CONSUMER DECISION MAKING
THE GENERIC MODEL REVISITED
problem recognition
=====>search
=====>alternative evaluation
=====>choice
=====>postacquisition processes
Recall: we noted that our interest is in various
influencers or moderators on this generic model. These
influencers can be loosely classified as:
- intrinsic
- extrinsic
- environmental/situational
PROBLEM RECOGNITION
occurs when there is a difference between a desired
state and an actual state.
The desire to resolve a particular problem depends on two factors:
- the magnitude of the discrepancy between the desired
and actual states
- the relative importance of the problem
SEARCH
- internal search
- external search
Internal Search
- awareness set
brands about which the person is aware
- evoked set
brands which come to mind in a particular situation
- consideration set
brands which are considered acceptable for further consideration
- inert set
brands about which the person is indifferent
- inept set
brands considered unacceptable
SEARCH
Sources of Information:
- Memory of past searches, personal experiences, and
low-involvement learning
- Personal sources such as friends and family
- Independent sources such as consumer groups and government agencies
- Marketing sources such as sales personnel and advertising
- Experiential sources such as inspection or product trial
ALTERNATIVE EVALUATION
associated with the formation of beliefs and evaluations
Perceived risk can be an important influence in how
people evaluate potential outcomes.
Measurement of Evaluative Criteria:
- direct methods:
- ask consumers what information they use in a particular purchase
- observe what consumers say about products and their attributes;
e.g., focus groups
- indirect methods:
- projective techniques:
allow a person to indicate what criteria someone else might use
- perceptual mapping:
consumers judge the similarity of alternative brands (often by
ranking), which is processed by a computer to derive a spatial
configuration
PRODUCT POSITIONING
refers to the place an offering occupies in consumers' minds
on important attributes relative to competitive offerings
E.g., which is more sporty, Porsche, Mercedes, or Cadillac?
More prestigious? Expensive? Escort, Miata, Neon, Viper?
What are some dimensions, or characteristics, that you might
use to assess business schools?
On each of these dimensions, where would you position several
schools relative to each other? E.G., Harvard University,
Michigan State, Podunk College, Branfield Community Tech.
PERCEPTUAL MAP:
a means of displaying or graphing on two dimensions the location
of products or brands in the minds of consumers
REPOSITIONING:
changing the place an offering occupies in consumers' minds
relative to competitive offerings.
QUALITATIVE RESEARCH
Uses nonstatistical, unstructured research methods in which
consumers are enticed to reveal what they can about their
innermost thoughts, feelings, and motivations.
- focus group
- in-depth personal interviews
- projective tests
PROJECTIVE TESTS
sentence completion
- "People buy a Porsche _________________."
story completion
- Respondents complete a story.
cartoon techniques
- Respondents fill in the words or thoughts of a character
in a cartoon drawing
picture
- Respondents tell a story about a person shown in some
situation.
ALTERNATIVE EVALUATION
Surrogate indicator:
readily observable attribute of a product used to represent
the performance level of a less observable attribute
- e.g., price and brand name are often used by consumers
as surrogate indicators of quality
Framing:
how a person perceives the value of something in relation to
something else
- e.g., "mfgr's. suggested retail price"
CHOICE
Note that some people are satisficers and some people
are optimizers in specific situational contexts.
Heuristics are the "rules of thumb" that people use to
make judgments and decisions.
- e.g.,
- choice heuristic: never buy a car in the first
model year
- search heuristic: if buying a computer, go to Wong's
for the best deal
POSTACQUISITION
the consumption, disposition, and postchoice evaluation of goods,
services, and ideas
consumption
use and depletion of the product
- Consumer satisfaction is the overall attitude
associated with a good or service after its acquisition and
use.
- Satisfaction or dissatisfaction is the
difference between what was what is experienced and what
was expected.
POSTACQUISITION
A consumer has low-performance expectations for a product,
and after use, performance is perceived as worse than expected.
This consumer will be dissatisfied.
A consumer has low-performance expectations for a product,
and after use, performance is perceived as better than expected.
This consumer will be satisfied.
PURCHASE BEHAVIOR
impulse purchases
occur when a consumer experiences a sudden urge to buy something
immediately without a buying intention formed prior to entering a
store
compulsive consumption
a response to an uncontrollable drive to use or experience
something that leads to a repetitive behavior that will
ultimately cause harm to the person or others
variety-seeking purchases
associated with the tendency of consumers to buy a new brand
of product even though satisfied with the previously purchased
brand
PURCHASE INVOLVEMENT
level of concern for, or interest in, the purchase process
relevant to a particular purchase
Habitual decision making:
- a problem is recognized
- long term memory provides a single preferred brand
- that brand is purchased
- only limited postpurchase evaluation occurs
- associated with low involvement
- associated with repeat purchases and brand loyalty
Limited decision making
Extended decision making:
- increased information search
- more extensive and complex alternative evaluation
- more thorough postpurchase evaluation
- associated with high involvement
