Chapter 16
Consumer Decision Making
and Beyond
Consumer Behavior,
Ninth Edition
Schiffman & Kanuk
Copyright 2007 by Prentice Hall
Chapter Outline
• Levels of Consumer Decision Making
• Models of Consumer Decision
Making
• Consumer Gifting Behavior
• Relationship Marketing
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Levels of Consumer Decision
Making
• Extensive Problem Solving
– A lot of information needed
– Must establish a set of criteria for
evaluation
• Limited Problem Solving
– Criteria for evaluation established
– Fine tuning with additional information
• Routinized Response Behavior
– Usually review what they already know
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This Site Helps You Search and Establish
Criteria for Choosing a Doctor
weblink
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Ads often
appeal to
consumers who
are looking for
information to
help them
evaluate
products.
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Models of Consumers: Four Views
of Consumer Decision Making
• An Economic View Rational Decision
• A Passive View irrational & impulse
decision
• A Cognitive View satisfactory desicion
• An Emotional View fear joy
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Discussion Questions
• How are the four models of consumer
decision making similar?
• How do they differ
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The Process of Consumer
Decision Making
• Need Recognition
• Prepurchase Search
• Evaluation of Alternatives
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Need Recognition
• Usually occurs when consumer has a
“problem”
• Need recognition styles
– Actual state
– Desired state
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Prepurchase Search
• Begins with internal search and then
moves to external search
• The impact of the Internet
• Search may be personal or impersonal
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Issues in Alternative Evaluation
• Evoked set
• Criteria used for evaluating brands
• Consumer decision rules and their
application
• Decisions by functionally illiterate population
• Going online for decision-making assistance
• Lifestyles as a consumer decision strategy
• Incomplete information
• Series of decisions
• Decision rules and marketing strategy
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The Evoked Set
Figure 16-3
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Issues in Alternative Evaluation
• Evoked Set
• Criteria used for evaluating brands
• Consumer decision rules and their
application
• Decisions by functionally illiterate population
• Going online for decision-making assistance
• Lifestyles as a consumer decision strategy
• Incomplete information
• Series of decisions
• Decision rules and marketing strategy
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Consumer Decision Rules
• Compensatory
• Noncompensatory
– Conjunctive Decision Rule
– Disjunctive Decision Rule
– Lexicographic Rule
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Compensatory
Decision Rules
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A type of decision
rule in which a
consumer evaluates
each brand in terms
of each relevant
attribute and then
selects the brand
with the highest
weighted score.
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Noncompensatory
Decision
Rules
Copyright 2007 by Prentice Hall
A type of consumer
decision rule by which
positive evaluation of
a brand attribute does
not compensate for a
negative evaluation of
the same brand on
some other attribute.
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Conjunctive
Decision
Rule
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A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
cutoff point for each
attribute evaluated.
Brands that fall below
the cutoff point on any
one attribute are
eliminated from
further consideration.
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Disjunctive
Rule
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A noncompensatory
decision rule in which
consumers establish a
minimally acceptable
cutoff point for each
relevant product
attribute.
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Lexicographic
Rule
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A noncompensatory
decision rule consumers first rank
product attributes in
terms of importance,
then compare brands
in terms of the
attribute considered
most important.
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Affect
Referral
Decision
Rule
Copyright 2007 by Prentice Hall
A simplified decision
rule by which consumers
make a product choice
on the basis of their
previously established
overall ratings of the
brands considered,
rather than on specific
attributes.
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Issues in Alternative Evaluation
• Evoked Set
• Criteria used for evaluating brands
• Consumer decision rules and their
application
• Decisions by functionally illiterate population
• Going online for decision-making assistance
• Lifestyles as a consumer decision strategy
• Incomplete information
• Series of decisions
• Decision rules and marketing strategy
Copyright 2007 by Prentice Hall
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Issues in Alternative Evaluation
• Evoked Set
• Criteria used for evaluating brands
• Consumer decision rules and their
application
• Decisions by functionally illiterate population
• Lifestyles as a consumer decision strategy
• Incomplete information
• Series of decisions
• Decision rules and marketing strategy
Copyright 2007 by Prentice Hall
16 - 22
Issues in Alternative Evaluation
• Evoked Set
• Criteria used for evaluating brands
• Consumer decision rules and their
application
• Decisions by functionally illiterate population
• Going online for decision-making assistance
• Lifestyles as a consumer decision strategy
• Incomplete information
• Series of decisions
• Decision rules and marketing strategy
Copyright 2007 by Prentice Hall
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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
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Issues in Alternative Evaluation
•
•
•
•
•
•
•
Evoked set
Criteria used for evaluating brands
Consumer decision rules and their application
Decisions by functionally illiterate population
Going online for decision making assistance
Lifestyles as a consumer decision strategy
Incomplete information
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A Purchase Can Involve a
Number of Decisions.
When purchasing car, the buyer is
involved in a number of decisions – the
make, model, country of origin, the
dealer, the financing, and different
options.
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Output of Consumer Decision
Making
• Purchase behavior
• Postpurchase evaluation
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Purchase Behavior
• Three types of behavior
– Trial purchases
– Repeat purchases
– Long-term commitment
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Postpurchase Evaluation
• Actual Performance Matches Expectations
– Neutral Feeling
• Actual Performance Exceeds Expectations
– Positive Disconfirmation of Expectations
• Performance Is Below Expectations
– Negative Disconfirmation of Expectations
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Gifting Behavior
Gifting is an act of symbolic
communication, with explicit and implicit
meanings ranging from congratulations
and love, to regret, obligation, and
dominance.
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Relationship
Marketing
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Marketing aimed at
creating strong,
lasting relationships
with a core group of
customers by making
them feel good about
the company and by
giving them some
kind of personal
connection with the
business.
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