Professional Documents
Culture Documents
Consumers as Problem Solvers
• Every consumer decision we make is a response to problem.
Sometimes the decision‐
Course 2: Decision Making and making process is almost At other times, the decision
process resembles a full time
automatic: we make our
Consumer Behavior choice based on very little
information.
job
Hyperchoice
How consumer build their decision?
32% bought a jar of jam under “limited choice” condition (6 flavors) vs. only
3% bought a jar of jam under “ extensive choice” ( 24 flavors)
© Dr. Narjes Haj Salem 4
© Dr. Narjes Haj Salem 3
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Three Types of Decision‐Making Example: diet decision
• Individual (consumer) possess a repertoire of
strategies that help him to make decision.
Cognitive decision Emotional decision
Same choice situation but different
Assignment
perspectives
• What is the "morning morality effect"? • My husband: I want the car I read about in the latest issue of
Car and Drive magazine. It has a six‐cylinder turbo engine, a
double‐clutch transmission, a 90 stroke bore, and 10:1
compression ration .
• Me: I want a red one.
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Involvement Involvement
• Involvement is a person’s perceived relevance • Involvement reflects our level of motivation
of the object based on their inherent needs, to process information about a product or
values, and interests. service we believe will help us to solve a
problem, or reach our goal.
– The term object is used in the generic sense to
Cognitive decision making
refer to a product, brand, ad, purchase situation
or behavior. Habitual decision making Emotional decision making
Lack of interest Obsession
Involvement
Types of Involvement Product involvement
Product Involvement • Product involvement is a consumer’s level of
interest in a particular product.
• As a rule, product decisions are likely to be
Message Involvement highly involving if the consumer believes there
is perceived risk.
Situational Involvement
© Dr. Narjes Haj Salem 11 © Dr. Narjes Haj Salem 12
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Five Types of Perceived Risk Five Types of Perceived Risk
Monetary risk
Functional risk
Physical risk
Social risk
Psychological risk
Message Involvement
• Message involvement reflect the level of attention
that consumer gives to a specific “message”.
e.g., An
• High‐involved consumers process more information
Appeal to comparing to low‐involved ones.
Social Risk
– Print is a high‐involvement medium .
– TV is a low‐involvement medium.
© Dr. Narjes Haj Salem 15 © Dr. Narjes Haj Salem 16
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• Use novel stimuli, such as unusual How to boost person’s motivation to
cinematography, sudden silences, or
unexpected movements, in a commercials.
process information?
• Use prominent stimuli, such as loud music • Provide value that consumers
and fast action, to capture attention. appreciate.
How to boost • Include celebrity endorsers.
person’s • Invent new media platforms to grab
motivation to attention.
process
information? • Alternate reality games (ARG)
– https://www.youtube.com/watch?v=Qryf2F
_QfXg&t=10s
© Dr. Narjes Haj Salem 17 © Dr. Narjes Haj Salem 18
How to boost person’s motivation to
process information?
• Create a spectacles where message is itself a
form of entertainment.
• Reebok installed a combination speed
cam and a shoe display in the center of
town. Then they told people that
whoever ran past the display the fastest
http://advertising.chinasmack.com/2011/ariel‐china‐big‐stain‐with‐nintendo‐ would get a free pair of shoes.
wii.html
© Dr. Narjes Haj Salem 19 © Dr. Narjes Haj Salem 20
source: https://getgist.com/examples‐of‐interactive‐advertising/
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e.g. Augmented Reality
• Taco Bell’s in
partnership with
Snapchat create AR
lenses and enabled
users to turn their
head into a taco.
• It broke a Snapchat
record by amassing
224 million views in
just one day.
© Dr. Narjes Haj Salem 21 © Dr. Narjes Haj Salem 22
Discussion Situational Involvement
• Have you ever been immersed into an • Situational involvement take place with a
advertisement that you feel like you are part store, Website, or a location where people
of it? consume a product or service
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Three Types of Decision‐Making
• Individual (consumer) possess a repertoire of
strategies that help him to make decision.
COGNITIVE DECISION MAKING
© Dr. Narjes Haj Salem 25 © Dr. Narjes Haj Salem 26
Cognitive decision making Cognitive decision making
• According to this perspective: • Individuals tend to be
– people carefully integrate as much “cognitive misers” : we
information as possible with what collect just as much data
they already know about a product, as we need to make an
weigh the pluses and minuses of
each alternative, and arrive at a informed decision.
satisfactory decision.
– Especially relevant to activities like
financial planning or decision that
impact a consumers quality of life.
© Dr. Narjes Haj Salem 27 © Dr. Narjes Haj Salem 28
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Steps in the cognitive Decision‐Making Process
Hello!
I am Richard
1. Problem recognition
2. Information search
3. Evaluation of alternatives
4. Product choice
© Dr. Narjes Haj Salem 29
5. Post purchase evaluation
© Dr. Narjes Haj Salem 30
Example: Consumer Decision Making Step 1: Problem Recognition
• Occurs when consumer sees difference
between current state and ideal state:
– Need recognition: actual state declines
– Opportunity recognition: ideal state moves upward
© Dr. Narjes Haj Salem 31 © Dr. Narjes Haj Salem 32
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Problem Recognition: Shifts in actual or ideal
states
Step 2: Information Search
• The process by which we survey the
environment for appropriate data to make a
reasonable decision.
– Prepurchase or ongoing search (hard‐core
shoppers).
– Internal (memory) or external search (Ad, friends,
web, cybermediary..).
© Dr. Narjes Haj Salem 33 © Dr. Narjes Haj Salem 34
How much do we search
• We search more when the product is
important.
• All things equal: Who search more: novices or expert ?
– Younger, better educated people who enjoy the
shopping / fact finding process tend to conduct Moderately knowledgeable
more information searches.
– Women are more inclined to search than man.
– Individual who place greater value on style and
the image they process.
© Dr. Narjes Haj Salem 35 © Dr. Narjes Haj Salem 36
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The Relationship between Amount of Information
Search and Product Knowledge Step 3: Evaluate Alternatives
Evoked set : Consideration set
Inept set consists of brands that the
consumer excludes from purchase
consideration because they are
unacceptable(or they are seen as
inferior)
Overlooked brands that have not
Inert set: consists of brands the been clearly positioned
consumer is indifferent toward because
they are perceived as not having any
particular advantages.
How we put products into categories ? How we put products into categories ?
• We typically represent a product in a cognitive
• We cognitively represent information we have about structure at one of three levels
products in knowledge structures
• Knowledge structure : refers to a set of beliefs and
the way we organize these believes in our minds. The The
subordinate The basic level superordinate
• These structures matter to marketers because they level level
need to ensure that customer correctly group their
product.
‐ often includes ‐ Items tend to ‐ More abstract.
individual have a lot in
brands common with
/categories. each other.
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Levels of Abstraction in Dessert Categories Strategic implication of product categorization
1. Product position: the success of positioning
strategy hinges on the marketer’s ability to
convince the consumer to consider its
product within a given category.
– E.g., Orange juice it’s not just for breakfast
anymore
– Pepsi A.M. coffee substitute
Strategic implication of product categorization
2. Identify competitors
2. Create an exemplars
2. Locate products in a store
Source: Solomon 2016 © Dr. Narjes Haj Salem 44
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Evaluative criteria
• Evaluative criteria are the dimensions we use
to judge the merits of competing options (e.g.
functional attributes, experiential).
• Determinant attributes are the features we
actually use to differentiate among choices.
Marketers need to educate consumer about which
criteria they should use as determinant attributes.
© Dr. Narjes Haj Salem 45 © Dr. Narjes Haj Salem 46
Consumer decision rules Consumer decision rules
• Are procedures used by consumers to facilitate brands Compensatory decision rules Noncompensatory decision rules
and other consumption related choices. • Each relevant attribute weighted • Do not allow consumers to
• Summated score for each brand balance positive evaluations of a
• This rules reduce the burden of making a complex brand on one attribute against a
decisions by providing guideline that make the process The consumer will select the negative evaluation on some
brand that scores highest among other attribute.
less taxing.
the alternatives.
• 3 types:
• Two types of consumer decision rules: o Conjunctive
– Compensatory decision rules o Lexicographic
o Disjunctive
– Non‐compensatory decision rules (mainly apply with
habitual and emotional decisions)
© Dr. Narjes Haj Salem 47 © Dr. Narjes Haj Salem 48
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• Conjunctive rule (brand):
– Product attributes are identified
– a minimally acceptable cutoff point is established for each attribute
– brands that fall below the cutoff point on any one attribute are eliminated
from further consideration.
© Dr. Narjes Haj Salem 49 © Dr. Narjes Haj Salem Source: Solomon 2016 50
© Dr. Narjes Haj Salem 51 © Dr. Narjes Haj Salem 52
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Habitual decision making
• Habitual decision making describes the
choices we make with little or no conscious
HABITUAL DECISION MAKING effort.
© Dr. Narjes Haj Salem 53 © Dr. Narjes Haj Salem 54
Habitual decision making Habitual decision making decision making
Tradition, intelligence responsibility
Satisfying solution: The “good enough”
Creativity, nonconformity innovation
© Dr. Narjes Haj Salem 55 © Dr. Narjes Haj Salem 56
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Heuristics: mental shortcuts or “mental
Framing
rules‐of‐thumb”
• Framing (mental acconting): the way we pose a
Covariation: infers hidden dimensions of products from
problem and whether it’s phrased in terms of gains attributes we observe
and losses influences our decisions.
– e.g: Free ticket vs. paid small fortune for the ticket.
Country of Origin
• Sunk‐cost fallacy: We are reluctant to waste
something we have paid for
Familiar Brand Names
• Loss aversion: We emphasize losses more than gains
• Prospect theory: risk differs when we face gains
versus losses Higher Prices
© Dr. Narjes Haj Salem 57
Emotion and consumption
• With affective decision making, consumers make a
decision because the choice feels right rather than
AFFECTIVE DECISION MAKING because they have made a detailed, systematic
evaluation of the alternatives
• Affect is the emotional response to products.
• Appraisal theory: emotions are elicited and
differentiated on the basis of a person's subjective
evaluation of the personal significance of a
situation, object, or event.
– Our interpretation of a situation causes a emotional
response that is based on that interpretations
© Dr. Narjes Haj Salem 59 © Dr. Narjes Haj Salem 60
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Positive and negative affect
• A passionate commitment to a
brand is called a lovemark.
• Positive emotions: pride, joy,
happiness
• Negative emotions like disgust,
guilt, embarrassment work to
influence consumers to avoid
some things.
© Dr. Narjes Haj Salem 61 © Dr. Narjes Haj Salem 62
How Social Media Tap into Our Emotions
• Happiness economy
• Sentiment analysis
• Word‐phrase dictionary
© Dr. Narjes Haj Salem 63 © Dr. Narjes Haj Salem 64
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Discussion
• Give an example of when a product had a
negative or positive affect on you.
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