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
• A Passive View
• A Cognitive View
• An Emotional View

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 Discussion Questions
• How are the four models of consumer
decision making similar?
• How do they differ

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 Goal Setting and Pursuit
Figure 16.1

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 A Simple
Model of
Consumer
Decision
Making
Figure 16-2

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 Discussion Question
• What types of sociocultural inputs would
influence the purchase of a:
– Plasma TV
– Hybrid vehicle
– Sugar-free ice cream

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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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 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.

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

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 A noncompensatory
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.
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 A noncompensatory
decision rule in which
consumers establish a
Disjunctive
minimally acceptable
Rule
cutoff point for each
relevant product
attribute.

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

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 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.

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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 Decision Process for
Functionally Illiterate Consumers
Figure 16-4

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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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 There Are a Growing Number of Web
Sites to Help Consumers Choose
Products

web link

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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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 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
• Series of decisions
• Decision rules and marketing strategy
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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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 This article in
Cargo is
designed to
help a reader
reduce their
postpurchase
depression.

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 Discussion Question
• What are four ways that consumers
reduce postpurchase dissonance?
• How can marketers work to help
consumers reduce the dissonance?

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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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 An Increasing Number of Gift
Purchases Are Now Made Online

weblink

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 Table 16.13 Reported Circumstances
and Motivations for Self-Gift Behavior

CIRCUMSTANCES MOTIVATIONS

Personal accomplishment To reward oneself

Feeling down To be nice to oneself
Holiday To cheer up oneself
Feeling stressed To fulfill a need
Have some extra money To celebrate
Need To relieve stress
Had not bought for self in a while To maintain a good feeling
Attainment of a desired goal To provide an incentive toward a goal
Others Others

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 Table 16.14 Gifting Relationships
GIFTING
RELATIONSHIP DEFINITION EXAMPLE
Intergroup A group giving a gift to A Christmas gift from one
another group family to another family
Intercategory 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
Intragroup 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

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 A Simple Model of Consumption
Figure 16-5

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 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.
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 Proctor & Gamble Builds
Relationships with Their Brands

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 State Farm
Insurance
stresses
relationship
marketing in their
advertising.

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