
IMPERSONALIMPERSONAL
Newspaper articlesMagazine articlesConsumer ReportsDirect-mail brochuresInformation from product advertisements
Internal web site
Copyright © 2006 Pearson Education Canada Inc.14-11
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.14-12
Copyright © 2006 Pearson Education Canada Inc.14-13
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
» continued
Copyright © 2006 Pearson Education Canada Inc.14-14
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
» continued
Copyright © 2006 Pearson Education Canada Inc.14-15
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
» continued
Copyright © 2006 Pearson Education Canada Inc.14-16
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
» continued
Copyright © 2006 Pearson Education Canada Inc.14-17
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.14-18
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
Copyright © 2006 Pearson Education Canada Inc.14-19
Consumer Decision Rules
Procedures used by consumers to facilitate brand or other consumption-related choices
Copyright © 2006 Pearson Education Canada Inc.14-20
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
negative evaluations
Copyright © 2006 Pearson Education Canada Inc.14-21
Non-Compensatory Consumer Decision Rules
Conjunctive Decision RuleConjunctive 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
Copyright © 2006 Pearson Education Canada Inc.14-22
Non-Compensatory Consumer Decision Rules
DisjunctiveDisjunctive Decision Rule 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
Copyright © 2006 Pearson Education Canada Inc.14-23
Non-Compensatory Consumer 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
Copyright © 2006 Pearson Education Canada Inc.14-24
Copyright © 2006 Pearson Education Canada Inc.14-25
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 particular product
Copyright © 2006 Pearson Education Canada Inc.14-26
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.14-27
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.14-28
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’