Professional Documents
Culture Documents
Solomon - cb09 - PPT - 08 & 09 (Me)
Solomon - cb09 - PPT - 08 & 09 (Me)
Decision Making
&
Buying and Disposing
CONSUMER
BEHAVIOR, 9e
Michael R. Solomon
10/02/2023 8-1
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Chapter Objectives
When you finish this chapter, you should understand
why:
• Consumer decision making is a central part of
consumer behavior, but the way we evaluate and
choose products varies widely.
• A decision is actually composed of a series of
stages that results in the selection of one product
over competing options.
• Decision making is not always rational.
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-2
Chapter Objectives (continued)
When you finish this chapter, you should understand
why:
• Our access to online sources is changing the way
we decide what to buy.
• We often fall back on well-learned “rules-of-thumb”
to make decisions.
• Consumers rely upon different decision rules when
evaluating competing options.
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-3
• Consumers are faced with the needs to make decisions
about products and services on a constant basis.
• Some of the decisions are very important to the consumer
and entail great effort, while others are made on virtually an
automatic or impulse basis
We Are Problem
Solvers
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
8-4
Consumers as Problem Solvers
• A customer purchase is a response to a problem.`
• Most consumers go through a series of steps when they make
a purchase. They are:
1. Problem recognition.
2. Information search.
3. Evaluation of alternatives.
4. Product choice.
• Learning occurs on how well the choice worked out.
• This learning affects future choices and purchases.
• Because some purchase decisions are more important than
others, the amount of effort we put into each differs.
• Sometimes the decision is almost automatic
• Sometimes the decision is one where a great deal of
thinking and analysis is required.
8-5
Stages in Consumer Decision Making
Process
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-6
Continuum of Buying Decision Behavior
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-7
Types of Consumer Decisions
• Extended Problem Solving
• Corresponds most closely to the traditional (rational)
decision-making perspective.
• There is a fair degree of risk – the decision we have to make
relates to our self-concept
• We use internal search and external sources. The consumer
tries to collect as much information as possible.
• Limited Problem Solving
• This is a simple, straightforward decision process.
• Buyers use simple decision rules to choose among
alternatives.
• Cognitive shortcuts are used.
• Habitual Decision Making
• These are characterized as simple automatic decisions.
• This form is characterized by automaticity where there is a
minimal effort and an absence of conscious control 8-8
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-9
1- Problem recognition
2- Information search
3- Evaluation of alternatives
4- Product choice
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-12
Marketing Strategy & problem
recognition
• Helping consumers recognize problems
• Influencing the desired state (advertise the benefit
of a product)
• Influencing the perception of the existing state
(trying to generate concern about an existing
state)
Activating Problem Recognition
showing you
a product
benefit you
might miss
Activating Problem Recognition
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-17
Stage 2: Information Search
•Information sources :Information sources
can roughly be broken into
• Internal search: relevant information from
long-term memory
• External search: external information
relevant to solving the problem, information
is obtained from advertisements, friends, or
just plain people-watching
• Online search: Internet search engines are
huge players when it comes to consumer
search
8-18
Deliberate versus “Accidental” Search
• Directed learning: existing product knowledge
obtained from previous information search or
experience of alternatives
• Incidental learning: mere exposure over time to
conditioned stimuli and observations of others (This
is sometimes called low-dose advertising)
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-19
Biases in Decision-Making Process
There are biases in the decision-making process.
• The way people adjust decisions based on the cost
of the product and the situation can be explained
using the principles of mental accounting
• Mental accounting: framing a problem in terms of
gains/losses influences our decisions (the storm and
football ticket)
• Sunk-cost fallacy: We are reluctant to waste
something we have paid for
• Loss aversion: We emphasize losses more
than gains
• We value money differently depending on its
source 8-20
How Much Search Occurs?
• As a general rule, search activity is greater when:
• The purchase is important.
• There is a need to learn more about the purchase.
• The relevant information is easily obtained and
utilized.
• Consumers differ in the amount of search they tend
to undertake, every thing being equal:
• Females search more than men.
• Younger, better-educated people search more
than others.
• Those who enjoy shopping search more.
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-21
How Much Search Occurs?
• Does knowing about the product will engage
us more or less in search?
• Search tends to be greatest among those
consumers who are moderately
knowledgeable about the product
• Experts use selective search.
• Novices rely on opinions of others and
“nonfunctional” attributes
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-22
Amount of Information Search and
Product Knowledge
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-23
Minolta Understands Perceived Risk
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-24
Perceived Risk
As a general rule, purchase decisions that are
perceived as risky will involve more extensive
searches
• Perceived risk:
the belief that there may be negative consequences if
you use or don’t use a product
• This may occur when:
• The product is expensive,
• Complex and hard to understand, and
• When others can see what we choose
8-25
Perceived Risk
• Types of risk
• Monetary risk: occurs when making a poor choice will have
a monetary consequence. Any purchase that costs a lot is
subject to this risk.
• Functional risk: is the risk that the product may not function
as the consumer needs.
• Physical risk: is the risk that the choice may physically
threaten the consumer.
• Social risk: is the risk that the choice will reflect poorly on
the consumer and damage his or her self-esteem or
confidence.
• Psychological risk: is the risk that one may lose self-respect
due to making a bad decision. For instance, expensive
luxury goods could cause the consumer to feel extensive
guilt.
8-26
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-27
An Appeal to Social Risk
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-28
Stage 3: Evaluating Alternatives
• People who engage in extended problem solving may
carefully evaluate several brands, while habitual decision
may not consider any alternatives to his normal brand
• Appropriate Alternatives:
• Awareness set
• Evoked Set – composed of those products already in
memory (the retrieval set), plus those prominent in the
retail environment
• consideration set – those are the brands the
consumer will evaluate as a solution of a particular
consumer problem-)
• Inert Set (brands the consumer aware about and
indifferent toward)
• Inept Set (actively disliked or avoided by the
consumer)
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-29
Categorizing Products
• Product categorization is how consumers organize their beliefs
about products or services.
• This is a crucial determinant of how a product is evaluated.
• Products in a consumer’s evoked set are likely to be those that
share some similar features.
• This knowledge is represented in a consumer’s knowledge
structure (the factual knowledge about products—beliefs—and
the way these beliefs are organized in people’s minds).
• There are several levels of categorization:
• Basic level—items have much in common but a number of
alternatives exist. (typically the most useful to classify
products)
• Superordinate level—abstract concepts.
• Subordinate level—individual brands.
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-30
Levels of Abstraction
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-31
Strategic Implications
of Product Categorization
• the conception of the product relative to
other products in the consumer’s mind.
Position
a product
• Depend on the marketers' ability to
convince customers to consider its product
within a given category
• Are different products substitutes
Identify • At the abstract superordinate level, many
competit
ors different products forms compete for
membership
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-33
Stage 4: Evaluating Alternatives and Product Choice
How We Select from Alternatives?
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-34
Evaluative Criteria
• Evaluative criteria: dimensions used to judge merits
of competing options
• Criteria can range from functional attributes (TV
remote control) to experiential (TV sound effect)
ones
• Determinant attributes: features we use to
differentiate among our choices
• Criteria on which products differ carry more
weight
• Marketers educate consumers about (or even
invent) determinant attributes (which criteria they
should use as determinant attributes)
• Pepsi’s freshness date stamps on cans
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-35
Information Necessary for
Recommending a New Decision Criterion
BUYING,
Situational Effects On
Consumer Behavior 9-37
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
Figure 9.1 Issues Related to Purchase
and Postpurchase Activities
• A consumer’s choices are affected by many personal factors…
and the sale doesn’t end at the time of purchase
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-38
Situational Influences
• A consumption situation include a
buyer, a seller, a product, but also
many other factors, such as the reason
we want to make a purchase and how
the physical environment make us feel
• The role a person plays at any time is
partly determined by his or her
situational self-image, where the
consumer asks “Who am I right now?”
• Marketers often consider the major
contexts where a product is used and
the major users of the product.
9-39
Situational Influences
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-41
Retailers are especially aware of the social and physical
surroundings that the consumer encounters on their shopping
trips. Decor, smells, and visual stimulation are all important to
the overall atmosphere of the store
9-42
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall
The Shopping Experience:
Dimensions of Emotional States
Clearly our
mood can
affect the
shopping
experience
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-44
Retailing as Theater
• Retail environments are important for attracting shoppers and
keeping them in the stores.
• Being space
• that resembles a commercial living room where consumer
can relax, be entertained, hang out with friends, etc.
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-45
Retailing as Theater
• Retail theming:
• Create imaginative environment that transport
shoppers to fantasy world or provide other kinds of
stimulation
• on four basic kinds of theming techniques:
• Landscape themes—rely on associations with
images of nature.
• Marketscape themes—built on associations with
man-made places.
• Cyberspace themes—incorporate images of
information and communications technology.
• Mindscape themes—draw on abstract ideas and
10/02/2023
concepts, introspection, and fantasy.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-46
Landscape Themes
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-47
Marketscape Themes
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-48
Cyberspace Themes
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-49
Mindscape Themes
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-50
Store Image
• Store image: personality of the store
• Location + merchandise suitability +
knowledge/congeniality of sales staff
• Other intangible factors affecting overall store
evaluation:
• Interior design
• Types of customers
• Return policies
• Credit availability
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-51
Atmospherics
FedEx Makeover
BEFORE AFTER
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-53
In-Store Decision Making
• Spontaneous shopping
occurs when a shopper suddenly decides to buy something
in the store It can take two routes:
• Unplanned buying
• means that the consumer buys something that was
not on planned purchase list.
• The reason may be due to a lack of familiarity with
the store, time pressure, or just seeing something
actually needed but had forgotten.
• Impulse buying
• occurs when the shopper experiences a sudden
urge she can’t resist.
• Impulse items: such as candy and gum
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-54
In-Store Decision Making
• Point-of-purchase (POP) stimuli
“A place where sales are made. On a macro-level, a point
of purchase may be a mall, market or city. On a micro-
level, retailers consider a point of purchase to be the
area surrounding the counter where customers pay. Also
known as "point of sale". “
• Can be an elaborating product display or
demonstration, or a free samples
• A well-designed store display can boost impulse
buys as much as 10%.
• Salespeople can also be influential.
9-55
Point-of-purchase (POP) Stimuli
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-56
The Salesperson: A Lead Role in the Play
• One of the most important in-store factors is the salesperson,
who attempts to influence the buying behavior of the customer.
• This influence can be understood in terms of exchange theory
that stresses that every interaction involves an exchange of
value.
• A resource exchange is “what do I get from the salesperson?”
(such as expertise).
• A buyer/seller situation is like many other dyadic encounters
(two-person groups); it is a relationship where some agreement
must be reached about the roles of each participant. An identity
negotiation occurs.
• Salespeople differ in their interaction styles.
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-57
Postpurchase Satisfaction
• Postpurchase satisfaction or dissatisfaction is
determined by attitude about a product after
purchase
• Marketers constantly on lookout for sources of
consumer dissatisfaction
• United Airlines’ “United Rising” campaign
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-58
Quality Is What We Expect It to Be
• Expectancy Disconfirmation Model
“we form beliefs about product
performance based on prior
experience with the product or
communications about the product
that imply a certain level of quality”
• Marketers must manage
expectations
• Don’t overpromise
• When product fails,
reassure customers
with honesty
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-59
Chapter Summary
• Decision making is a central part of
consumer behavior and decisions are made
in stages
• Decision making is not always rational
• We use rules of thumb and decision rules to
make decisions more efficiently
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 8-60
Assignment (15 Mark)
Discuss:
• Will e-commerce eventually replace traditional brick-
and-mortar retailing? Why or why not?
• What are the benefits that traditional retail stores
provide that e-commerce cannot provide?
10/02/2023
Copyright © 2011 Pearson Education 9-61
Chapter Summary
• Many factors beyond the qualities of a
product influence purchase decisions.
• People can be influenced by store image,
point-of-purchase stimuli, salespeople, and
more as they make product choices.
• Consumers evaluate their choice after
making it and this evaluation affects future
choices.
• Disposing of products is a challenge.
10/02/2023
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 9-62