Consumer Decision Processes
Consumer Decision Processes
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What is decision making?
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Process of choosing between two or more
alternatives
General Models of Consumer Decision
Making
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Economic “Rational” Consumer
Passive Consumer
Cognitive Consumer
Consumer Decision Processes
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General Models of Consumer Decision
Making (Cont.)
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Emotional Consumer
Random Consumer
“CB” Consumer
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C’s buy symbols as well as products
What is “rational” is in the eye of the beholder
C’s do not have, nor do they want, perfect
information
C’s satisfyce, not optimize
Consumer Decision Processes
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Howard-Sheth Model
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Extended Problem Solving (EPS)
Limited Problem Solving (LPS)
Habitual Decision Making
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Static or continuous categorizations?
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Consumer Decision Processes
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Habitual Decision Making
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Brands Considered -- 1
Evaluative Criteria – Simple (Is it available?)
Information Sources -- 1 (Self)
Types
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Brand Loyalty
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Involves repeat purchase with a high level of psychological
commitment
Inertia (Spurious Loyalty)
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Repeat purchase to minimize consumer effort
Consumer Decision Processes
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Habitual Decision Making -- Implications
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May need to break consumers “habit”
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Sales promotion tools as incentives to switch
Sales efforts to change shelf space (position)
Retention of consumers
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Distribution is key -- is loyalty is spurious, must have
product on the shelf
Monitoring of competitive actions -- e.g., match price
reductions
Reminder ads to keep brand on the “top of mind”
Consumer Decision Processes
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Extended Problem Solving
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Brands Considered -- Many
Evaluative Criteria -- Complex
Information Sources -- Many
Consumer Decision Processes
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EPS: Complex Decision Process
Need
Recognition
Prepurchase
Search
Evaluation
of
Alternatives
Psychological Field
1. Motivation
2. Perception
3. Learning
4. Lifestyle
5. Attitudes
Experience
Consumer Decision Processes
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EPS: Complex Decision Process
 Pre-Purchase Activities
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Need Recognition (C’s actual state desired state)
Information Search
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Internal
External
Evaluation of Alternatives
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Compensatory --- lack of one attribute (taste) can be compensated by another
(it’s effective)
Eliminate by Aspects (EBA) – set minimum cut-off rule for the level of each
attribute; start with most important attribute – if a brand does NOT meet the
cutoff, it is out
Conjunctive Rule -- set minimum cut-off rule for the level of each attribute; look
at entire set of attributes (which exceeds the minimum on the MOST attributes)
Lexicographic Rule – rank attributes; choose brand that is best on most
important attribute; if a tie, go to second most important attribute, etc.
Affect Referral – choose brand you “feel” best about
Consumer Decision Processes
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Unplanned Decisions
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Pure impulse – What the heck!
Reminder/Suggested impulse – walk through
dairy aisle (ah yes, I need milk)
Planned impulse – I always get yogurt
Marketers influence?????