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12/16/2022

Consumer Behavior
Building Marketing Strategy
Fourteenth Edition

Mothersbaugh
Hawkins
Kleiser

Chapter 16
Alternative
Evaluation and
Selection

©2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.

Consumer Choice and Types of Choice


Processes 1

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Consumer Choice and Types of Choice


Processes 3

Three types of consumer choice processes:

1. Affective Choice.

2. Attitude-Based Choice.

3. Attribute-Based Choice.

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Consumer Choice and Types of Choice


Processes 4

Affective Choice
Affective choices tend to be more holistic. Brand
not decomposed into distinct components for
separate evaluation.

Evaluations generally focus on how they will make


the user feel as they are used.

Choices are often based


primarily on the immediate
emotional response to the
product or service.

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Consumer Choice and Types of Choice


Processes 6

Attitude- versus Attribute-Based Choice Processes

Attitude-Based Choice Attribute-Based Choice


• Involves the use of general • Requires the knowledge of
attitudes, summary specific attributes at the time
impressions, intuitions, or the choice is made, and it
heuristics; no attribute-by- involves attribute-by-attribute
attribute comparisons are comparisons across brands.
made at the time of choice.

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Evaluative Criteria 1

Nature of Evaluative Criteria


Evaluative criteria are typically associated with
desired benefits and can differ in.
• Type.

• Number, and
• Importance.

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Evaluative Criteria 2

Measurement of Evaluative Criteria


Involves a determination of:

• The Evaluative Criteria Used.

• Judgments of Brand Performance on Specific Criteria.

• The Relative Importance of Evaluative Criteria.

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Evaluative Criteria 3

Determination of Which Evaluative Criteria Are Used

1. Direct methods include asking consumers what criteria


they use in a particular purchase.

2. Indirect techniques assume consumers will not or


cannot state their evaluative criteria.

• Projective techniques - allow the respondent to indicate the


criteria someone else might use.

• Perceptual mapping - researcher uses judgment to determine


dimensions underlying consumer evaluations of brand similarity.

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Evaluative Criteria 4

Perceptual Mapping of Beer Brand Perception

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Decision Rules for Attribute-Based


Choices 1

Conjunctive Rule.

Disjunctive Rule.
Non-compensatory
Elimination-by-Aspects Rule.

Lexicographic Rule.

Compensatory Rule.

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12/16/2022

Consumer Behavior
Building Marketing Strategy
Fourteenth Edition

Mothersbaugh
Hawkins
Kleiser

Chapter 17
Purchase

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McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of
Education
McGraw-Hill Education.

Store-based Retailing

Reason Not to Shop In-Store Percent


Salespeople are poorly informed 74%
Waiting in long lines 73
Hard time finding things 64
Parking and traffic 64
Dealing with crowds 58
Hard to get someone to wait on you 54
The time it takes to shop 38
Don’t like shopping 34

Percentages sum to more than 100 because many consumers listed several reasons NOT to shop in-
store.

Source: From Roper Reports Telephone Survey, August 2003.

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Store-based Retailing
9

In-store shopping is perceived as neither fun nor efficient


by many. Retailers are trying to enhance the experiential
component through layout, music, personal shoppers, etc.

Stores can add value


by providing a fun
shopping
environment

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Store-based Retailing 1

Attributes Affecting Retail Outlet


Selection
Retail outlet selection involves a comparison
of the alternative outlets on consumer’s
evaluative criteria:
• Outlet Image.
• Retailer Brands.
• Retail Advertising.
• Outlet Location and Size.
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Store-based Retailing 5

Outlet Atmosphere

Source: “Framework for Understanding Environment-User Relationships in Service Organizations,” Figure 2 in M. J.


Bitner, “Servicescapes: The Impact of Physical Surroundings on Customers and Employees,” from the April 1992 issue
of the Journal of Marketing. Used by permission.

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Store-based Retailing 1

Consumer Characteristics and Outlet


Choice
Two consumer characteristics that are particularly
relevant to store choice:
1. Perceived Risk.
2. Shopping Orientation.

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Online Retailing 3

Reasons Consumers Shop Online:


Reason to Buy Online Percent
Better prices 60%
More convenient 59
No shipping fees 42
Only available online 26
Option to pick up in store 17
Customer service is just as good 12
Same-day delivery 9
Ability to buy directly from social media platform 4
Online tools help me virtually try it out first 3
Percentages sum to more than 100 because many consumers listed several reasons for buying
online.

Source: Lightspeed/Mintel, “Online Shopping, U.S., May 2018,” www.mintel.com.


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Online Retailing 4

Barriers to Online Shopping


Reason Not to Buy Online Percent
I buy it in-store instead 54%
Prefer to see it in person 49
Don’t want to pay shipping fees 27
Don’t want to wait on delivery 22
Prices are too high online 13
Prefer to talk to salesperson in person 10
Inadequate product descriptions 8
Poor product images 6

Percentages sum to more than 100 because many consumers listed several reasons for NOT buying
online.

Source: Lightspeed/Mintel, “Online Shopping, U.S., May 2018,” www.mintel.com.


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Mobile Retailing 5

Reasons to Download Shopping Apps Percent


To access discounts or offers 49%
To complete a purchase 37
Got a specific reward for downloading the app 34
To make a specific activity/task easier 32
Recommended by others 32
Past experience with a similar app 20
Activity unavailable on the mobile website 12

Percentages sum to more than 100 because many consumers listed several reasons to download
shopping apps.

Source: Google, “How People Shop on Their Phones,” Think with Google, October 2016.

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Mobile Retailing 7

Emerging trends:
• Push-Based Apps.
• In-Store Beacons and Mobile
Ads.
• One-Click Mobile Payments.
• Augmented Reality (AR).
• Artificial Intelligence (AI).

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Omni-Channel Retailing 10

Omni-Channel Retailing for the Omni-Channel Shopper


Because consumers access many channels--often
simultaneously, most retailers are engaging in multi- or omni-
channel marketing to reach consumers.
• Omni-channel shoppers are consumers who browse and/or
purchase using multiple channels.

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Omni-Channel Retailing 11

Omni-Channel Shopping Behaviors

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Omni-Channel Retailing 12

Omni-Channel Retail Strategy


• Design the physical store to look like a
“showroom”.
• Educate employees to be more effective sales
associates.
• Provide in-aisle checkout service.
• Provide price comparison in-store.

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Consumer Behavior
Building Marketing Strategy
Fourteenth Edition

Mothersbaugh
Hawkins
Kleiser

• Chapter 18
• Post-purchase
Processes

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• ©2020 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No reproduction or further distribution permitted without the prior written consent of
©2020 McGraw-Hill Education
McGraw-Hill Education.

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Purchase Evaluation and Customer


Satisfaction 1

The Evaluation Process


TABLE 18-1 Expectations, Performance, and Satisfaction
Expectation Level
Perceived Performance Below Minimum Above Minimum
Relative to Expectation Desired Performance Desired Performance
Better Satisfaction* Satisfaction/Commitment
Same Nonsatisfaction Satisfaction
Worse Dissatisfaction Dissatisfaction
*Assuming the perceived performance surpasses the minimum desired level.

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Purchase Evaluation and Customer


Satisfaction 2

The Evaluation Process


Determinants of Satisfaction and Dissatisfaction

• Instrumental performance relates to the physical


functioning of the product.

• Symbolic performance relates to aesthetic or image-


enhancement performance.

• Affective performance is the emotional response that


owning or using the product or outlet provides.

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Satisfaction Process

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Dissatisfaction Process

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Customer Satisfaction, Repeat


Purchases, and Customer Commitment 1

Creating Committed Customers


Is Increasingly the Focus of Marketing Strategy

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Customer Satisfaction, Repeat


Purchases, and Customer Commitment 2

Repeat purchasers continue to buy the same brand


though they do not have an emotional attachment to it.
Switching costs are the costs of finding, evaluating,
and adopting another solution.
Brand loyalty involves commitment to the brand – it is
a biased behavioral response expressed over time.

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Customer Satisfaction, Repeat


Purchases, and Customer Commitment 3

Repeat Purchasers, Committed Customers,


and Profits
A churn is a turnover in a firm’s customer base.
Reducing churn is a major objective of many firms
today.

Why?
It typically costs more to obtain a new customer
than to retain an existing one, and new customers
generally are not as profitable as longer-term
customers!
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Customer Satisfaction, Repeat


Purchases, and Customer Commitment 4

Do you know your Net Promoter Score?


Net Promoter Score (NPS) is an indirect word-of-
mouth (WOM) measure of true attitudinal loyalty.
There are three categories of consumers:
1. Promoters.
2. Passively satisfied.
3. Detractors.

NPS = Promoters minus Detractors.

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Customer Satisfaction, Repeat


Purchases, and Customer Commitment 7

Customer Satisfaction Outcomes

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Customer Satisfaction, Repeat


Purchases, and Customer Commitment 8

Relationship Marketing
Five key elements to Relationship marketing:
1. Developing a core service or product around which to
build a customer relationship.
2. Customizing the relationship to the individual customer.
3. Augmenting the core service or product with extra
benefits.
4. Pricing in a manner to encourage loyalty.
5. Marketing to employees so that they will perform well
for customers.

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