MKTG 407
Consumer Decision-Making
Processes
Chapter 7
Steps in Consumer Decision-Making
1. Problem Recognition
2. Information Search
3. Evaluate Alternatives
All steps affected by:
Cultural
Social
Individual &
Psychological Factors
4. Product Choice
5. Post Purchase Behavior
An Illustration with Ideas
for Nuggets/Underhill PPTs
Exercise
1. Think of a recent consumer decision
2. Walk through five steps of consumer
decision-making process
3. Identify at least one factor that affected
your response at each stage
4. Discuss with person sitting next to you
Steps in Consumer Decision-Making
1. Problem Recognition
•
A difference between current and desired or ideal state
•
Can be driven by internal (hunger) or external (friends) factors
•
Can be driven by future goals/aspirations, which rest on our values
•
Can be influenced by recent events/life transitions (from college to
the “real world”)
•
“Ideal states” can become distorted and detrimental (Ad1, Ad2)
Steps in Consumer Decision-Making
2. Information Search
•
Searching for appropriate information to make a decision
•
Internal sources
•
Memory for…
•
Brands
•
Attributes
•
Evaluations
•
Experiences
Steps in Consumer Decision-Making
2. Information Search
•
Brand recall enhanced when…
•
Brand is prototypical
•
Brand is familiar
•
Brand is linked with goals/usage situations
•
Brand attitude is favorable
•
Linked with retrieval cues
•
Application to Starbucks Via?
Steps in Consumer Decision-Making
2. Information Search
•
Attribute recall enhanced when attribute is…
•
Accessible (strongest associative links)
•
Diagnostic (allows consumer to distinguish one product
from another); negative more diagnostic than positive,
so marketers try hard to avoid
•
Salient (e.g., shape of an iPod)
•
Has “attribute determinance” (attribute is both
diagnostic and salient)
•
Vivid
•
Linked with goals
Steps in Consumer Decision-Making
2. Information Search
•
•
Evaluation recall
•
While attributes can be recalled, often we forget details,
but retain a general evaluation (e.g., of brand)
•
This is why creating favorable brand image is important
beyond specific attributes
Experience recall
•
When product linked with an experience, easier to recall
Steps in Consumer Decision-Making
2. Information Search
•
External sources
•
•
Common sources for external search
•
Retailer
•
Media
•
Friends
•
Independent (neutral) sources: CNET
•
Experiential (trials, test drives)
Search enlarges when perceived risk & interest are high,
and confidence, knowledge, experience low
Forming a Consideration Set
of Brand Choice Alternatives
Golden Corral – Baby Back Ribs
Golden Corral – Comfort Food
Steps in Consumer Decision-Making
3. Evaluate Alternatives
4. Product Choice
•
Info search  “evoked (consideration) set”
•
Once consideration set established, a variety of factors can
influence how consumers evaluate and choose among
alternatives
Formal Models of Information Integration Processes
Role of Heuristics in Consumer Decision-Making
• Heuristics
• Simple “if . . ., then . . .” propositions (rules of
thumb) that connect an event with an
appropriate action
• Heuristics particularly important in
• Search
• Evaluation
• Choice
Steps in Consumer Decision-Making
5. Post Purchase Behavior
•
Post-purchase evaluation
•
Satisfaction based on expectations
• Larger gap, less satisfaction
•
•
Reduce post-decisional regret (cog. dissonance)
Other post-purchase behaviors
•
Repeat purchase
•
Good vs. bad word of mouth