CONSUMER DECISION MAKING
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MKTG 371
The decision
process
Effects of
involvement
Types of decision
strategies
DECISION MAKING
Lars Perner, Instructor 1
CONSUMER DECISIONS:
Theory and Reality in Consumer Buying
Problem
Recognition
Information
Search
Evaluation of
Alternatives
Purchase
Postpurchase
Evaluation/
Behaviors
MKTG 371
DECISION MAKING
Theory
Complications
Lars Perner, Instructor 2
Types of Decisions and Involvement
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Nominal
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MKTG 371
Brand loyal decisions
Repeat purchases
Limited decision making
Extended decision making
DECISION MAKING
Lars Perner, Instructor 3
Problem Types
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Presence
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Acceptance
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Acknowledged
Unacknowledged/
denied
Specificity
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MKTG 371
Active
Inactive
Me? Anger control
problem? What do
you mean?
Generic
Selective
DECISION MAKING
Lars Perner, Instructor 4
Categories of Alternatives
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Awareness set
Consideration set (evoked set)
Inept set
Inert set
All
alternatives
Inept
set
Evoked
set
Inert
set
MKTG 371
DECISION MAKING
Awareness
set
Lars Perner, Instructor 5
Discovering Consumer Problems
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MKTG 371
Activity analysis
Product analysis
Problem analysis
Human factors research
Emotion research
DECISION MAKING
Lars Perner, Instructor 6
Approaches to Search for Problem
Solutions
INTERNAL
Memory
Thinking
EXTERNAL
Word of mouth, media,
store visits, trial
MKTG 371
DECISION MAKING
CATALOG
Lars Perner, Instructor 7
Issues in Decision Making
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Compensatory vs. noncompensatory--can an
exceptionally good rating on
one attribute outweigh a bad
one elsewhere?
Brand vs. attribute based
processing
MKTG 371
DECISION MAKING
Lars Perner, Instructor 8
Some Influences on Decisions
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Temporal
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MKTG 371
Time pressure
Situation
Task definition and expectations
Mood
DECISION MAKING
Lars Perner, Instructor 9
Cost vs. Benefits of Search
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MKTG 371
Market
Characteristics
Product
Characteristics
Consumer
Characteristics
Situation
Characteristics
DECISION MAKING
Lars Perner, Instructor 10
Consumer Judgments
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Heuristics
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MKTG 371
Availability
Representativeness
Simulation
DECISION MAKING
Lars Perner, Instructor 11
Economic Models
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Expected utility
Utility functions
Prospect Theory
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MKTG 371
Asymmetry for gains and losses
Framing
DECISION MAKING
Lars Perner, Instructor 12
Other Models
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Satisficing
Cognitive
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Affective
Simple strategies
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MKTG 371
Compensatory vs. non-compensatory
Brand loyalty, brand familiarity
Country of origin
Price related
Minimizing regret
DECISION MAKING
Lars Perner, Instructor 13
Positioning Products as Problem
Solutions
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Category vs. brand promotion
Activating problems
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Getting consumers to anticipate
problems before need—e.g.,
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MKTG 371
Influencing desired state
Promotion of magnitude of discrepancy
Insurance
Emergency supplies
Unexpected events
DECISION MAKING
Lars Perner, Instructor 14
Marketing Strategies Based on
Decision Making
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MKTG 371
Maintenance
Disrupt
Capture
Intercept
Preference
Acceptance
DECISION MAKING
Lars Perner, Instructor 15
Variety Seeking and Impulse
Buying
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Variety seeking
» need varies among consumers
by optimal stimulation level
(OSL)
» Use innovativeness
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“Don’t give me that
same old cola, that
same old cola-I want a
rock’n’roller!”
MKTG 371
Impulse purchases
» Motivation
» Consequences
DECISION MAKING
Lars Perner, Instructor 16
Household Decision Making
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Roles/influence
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MKTG 371
Information
gatherers/holders
Influencers
Decision makers
Purchasers
Users
DECISION MAKING
Lars Perner, Instructor 17
Household Decision Making
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Roles/influence
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Information
gatherers/holders
Influencers
Decision makers
Purchasers
Users
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Constructive
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DECISION MAKING
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Bargaining
Reasoning (sincere)
Manipulative
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Values--desired end
states
MKTG 371
Strategies of
Influence
Impression
management
Authority
Emotion
Borderline
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Information gathering
Lars Perner, Instructor 18