Consumer Behavior,

SCHIFFMAN & KANUK

Consumer Decision Making

and Beyond

16-1
 Levels of Consumer Decision
Making
Extensive Problem
Solving

Limited Problem
Solving

Routine Response
Behavior

16-2
Models of Consumers: Four Views
of Consumer Decision Making
• An Economic View
• A Passive View
• A Cognitive View
• An Emotional View

16-3
 Figure: Goal Setting and Pursuit
Feedback

Goal
Goal Attainment/
Setting Failure

Formation Action
Action
of Goal Initiation/
Planning
Intention Control

16-4
 Figure : A Simple Model of Consumer Decision Making
External Influences
Sociocultural Environment
Firm’s Marketing Efforts
1. Family
Input 1. Product
2. Informal sources
2. Promotion
3. Other noncommercial sources
3. Price
4. Social class
4. Channels of distribution
5. Subculture and culture
Consumer Decision Making
Psychological Field
1. Motivation
Need Recognition 2. Perception
3. Learning
Process Prepurchase Search 4. Personality
5. Attitudes
Evaluation of Alternatives
Experience

Postdecision Behavior
Purchase
Output
1. Trial Postpurchase Evaluation
2. Repeat purchase
16-5
 Three Stages of Consumer
Decision Making
• Need Recognition
• Pre purchase Search
• Evaluation of Alternatives

16-6
 Table : Factors that are Likely to
Increase Pre-purchase Search

Product Factors
Long inter-purchase time (a long-lasting or
infrequently used product)
Frequent changes in product styling
Volume purchasing (large number of units)
High price
Many alternative brands
Much variation in features

16-7
 Table :continued
Experience
First-time purchase
No past experience because the product is new
Unsatisfactory past experience within the product category
Social Acceptability
The purchase is for a gift
The product is socially visible
Value-Related Considerations
Purchase is discretionary rather than necessary
All alternatives have both desirable and undesirable consequences
Family members disagree on product requirements or evaluation of
alternatives
Product usage deviates from important reference group
The purchase involves ecological considerations
Many sources of conflicting information

16-8
 Table : continued

Product Factors
Demographic Characteristics of Consumer
Well-educated
High-income
White-collar occupation
Under 35 years of age
Personality
Low dogmatic
Low-risk perceiver (broad categorizer)
Other personal factors, such as high product involvement and
enjoyment of shopping and search

16-9
 Table : Alternative Pre-purchase
Information Sources for an Ultra light
Laptop
PERSONAL IMPERSONAL

Friends Newspaper articles

Neighbors Magazine articles
Relatives Consumer Reports
Co-workers Direct-mail brochures
Computer salespeople Information from product
Calling the electronics store advertisements
Internal web site

16-10
 Issues in Alternative Evaluation
• Evoked Set
• Criteria Used for Evaluating Brands
• Consumer Decision Rules
• Lifestyles as a Consumer Decision Strategy
• Incomplete Information and Non-
comparable Alternatives
• Series of Decisions
• Decision Rules and Marketing Strategy
• Consumption Vision
16-11
 Figure : The Evoked Set as a Subset of
All Brands in a Product Class
All
Brands

Known Unknown
Brands Brands
(1)
Evoked Set Inept Set Inert Set
Acceptable Unacceptable Indifferent Overlooked
Brands Brands Brands Brands
(2) (3) (4)

Purchased Not Purchased

Brands Brands
16-12 (5)
 Brands that a consumer
Inept Set excludes from purchase
consideration.

16-13
 Brands that a consumer
is indifferent toward
Inert Set because they are
perceived as having no
particular advantage.

16-14
 Figure : Ad
Suggesting
Criteria for
Decision
Making

16-15
 Consumer Decision Rules
• Compensatory
• Non-compensatory
– Conjunctive Decision Rule
– Disjunctive Decision Rule
– Lexicographic Rule

16-16
 A type of decision
rule in which a
consumer evaluates
each brand in terms
Compensatory
of each relevant
Decision Rules
attribute and then
selects the brand
with the highest
weighted score.

16-17
 A type of consumer
decision rule by which
Non- positive evaluation of
compensatory a brand attribute does
Decision not compensate for a
Rules negative evaluation of
the same brand on
some other attribute.

16-18
 A non-compensatory
decision rule in which
consumers establish a
minimally acceptable
Conjunctive cutoff point for each
Decision attribute evaluated.
Rule Brands that fall below
the cutoff point on any
one attribute are
eliminated from further
consideration.
16-19
 A non-compensatory
decision rule in which
consumers establish a
Disjunctive
minimally acceptable
Rule
cutoff point for each
relevant product
attribute.

16-20
 A non-compensatory
decision rule -
consumers first rank
product attributes in
Lexicographic
terms of importance,
Rule
then compare brands
in terms of the
attribute considered
most important.

16-21
 A simplified decision
rule by which consumers
make a product choice
Affect
on the basis of their
Referral
previously established
Decision
overall ratings of the
Rule
brands considered, rather
than on specific
attributes.

16-22
 Table : Hypothetical Use of Popular Decision
Rules in Making a Decision to Purchase an
Ultra light Laptop
DECISION RULE MENTAL STATEMENT
Compensatory rule “I selected the computer that came out best when I
balanced the good ratings against the bad ratings.”

Conjunctive rule “I selected the computer that had no bad features.”

Disjunctive rule “I picked the computer that excelled in at least one

attribute.”
Lexicographic rule “I looked at the feature that was most important to me and
chose the computer that ranked highest on that attribute.”

Affect referral rule “I bought the brand with the highest overall rating.”

16-23
 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
16-24
 Types of Purchases

Trial Repeat
Purchases Purchases

Long-Term
Commitment
Purchases

16-25
 Outcomes of Post -purchase
Evaluation
• Actual Performance Matches Expectations
– Neutral Feeling
• Actual Performance Exceeds Expectations
– Positive Disconfirmation of Expectations
• Performance is Below Expectations
– Negative Disconfirmation of Expectations

16-26
 Gifting Behavior
Gifting is an act of symbolic
communication, with explicit and implicit
meanings ranging from congratulations and
love, to regret, obligation, and dominance.

16-27
 Gifting Subdivisions

Inter group Inter category

Gifting Gifting

Intra group Interpersonal

Gifting Gifting

Intrapersonal
Gifting

16-28
 Table 16.13 Gifting Relationships
GIFTING
RELATIONSHIP DEFINITION EXAMPLE
Inter group A group giving a gift to A Christmas gift from one
another group family to another family
Inter category An individual giving a gift to a A group of friends chips in
group or a group giving a gift to buy a new mother a baby
to an individual gift
Intra group A group giving a gift to itself A family buys a VCR for
or its members itself as a Christmas gift
Interpersonal An individual giving a gift to Valentine’s Day chocolates
another individual presented from a boyfriend
to a girlfriend
Intrapersonal Self-gift A woman buys herself
jewelry to cheer herself up

16-29
 Figure : A Simple Model of Consumption
Choice or Purchase Decision
Consumption Set
Input Added to one’s assortment or portfolio
Consuming Style
How the individual fulfills his or her
consumption requirements

Process of
Consuming Consuming and Possessing Things and Experiences
and Using, Possessing, Collecting, Disposing
Possessing

Feelings, Moods, Attitudes, Behavior

Output Altered consumer satisfaction, change in lifestyle and/or
quality of life, learning and knowledge, expressing and
entertaining oneself
16-30
 Marketing aimed at
creating strong,
lasting relationships
with a core group of
customers by making
Relationship
them feel good about
Marketing
the company and by
giving them some
kind of personal
connection with the
business.
16-31
 Figure : A Portrayal of the
Characteristics of Relationship
Marketing

The Firm provides The Customer provides

•Products/Services
•Repeat Purchase
•Individualized attention
•Increased Loyalty
•Continuous information Trust and
•Goodwill
•Price offers promises
•Positive word-of-mouth
•Customer services
•Lower costs for the firm
•Extras and perks, etc.

16-32
Consumers Are Less Loyal - Why?

• Abundance of • Commoditization
choice • Insecurity
• Availability of • Time scarcity
information
• Entitlement

16-33