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    Consumer Behavior PP Chapter 9

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    tuongvyvy
    This document summarizes key concepts in consumer decision making processes. It describes the generic decision making model of problem recognition, search, alternative evaluation, choice, and post-purchase evaluation. It also discusses high and low involvement choice models, and how consumers use both compensatory and non-compensatory decision rules depending on the situation. Specific consumer behaviors like impulse purchases and variety seeking are also covered.

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    Consumer Behavior PP Chapter 9

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    tuongvyvy
    632 views23 pages
    This document summarizes key concepts in consumer decision making processes. It describes the generic decision making model of problem recognition, search, alternative evaluation, choice, and post-purchase evaluation. It also discusses high and low involvement choice models, and how consumers use both compensatory and non-compensatory decision rules depending on the situation. Specific consumer behaviors like impulse purchases and variety seeking are also covered.

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    This document summarizes key concepts in consumer decision making processes. It describes the generic decision making model of problem recognition, search, alternative evaluation, choice, and post-purchase evaluation. It also discusses high and low involvement choice models, and how consumers use both compensatory and non-compensatory decision rules depending on the situation. Specific consumer behaviors like impulse purchases and variety seeking are also covered.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    632 views23 pages

    Consumer Behavior PP Chapter 9

    Uploaded by

    tuongvyvy
    This document summarizes key concepts in consumer decision making processes. It describes the generic decision making model of problem recognition, search, alternative evaluation, choice, and post-purchase evaluation. It also discusses high and low involvement choice models, and how consumers use both compensatory and non-compensatory decision rules depending on the situation. Specific consumer behaviors like impulse purchases and variety seeking are also covered.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
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    The text discusses concepts related to consumer behavior and decision making processes including problem recognition, search behavior, consideration sets, choice processes, and applications for marketing.

    The three perspectives on consumer decision making discussed are the decision making perspective, experiential perspective, and behavioral influence perspective.

    The five categories of information that may be retrieved from internal search are awareness set, unawareness set, consideration set, inert set, and inept set.

    Chapter 9

    Customer Decision
    Processes
    Evaluation and Choice
    Consumer Behavior: A Framework
    John Mowen and Michael Minor
    Key Concepts
     Generic Decision-  Consideration set
    making process  Alternative
     3 perspectives on
    evaluation
    decision making
     Impulse and variety
     Choice processes
    seeking purchases  High involvement
     Problem recognition choice models
     Search processes  Low involvement
    choice models
    Consumer Decision Making
     Defined as the processes involved
    in analyzing problems, search for
    solutions, evaluating alternatives,
    choosing among options, and
    evaluating outcomes.
     Consumers make decisions to
    reach goals
    Generic Decision Making
    Model
     Problem recognition
     Search
     Alternative evaluation
     Choice
     Postacquisition evaluation
    Alternative Perspectives
    on Consumer Decision
    Making
     Decision Making: emphasizes the rational,
    information processing approach to decision making
     Experiential Perspective: emphasizes that consumers
    are “feelers” as well as thinkers, that consumers are
    symbolic, and that consumers buy in order to obtain
    sensations and emotions.
     Behavioral Influence: contingencies of the
    environment influence behavior, e.g., lighting,
    physical arrangement of space, and strong
    reinforcers.
    Problem Recognition
     Occurs when a discrepancy develops
    between an actual and a desired state.
    (This definition is identical to that for needs.)
     Factors affecting actual state: product depletion, failure
    of product to meet expectations.
     Factors affecting desired state: goals, aspirations, and
    changes of circumstances
     Consumption visions: self-constructed mental simulations
    of future consumption situations—e.g., romantic dinner
    for 2.
     Pre-need goods: the anticipation of future needs, such as
    insurance, burial services, home loan, etc.
    Search Behavior
     Defined as the actions taken to identify and obtain
    information to solve a consumer problem.
     Types of search
     Internal: the retrieval of information from long-

    term memory.
     External search: acquiring information from

    outside sources, such as friends, books,


    magazines, etc.
     Pre-purchase search: search that results directly

    from problem recognition occurring.


     On-going search: search for intrinsic reasons that

    is independent of a specific need. Frequently


    occurs among hobbyists.
    Internal Search
     5 categories of information may be retrieved
    as a result of internal search
     Awareness set: total universe of options recalled
    from memory.
     Unawareness set: options not recalled.
     Consideration set: the subset of options
    acceptable for further consideration
     Inert set: subset to which indifferent
     Inept set: subset considered unacceptable.
    External Search
     Measuring external search:
     use number of—stores visited, friends contacted, buying
    guides consulted, etc.
     Measure extent of reliance on a particular source, which is
    called instrumentality of search.
     Factors Influencing Degree of External Search
     Search until marginal gains exceed marginal costs.
     Involvement—increases search
     Time available—increases search
     Perceived risk—increases search
     Attitudes toward shopping—increases search
     Higher education, income, SES—increases search
    How Much Consumer
    Search
     Research suggests that consumers
    search surprisingly little. Why?
     Extensive on-going search/pre-
    purchase search
     Enduring involvement
     High costs and few benefits of search
     High brand loyalty
     Self-report surveys may understate
    actual search
    Alternative Evaluation
     In this stage, the consumer compares the options identified
    as potentially capable of solving the problem that initiated
    the decision process.
     During this comparison process, consumers form beliefs,
    attitudes, and intentions about the alternatives under
    consideration.
     The goal of alternative evaluation is to gain the information
    needed to make final choice.
     The material in Chapter 7 on Attitudes, Beliefs, and
    Behaviors describes alternative evaluation.
    The Consumer Choice
    Process
     Choice is among alternative brands
    and services, and among stores

     Noncomparable alternatives are


    two or more choice options in
    different product categories, such
    as deciding whether to buy a new
    stereo or a new television
    High- and Low-Involvement
    Conditions
     Compensatory models are used in high-
    involvement conditions and allow high
    ratings on one attribute to compensate for
    low ratings on another
     Noncompensatory models are used in low-
    involvement situations and emphasize that
    high ratings on some attributes will not
    compensate for low ratings on another
    attribute
    High-Involvement Choice
     With compensatory models an alternative is not
    necessarily rejected because it has low ratings
    on any particular attribute.
     Multi-attribute models are employed in which
    information on attributes is combined into an
    overall judgment, and the brand with the
    highest overall judgment is chosen.
     Fishbein Attitude Toward the Object Model
    illustrates a compensatory, multi-attribute
    model.
    Low-Involvement Choice
     The Conjunctive Rule: set minimum cut-off and
    eliminate all options below it on any attribute.
     Disjunctive Rule: set cut-off (high) and accept
    options above it on any attribute.
     Elimination by Aspects. Rank order attributes
    in importance. Take top ranked attribute and
    eliminate any option not surpassing cut-off. Go
    to next attribute and do same. Continue until
    one option left.
    Low Involvement choice,
    cont.
     The Lexicographic Heuristic: rank order attributes.
    Select option rated highest on most important
    attribute. If a tie, go to the next attribute, etc.
     The Frequency Heuristic. Select the option with
    the most positive attributes. Piecemeal report
    strategy exemplifies: Chrysler 5th Avenue out
    accelerates a Mercedes, has more trunk room than
    an Audi, has more leg room than a BMW, and a
    longer service warranty than a Jaguar.
    A Phased Strategy . . .
     is when consumers sequentially use two
    noncompensatory models, or first use a
    noncompensatory model and then a compensatory
    approach.
     Which choice approach do consumers most
    frequently use?
     Lexicographic may be most frequent followed by

    compensatory
     Phased strategies are also frequently used, and

    they tend to begin with the use of a conjunctive


    model to narrow the choice set to a manageable
    number of options.
    Experiential Choice
    Processes
     The Affect-Referral Heuristic. Choice based on
    overall affective reaction.
     The Effects of Brand Awareness: produces
    pioneering advantage.
     Impulse Purchases. Mindless reactive behavior.
     Variety seeking.
     Effects of Mood States. Positive moods resulted in
    favorable responses to emotional appeals.
    Negative moods resulted in more favorable
    responses to informational appeals.
    Tire Plant Choice
    Attribute Import Tulsa Arkansas Kansas

    Labor 2 8 6 5
    Force
    Transporta 4 7 7 5

    Site 3 4 5 5
    Character
    Low build 1 8 4 9
    costs
    10

    Notes: A. “Import” is the importance of the attribute. A


    10 point constant sum scale was used in which the ratings
    add to 10.
    B. Now determine choice based upon compensatory
    Choices Among Non-
    Comparable Alternatives
     Two findings
     In some cases consumers focus on more
    abstract attributes that can be compared
    across product domains, such as price when
    comparing buying a new car or taking a trip
    to Europe.
     In other cases, consumers use a wholistic
    strategy in which they compare overall
    attitudes by using an affect referral
    heuristic.
    Choices Among Stores
     Consumers consider store attributes such as
    distance from consumer's home, overall prices of
    brands carried, and service
     The decision context is a factor that influences store
    choice. Contextual factors include: the types of
    stores available, the number of stores available, and
    the availability of mail-order alternatives
     Store choice sets: stores can be placed into
    consideration sets, inept sets, etc. Another way of
    categorizing stores is by: (a) an interaction set
    (where consumer allows salesperson to talk to
    them) and a quiet set (where no interaction takes
    place).
    Some Illustrative
    Managerial Applications
     Positioning: products can be positioned based
    upon the “desired state” that consumers seek.
     Environmental analysis: environment has a
    large impact on search behavior, e.g., the
    number of stores in a region influences store
    choice. Also assess the effects of the physical
    environment on consumers.
     Market research: use research to investigate
    the extent of external search by consumers,
    the level of consumer involvement, and the
    type of choice process used.
    Applications continued…
     Marketing Mix: the identification of important attributes
    in the choice process will impact both product
    development and promotional strategy. For example, if
    consumers employ a lexicographic choice process, it is
    critical to for brand to be rated highest on the most
    important attribute. Thus, create product and
    promotional strategy accordingly.
     Segmentation: Consumers can be segmented by their
    degree of search and by whether they engage in pre-
    need search. Also consumers can be segmented based
    upon their dominant desired state.

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